I 
114TH CONGRESS 
2D SESSION 
H. R. 5398 
To amend the Immigration and Nationality Act to reform the United States 
immigration system to provide for a competitive America, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 7, 2016 
Mr. RICE of South Carolina introduced the following bill; which was referred 
to the Committee on the Judiciary, and in addition to the Committees 
on Ways and Means, Homeland Security, Foreign Affairs, and Education 
and the Workforce, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Immigration and Nationality Act to reform 
the United States immigration system to provide for 
a competitive America, 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 ‘‘Immigration for a 
Competitive America Act of 2016’’. 
Sec. 1. Short title. 
TITLE I—CHANGE IN IMMIGRATION ADMISSIONS CAPS 
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Sec. 101. Family-sponsored immigrants reduced; employment-sponsored immi-
grants increased. 
Sec. 102. Increased limits for certain employment-based visas. 
Sec. 103. Conforming amendments. 
TITLE II—LEGAL WORKFORCE ACT 
Sec. 201. Employment eligibility verification process. 
Sec. 202. Employment eligibility verification system. 
Sec. 203. Recruitment, referral, and continuation of employment. 
Sec. 204. Good faith defense. 
Sec. 205. Preemption and States’ Rights. 
Sec. 206. Repeal. 
Sec. 207. Penalties. 
Sec. 208. Fraud and misuse of documents. 
Sec. 209. Protection of Social Security Administration programs. 
Sec. 210. Fraud prevention. 
Sec. 211. Identity authentication employment eligibility verification pilot pro-
gram. 
Sec. 212. Inspector General audits. 
TITLE III—TAX PROVISIONS 
Sec. 301. Denial of earned income tax credit for aliens receiving work author-
ization pursuant to certain deferred action programs. 
Sec. 302. Requiring social security number for child tax credit and denying 
such credit for aliens receiving work authorization pursuant to 
certain deferred action programs. 
TITLE IV—SUSPENSION OF FOREIGN ASSISTANCE 
Sec. 401. Suspension of foreign assistance. 
TITLE V—NONIMMIGRANT LABORER NUMERICAL LIMITATIONS 
EXPANDED 
Sec. 501. H–2B workers. 
Sec. 502. H–2A workers. 
TITLE VI—LIMITATIONS ON ISSUANCE OF VISAS 
Sec. 601. Security certification. 
Sec. 602. Inspector General review. 
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TITLE I—CHANGE IN IMMIGRA-
TION ADMISSIONS CAPS 
SEC. 101. FAMILY-SPONSORED IMMIGRANTS REDUCED; EM-
PLOYMENT-SPONSORED 
IMMIGRANTS 
IN-
CREASED. 
Section 201 of the Immigration and Nationality Act 
(8 U.S.C. 1151) is amended— 
(1) in subsection (c)(1)(B)(ii), by striking 
‘‘226,000’’ and inserting ‘‘113,000’’; and 
(2) 
in 
subsection 
(d)(1)(A), 
by 
striking 
‘‘140,000’’ and inserting ‘‘253,000’’. 
SEC. 102. INCREASED LIMITS FOR CERTAIN EMPLOYMENT- 
BASED VISAS. 
Section 203(b) of the Immigration and Nationality 
Act (8 U.S.C. 1153(b)) is amended— 
(1) in paragraph (3)(B), by striking ‘‘10,000’’ 
and inserting ‘‘15,500’’; 
(2) in paragraph (4), by striking ‘‘5,000’’ and 
inserting ‘‘7,750’’; and 
(3) in paragraph (5)(B)(i), by striking ‘‘3,000’’ 
and inserting ‘‘4,650’’. 
SEC. 103. CONFORMING AMENDMENTS. 
Section 203(a) of the Immigration and Nationality 
Act (8 U.S.C. 1153(a)) is amended— 
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(1) in paragraph (1), by striking ‘‘23,400’’ and 
inserting ‘‘11,700’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘114,200’’ and inserting 
‘‘57,100’’; and 
(B) by striking ‘‘226,000’’ and inserting 
‘‘113,000’’; 
(3) in paragraph (3), by striking ‘‘23,400’’ and 
inserting ‘‘11,700’’; and 
(4) in paragraph (4), by striking ‘‘65,000’’ and 
inserting ‘‘32,500’’. 
TITLE II—LEGAL WORKFORCE 
ACT 
SEC. 201. EMPLOYMENT ELIGIBILITY VERIFICATION PROC-
ESS. 
(a) IN GENERAL.—Section 274A(b) of the Immigra-
tion and Nationality Act (8 U.S.C. 1324a(b)) is amended 
to read as follows: 
‘‘(b) 
EMPLOYMENT
ELIGIBILITY
VERIFICATION 
PROCESS.— 
‘‘(1) NEW HIRES, RECRUITMENT, AND REFER-
RAL.—The requirements referred to in paragraphs 
(1)(B) and (3) of subsection (a) are, in the case of 
a person or other entity hiring, recruiting, or refer-
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ring an individual for employment in the United 
States, the following: 
‘‘(A) ATTESTATION
AFTER
EXAMINATION 
OF DOCUMENTATION.— 
‘‘(i) 
ATTESTATION.—During 
the 
verification period (as defined in subpara-
graph (E)), the person or entity shall at-
test, under penalty of perjury and on a 
form, including electronic and telephonic 
formats, designated or established by the 
Secretary by regulation not later than 6 
months after the date of the enactment of 
the Immigration for a Competitive America 
Act of 2016, that it has verified that the 
individual is not an unauthorized alien 
by— 
‘‘(I) obtaining from the indi-
vidual the individual’s social security 
account number and recording the 
number on the form (if the individual 
claims to have been issued such a 
number), and, if the individual does 
not attest to United States nationality 
under subparagraph (B), obtaining 
such identification or authorization 
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number established by the Depart-
ment of Homeland Security for the 
alien as the Secretary of Homeland 
Security may specify, and recording 
such number on the form; and 
‘‘(II) examining— 
‘‘(aa) a document relating to 
the individual presenting it de-
scribed in clause (ii); or 
‘‘(bb) a document relating to 
the individual presenting it de-
scribed in clause (iii) and a docu-
ment relating to the individual 
presenting it described in clause 
(iv). 
‘‘(ii) DOCUMENTS
EVIDENCING
EM-
PLOYMENT
AUTHORIZATION
AND
ESTAB-
LISHING
IDENTITY.—A 
document 
de-
scribed in this subparagraph is an individ-
ual’s— 
‘‘(I) unexpired United States 
passport or passport card; 
‘‘(II) unexpired permanent resi-
dent card that contains a photograph; 
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‘‘(III) unexpired employment au-
thorization card that contains a pho-
tograph; 
‘‘(IV) in the case of a non-
immigrant alien authorized to work 
for a specific employer incident to sta-
tus, a foreign passport with Form I– 
94 or Form I–94A, or other docu-
mentation as designated by the Sec-
retary specifying the alien’s non-
immigrant status as long as the pe-
riod of status has not yet expired and 
the proposed employment is not in 
conflict with any restrictions or limita-
tions identified in the documentation; 
‘‘(V) passport from the Fed-
erated States of Micronesia (FSM) or 
the Republic of the Marshall Islands 
(RMI) with Form I–94 or Form I– 
94A, or other documentation as des-
ignated by the Secretary, indicating 
nonimmigrant admission under the 
Compact of Free Association Between 
the United States and the FSM or 
RMI; or 
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‘‘(VI) other document designated 
by the Secretary of Homeland Secu-
rity, if the document— 
‘‘(aa) contains a photograph 
of the individual and biometric 
identification data from the indi-
vidual and such other personal 
identifying information relating 
to the individual as the Secretary 
of Homeland Security finds, by 
regulation, sufficient for purposes 
of this clause; 
‘‘(bb) is evidence of author-
ization of employment in the 
United States; and 
‘‘(cc) contains security fea-
tures to make it resistant to tam-
pering, counterfeiting, and fraud-
ulent use. 
