E-Verify Act
Bill: S.418 | Sponsor: Sen. Portman, Rob (R-OH)
Policy area: Immigration

Summary:
E-Verify Act
This bill requires the Department of Homeland Security (DHS) to develop an electronic employment eligibility verification system modeled after and to replace E-Verify, which allows employers and recruiters to verify the immigration status of new hires and employees. The bill also requires all employers to use this new system and addresses other related issues. Currently, only some employers, such as federal contractors, are required to use E-Verify.
The bill phases in the mandatory use of the system with different deadlines for various types of employers to start using the system. Generally, all employers must use the system within four years of the system's implementation. An employer who takes an employment-related action based on good faith reliance on the system shall not be liable in a civil or criminal case based on that action.
DHS shall (1) develop various tools, including a photo checking tool for employers and a tool for an individuals to verify their own status; (2) establish procedures to allow individuals to stop the system from using identifying information belonging to that individual or that individual's child; (3) establish procedures to allow individuals to file complaints about violations relating to the employment of unauthorized aliens; and (4) provide grants to states that allow DHS to access driver's license information to use with the system.
The bill also increases civil and criminal penalties related to employing unauthorized aliens. Employers convicted of hiring unauthorized aliens may be debarred from receiving federal contracts, grants, and cooperative agreements.

To enforce work authorization requirements for immigrants.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``E-Verify Act''.

SEC. 2. UNLAWFUL EMPLOYMENT OF UNAUTHORIZED ALIENS.

    Section 274A of the Immigration and Nationality Act (8 U.S.C. 
1324a) is amended to read as follows:

``SEC. 274A. UNLAWFUL EMPLOYMENT OF ALIENS.

    ``(a) Making Employment of Unauthorized Aliens Unlawful.--
            ``(1) In general.--It is unlawful for an employer--
                    ``(A) to hire, recruit, or refer for a fee an alien 
                for employment in the United States knowing that the 
                alien is an unauthorized alien with respect to such 
                employment; or
                    ``(B) to hire, recruit, or refer for a fee for 
                employment in the United States an individual without 
                complying with the requirements under subsections (c) 
                and (d).
            ``(2) Continuing employment.--
                    ``(A) Prohibition on continued employment of 
                unauthorized aliens.--It is unlawful for an employer, 
                after hiring an alien for employment, to continue to 
                employ the alien in the United States knowing that the 
                alien is (or has become) an unauthorized alien with 
                respect to such employment.
                    ``(B) Prohibition on consideration of previous 
                unauthorized status.--Nothing in this section may be 
                construed to prohibit the employment of an individual 
                who is authorized for employment in the United States 
                if such individual was previously an unauthorized 
                alien.
            ``(3) Use of labor through contract.--For purposes of this 
        section, any employer that uses a contract, subcontract, or 
        exchange to obtain the labor of an alien in the United States 
        while knowing that the alien is an unauthorized alien with 
        respect to performing such labor shall be considered to have 
        hired the alien for employment in the United States in 
        violation of paragraph (1)(A).
            ``(4) Use of state employment agency documentation.--For 
        purposes of paragraphs (1)(B), (5), and (6), an employer shall 
        be deemed to have complied with the requirements under 
        subsection (c) with respect to the hiring of an individual who 
        was referred for such employment by a State employment agency 
        (as defined by the Secretary) if the employer has and retains 
        (for the period and in the manner described in subsection 
        (c)(3)) appropriate documentation of such referral by such 
        agency, certifying that such agency has complied with the 
        procedures described in subsection (c) with respect to the 
        individual's referral. An employer that relies on a State 
        agency's certification of compliance with subsection (c) under 
        this paragraph may utilize and retain the State agency's 
        certification of compliance with the procedures described in 
        subsection (d), if any, in the manner provided under this 
        paragraph.
