(1) by striking subsections (b), (c), and (d); 
(2) by redesignating subsection (e) as sub-
section (b); and 
(3) by adding at the end the following new sub-
section: 
‘‘(c) PENALTY
FOR EGREGIOUS NONCOMPLIANCE 
EMPLOYERS.—The Secretary shall assess the maximum 
allowable penalties on each employer designated in any 
taxable year by the Social Security Administration as one 
of the most egregious non-compliant employers.’’. 
(b) STANDARD COMPLIANCE PROGRAM.— 
(1) IN GENERAL.—No later than 60 days after 
the date of the enactment of this Act, the Secretary 
of the Treasury, in consultation with the Commis-
sioner of Social Security and the Secretary of Home-
land Security, shall implement a regularly scheduled 
program for proposing, assessing, and collecting pen-
alties from the filers of incorrect information returns 
under the Internal Revenue Code of 1986. 
(2) REPORT.—The Secretary of the Treasury 
shall report to Congress not later than 180 days 
after the date of the enactment of this Act on the 
results of the program required in paragraph (1). 
Such report shall include at least the following: 
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(A) The total number of filers who sub-
mitted incorrect information returns. 
(B) The number of incorrect information 
returns submitted by such filers. 
(C) The total amount of penalties pro-
posed, assessed and collected through the pro-
gram. 
(D) The number of waivers granted to fil-
ers of incorrect information returns. 
SEC. 339. ADJUSTMENT OF STATUS. 
Section 245 of the Immigration and Nationality Act 
(8 U.S.C. 1255) is amended— 
(1) by striking subsections (a) through (i) and 
subsection (k); 
(2) by redesignating subsection (j) as sub-
section (b); 
(3) in subsection (l)— 
(A) in paragraph (1), by striking ‘‘, in the 
opinion of the Attorney General,’’; 
(B) in paragraph (1)(C)(ii), by striking ‘‘, 
or’’ and inserting ‘‘, and’’; 
(C) in paragraph (4), by striking ‘‘may 
waive’’ and all that follows and inserting ‘‘may 
waive the application of paragraphs (1) and (4) 
of section 212(a)’’; 
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(D) in paragraph (5), by inserting before 
the period at the end the following: ‘‘and the 
Secretary of State shall reduce by one the num-
ber of visas authorized to be issued under sec-
tions 201(e) and 203(c) for the fiscal year then 
current’’; and 
(E) by redesignating subsection (l) as sub-
section (c); 
(4) in subsection (m)— 
(A) by amending paragraph (1)(B) to read 
as follows: 
‘‘(B) the alien would suffer extreme hard-
ship if removed from the United States.’’; 
(B) in paragraph (4), by inserting before 
the period at the end the following: ‘‘and the 
Secretary of State shall reduce by one the num-
ber of visas authorized to be issued under sec-
tions 201(c) and 203(a)(4) for the fiscal year 
then current’’; and 
(C) by redesignating subsection (m) as 
subsection (d); 
(5) by striking ‘‘Attorney General’’ each place 
it appears and inserting ‘‘Secretary of Homeland Se-
curity’’; and 
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(6) by inserting before subsection (b) (as so re-
designated) the following: 
‘‘(a) IN GENERAL.—The Secretary of Homeland Se-
curity may not adjust the status of any alien to that of 
an alien lawfully admitted for permanent residence except 
as authorized by subsections (b), (c), and (d) of this sec-
tion and by section 209.’’. 
SEC. 340. REVOCATION OF TEMPORARY STATUS. 
(a) TERMINATION OF ASYLUM.—Section 208(c)(2) of 
the 
Immigration 
and 
Nationality 
Act 
(8 
U.S.C. 
1158(c)(2)) is amended by striking ‘‘may be terminated 
if the Attorney General’’ and inserting ‘‘shall be termi-
nated if the Secretary of Homeland Security’’. 