‘‘(iii) DOCUMENTS
EVIDENCING
EM-
PLOYMENT AUTHORIZATION.—A document 
described in this subparagraph is an indi-
vidual’s social security account number 
card (other than such a card which speci-
fies on the face that the issuance of the 
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card does not authorize employment in the 
United States). 
‘‘(iv) 
DOCUMENTS
ESTABLISHING 
IDENTITY
OF
INDIVIDUAL.—A document 
described in this subparagraph is— 
‘‘(I) an individual’s unexpired 
State issued driver’s license or identi-
fication card if it contains a photo-
graph and information such as name, 
date of birth, gender, height, eye 
color, and address; 
‘‘(II) an individual’s unexpired 
U.S. military identification card; 
‘‘(III) an individual’s unexpired 
Native American tribal identification 
document issued by a tribal entity rec-
ognized by the Bureau of Indian Af-
fairs; or 
‘‘(IV) in the case of an individual 
under 18 years of age, a parent or 
legal guardian’s attestation under 
penalty of law as to the identity and 
age of the individual. 
‘‘(v) AUTHORITY TO PROHIBIT USE OF 
CERTAIN DOCUMENTS.—If the Secretary of 
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Homeland Security finds, by regulation, 
that any document described in clause (i), 
(ii), or (iii) as establishing employment au-
thorization or identity does not reliably es-
tablish such authorization or identity or is 
being used fraudulently to an unacceptable 
degree, the Secretary may prohibit or place 
conditions on its use for purposes of this 
paragraph. 
‘‘(vi) SIGNATURE.—Such attestation 
may be manifested by either a handwritten 
or electronic signature. 
‘‘(B) INDIVIDUAL
ATTESTATION
OF
EM-
PLOYMENT
AUTHORIZATION.—During 
the 
verification period (as defined in subparagraph 
(E)), the individual shall attest, under penalty 
of perjury on the form designated or established 
for purposes of subparagraph (A), that the indi-
vidual is a citizen or national of the United 
States, an alien lawfully admitted for perma-
nent residence, or an alien who is authorized 
under this Act or by the Secretary of Homeland 
Security to be hired, recruited, or referred for 
such employment. Such attestation may be 
manifested by either a handwritten or electronic 
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signature. The individual shall also provide that 
individual’s social security account number (if 
the individual claims to have been issued such 
a number), and, if the individual does not attest 
to United States nationality under this sub-
paragraph, such identification or authorization 
number established by the Department of 
Homeland Security for the alien as the Sec-
retary may specify. 
‘‘(C) RETENTION OF VERIFICATION FORM 
AND VERIFICATION.— 
‘‘(i) IN GENERAL.—After completion 
of such form in accordance with subpara-
graphs (A) and (B), the person or entity 
shall— 
‘‘(I) retain a paper, microfiche, 
microfilm, or electronic version of the 
form and make it available for inspec-
tion by officers of the Department of 
Homeland Security, the Special Coun-
sel for Immigration-Related Unfair 
Employment Practices, or the Depart-
ment of Labor during a period begin-
ning on the date of the recruiting or 
referral of the individual, or, in the 
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case of the hiring of an individual, the 
date on which the verification is com-
pleted, and ending— 
‘‘(aa) in the case of the re-
cruiting or referral of an indi-
vidual, 3 years after the date of 
the recruiting or referral; and 
‘‘(bb) in the case of the hir-
ing of an individual, the later of 
3 years after the date the 
verification is completed or one 
year after the date the individ-
ual’s employment is terminated; 
and 
‘‘(II) during the verification pe-
riod (as defined in subparagraph (E)), 
make an inquiry, as provided in sub-
section (d), using the verification sys-
tem to seek verification of the identity 
and employment eligibility of an indi-
vidual. 
‘‘(ii) CONFIRMATION.— 
‘‘(I) 
CONFIRMATION
RE-
CEIVED.—If the person or other entity 
receives an appropriate confirmation 
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of an individual’s identity and work 
eligibility under the verification sys-
tem within the time period specified, 
the person or entity shall record on 
the form an appropriate code that is 
provided under the system and that 
indicates a final confirmation of such 
identity and work eligibility of the in-
dividual. 
‘‘(II) TENTATIVE NONCONFIRMA-
TION
RECEIVED.—If the person or 
other entity receives a tentative non-
confirmation of an individual’s iden-
tity or work eligibility under the 
verification system within the time pe-
riod specified, the person or entity 
shall so inform the individual for 
whom the verification is sought. If the 
individual does not contest the non-
confirmation within the time period 
specified, the nonconfirmation shall be 
considered final. The person or entity 
shall then record on the form an ap-
propriate code which has been pro-
vided under the system to indicate a 
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final nonconfirmation. If the indi-
vidual does contest the nonconfirma-
tion, the individual shall utilize the 
process for secondary verification pro-
vided under subsection (d). The non-
confirmation will remain tentative 
until a final confirmation or noncon-
firmation 
is 
provided 
by 
the 
verification system within the time pe-
riod specified. In no case shall an em-
ployer terminate employment of an in-
dividual because of a failure of the in-
dividual to have identity and work eli-
gibility confirmed under this section 
until a nonconfirmation becomes final. 
Nothing in this clause shall apply to a 
termination of employment for any 
reason other than because of such a 
failure. In no case shall an employer 
rescind the offer of employment to an 
individual because of a failure of the 
individual to have identity and work 
eligibility confirmed under this sub-
section until a nonconfirmation be-
comes final. Nothing in this subclause 
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shall apply to a rescission of the offer 
of employment for any reason other 
than because of such a failure. 
‘‘(III) FINAL CONFIRMATION OR 
NONCONFIRMATION
RECEIVED.—If a 
final confirmation or nonconfirmation 
is provided by the verification system 
regarding an individual, the person or 
entity shall record on the form an ap-
propriate code that is provided under 
the system and that indicates a con-
firmation or nonconfirmation of iden-
tity and work eligibility of the indi-
vidual. 
‘‘(IV) EXTENSION OF TIME.—If 
the person or other entity in good 
faith attempts to make an inquiry 
during the time period specified and 
the verification system has registered 
that not all inquiries were received 
during such time, the person or entity 
may make an inquiry in the first sub-
sequent working day in which the 
verification system registers that it 
has received all inquiries. If the 
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verification system cannot receive in-
quiries at all times during a day, the 
person or entity merely has to assert 
that the entity attempted to make the 
inquiry on that day for the previous 
sentence to apply to such an inquiry, 
and does not have to provide any ad-
ditional proof concerning such inquiry. 