            ``(5) Good faith defense.--
                    ``(A) Defense.--An employer, person, or entity that 
                hires, employs, recruits, or refers individuals for 
                employment in the United States, or is otherwise 
                obligated to comply with the requirements under this 
                section and establishes good faith compliance with the 
                requirements under paragraphs (1) through (4) of 
                subsection (c) and subsection (d)--
                            ``(i) has established an affirmative 
                        defense that the employer, person, or entity 
                        has not violated paragraph (1)(A) with respect 
                        to hiring and employing; and
                            ``(ii) has established compliance with its 
                        obligations under subparagraph (A) and (B) of 
                        paragraph (1) and subsection (c) unless the 
                        Secretary demonstrates by clear and convincing 
                        evidence that the employer had knowledge that 
                        an individuals hired, employed, recruited, or 
                        referred by the employer, person, or entity is 
                        an unauthorized alien.
                    ``(B) Exception for certain employers.--An employer 
                who is not required to participate in the System or who 
                is participating in the System on a voluntary basis 
                pursuant to subsection (d)(2)(J) has established an 
                affirmative defense under subparagraph (A) and need not 
                demonstrate compliance with the requirements under 
                subsection (d).
            ``(6) Good faith compliance.--
                    ``(A) In general.--Except as otherwise provided in 
                this subsection, an employer, person, or entity is 
                considered to have complied with a requirement under 
                this subsection notwithstanding a technical or 
                procedural failure to meet such requirement if there 
                was a good faith attempt to comply with the 
                requirement.
                    ``(B) Exception if failure to correct after 
                notice.--Subparagraph (A) shall not apply if--
                            ``(i) the failure is not de minimis;
                            ``(ii) the Secretary has explained to the 
                        employer, person, or entity the basis for the 
                        failure and why it is not de minimis;
                            ``(iii) the employer, person, or entity has 
                        been provided a period of not less than 30 days 
                        (beginning after the date of the explanation) 
                        to correct the failure; and
                            ``(iv) the employer, person, or entity has 
                        not corrected the failure voluntarily within 
                        such period.
                    ``(C) Exception for pattern or practice 
                violators.--Subparagraph (A) shall not apply to an 
                employer, person, or entity that has engaged or is 
                engaging in a pattern or practice of violations of 
                paragraph (1)(A) or (2).
            ``(7) Presumption.--After the date on which an employer is 
        required to participate in the System under subsection (d), the 
        employer is presumed to have acted with knowledge for purposes 
        of paragraph (1)(A) if the employer hires, employs, recruits, 
        or refers an employee for a fee and fails to make an inquiry to 
        verify the employment authorization status of the employee 
        through the System.
            ``(8) Continued application of workforce and labor 
        protection remedies despite unauthorized employment.--
                    ``(A) In general.--Subject only to subparagraph 
                (B), all rights and remedies provided under any 
                Federal, State, or local law relating to workplace 
                rights, including back pay, are available to an 
                employee despite--
                            ``(i) the employee's status as an 
                        unauthorized alien during or after the period 
                        of employment; or
                            ``(ii) the employer's or employee's failure 
                        to comply with the requirements of this 
                        section.
                    ``(B) Reinstatement.--Reinstatement shall be 
                available to individuals who--
                            ``(i) are authorized to work in the United 
                        States at the time such relief is ordered or 
                        effectuated; or
                            ``(ii) lost employment-authorized status 
                        due to the unlawful acts of the employer under 
                        this section.
    ``(b) Definitions.--In this section:
            ``(1) Commissioner.--The term `Commissioner' means the 
        Commissioner of Social Security.
            ``(2) Department.--Except as otherwise provided, the term 
        `Department' means the Department of Homeland Security.
            ``(3) Employer.--The term `employer' means any person or 
        entity, including an agency or department of a Federal, State, 
        or local government, an agent, or a System service provider 
        acting on behalf of an employer, that hires, employs, recruits, 
        or refers for a fee an individual for employment in the United 
        States that is not casual, sporadic, irregular, or intermittent 
        (as defined by the Secretary).
            ``(4) Employment authorized status.--The term `employment 
        authorized status' means, with respect to an individual, that 
        the individual is authorized to be employed in the United 
        States under the immigration laws of the United States.
            ``(5) Secretary.--Except as otherwise specifically 
        provided, the term `Secretary' means the Secretary of Homeland 
        Security.