(b) ALIENS ELIGIBLE FOR TEMPORARY PROTECTED 
STATUS.—Section 244(c) of such Act (8 U.S.C. 1254a(c)) 
is amended— 
(1) in paragraph (3)(B)— 
(A) by striking ‘‘except as provided in 
paragraph (4) and permitted in subsection 
(f)(3),’’; and 
(B) by inserting before the comma at the 
end the following: ‘‘, except where a brief trip 
abroad is required by emergency and is author-
ized prior to the alien’s travel by the Secretary 
of Homeland Security or is due to extenuating 
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circumstances outside the control of the alien’’; 
and 
(2) by striking paragraph (4) and redesignating 
paragraphs (5) and (6) as paragraphs (4) and (5), 
respectively. 
(c) BENEFITS
AND STATUS DURING PERIOD
OF 
TEMPORARY PROTECTED STATUS.—Section 244(f) of 
such Act (8 U.S.C. 1254a(f)) is amended— 
(1) by adding ‘‘and’’ at the end of paragraph 
(2); 
(2) by striking paragraph (3); and 
(3) by redesignating paragraph (4) as para-
graph (3). 
SEC. 341. REPEAL OF AMNESTY PROVISION. 
(a) IN GENERAL.—Section 249 of the Immigration 
and Nationality Act (8 U.S.C. 1259) is repealed. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Immigration and Nationality Act is amended by 
striking the item relating to section 249. 
SEC. 342. PENALTIES FOR VIOLATIONS OF FEDERAL IMMI-
GRATION LAWS BY STATES AND LOCALITIES. 
(a) PREFERENTIAL TREATMENT
OF ALIENS NOT 
LAWFULLY PRESENT FOR HIGHER EDUCATION BENE-
FITS.—Section 505 of the Illegal Immigration Reform and 
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Immigrant Responsibility Act of 1996 (Pub. Law 104– 
208) is amended— 
(1) in subsection (a), by inserting ‘‘or gradua-
tion from a high school in the United States’’ after 
‘‘on the basis of residence’’; and 
(2) by adding at the end the following: 
‘‘(c) ANNUAL REPORT.—The Attorney General shall 
report annually to Congress on which, if any, post-sec-
ondary educational institutions are providing benefits in 
contravention of this section. 
‘‘(d) LIMITATION ON FEDERAL FINANCIAL ASSIST-
ANCE.—No Federal agency shall provide any grant, reim-
bursement, or other financial assistance to any post-sec-
ondary educational institution determined under sub-
section (c) to be providing benefits in contravention of this 
section. Any funds withheld under this subsection shall be 
reallocated among qualifying educational institutions that 
are in compliance with subsection (a).’’. 
(b) NON-COOPERATION
BY STATES
AND LOCAL-
ITIES.—Section 241(i) of the Immigration and Nationality 
Act (8 U.S.C. 1231(i)) is amended by adding at the end 
the following: 
‘‘(7) Prior to entering into a contractual ar-
rangement with a State or political subdivision 
under paragraph (1), the Attorney General shall de-
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termine whether such State or political subdivision 
of a State has in place any formal or informal policy 
that violates section 642 of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 
(8 U.S.C. 1373). The Attorney General shall not 
enter into a contractual arrangement with, or allo-
cate any of the funds made available under this sec-
tion to, any State or political subdivision of a State 
with a policy that violates such section.’’. 
SEC. 343. CLARIFICATION OF INHERENT AUTHORITY OF 
STATE AND LOCAL LAW ENFORCEMENT. 
Notwithstanding any other provision of law and re-
affirming the existing inherent authority of States, law en-
forcement personnel of a State or a political subdivision 
of a State have the inherent authority of a sovereign entity 
to apprehend, arrest, detain, or transfer to Federal cus-
tody aliens in the United States (including the transpor-
tation of such aliens across State lines to detention cen-
ters), in the enforcement of the immigration laws of the 
United States. This State authority has never been dis-
placed or preempted by Congress. 
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SEC. 344. USICE RESPONSE TO REQUESTS FOR ASSISTANCE 
FROM STATE AND LOCAL LAW ENFORCE-
MENT. 