‘‘(V) CONSEQUENCES
OF
NON-
CONFIRMATION.— 
‘‘(aa) TERMINATION OR NO-
TIFICATION OF CONTINUED EM-
PLOYMENT.—If the person or 
other entity has received a final 
nonconfirmation regarding an in-
dividual, the person or entity 
may terminate employment of the 
individual (or decline to recruit 
or refer the individual). If the 
person or entity does not termi-
nate employment of the indi-
vidual or proceeds to recruit or 
refer the individual, the person or 
entity shall notify the Secretary 
of Homeland Security of such 
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fact through the verification sys-
tem or in such other manner as 
the Secretary may specify. 
‘‘(bb) 
FAILURE
TO
NO-
TIFY.—If the person or entity 
fails to provide notice with re-
spect to an individual as required 
under item (aa), the failure is 
deemed to constitute a violation 
of subsection (a)(1)(A) with re-
spect to that individual. 
‘‘(VI) CONTINUED EMPLOYMENT 
AFTER FINAL NONCONFIRMATION.—If 
the person or other entity continues to 
employ (or to recruit or refer) an indi-
vidual after receiving final noncon-
firmation, a rebuttable presumption is 
created that the person or entity has 
violated subsection (a)(1)(A). 
‘‘(D) EFFECTIVE DATES OF NEW PROCE-
DURES.— 
‘‘(i) HIRING.—Except as provided in 
clause (iii), the provisions of this para-
graph shall apply to a person or other enti-
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ty hiring an individual for employment in 
the United States as follows: 
‘‘(I) With respect to employers 
having 10,000 or more employees in 
the United States on the date of the 
enactment of the Immigration for a 
Competitive America Act of 2016, on 
the date that is 6 months after the 
date of the enactment of such Act. 
‘‘(II) With respect to employers 
having 500 or more employees in the 
United States, but less than 10,000 
employees in the United States, on 
the date of the enactment of the Im-
migration for a Competitive America 
Act of 2016, on the date that is 12 
months after the date of the enact-
ment of such Act. 
‘‘(III) With respect to employers 
having 20 or more employees in the 
United States, but less than 500 em-
ployees in the United States, on the 
date of the enactment of the Immigra-
tion for a Competitive America Act of 
2016, on the date that is 18 months 
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after the date of the enactment of 
such Act. 
‘‘(IV) With respect to employers 
having 1 or more employees in the 
United States, but less than 20 em-
ployees in the United States, on the 
date of the enactment of the Immigra-
tion for a Competitive America Act of 
2016, on the date that is 24 months 
after the date of the enactment of 
such Act. 
‘‘(ii) RECRUITING AND REFERRING.— 
Except as provided in clause (iii), the pro-
visions of this paragraph shall apply to a 
person or other entity recruiting or refer-
ring an individual for employment in the 
United States on the date that is 12 
months after the date of the enactment of 
the Immigration for a Competitive America 
Act of 2016. 
‘‘(iii) AGRICULTURAL LABOR OR SERV-
ICES.—With respect to an employee per-
forming agricultural labor or services, this 
paragraph shall not apply with respect to 
the verification of the employee until the 
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date that is 24 months after the date of 
the enactment of the Immigration for a 
Competitive America Act of 2016. For 
purposes of the preceding sentence, the 
term ‘agricultural labor or services’ has the 
meaning given such term by the Secretary 
of Agriculture in regulations and includes 
agricultural labor as defined in section 
3121(g) of the Internal Revenue Code of 
1986, agriculture as defined in section 3(f) 
of the Fair Labor Standards Act of 1938 
(29 U.S.C. 203(f)), the handling, planting, 
drying, packing, packaging, processing, 
freezing, or grading prior to delivery for 
storage of any agricultural or horticultural 
commodity in its unmanufactured state, all 
activities required for the preparation, 
processing or manufacturing of a product 
of agriculture (as such term is defined in 
such section 3(f)) for further distribution, 
and activities similar to all the foregoing 
as they relate to fish or shellfish in aqua-
culture facilities. An employee described in 
this clause shall not be counted for pur-
poses of clause (i). 
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‘‘(iv) TRANSITION RULE.—Subject to 
paragraph (4), the following shall apply to 
a person or other entity hiring, recruiting, 
or referring an individual for employment 
in the United States until the effective 
date or dates applicable under clauses (i) 
through (iii): 
‘‘(I) This subsection, as in effect 
before the enactment of the Immigra-
tion for a Competitive America Act of 
2016. 
‘‘(II) Subtitle A of title IV of the 
Illegal Immigration Reform and Im-
migrant Responsibility Act of 1996 (8 
U.S.C. 1324a note), as in effect be-
fore the effective date in section 
206(c) of the Immigration for a Com-
petitive America Act of 2016. 
‘‘(III) Any other provision of 
Federal law requiring the person or 
entity to participate in the E-Verify 
Program described in section 403(a) 
of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note), as in effect be-
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fore the effective date in section 
206(c) of the Immigration for a Com-
petitive America Act of 2016, includ-
ing Executive Order 13465 (8 U.S.C. 
1324a note; relating to Government 
procurement). 
‘‘(E) VERIFICATION PERIOD DEFINED.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph: 
‘‘(I) In the case of recruitment or 
referral, the term ‘verification period’ 
means the period ending on the date 
recruiting or referring commences. 
‘‘(II) In the case of hiring, the 
term ‘verification period’ means the 
period beginning on the date on which 
an offer of employment is extended 
and ending on the date that is 3 busi-
ness days after the date of hire, ex-
cept as provided in clause (iii). The 
offer of employment may be condi-
tioned in accordance with clause (ii). 
‘‘(ii) JOB
OFFER
MAY
BE
CONDI-
TIONAL.—A person or other entity may 
offer a prospective employee an employ-
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ment position that is conditioned on final 
verification of the identity and employment 
eligibility of the employee using the proce-
dures established under this paragraph. 
‘‘(iii) 
SPECIAL
RULE.—Notwith-
standing clause (i)(II), in the case of an 
alien who is authorized for employment 
and who provides evidence from the Social 
Security Administration that the alien has 
applied for a social security account num-
ber, the verification period ends three busi-
ness days after the alien receives the social 
security account number. 
‘‘(2) REVERIFICATION FOR INDIVIDUALS WITH 
LIMITED WORK AUTHORIZATION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a person or entity shall 
make an inquiry, as provided in subsection (d), 
using 
the 
verification 
system 
to 
seek 
reverification of the identity and employment 
eligibility of all individuals with a limited period 
of work authorization employed by the person 
or entity during the 3 business days before the 
date on which the employee’s work authoriza-
tion expires as follows: 
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‘‘(i) With respect to employers having 
10,000 or more employees in the United 
States on the date of the enactment of the 
Immigration for a Competitive America 
Act of 2016, beginning on the date that is 
6 months after the date of the enactment 
of such Act. 