            ``(6) System.--The term `System' means the Employment 
        Verification System established under subsection (d).
            ``(7) Unauthorized alien.--The term `unauthorized alien' 
        means an alien who, with respect to employment in the United 
        States at a particular time--
                    ``(A) is not lawfully admitted for permanent 
                residence; or
                    ``(B) is not authorized to be employed under this 
                Act or by the Secretary.
            ``(8) Workplace rights.--The term `workplace rights' means 
        rights guaranteed under Federal, State, or local labor or 
        employment laws, including laws concerning wages and hours, 
        benefits and employment standards, labor relations, workplace 
        health and safety, work-related injuries, nondiscrimination, 
        and retaliation for exercising rights under such laws.
    ``(c) Document Verification Requirements.--Any employer hiring an 
individual for employment in the United States shall comply with the 
following requirements and the requirements under subsection (d) to 
verify that the individual has employment authorized status.
            ``(1) Attestation after examination of documentation.--
                    ``(A) In general.--
                            ``(i) Examination by employer.--An employer 
                        shall attest, under penalty of perjury on a 
                        form prescribed by the Secretary, that the 
                        employer has verified the identity and 
                        employment authorization status of the 
                        individual--
                                    ``(I) by examining--
                                            ``(aa) a document specified 
                                        in subparagraph (C); or
                                            ``(bb) a document specified 
                                        in subparagraph (D) and a 
                                        document specified in 
                                        subparagraph (E); and
                                    ``(II) by using an identity 
                                authentication mechanism described in 
                                clause (iii) or (iv) of subparagraph 
                                (F).
                            ``(ii) Publication of documents.--The 
                        Secretary shall publish a picture of each 
                        document specified in subparagraphs (C) and (E) 
                        on the U.S. Citizenship and Immigration 
                        Services website.
                    ``(B) Requirements.--
                            ``(i) Form.--The form referred to in 
                        subparagraph (A)(i)--
                                    ``(I) shall be prescribed by the 
                                Secretary not later than 6 months after 
                                the date of the enactment of the E-
                                Verify Act;
                                    ``(II) shall be available as--
                                            ``(aa) a paper form;
                                            ``(bb) a form that may be 
                                        completed by an employer via 
                                        telephone or video conference;
                                            ``(cc) an electronic form; 
                                        or
                                            ``(dd) a form that is 
                                        integrated electronically with 
                                        the requirements under 
                                        subparagraph (F) and subsection 
                                        (d).
                            ``(ii) Attestation.--Each such form shall 
                        require the employer to sign an attestation 
                        with a handwritten, electronic, or digital 
                        signature, according to standards prescribed by 
                        the Secretary.
                            ``(iii) Compliance.--An employer has 
                        complied with the requirements under this 
                        paragraph with respect to examination of the 
                        documents included in subclauses (I) and (II) 
                        of subparagraph (A)(i) if--
                                    ``(I) the employer has, in good 
                                faith, followed applicable regulations 
                                and any written procedures or 
                                instructions provided by the Secretary; 
                                and
                                    ``(II) a reasonable person would 
                                conclude that the documentation is 
                                genuine and relates to the individual 
                                presenting such documentation.
                    ``(C) Documents establishing identity and 
                employment authorized status.--A document is specified 
                in this subparagraph if the document is unexpired 
                (unless the validity of the document is extended by 
                law) and is one of the following:
                            ``(i) A United States passport or passport 
                        card issued to an individual pursuant to the 
                        Secretary of State's authority under the Act 
                        entitled `An Act to regulate the issue and 
                        validity of passports, and for other purposes', 
                        approved July 3, 1926 (22 U.S.C. 211a).
                            ``(ii) A document issued to an alien 
                        evidencing that the alien is lawfully admitted 
                        for permanent residence or another document 
                        issued to an individual evidencing the 
                        individual's employment authorized status, as 
                        designated by the Secretary, if the document--
                                    ``(I) contains a photograph of the 
                                individual, or such other personal 
                                identifying information relating to the 
                                individual as the Secretary determines, 
                                by regulation, to be sufficient for the 
                                purposes of this subparagraph;
                                    ``(II) is evidence of employment 
                                authorized status; and
                                    ``(III) contains security features 
                                to make the document resistant to 
                                tampering, counterfeiting, and 
                                fraudulent use.
