I 
110TH CONGRESS 
1ST SESSION H. R. 2271 
To amend the Immigration and Nationality Act to improve enforcement 
of restrictions on employment in the United States of unauthorized 
aliens and to reimburse State and local governments for costs associated 
with serving illegal aliens. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 10, 2007 
Mr. GONZALEZ introduced the following bill; which was referred to the Com-
mittee on the Judiciary, and in addition to the Committees on Agri-
culture, Oversight and Government Reform, Education and Labor, and 
Energy and Commerce, 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 improve 
enforcement of restrictions on employment in the United 
States of unauthorized aliens and to reimburse State 
and local governments for costs associated with serving 
illegal aliens. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Unlawful Employers 
Accountability and Illegal Alien State Reimbursement Act 
of 2007’’. 
SEC. 2. COMPLIANCE WITH RESPECT TO THE UNLAWFUL 
EMPLOYMENT OF ALIENS. 
(a) CIVIL PENALTY.—Paragraph (4) of subsection 
(e) of section 274A of the Immigration and Nationality 
Act (8 U.S.C. 1324a) is amended to read as follows: 
‘‘(4) CEASE AND DESIST ORDER WITH CIVIL 
MONEY PENALTY FOR HIRING, RECRUITING, AND RE-
FERRAL VIOLATIONS.— 
‘‘(A) IN GENERAL.—With respect to a vio-
lation by any person or other entity of sub-
section (a)(1)(A) or (a)(2), the Secretary of 
Homeland Security shall require such person or 
such entity to cease and desist from such viola-
tions and to pay a civil penalty in the amount 
specified in subparagraph (B). 
‘‘(B) AMOUNT OF CIVIL PENALTY.— 
‘‘(i) SCHEDULE OF PENALTIES BASED 
ON
THE
NUMBER
OF
UNAUTHORIZED 
ALIENS.—For each occurrence of a viola-
tion of subsection (a)(1)(A) or (a)(2) with 
respect to the alien referred to in such sub-
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section, the civil penalty shall be the fol-
lowing: 
‘‘(I) For a violation with respect 
to one unauthorized alien, $5,000. 
‘‘(II) For a violation with respect 
to greater than or equal to 2 such 
aliens but less than or equal to 10 
such aliens, $5,000 for each such 
alien. 
‘‘(III) For a violation with re-
spect to greater than or equal to 11 
such aliens but less than or equal to 
25 such aliens, $15,000 for each such 
alien. 
‘‘(IV) For a violation with re-
spect to greater than or equal to 26 
such aliens but less than or equal to 
50 such aliens, $25,000 for each such 
alien. 
‘‘(V) For a violation with respect 
to greater than or equal to 51 such 
aliens but less than or equal to 75 
such aliens, $35,000 for each such 
alien. 
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‘‘(VI) For a violation with re-
spect to greater than 75 such aliens, 
$50,000 for each such alien. 
‘‘(ii) 
ADDITIONAL
AMOUNTS
FOR 
COSTS OF REMOVAL.—In the event of the 
removal of an alien from the United States 
based on findings developed in connection 
with the assessment or collection of a pen-
alty under this paragraph, the costs in-
curred by the Federal Government, cooper-
ating State and local governments, and 
State and local law enforcement agencies 
in connection with such removal shall be 
added to the amount of the penalty speci-
fied under clause (i). 
‘‘(C) DISTINCT, PHYSICALLY
SEPARATE 
SUBDIVISIONS.—In applying this subsection in 
the case of a person or other entity composed 
of distinct, physically separate subdivisions each 
of which provides separately for the hiring, re-
cruiting, or referring for employment, without 
reference to the practices of, and not under the 
control of or common control with, another sub-
division, each such subdivision shall be consid-
ered a separate person or other entity.’’. 
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(b) DENIAL
OF AGRICULTURAL ASSISTANCE
FOR 
VIOLATORS.—Section 274A of such Act (8 U.S.C. 1324a) 
is further amended by adding at the end the following new 
subsection: 
‘‘(i) DENIAL OF AGRICULTURAL ASSISTANCE FOR 
VIOLATORS.—In the case of a violation of subsection 
(a)(1)(A) or (a)(2) by an agricultural association, agricul-
tural employer, or farm labor contractor (as defined in 
section 3 of the Migrant and Seasonal Agricultural Work-
er Protection Act (29 U.S.C. 1802)), such association, em-
ployer, or contractor shall be ineligible for agricultural as-
sistance described in paragraphs (1), (2), and (3) of sec-
tion 1211(a) of the Food Security Act of 1985 (16 U.S.C. 
3811(a)) for a period not to exceed 5 years.’’. 
(c) GOOD FAITH DEFENSE.— 
(1) IN GENERAL.—Section 274A of the Immi-
gration and Nationality Act (8 U.S.C. 1324a) is fur-
ther amended— 
(A) by striking subsection (a)(3); and 
(B) by striking subsection (b)(6). 
(2) 
CONFORMING
AMENDMENTS.—Section 
274A of such Act (8 U.S.C. 1324a) is further 
amended— 
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(A) in subsection (a)(5), by striking ‘‘para-
graphs (1)(B) and (3)’’ and inserting ‘‘para-
graph (1)(B)’’; and 
(B) in subsection (b)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘paragraphs (1)(B) and 
(3)’’ and inserting ‘‘paragraph (1)(B)’’; 
and 
(ii) by striking paragraph (6). 
(d) DISCLOSURE REQUIREMENTS.— 
(1) IN GENERAL.—The Secretary of Homeland 
Security shall establish, maintain, and regularly up-
date a publicly accessible website that contains a list 
of persons or other entities that the Secretary has 
determined to have been in violation of subsection 
(a)(1)(A) or (a)(2) of section 274A of the Immigra-
tion and Nationality Act (8 U.S.C. 1324a) in the 
preceding 5 years. 