‘‘(ii) With respect to employers having 
500 or more employees in the United 
States, but less than 10,000 employees in 
the United States, on the date of the en-
actment of the Immigration for a Competi-
tive America Act of 2016, beginning on the 
date that is 12 months after the date of 
the enactment of such Act. 
‘‘(iii) With respect to employers hav-
ing 20 or more employees in the United 
States, but less than 500 employees in the 
United States, on the date of the enact-
ment of the Immigration for a Competitive 
America Act of 2016, beginning on the 
date that is 18 months after the date of 
the enactment of such Act. 
‘‘(iv) With respect to employers hav-
ing 1 or more employees in the United 
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States, but less than 20 employees in the 
United States, on the date of the enact-
ment of the Immigration for a Competitive 
America Act of 2016, beginning on the 
date that is 24 months after the date of 
the enactment of such Act. 
‘‘(B) AGRICULTURAL
LABOR
OR
SERV-
ICES.—With respect to an employee performing 
agricultural labor or services, or an employee 
recruited or referred by a farm labor contractor 
(as defined in section 3 of the Migrant and Sea-
sonal Agricultural Worker Protection Act (29 
U.S.C. 1801)), subparagraph (A) shall not 
apply with respect to the reverification of the 
employee until the date that is 24 months after 
the date of the enactment of the Immigration 
for a Competitive America Act of 2016. For 
purposes of the preceding sentence, the term 
‘agricultural labor or services’ has the meaning 
given such term by the Secretary of Agriculture 
in regulations and includes agricultural labor as 
defined in section 3121(g) of the Internal Rev-
enue Code of 1986, agriculture as defined in 
section 3(f) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 203(f)), the handling, plant-
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ing, drying, packing, packaging, processing, 
freezing, or grading prior to delivery for storage 
of any agricultural or horticultural commodity 
in its unmanufactured state, all activities re-
quired for the preparation, processing, or man-
ufacturing of a product of agriculture (as such 
term is defined in such section 3(f)) for further 
distribution, and activities similar to all the 
foregoing as they relate to fish or shellfish in 
aquaculture facilities. An employee described in 
this subparagraph shall not be counted for pur-
poses of subparagraph (A). 
‘‘(C) 
REVERIFICATION.—Paragraph 
(1)(C)(ii) shall apply to reverifications pursuant 
to this paragraph on the same basis as it ap-
plies to verifications pursuant to paragraph (1), 
except that employers shall— 
‘‘(i) use a form designated or estab-
lished by the Secretary by regulation for 
purposes of this paragraph; and 
‘‘(ii) 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-
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lated Unfair Employment Practices, or the 
Department of Labor during the period be-
ginning on the date the reverification com-
mences and ending on the date that is the 
later of 3 years after the date of such 
reverification or 1 year after the date the 
individual’s employment is terminated. 
‘‘(3) PREVIOUSLY HIRED INDIVIDUALS.— 
‘‘(A) ON A MANDATORY BASIS FOR CER-
TAIN EMPLOYEES.— 
‘‘(i) IN GENERAL.—Not later than the 
date that is 6 months after the date of the 
enactment of the Immigration for a Com-
petitive America Act of 2016, an employer 
shall make an inquiry, as provided in sub-
section (d), using the verification system to 
seek verification of the identity and em-
ployment eligibility of any individual de-
scribed in clause (ii) employed by the em-
ployer whose employment eligibility has not 
been verified under the E-Verify Program 
described in section 403(a) of the Illegal 
Immigration Reform and Immigrant Re-
sponsibility Act of 1996 (8 U.S.C. 1324a 
note). 
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‘‘(ii) INDIVIDUALS
DESCRIBED.—An 
individual described in this clause is any of 
the following: 
‘‘(I) An employee of any unit of 
a Federal, State, or local government. 
‘‘(II) An employee who requires a 
Federal security clearance working in 
a Federal, State or local government 
building, a military base, a nuclear 
energy site, a weapons site, or an air-
port or other facility that requires 
workers to carry a Transportation 
Worker 
Identification 
Credential 
(TWIC). 
‘‘(III) An employee assigned to 
perform work in the United States 
under a Federal contract, except that 
this subclause— 
‘‘(aa) is not applicable to in-
dividuals who have a clearance 
under Homeland Security Presi-
dential Directive 12 (HSPD 12 
clearance), are administrative or 
overhead personnel, or are work-
ing solely on contracts that pro-
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vide Commercial Off The Shelf 
goods or services as set forth by 
the Federal Acquisition Regu-
latory Council, unless they are 
subject to verification under sub-
clause (II); and 
‘‘(bb) only applies to con-
tracts over the simple acquisition 
threshold as defined in section 
2.101 of title 48, Code of Federal 
Regulations. 
‘‘(B) ON A MANDATORY BASIS FOR MUL-
TIPLE USERS OF SAME SOCIAL SECURITY AC-
COUNT NUMBER.—In the case of an employer 
who is required by this subsection to use the 
verification system described in subsection (d), 
or has elected voluntarily to use such system, 
the employer shall make inquiries to the system 
in accordance with the following: 
‘‘(i) The Commissioner of Social Secu-
rity shall notify annually employees (at the 
employee address listed on the Wage and 
Tax Statement) who submit a social secu-
rity account number to which more than 
one employer reports income and for which 
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there is a pattern of unusual multiple use. 
The notification letter shall identify the 
number of employers to which income is 
being reported as well as sufficient infor-
mation notifying the employee of the proc-
ess to contact the Social Security Adminis-
tration Fraud Hotline if the employee be-
lieves the employee’s identity may have 
been stolen. The notice shall not share in-
formation protected as private, in order to 
avoid any recipient of the notice from 
being in the position to further commit or 
begin committing identity theft. 
‘‘(ii) If the person to whom the social 
security account number was issued by the 
Social Security Administration has been 
identified and confirmed by the Commis-
sioner, and indicates that the social secu-
rity account number was used without 
their knowledge, the Secretary and the 
Commissioner shall lock the social security 
account number for employment eligibility 
verification purposes and shall notify the 
employers of the individuals who wrong-
fully submitted the social security account 
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number that the employee may not be 
work eligible. 
‘‘(iii) Each employer receiving such 
notification of an incorrect social security 
account number under clause (ii) shall use 
the verification system described in sub-
section (d) to check the work eligibility sta-
tus of the applicable employee within 10 
business days of receipt of the notification. 
‘‘(C) ON A VOLUNTARY BASIS.—Subject to 
paragraph (2), and subparagraphs (A) through 
(C) of this paragraph, beginning on the date 
that is 30 days after the date of the enactment 
of the Immigration for a Competitive America 
Act of 2016, an employer may make an inquiry, 
as provided in subsection (d), using the 
verification system to seek verification of the 
identity and employment eligibility of any indi-
vidual employed by the employer. If an em-
ployer chooses voluntarily to seek verification of 
any individual employed by the employer, the 
employer shall seek verification of all individ-
uals so employed. An employer’s decision about 
whether or not voluntarily to seek verification 
of its current workforce under this subpara-
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graph may not be considered by any govern-
ment agency in any proceeding, investigation, 
or review provided for in this Act. 