                            ``(iii) An enhanced driver's license or 
                        identification card issued to a national of the 
                        United States by a State, an outlying 
                        possession of the United States, or a federally 
                        recognized Indian tribe that--
                                    ``(I) meets the requirements under 
                                section 202 of the REAL ID Act of 2005 
                                (division B of Public Law 109-13; 49 
                                U.S.C. 30301 note); and
                                    ``(II) the Secretary has certified 
                                by notice published in the Federal 
                                Register and through appropriate notice 
                                directly to employers registered in the 
                                System 3 months prior to publication 
                                that such enhanced license or card is 
                                suitable for use under this 
                                subparagraph based upon the accuracy 
                                and security of the issuance process, 
                                security features on the document, and 
                                such other factors as the Secretary may 
                                prescribe.
                            ``(iv) A passport issued by the appropriate 
                        authority of a foreign country accompanied by a 
                        Form I-94 or Form I-94A (or similar successor 
                        record), or other documentation as designated 
                        by the Secretary that specifies the 
                        individual's status in the United States and 
                        the duration of such status if the proposed 
                        employment is not in conflict with any 
                        restriction or limitation specified on such 
                        form or documentation.
                            ``(v) A passport issued by the Federated 
                        States of Micronesia or the Republic of the 
                        Marshall Islands with evidence of nonimmigrant 
                        admission to the United States under the 
                        Compact of Free Association between the United 
                        States and the Federated States of Micronesia 
                        or the Republic of the Marshall Islands.
                    ``(D) Documents establishing identity of 
                individual.--A document is specified in this 
                subparagraph if the document is unexpired (unless the 
                validity of the document is extended by law) and is one 
                of the following:
                            ``(i) A driver's license or identity card 
                        that is not described in subparagraph (C)(iii) 
                        and is issued to an individual by a State or an 
                        outlying possession of the United States, a 
                        federally recognized Indian tribe, or an agency 
                        (including military) of the Federal Government 
                        if the driver's license or identity card 
                        includes, at a minimum--
                                    ``(I) the individual's photograph, 
                                name, date of birth, gender, and 
                                driver's license or identification card 
                                number; and
                                    ``(II) security features to make 
                                the license or card resistant to 
                                tampering, counterfeiting, and 
                                fraudulent use.
                            ``(ii) A voter registration card.
                            ``(iii) A document that complies with the 
                        requirements under section 7209(b)(1) of the 
                        Intelligence Reform and Terrorism Prevention 
                        Act of 2004 (Public Law 108-458; 8 U.S.C. 1185 
                        note).
                            ``(iv) For individuals under 18 years of 
                        age who are unable to present a document listed 
                        in clause (i) or (ii), documentation of 
                        personal identity of such other type as the 
                        Secretary determines will provide a reliable 
                        means of identification, which may include an 
                        attestation as to the individual's identity by 
                        a parent or legal guardian under penalty of 
                        perjury.
                    ``(E) Documents evidencing employment 
                authorization.--A document is specified in this 
                subparagraph if the document is unexpired (unless the 
                validity of the document is extended by law) and is one 
                of the following:
                            ``(i) A social security account number card 
                        issued by the Commissioner, other than a card 
                        which specifies on its face that the card is 
                        not valid to evidence employment authorized 
                        status or has other similar words of 
                        limitation.
                            ``(ii) Any other documentation evidencing 
                        employment authorized status that the Secretary 
                        determines and publishes in the Federal 
                        Register and through appropriate notice 
                        directly to employers registered within the 
                        System to be acceptable for purposes of this 
                        subparagraph if such documentation, including 
                        any electronic security measures linked to such 
                        documentation, contains security features to 
                        make such documentation resistant to tampering, 
                        counterfeiting, and fraudulent use.
