‘‘(i) written notification of such re-
quirement; and 
‘‘(ii) appropriate training materials to 
facilitate compliance with such require-
ment.’’. 
SEC. 4. CONSEQUENCES OF FAILURE TO PARTICIPATE. 
(a) IN GENERAL.—Section 402(e)(5) of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 
1996 (8 U.S.C. 1324a note), as redesignated by section 
3(b)(1), is amended to read as follows: 
‘‘(5) CONSEQUENCES OF FAILURE TO PARTICI-
PATE.—If a person or other entity that is required 
to participate in E-Verify fails to comply with the 
requirements under this title with respect to an indi-
vidual— 
‘‘(A) such failure shall be treated as a vio-
lation of section 274A(a)(1)(B) of the Immigra-
tion and Nationality Act (8 U.S.C. 1324a) with 
respect to such individual; and 
‘‘(B) a rebuttable presumption is created 
that the person or entity has violated section 
274A(a)(1)(A) of such Act.’’. 
(b) PENALTIES.—Section 274A of the Immigration 
and Nationality Act (8 U.S.C. 1324a) is amended— 
(1) in subsection (e)— 
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pbinns on DSK79D2C42PROD with BILLS
(A) in paragraph (4)— 
(i) in subparagraph (A)— 
(I) in the matter preceding clause 
(i), by inserting ‘‘, subject to para-
graph (10),’’ after ‘‘in an amount’’; 
(II) in clause (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’’; 
(III) in clause (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’’; and 
(IV) in clause (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 
(ii) 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.’’; 
(B) in paragraph (5)— 
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(i) by inserting ‘‘, subject to para-
graphs (10) through (12),’’ after ‘‘in an 
amount’’; 
(ii) by striking ‘‘$100 and not more 
than $1,000’’ and inserting ‘‘$1,000 and 
not more than $25,000’’; 
(iii) by striking ‘‘the size of the busi-
ness of the employer being charged, the 
good faith of the employer’’ and inserting 
‘‘the good faith of the employer being 
charged’’; and 
(iv) by adding at the end the fol-
lowing: ‘‘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 reasonably 
believes to be false, shall be treated as a 
violation of subsection (a)(1)(A).’’; and 
(C) by adding at the end the following: 
‘‘(10) EXEMPTION
FROM
PENALTY.—In the 
case of the imposition of a civil penalty under para-
graph (4)(A) with respect to a violation of para-
graph (1)(A) or (2) of subsection (a) for hiring, con-
tinuation of employment, recruitment, or referral by 
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a person or entity and, in the case of the imposition 
of a civil penalty under paragraph (5) for a violation 
of subsection (a)(1)(B) for hiring, recruitment, or 
referral by a person or entity, the penalty otherwise 
imposed may be waived or reduced if the violator es-
tablishes 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, the Secretary of 
Homeland Security shall debar such person or 
entity from the receipt of Federal contracts, 
grants, or cooperative agreements in accordance 
with the debarment standards and pursuant to 
the debarment procedures set forth in the Fed-
eral Acquisition Regulation. 
‘‘(B) DOES NOT HAVE CONTRACT, GRANT, 
AGREEMENT.—If the Secretary of Homeland 
Security debars a person or entity in accord-
ance with this paragraph, and such person or 
entity does not hold a Federal contract, grant 
or cooperative agreement, the Administrator of 
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General Services shall include the person or en-
tity on the List of Parties Excluded from Fed-
eral Procurement for 5 years. 
‘‘(C) HAS
CONTRACT, 
GRANT, 
AGREE-
MENT.—If the Secretary of Homeland Security 
debars a person or entity in accordance with 
this paragraph, and such person or entity holds 
a Federal contract, grant or cooperative agree-
ment, the Secretary— 
‘‘(i) shall notify all agencies or depart-
ments holding a contract, grant, or cooper-
ative agreement with the debarred person 
or entity of such debarment; and 
‘‘(ii) after soliciting and considering 
the views of all such agencies and depart-
ments, may waive the operation of this 
paragraph. 
‘‘(D) REVIEW.—Any decision to debar a 
person or entity under in accordance with this 
paragraph shall be reviewable pursuant to part 
9.4 of the Federal Acquisition Regulation.’’; 
and 
(2) in subsection (f)— 
(A) by amending paragraph (1) to read as 
follows: 
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