‘‘(D) 
VERIFICATION.—Paragraph 
(1)(C)(ii) shall apply to verifications pursuant 
to this paragraph on the same basis as it ap-
plies to verifications pursuant to paragraph (1), 
except that employers shall— 
‘‘(i) use a form designated or estab-
lished by the Secretary by regulation for 
purposes of this paragraph; and 
‘‘(ii) 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 the period be-
ginning on the date the verification com-
mences and ending on the date that is the 
later of 3 years after the date of such 
verification or 1 year after the date the in-
dividual’s employment is terminated. 
‘‘(4) EARLY COMPLIANCE.— 
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petitive America Act of 2016, the Secretary 
shall provide for the voluntary compliance with 
the requirements of this subsection by employ-
ers voluntarily electing to participate in the E- 
Verify Program described in section 403(a) of 
the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (8 U.S.C. 1324a 
note) before such date, as well as by other em-
ployers seeking voluntary early compliance. 
‘‘(5) 
COPYING
OF
DOCUMENTATION
PER-
MITTED.—Notwithstanding any other provision of 
law, the person or entity may copy a document pre-
sented by an individual pursuant to this subsection 
and may retain the copy, but only (except as other-
wise permitted under law) for the purpose of com-
plying with the requirements of this subsection. 
‘‘(6) LIMITATION ON USE OF FORMS.—A form 
designated or established by the Secretary of Home-
land Security under this subsection and any infor-
mation contained in or appended to such form, may 
not be used for purposes other than for enforcement 
of this Act and any other provision of Federal crimi-
nal law. 
‘‘(7) GOOD FAITH COMPLIANCE.— 
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‘‘(A) IN GENERAL.—Except as otherwise 
provided in this subsection, a person or entity 
is considered to have complied with a require-
ment of this subsection notwithstanding a tech-
nical or procedural failure to meet such require-
ment if there was a good faith attempt to com-
ply with the requirement. 
‘‘(B) EXCEPTION IF FAILURE TO CORRECT 
AFTER
NOTICE.—Subparagraph (A) shall not 
apply if— 
‘‘(i) the failure is not de minimis; 
‘‘(ii) the Secretary of Homeland Secu-
rity has explained to the person or entity 
the basis for the failure and why it is not 
de minimis; 
‘‘(iii) the person or entity has been 
provided a period of not less than 30 cal-
endar days (beginning after the date of the 
explanation) within which to correct the 
failure; and 
‘‘(iv) the person or entity has not cor-
rected the failure voluntarily within such 
period. 
‘‘(C) EXCEPTION FOR PATTERN OR PRAC-
TICE VIOLATORS.—Subparagraph (A) shall not 
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apply to a person or entity that has or is engag-
ing in a pattern or practice of violations of sub-
section (a)(1)(A) or (a)(2). 
‘‘(8) SINGLE EXTENSION OF DEADLINES UPON 
CERTIFICATION.—In a case in which the Secretary 
of Homeland Security has certified to the Congress 
that the employment eligibility verification system 
required under subsection (d) will not be fully oper-
ational by the date that is 6 months after the date 
of the enactment of the Immigration for a Competi-
tive America Act of 2016, each deadline established 
under this section for an employer to make an in-
quiry using such system shall be extended by 6 
months. No other extension of such a deadline shall 
be made.’’. 
(b) DATE OF HIRE.—Section 274A(h) of the Immi-
gration and Nationality Act (8 U.S.C. 1324a(h)) is 
amended by adding at the end the following: 
‘‘(4) DEFINITION OF DATE OF HIRE.—As used 
in this section, the term ‘date of hire’ means the 
date of actual commencement of employment for 
wages or other remuneration, unless otherwise speci-
fied.’’. 
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SEC. 202. EMPLOYMENT ELIGIBILITY VERIFICATION SYS-
TEM. 
Section 274A(d) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(d)) is amended to read as follows: 
‘‘(d) EMPLOYMENT ELIGIBILITY VERIFICATION SYS-
TEM.— 
‘‘(1) IN GENERAL.—Patterned on the employ-
ment eligibility confirmation system established 
under section 404 of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 
1324a note), the Secretary of Homeland Security 
shall establish and administer a verification system 
through which the Secretary (or a designee of the 
Secretary, which may be a nongovernmental enti-
ty)— 
‘‘(A) responds to inquiries made by per-
sons at any time through a toll-free telephone 
line and other toll-free electronic media con-
cerning an individual’s identity and whether the 
individual is authorized to be employed; and 
‘‘(B) maintains records of the inquiries 
that were made, of verifications provided (or 
not provided), and of the codes provided to in-
quirers as evidence of their compliance with 
their obligations under this section. 
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‘‘(2) INITIAL RESPONSE.—The verification sys-
tem shall provide confirmation or a tentative non-
confirmation of an individual’s identity and employ-
ment eligibility within 3 working days of the initial 
inquiry. If providing confirmation or tentative non-
confirmation, the verification system shall provide an 
appropriate code indicating such confirmation or 
such nonconfirmation. 
‘‘(3) SECONDARY CONFIRMATION PROCESS IN 
CASE OF TENTATIVE NONCONFIRMATION.—In cases 
of tentative nonconfirmation, the Secretary shall 
specify, in consultation with the Commissioner of 
Social Security, an available secondary verification 
process to confirm the validity of information pro-
vided and to provide a final confirmation or noncon-
firmation not later than 10 working days after the 
date on which the notice of the tentative noncon-
firmation is received by the employee. The Secretary, 
in consultation with the Commissioner, may extend 
this deadline once on a case-by-case basis for a pe-
riod of 10 working days, and if the time is extended, 
shall document such extension within the verification 
system. The Secretary, in consultation with the 
Commissioner, shall notify the employee and em-
ployer of such extension. The Secretary, in consulta-
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tion with the Commissioner, shall create a standard 
process of such extension and notification and shall 
make a description of such process available to the 
public. When final confirmation or nonconfirmation 
is provided, the verification system shall provide an 
appropriate code indicating such confirmation or 
nonconfirmation. 
‘‘(4) DESIGN AND OPERATION OF SYSTEM.— 
The verification system shall be designed and oper-
ated— 
‘‘(A) 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; 
‘‘(B) to respond to all inquiries made by 
such persons and entities on whether individ-
uals are authorized to be employed and to reg-
ister all times when such inquiries are not re-
ceived; 
‘‘(C) with appropriate administrative, tech-
nical, and physical safeguards to prevent unau-
thorized disclosure of personal information; 
‘‘(D) to have reasonable safeguards against 
the system’s resulting in unlawful discrimina-
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tory practices based on national origin or citi-
zenship status, including— 
‘‘(i) the selective or unauthorized use 
of the system to verify eligibility; or 
‘‘(ii) the exclusion of certain individ-
uals from consideration for employment as 
a result of a perceived likelihood that addi-
tional verification will be required, beyond 
what is required for most job applicants; 
‘‘(E) to maximize the prevention of iden-
tity theft use in the system; and 
‘‘(F) to limit the subjects of verification to 
the following individuals: 
‘‘(i) Individuals hired, referred, or re-
cruited, in accordance with paragraph (1) 
or (4) of subsection (b). 