(a) IN GENERAL.—Title II of the Immigration and 
Nationality Act (8 U.S.C. 1151 et seq.) is amended by 
inserting after section 240C the following new section: 
‘‘CUSTODY OF ILLEGAL ALIENS 
‘‘SEC. 240D. (a) If the chief executive officer of a 
State (or, if appropriate, a political subdivision of the 
State) exercising authority with respect to the apprehen-
sion of an illegal alien submits a request to the Secretary 
of Homeland Security that the alien be taken into Federal 
custody, the Secretary of Homeland Security— 
‘‘(1) shall— 
‘‘(A) not later than 48 hours after the con-
clusion of the State charging process or dis-
missal process, or if no State charging or dis-
missal process is required, not later than 48 
hours after the illegal alien is apprehended, 
take the illegal alien into the custody of the 
Federal Government and incarcerate the alien; 
or 
‘‘(B) request that the relevant State or 
local law enforcement agency temporarily incar-
cerate or transport the illegal alien for transfer 
to Federal custody; and 
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‘‘(2) shall designate a Federal, State, or local 
prison or jail or a private contracted prison or deten-
tion facility within each State as the central facility 
for that State to transfer custody of the criminal or 
illegal aliens to the Department of Homeland Secu-
rity. 
‘‘(b) The Department of Homeland Security shall re-
imburse States and localities for all reasonable expenses, 
as determined by the Secretary of Homeland Security, in-
curred by a State or locality in the incarceration and 
transportation of an illegal alien as described in subpara-
graphs (A) and (B) of subsection (a)(1). Compensation 
provided for costs incurred under such subparagraphs 
shall be the average cost of incarceration of a prisoner 
in the relevant State, as determined by the chief executive 
officer of a State (or, as appropriate, a political subdivi-
sion of the State) plus the cost of transporting the crimi-
nal or illegal alien from the point of apprehension, to the 
place of detention, and to the custody transfer point if 
the place of detention and place of custody are different. 
‘‘(c) The Secretary of Homeland Security shall en-
sure that illegal aliens incarcerated in Federal facilities 
pursuant to this section are held in facilities which provide 
an appropriate level of security. 
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‘‘(d)(1) In carrying out this section, the Secretary of 
Homeland Security may establish a regular circuit and 
schedule for the prompt transfer of apprehended illegal 
aliens from the custody of States and political subdivisions 
of States to Federal custody. 
‘‘(2) The Secretary of Homeland Security may enter 
into contracts with appropriate State and local law en-
forcement and detention officials to implement this sec-
tion. 
‘‘(e) For purposes of this section, the term ‘illegal 
alien’ means an alien who— 
‘‘(1) entered the United States without inspec-
tion or at any time or place other than that des-
ignated by the Secretary of Homeland Security; 
‘‘(2) was admitted as a nonimmigrant and who, 
at the time the alien was taken into custody by the 
State or a political subdivision of the State, had 
failed to— 
‘‘(A) maintain the nonimmigrant status in 
which the alien was admitted or to which it was 
changed under section 248; or 
‘‘(B) comply with the conditions of any 
such status; 
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‘‘(3) was admitted as an immigrant and has 
subsequently failed to comply with the requirements 
of that status; or 
‘‘(4) failed to depart the United States under a 
voluntary departure agreement or under a final 
order of removal.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS FOR THE 
DETENTION AND TRANSPORTATION TO FEDERAL CUS-
TODY OF ALIENS NOT LAWFULLY PRESENT.—There is 
authorized to be appropriated $500,000,000 for the deten-
tion and removal of aliens not lawfully present in the 
United States under the Immigration and Nationality Act 
(8 U.S.C. 1101 et seq.) for fiscal year 2008 and each sub-
sequent fiscal year. 
SEC. 345. BASIC IMMIGRATION ENFORCEMENT TRAINING 
FOR STATE, LOCAL, AND TRIBAL LAW EN-
FORCEMENT OFFICERS. 
(a) DEMONSTRATION PROJECT.— 
(1) IN GENERAL.—Cameron University, located 
in Lawton, Oklahoma, shall establish and implement 
a demonstration project (in this section referred to 
as the ‘‘demonstration project’’) to assess the feasi-
bility of establishing a nationwide e-learning training 
course, covering basic immigration law enforcement 
issues, to be used by State, local, and tribal law en-
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