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) MITIGATION ELEMENT.—For purposes of 
paragraph (4), the size of the business shall be 
taken into account when assessing the level of civil 
money penalty. 
‘‘(12) 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-
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ment procedures set forth in the Federal Acqui-
sition Regulation. 
‘‘(B) DOES NOT HAVE CONTRACT, GRANT, 
AGREEMENT.—If the Secretary of Homeland 
Security or the Attorney General wishes to have 
a person or entity considered for debarment in 
accordance with this paragraph, and such an 
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-
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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 
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. 
‘‘(13) 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 five 
business days of the filing of such a complaint 
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by identifying whether the Secretary will fur-
ther investigate the information provided; 
‘‘(C) that is required to investigate those 
complaints filed by State or local government 
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 $5,000 for each unauthorized alien with 
respect to which such a violation occurs, imprisoned 
for not more than 18 months, or both, notwith-
standing the provisions of any other Federal law re-
lating to fine levels.’’. 
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SEC. 9. FRAUD AND MISUSE OF DOCUMENTS. 
Section 1546(b) of title 18, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘identification 
document,’’ and inserting ‘‘identification document 
or document meant to establish work authorization 
(including the documents described in section 
274A(b) of the Immigration and Nationality Act),’’; 
and 
(2) in paragraph (2), by striking ‘‘identification 
document’’ and inserting ‘‘identification document or 
document meant to establish work authorization (in-
cluding the documents described in section 274A(b) 
of the Immigration and Nationality Act),’’. 
SEC. 10. PROTECTION OF SOCIAL SECURITY ADMINISTRA-
TION PROGRAMS. 
(a) FUNDING UNDER AGREEMENT.—Effective for 
fiscal years beginning on or after October 1, 2020, the 
Commissioner of Social Security and the Secretary of 
Homeland Security shall enter into and maintain an 
agreement which shall— 
(1) provide funds to the Commissioner for the 
full costs of the responsibilities of the Commissioner 
under section 274A(d) of the Immigration and Na-
tionality Act (8 U.S.C. 1324a(d)), as amended by 
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section 3 of this Act, including (but not limited 
to)— 
(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. 
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(b) CONTINUATION OF EMPLOYMENT VERIFICATION 
IN ABSENCE OF TIMELY AGREEMENT.—In any case in 
which the agreement required under subsection (a) for any 
fiscal year beginning on or after October 1, 2020, 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 
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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 
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. 11. 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 3 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. 
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(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 
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 3 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 3 of this Act. The Secretary may 
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implement the program on a limited pilot program basis 
before making it fully available to all individuals. 
SEC. 12. USE OF EMPLOYMENT ELIGIBILITY VERIFICATION 
PHOTO TOOL. 
An employer who uses the photo matching tool used 
as part of the E-Verify System shall match the photo tool 
photograph to both the photograph on the identity or em-
ployment eligibility document provided by the employee 
and to the face of the employee submitting the document 
for employment verification purposes. 
SEC. 13. IDENTITY AUTHENTICATION EMPLOYMENT ELIGI-
BILITY VERIFICATION PILOT PROGRAMS. 
Not later than 24 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 not less 
than 2 Identity Authentication Employment Eligibility 
Verification pilot programs, each using a separate and dis-
tinct technology (the ‘‘Authentication Pilots’’). The pur-
pose of the Authentication Pilots shall be to provide for 
identity authentication and employment eligibility verifica-
tion with respect to enrolled new employees which shall 
be available to any employer that elects to participate in 
either of the Authentication Pilots. Any participating em-
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ployer may cancel the employer’s participation in the Au-
thentication Pilot after one year after electing to partici-
pate without prejudice to future participation. The Sec-
retary shall report to the Committee on the Judiciary of 
the House of Representatives and the Committee on the 
Judiciary of the Senate the Secretary’s findings on the 
Authentication Pilots, including the authentication tech-
nologies chosen, not later than 12 months after com-
mencement of the Authentication Pilots. 
SEC. 14. 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-
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. 
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