‘‘(ii) Employees and prospective em-
ployees, in accordance with paragraph (1), 
(2), (3), or (4) of subsection (b). 
‘‘(iii) Individuals seeking to confirm 
their own employment eligibility on a vol-
untary basis. 
‘‘(5) RESPONSIBILITIES OF COMMISSIONER OF 
SOCIAL SECURITY.—As part of the verification sys-
tem, the Commissioner of Social Security, in con-
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sultation with the Secretary of Homeland Security 
(and any designee of the Secretary selected to estab-
lish and administer the verification system), shall es-
tablish a reliable, secure method, which, within the 
time periods specified under paragraphs (2) and (3), 
compares the name and social security account num-
ber 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 individual has 
presented a social security account number that is 
not valid for employment. The Commissioner shall 
not disclose or release social security information 
(other than such confirmation or nonconfirmation) 
under the verification system except as provided for 
in this section or section 205(c)(2)(I) of the Social 
Security Act. 
‘‘(6) RESPONSIBILITIES
OF
SECRETARY
OF 
HOMELAND SECURITY.—As part of the verification 
system, the Secretary of Homeland Security (in con-
sultation with any designee of the Secretary selected 
to establish and administer the verification system), 
shall establish a reliable, secure method, which, with-
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in the time periods specified under paragraphs (2) 
and (3), compares the name and alien identification 
or authorization number (or any other information 
as determined relevant by the Secretary) which are 
provided in an inquiry against such information 
maintained or accessed by the Secretary in order to 
validate (or not validate) the information provided, 
the correspondence of the name and number, wheth-
er the alien is authorized to be employed in the 
United States, or to the extent that the Secretary 
determines to be feasible and appropriate, whether 
the records available to the Secretary verify the 
identity or status of a national of the United States. 
‘‘(7) UPDATING INFORMATION.—The Commis-
sioner of Social Security and the Secretary of Home-
land Security shall update their information in a 
manner that promotes the maximum accuracy and 
shall provide a process for the prompt correction of 
erroneous information, including instances in which 
it is brought to their attention in the secondary 
verification process described in paragraph (3). 
‘‘(8) 
LIMITATION
ON
USE
OF
THE 
VERIFICATION
SYSTEM
AND
ANY
RELATED
SYS-
TEMS.— 
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‘‘(A) 
NO
NATIONAL
IDENTIFICATION 
CARD.—Nothing in this section shall be con-
strued to authorize, directly or indirectly, the 
issuance or use of national identification cards 
or the establishment of a national identification 
card. 
‘‘(B) CRITICAL
INFRASTRUCTURE.—The 
Secretary may authorize or direct any person or 
entity responsible for granting access to, pro-
tecting, securing, operating, administering, or 
regulating part of the critical infrastructure (as 
defined in section 1016(e) of the Critical Infra-
structure Protection Act of 2001 (42 U.S.C. 
5195c(e))) to use the verification system to the 
extent the Secretary determines that such use 
will assist in the protection of the critical infra-
structure. 
‘‘(9) REMEDIES.—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 mechanism of the Federal Tort Claims Act, and 
injunctive relief to correct such error. No class ac-
tion may be brought under this paragraph.’’. 
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SEC. 203. RECRUITMENT, REFERRAL, AND CONTINUATION 
OF EMPLOYMENT. 
(a) ADDITIONAL CHANGES TO RULES FOR RECRUIT-
MENT, REFERRAL, AND CONTINUATION
OF EMPLOY-
MENT.—Section 274A(a) of the Immigration and Nation-
ality Act (8 U.S.C. 1324a(a)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘for a fee’’; 
(2) in paragraph (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).’’; and 
(3) in paragraph (2), by striking ‘‘after hiring 
an alien for employment in accordance with para-
graph (1),’’ and inserting ‘‘after complying with 
paragraph (1),’’. 
(b) DEFINITION.—Section 274A(h) of the Immigra-
tion and Nationality Act (8 U.S.C. 1324a(h)), as amended 
by section 201(b) of this Act, is further amended by add-
ing at the end the following: 
‘‘(5) DEFINITION OF RECRUIT OR REFER.—As 
used in this section, the term ‘refer’ means the act 
of sending or directing a person who is in the United 
States or transmitting documentation or information 
to another, directly or indirectly, with the intent of 
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obtaining employment in the United States for such 
person. Only persons or entities referring for remu-
neration (whether on a retainer or contingency 
basis) are included in the definition, except that 
union hiring halls that refer union members or non-
union individuals who pay union membership dues 
are included in the definition whether or not they re-
ceive remuneration, as are labor service entities or 
labor service agencies, whether public, private, for- 
profit, or nonprofit, that refer, dispatch, or other-
wise facilitate the hiring of laborers for any period 
of time by a third party. As used in this section, the 
term ‘recruit’ means the act of soliciting a person 
who is in the United States, directly or indirectly, 
and referring the person to another with the intent 
of obtaining employment for that person. Only per-
sons or entities referring for remuneration (whether 
on a retainer or contingency basis) are included in 
the definition, except that union hiring halls that 
refer union members or nonunion individuals who 
pay union membership dues are included in this defi-
nition whether or not they receive remuneration, as 
are labor service entities or labor service agencies, 
whether public, private, for-profit, or nonprofit that 
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recruit, dispatch, or otherwise facilitate the hiring of 
laborers for any period of time by a third party.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date that is 1 year 
after the date of the enactment of this Act, except that 
the amendments made by subsection (a) shall take effect 
6 months after the date of the enactment of this Act inso-
far as such amendments relate to continuation of employ-
ment. 
SEC. 204. GOOD FAITH DEFENSE. 
Section 274A(a)(3) of the Immigration and Nation-
ality Act (8 U.S.C. 1324a(a)(3)) is amended to read as 
follows: 
‘‘(3) GOOD FAITH DEFENSE.— 
‘‘(A) DEFENSE.—An employer (or person 
or entity that hires, employs, recruits, or refers 
(as defined in subsection (h)(5)), or is otherwise 
obligated to comply with this section) who es-
tablishes that it has complied in good faith with 
the requirements of subsection (b)— 
‘‘(i) shall not be liable to a job appli-
cant, an employee, the Federal Govern-
ment, or a State or local government, 
under Federal, State, or local criminal or 
civil law for any employment-related action 
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taken with respect to a job applicant or 
employee in good-faith reliance on informa-
tion provided through the system estab-
lished under subsection (d); and 
‘‘(ii) has established compliance with 
its obligations under subparagraphs (A) 
and (B) of paragraph (1) and subsection 
(b) absent a showing by the Secretary of 
Homeland Security, by clear and con-
vincing evidence, that the employer had 
knowledge that an employee is an unau-
thorized alien. 
‘‘(B) FAILURE
TO
SEEK
AND
OBTAIN 
VERIFICATION.—Subject to the effective dates 
and other deadlines applicable under subsection 
(b), in the case of a person or entity in the 
United States that hires, or continues to em-
ploy, an individual, or recruits or refers an indi-
vidual for employment, the following require-
ments apply: 
‘‘(i) 
FAILURE
TO
SEEK 
VERIFICATION.— 
‘‘(I) IN GENERAL.—If the person 
or entity has not made an inquiry, 
under 
the 
mechanism 
established 
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under subsection (d) and in accord-
ance with the timeframes established 
under 
subsection 
(b), 
seeking 
verification of the identity and work 
eligibility of the individual, the de-
fense under subparagraph (A) shall 
not be considered to apply with re-
spect 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 
(d)(2) 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.’’. 