(2) CONTENTS
OF
WEBSITE.—Such website 
shall contain, with respect to each such person or 
entity, the following information: 
(A) The name, address, and telephone 
number of the person or entity. 
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(B) The names of the owners, chief execu-
tive officers, or other similar officers of the per-
son or entity. 
(C) The number of unauthorized aliens (as 
defined in section 274A(h)(3) of such Act (8 
U.S.C. 1324a(h)(3))) found to be employed by 
the person or entity. 
(D) The aggregate dollar amount that the 
person or entity has received in the preceding 
5 years under any Federal contract. 
(e) EFFECTIVE DATE.—The amendments made by 
subsections (a), (b), and (c) shall take effect 30 days after 
the date of the enactment of this Act and shall apply to 
violations occurring on or after such effective date. 
SEC. 3. DEBARMENT FROM GOVERNMENT CONTRACTS FOR 
EMPLOYERS OF UNAUTHORIZED ALIENS. 
(a) IN GENERAL.—Section 274A of the Immigration 
and Nationality Act (8 U.S.C. 1324a), as amended by sec-
tion 2(b), is amended by adding at the end the following 
new subsection: 
‘‘(j) GOVERNMENT CONTRACTS.—If a person or 
other entity is determined by the Secretary of Homeland 
Security to be a repeat violator of this section, or is subject 
to criminal penalties under subsection (f)(1), the person 
or other entity shall be debarred from the receipt of Fed-
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eral contracts (and subcontracts entered into (at any tier) 
under such contracts) for a period of 5 years.’’. 
(b) EFFECTIVE DATE.—Section 274A(j) of the Im-
migration and Nationality Act (8 U.S.C. 1324a(j)), as 
added by subsection (a), shall apply with respect to con-
tracts and subcontracts entered into after the expiration 
of the 90-day period beginning on the date of enactment 
of this Act. 
SEC. 4. REIMBURSING STATE AND LOCAL GOVERNMENTS 
FOR COSTS OF SERVING ILLEGAL ALIENS. 
(a) MAKING PAYMENTS TO STATES.— 
(1) IN GENERAL.—Not later than 30 days fol-
lowing the end of the fiscal year, the Secretary shall 
make a payment to each eligible State in an amount 
equal to the amount credited as of the end of the 
fiscal year to the account of the State within the Il-
legal Alien State Reimbursement Fund as described 
in paragraph (2). 
(2) ESTABLISHMENT AND OPERATION OF ILLE-
GAL ALIEN STATE REIMBURSEMENT FUND.— 
(A) ESTABLISHMENT OF FUND.—The Sec-
retary shall establish a designated fund in the 
Treasury of the United States to be known as 
the ‘‘Illegal Alien State Reimbursement Fund’’ 
(in this section referred to as the ‘‘Fund’’). 
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(B) STATE
ACCOUNTS.—The Secretary 
shall create a separate account within the Fund 
for each State that is an eligible State during 
the fiscal year. 
(C) 
ALLOCATION
METHOD.—If 
any 
amount is received from an employer of an un-
authorized alien for a violation of section 
274A(a) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(a)) and if the violation oc-
curred in an eligible State, the Secretary shall 
credit the account of that eligible State using 
the following formula: 
(i) If the violation occurs in a single 
eligible State, the Secretary shall credit the 
account of that eligible State with an 
amount equal to 75% of the amount re-
ceived. 
(ii) If the violation occurs in multiple 
eligible States, the Secretary shall divide 
the amount described in clause (i) by the 
number of eligible States where the viola-
tion occurred and shall credit the account 
of each eligible State with an equal share. 
(b) REQUIREMENTS FOR USE AND REDISTRIBUTION 
OF PAYMENTS.— 
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(1) USE OF PAYMENTS SPECIFIED.—A payment 
received under this section shall be used solely for 
payments to local educational agencies (as defined in 
section 9101(26) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801(26))), pub-
lic health care providers, and law enforcement agen-
cies for the purpose of assisting State and local gov-
ernments with meeting the costs associated with 
serving aliens who are unlawfully present in the 
United States. 
(2) REDISTRIBUTION OF PAYMENT TO COUN-
TIES AND UNITS OF LOCAL GOVERNMENT.—An eligi-
ble State shall redistribute 66 percent of the pay-
ment received under this section, within 60 days of 
receipt by the State, to appropriate counties and 
units of local government in accordance with a sys-
tem that the State shall develop that provides for 
opportunities for input from all counties and units 
of local government in the state and that targets the 
areas of greatest need in accordance with the pur-
pose described in paragraph (1), based on objective 
criteria. 
(c) DEFINITIONS.—For the purposes of this section, 
the following definitions apply: 
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(1) ELIGIBLE
STATE.—The term ‘‘eligible 
State’’ means a State that agrees— 
(A) to use the payment received under this 
section for the uses specified in subsection 
(b)(1); 
(B) to redistribute the payment received 
under this section to counties and units of local 
government in accordance with subsection 
(b)(2); 
(C) to require that any county or unit of 
local government to whom a payment is redis-
tributed shall use the payment for the uses 
specified in subsection (b)(1); and 
(D) to submit information and assurances 
at such time and in such form as the Secretary 
may require. 
(2) STATE.—The term ‘‘State’’ includes each 
State, the District of Columbia, the Commonwealth 
of Puerto Rico, American Samoa, Guam, and the 
United States Virgin Islands. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
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(d) EFFECTIVE DATE.—This section shall take effect 
at the beginning of the next fiscal year following the date 
of enactment of this Act. 
Æ 
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