(A) by inserting ‘‘, subject to paragraphs 
(10) through (12),’’ after ‘‘in an amount’’; 
(B) by striking ‘‘$100’’ and inserting 
‘‘$1,000’’; 
(C) by striking ‘‘$1,000’’ and inserting 
‘‘$25,000’’; 
(D) by striking ‘‘the size of the business of 
the employer being charged, the good faith of 
the employer’’ and inserting ‘‘the good faith of 
the employer being charged’’; and 
(E) by adding at the end the following sen-
tence: ‘‘Failure by a person or entity to utilize 
the employment eligibility verification system as 
required by law, or providing information to the 
system that the person or entity knows or rea-
sonably believes to be false, shall be treated as 
a violation of subsection (a)(1)(A).’’; 
(3) by adding at the end of subsection (e) the 
following new paragraphs: 
‘‘(10) MITIGATION OF CIVIL MONEY PENALTIES 
FOR SMALLER EMPLOYERS.—In the case of imposi-
tion of a civil penalty under paragraph (4)(A) with 
respect to a violation of subsection (a)(1)(A) or 
(a)(2) for hiring or continuation of employment by 
an employer and in the case of imposition of a civil 
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penalty under paragraph (5) for a violation of sub-
section (a)(1)(B) for hiring by an employer, the dol-
lar amounts otherwise specified in the respective 
paragraph shall be reduced as follows: 
‘‘(A) In the case of an employer with an 
average of fewer than 26 full-time equivalent 
employees (as defined by the Secretary of 
Homeland Security), the amounts shall be re-
duced by 60 percent. 
‘‘(B) In the case of an employer with an 
average of at least 26, but fewer than 101, full- 
time equivalent employees (as so defined), the 
amounts shall be reduced by 40 percent. 
‘‘(C) In the case of an employer with an 
average of at least 101, but fewer than 251, 
full-time equivalent employees (as so defined), 
the amounts shall be reduced by 20 percent. 
The last sentence of paragraph (4) shall apply under 
this paragraph in the same manner as it applies 
under such paragraph. 
‘‘(11) EXEMPTION FROM PENALTY FOR INITIAL 
GOOD FAITH VIOLATION.—In the case of imposition 
of a civil penalty under paragraph (4)(A) with re-
spect to a violation of subsection (a)(1)(A) or (a)(2) 
for hiring or continuation of employment or recruit-
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ment or referral by person or entity and in the case 
of imposition of a civil penalty under paragraph (5) 
for a violation of subsection (a)(1)(B) for hiring or 
recruitment or referral by a person or entity, the 
penalty otherwise imposed shall be waived if the vio-
lator establishes that it was the first such violation 
of such provision by the violator and the violator 
acted in good faith. 
‘‘(12) SAFE
HARBOR
FOR
CONTRACTORS.—A 
person or other entity shall not be liable for a pen-
alty under paragraph (4)(A) with respect to the vio-
lation of subsection (a)(1)(A), (a)(1)(B), or (a)(2) 
with respect to the hiring or continuation of employ-
ment of an unauthorized alien by a subcontractor of 
that person or entity unless the person or entity 
knew that the subcontractor hired or continued to 
employ such alien in violation of such subsection.’’. 
(4) by amending paragraph (1) of subsection (f) 
to read as follows: 
‘‘(1) CRIMINAL PENALTY.—Any person or enti-
ty which engages in a pattern or practice of viola-
tions of subsection (a)(1) or (2) shall be fined not 
more than $50,000 for each unauthorized alien with 
respect to which such a violation occurs, imprisoned 
for not less than one year, or both, notwithstanding 
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the provisions of any other Federal law relating to 
fine levels.’’; and 
(5) in subsection (f)(2), by striking ‘‘Attorney 
General’’ each place it appears and inserting ‘‘Sec-
retary of Homeland Security’’. 
SEC. 306. AUTHORIZATIONS OF APPROPRIATIONS. 
(a) DEPARTMENT OF HOMELAND SECURITY.—Ex-
cept as otherwise provided in this subtitle, there are au-
thorized to be appropriated to the Department of Home-
land Security for each fiscal year beginning on or after 
October 1, 2007, such sums as may be necessary to carry 
out this subtitle and the amendments made by this sub-
title, of which not less than $100,000,000 shall be for the 
purpose of carrying out section 274A(a)(1)(B) of the Im-
migration and Nationality Act (8 U.S.C. 1324a(a)(1)(B)), 
as amended by section 305 of this Act. 
(b) SOCIAL SECURITY ADMINISTRATION.—There are 
authorized to be appropriated to the Social Security Ad-
ministration for each fiscal year beginning on or after Oc-
tober 1, 2007, such sums as are necessary to carry out 
the amendments made by section 302. 
SEC. 307. RULES OF CONSTRUCTION. 
(a) IN GENERAL.—Nothing in this subtitle shall be 
construed— 
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(1) to require the presentation of a Social Secu-
rity card for any purpose other than— 
(A) for the administration and enforce-
ment of the Social Security laws of the United 
States; or 
(B) for the purpose of implementing and 
enforcing this subtitle and the amendments 
made by this subtitle; or 
(2) to require the Social Security card to be 
carried by an individual. 
(b) NO NATIONAL IDENTIFICATION CARD.—It is the 
policy of the United States that the Social Security card 
shall not be used as a national identification card. 
Subtitle B—Employment Eligibility 
Verification and Anti-Identity 
Theft Act 
SEC. 311. SHORT TITLE. 
This subtitle may be cited as the ‘‘Employment Eligi-
bility Verification and Anti-Identity Theft Act’’. 
SEC. 312. REQUIRING AGENCIES TO SEND ‘‘NO-MATCH’’ LET-
TERS. 
(a) SOCIAL SECURITY ADMINISTRATION.—The Com-
missioner of the Social Security Administration shall send 
a written notice to a person or entity each time that the 
combination of name and Social Security account number 
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