SEC. 205. 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 
follows: 
‘‘(2) PREEMPTION.— 
‘‘(A) SINGLE, 
NATIONAL
POLICY.—The 
provisions of this section preempt any State or 
local law, ordinance, policy, or rule, including 
any criminal or civil fine or penalty structure, 
insofar 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.— 
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‘‘(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 
employment eligibility when and as re-
quired under subsection (b). 
‘‘(ii) GENERAL RULES.—A State, at 
its own cost, may enforce the provisions of 
this section, but only insofar as such State 
follows the Federal regulations imple-
menting this section, applies the Federal 
penalty structure set out in this section, 
and complies 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, includ-
ing audit and investigation, by both a Fed-
eral agency and a State for the same viola-
tion under this section. Whichever entity, 
the Federal agency or the State, is first to 
initiate the enforcement action, has the 
right of first refusal to proceed with the 
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enforcement action. The Secretary must 
provide copies of all guidance, training, 
and field instructions provided to Federal 
officials implementing the provisions of 
this section to each State.’’. 
SEC. 206. 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 au-
thority, or any document of, or pertaining to, the Depart-
ment of Homeland Security, Department of Justice, or the 
Social Security Administration, to the employment eligi-
bility confirmation system established under section 404 
of the Illegal Immigration Reform and Immigrant Respon-
sibility Act of 1996 (8 U.S.C. 1324a note) is deemed to 
refer to the employment eligibility confirmation system es-
tablished under section 274A(d) of the Immigration and 
Nationality Act, as amended by section 202 of this Act. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the date that is 36 months after the date of the enact-
ment of this Act. 
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SEC. 207. PENALTIES. 
Section 274A of the Immigration and Nationality Act 
(8 U.S.C. 1324a) is amended— 
(1) in subsection (e)(1)— 
(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 
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(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.’’; 
(3) in subsection (e)(5)— 
(A) in the paragraph heading, by striking 
‘‘PAPERWORK’’; 
(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 rea-
sonably believes to be false, shall be treated as 
a violation of subsection (a)(1)(A).’’; 
(4) by adding at the end of subsection (e) the 
following: 
‘‘(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 hir-
ing or continuation of employment or recruitment or 
referral by person or entity and in the case of impo-
sition of a civil penalty under paragraph (5) for a 
violation of subsection (a)(1)(B) for hiring or re-
cruitment or referral by a person or entity, the pen-
alty otherwise imposed may be waived or reduced if 
the violator 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 Se-
curity 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 receipt of Federal contracts, grants, or co-
operative agreements in accordance with the de-
barment standards and pursuant to the debar-
ment procedures set forth in the Federal Acqui-
sition Regulation. 
‘‘(B) DOES NOT HAVE CONTRACT, GRANT, 
AGREEMENT.—If the Secretary of Homeland 
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Security or the Attorney General wishes to have 
a person or entity considered for debarment in 
accordance with this paragraph, and such a 
person or entity does not hold a Federal con-
tract, grant or cooperative agreement, the Sec-
retary or Attorney General shall refer the mat-
ter to the Administrator of General Services to 
determine whether to list the person or entity 
on the List of Parties Excluded from Federal 
Procurement, and if so, for what duration and 
under what scope. 
‘‘(C) HAS
CONTRACT, 
GRANT, 
AGREE-
MENT.—If the Secretary of Homeland Security 
or the Attorney General wishes to have a per-
son or entity considered for debarment in ac-
cordance with this paragraph, and such person 
or entity holds a Federal contract, grant or co-
operative agreement, the Secretary or Attorney 
General shall advise all agencies or departments 
holding a contract, grant, or cooperative agree-
ment with the person or entity of the Govern-
ment’s interest in having the person or entity 
considered for debarment, and after soliciting 
and considering the views of all such agencies 
and departments, the Secretary or Attorney 
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General may refer the matter to any appro-
priate lead agency to determine whether to list 
the person or entity on the List of Parties Ex-
cluded from Federal Procurement, and if so, for 
what duration and under what scope. 
‘‘(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 
Security 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 
complaining State or local agency within 5 busi-
ness days of the filing of such a complaint by 
identifying whether the Secretary will further 
investigate 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 re-
ceived under this paragraph, the States and lo-
calities that filed such complaints, and the reso-
lution of the complaints investigated by the Sec-
retary.’’; and 
(5) 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 $15,000 for each unauthorized alien with 
respect to which such a violation occurs, imprisoned 
for not less than one year and not more than 10 
years, or both, notwithstanding the provisions of any 
other Federal law relating to fine levels.’’. 
SEC. 208. FRAUD AND MISUSE OF DOCUMENTS. 
Section 1546(b) of title 18, United States Code, is 
amended— 
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(A) acquiring, installing, and maintaining 
technological equipment and systems necessary 
for the fulfillment of the responsibilities of the 
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 
enactment 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 Ad-
ministration and the Department of Homeland Secu-
rity. 
(b) CONTINUATION OF EMPLOYMENT VERIFICATION 
IN ABSENCE OF TIMELY AGREEMENT.—In any case in 
which the agreement required under subsection (a) for any 
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fiscal year beginning on or after October 1, 2015, has not 
been reached as of October 1 of such fiscal year, the latest 
agreement between the Commissioner and the Secretary 
of Homeland Security providing for funding to cover the 
costs of 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 in-
terim 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 Manage-
ment and Budget to adjust for inflation and any increase 
or decrease in the volume of requests under the employ-
ment 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 Com-
mittee on Ways and Means, the Committee on the Judici-
ary, and the Committee on Appropriations of the House 
of Representatives and the Committee on Finance, the 
Committee on the Judiciary, and the Committee on Ap-
propriations of the Senate of the failure to reach the 
agreement required under subsection (a) for such fiscal 
year. Until such time as the agreement required under 
subsection (a) has been reached for such fiscal year, the 
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Commissioner and the Secretary shall, not later than the 
end of each 90-day period after October 1 of such fiscal 
year, notify such Committees of the status of negotiations 
between the Commissioner and the Secretary in order to 
reach such an agreement. 
SEC. 210. 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 
multiple use in the employment eligibility verification sys-
tem established under section 274A(d) of the Immigration 
and Nationality Act (8 U.S.C. 1324a(d)), as amended by 
section 202 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 Commis-
sioner of Social Security, shall establish a program which 
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shall provide a reliable, secure method by which victims 
of identity fraud and other individuals may suspend or 
limit the use of their social security account number or 
other identifying information for purposes of the employ-
ment eligibility verification system established under sec-
tion 274A(d) of the Immigration and Nationality Act (8 
U.S.C. 1324a(d)), as amended by section 202 of this Act. 
The Secretary may implement 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 guard-
ians 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 Immigration and Nationality Act (8 U.S.C. 1324a(d)), 
as amended by section 202 of this Act. The Secretary may 
implement the program on a limited pilot program basis 
before making it fully available to all individuals. 
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SEC. 211. IDENTITY AUTHENTICATION EMPLOYMENT ELIGI-
BILITY VERIFICATION PILOT PROGRAM. 
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 Secu-
rity and the Director of the National Institute of Stand-
ards and Technology, shall establish by regulation an 
Identity 
Authentication 
Employment 
Eligibility 
Verification pilot program (the ‘‘Authentication Pilot’’). 
The purpose of the Authentication Pilot 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 partici-
pate in the Authentication Pilot. Any subject employer 
may cancel the employer’s participation in the Authentica-
tion Pilot after one year after electing to participate with-
out prejudice to future participation. 
SEC. 212. 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 Social Security Administration shall complete audits 
of the following categories in order to uncover evidence 
of individuals who are not authorized to work in the 
United States: 
(1) Workers who dispute wages reported on 
their social security account number when they be-
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lieve someone else has used such number and name 
to report wages. 
(2) Children’s social security account numbers 
used for work purposes. 
(3) Employers whose workers present signifi-
cant numbers of mismatched social security account 
numbers or names for wage reporting. 
(b) SUBMISSION.—The Inspector General of the So-
cial Security Administration shall submit the audits com-
pleted under subsection (a) to the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance 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 de-
termine information to be shared with the Secretary of 
Homeland Security so that such Secretary can investigate 
the unauthorized employment demonstrated by such evi-
dence. 
TITLE III—TAX PROVISIONS 
SEC. 301. DENIAL OF EARNED INCOME TAX CREDIT FOR 
ALIENS RECEIVING WORK AUTHORIZATION 
PURSUANT TO CERTAIN DEFERRED ACTION 
PROGRAMS. 
(a) IN GENERAL.—Section 32(m) of the Internal 
Revenue Code of 1986 is amended— 
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(1) by striking ‘‘Solely for purposes of’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—Solely for purposes of’’, 
(2) by inserting ‘‘and other than a social secu-
rity number issued to a deferred action beneficiary’’ 
after ‘‘Social Security Act’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) DEFERRED
ACTION
BENEFICIARY.—The 
term ‘deferred action beneficiary’ means any indi-
vidual who has been granted employment authoriza-
tion pursuant to a program not specifically author-
ized by law which provides aliens with deferred ac-
tion on removal. An individual shall cease to be 
treated as a deferred action beneficiary if, and only 
if, such individual becomes a United States citizen.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to— 
(1) any return of tax which is filed after the 
date of the enactment of this Act, and 
(2) any amendment or supplement (to any re-
turn of tax) which is filed after such date (without 
regard to the date on which the return of tax is 
filed). 
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SEC. 302. REQUIRING SOCIAL SECURITY NUMBER FOR 
CHILD TAX CREDIT AND DENYING SUCH 
CREDIT FOR ALIENS RECEIVING WORK AU-
THORIZATION PURSUANT TO CERTAIN DE-
FERRED ACTION PROGRAMS. 
(a) IN GENERAL.—Section 24(e) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by inserting ‘‘, and the taxpayer identifica-
tion number of the taxpayer,’’ after ‘‘of such quali-
fying child’’, and 
(2) by adding at the end the following: ‘‘For 
purposes of the preceding sentence, the term ‘tax-
payer identification number’ shall have the meaning 
given such term under section 32(m).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
TITLE IV—SUSPENSION OF 
FOREIGN ASSISTANCE 
SEC. 401. SUSPENSION OF FOREIGN ASSISTANCE. 
(a) IN GENERAL.—Upon enactment of this Act, the 
Secretary of State shall immediately suspend all United 
States foreign assistance to the countries of Mexico, Hon-
duras, Guatemala, and El Salvador. Such assistance may 
be reinstated only if Congress determines that Mexico, 
Honduras, Guatemala, and El Salvador have taken suffi-
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cient action to mitigate unlawful United States-Mexico 
border crossings by their respective citizens. 
(b) USE FOR BORDER SECURITY.—Any unobligated 
balances available for foreign assistance activities sus-
pended under subsection (a) may be used by the Secretary 
of Homeland Security for purposes of securing the border. 
(c) REPORT.—The Secretary of State shall annually 
submit to Congress a report documenting the measures 
taken by Mexico, Honduras, Guatemala, and El Salvador 
to mitigate unlawful entry into the United States by its 
citizens. 
(d) EXCEPTION.—Foreign assistance distributed 
under the International Narcotic Control Law Enforce-
ment program shall not be considered under subsection 
(a). 
TITLE 
V—NONIMMIGRANT 
LA-
BORER NUMERICAL LIMITA-
TIONS EXPANDED 
SEC. 501. H–2B WORKERS. 
Section 214(g) of the Immigration and Nationality 
Act (8 U.S.C. 1184(g)) is amended— 
(1) in paragraph (1)(B), by striking ‘‘66,000’’ 
and inserting ‘‘264,000’’; and 
(2) in paragraph (9)(A), to read as follows: 
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‘‘(A)(i) Except as provided in clause (ii), 
and subject to subparagraphs (B) and (C), an 
alien who has already been counted toward the 
numerical limitation of paragraph (1)(B) shall 
not again be counted toward such limitation. 
Such an alien shall be considered a returning 
worker. 
‘‘(ii) An alien who has already been count-
ed toward the numerical limitation of para-
graph (1)(B) shall again be counted toward 
such limitation if such alien departs the United 
States for a period of time that is greater than 
one year, and has not been counted toward such 
limitation in any of the 3 years prior to such 
departure.’’. 
SEC. 502. H–2A WORKERS. 
Beginning on the date of enactment of this Act, the 
rule of the Secretary of Labor entitled ‘‘Temporary Agri-
cultural Employment of H–2A Aliens in the United 
States’’, published in the Federal Register on February 
12, 2010 (75 Fed. Reg. 6883–6995), shall cease to have 
effect, and the rule of the Secretary entitled ‘‘Temporary 
Agricultural Employment of H–2A Aliens in the United 
States; Modernizing the Labor Certification Process and 
Enforcement’’, published in the Federal Register on De-
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cember 18, 2008 (73 Fed. Reg. 77110–77262), shall be 
deemed to resume effect and continue in effect thereafter. 
TITLE VI—LIMITATIONS ON 
ISSUANCE OF VISAS 
SEC. 601. SECURITY CERTIFICATION. 
Chapter 2 of title II of the Immigration and Nation-
ality Act (8 U.S.C. 1181 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 220. SECURITY CERTIFICATION. 
‘‘Notwithstanding any other provision of this Act, no 
visa may be issued under this Act unless the Secretary 
of Homeland Security, in coordination with the Secretary 
of State, submits to Congress a certification that the 
issuance of such visa would not result in a threat to the 
security of the United States.’’. 
SEC. 602. INSPECTOR GENERAL REVIEW. 
Each year, the Inspector General of the Department 
of Homeland Security shall— 
(1) conduct a study of all admissions of aliens 
to the United States during the preceding year, and 
shall determine if any such admissions resulted in a 
threat to the security of the United States; and 
(2) submit to Congress a report detailing the 
results of such study. 
Æ 
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