                    ``(F) Identity authentication mechanism.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Covered identity document.--
                                The term `covered identity document' 
                                means a valid--
                                            ``(aa) United States 
                                        passport, passport card, or a 
                                        document evidencing lawful 
                                        permanent residence status or 
                                        employment authorized status 
                                        issued to an alien;
                                            ``(bb) enhanced driver's 
                                        license or identity card issued 
                                        by a participating State or an 
                                        outlying possession of the 
                                        United States; or
                                            ``(cc) photograph and 
                                        appropriate identifying 
                                        information provided by the 
                                        Secretary of State pursuant to 
                                        the granting of a visa.
                                    ``(II) Participating state.--The 
                                term `participating State' means a 
                                State that has an agreement with the 
                                Secretary to provide the Secretary, for 
                                purposes of identity verification in 
                                the System, with photographs and 
                                appropriate identifying information 
                                maintained by the State.
                            ``(ii) Requirement for identity 
                        authentication.--In addition to verifying the 
                        documents specified in subparagraph (C), (D), 
                        or (E), the System shall require each employer 
                        to verify the identity of each newly hired 
                        employee using the identity authentication 
                        mechanism described in clause (iii), or for an 
                        individual whose identity is not able to be 
                        verified using that mechanism, to use the 
                        additional security measures provided in clause 
                        (iv) after such measures become available. A 
                        failure of the System to verify the identity of 
                        an individual due to the use of an identity 
                        authentication mechanism shall result in a 
                        further action notice under subsection 
                        (d)(4)(C)(iii).
                            ``(iii) Photo tool.--
                                    ``(I) Use requirement.--An employer 
                                that hires an individual who has 
                                presented a covered identity document 
                                to establish his or her identity and 
                                employment authorization under this 
                                subsection shall verify the identity of 
                                such individual using the photo tool 
                                described in subclause (II).
                                    ``(II) Development requirement.--
                                The Secretary shall develop and 
                                maintain a photo tool that enables 
                                employers to match the photograph on a 
                                covered identity document provided to 
                                the employer to a photograph maintained 
                                by a U.S. Citizenship and Immigration 
                                Services database or other appropriate 
                                database.
                                    ``(III) Individual queries.--The 
                                photo tool capability shall be 
                                incorporated into the System and made 
                                available to employers not later than 1 
                                year after the date on which 
                                regulations are published implementing 
                                subsection (d).
                                    ``(IV) Limitations on use of 
                                information.--Information and images 
                                acquired from State motor vehicle 
                                databases through the photo tool 
                                developed under this clause--
                                            ``(aa) may only be used for 
                                        matching photographs to a 
                                        covered identity document for 
                                        the purposes of employment 
                                        verification;
                                            ``(bb) shall not be 
                                        collected or stored by the 
                                        Federal Government; and
                                            ``(cc) may only be 
                                        disseminated in response to an 
                                        individual photo tool query.
                            ``(iv) Additional security measures.--
                                    ``(I) Use requirement.--An employer 
                                seeking to hire an individual whose 
                                identity is not able to be verified 
                                using the photo tool described in 
                                clause (iii) because the employee did 
                                not present a covered document for 
                                employment eligibility verification 
                                purposes shall verify the identity of 
                                such individual using the additional 
                                security measures described in 
                                subclause (II).
                                    ``(II) Development requirement.--
                                The Secretary shall develop, after 
                                publication in the Federal Register and 
                                an opportunity for public comment, 
                                specific and effective additional 
                                security measures to adequately verify 
                                the identity of an individual whose 
                                identity is not able to be verified 
                                using the photo tool described in 
                                clause (iii). Such additional security 
                                measures--
                                            ``(aa) shall be kept up-to-
                                        date with technological 
                                        advances;
                                            ``(bb) shall provide a 
                                        means of identity 
                                        authentication in a manner that 
                                        provides a high level of 
                                        certainty as to the identity of 
                                        such individual, using 
                                        immigration and identifying 
                                        information that may include 
                                        review of identity documents or 
                                        background screening 
                                        verification techniques using 
                                        publicly available information; 
                                        and
                                            ``(cc) shall be 
                                        incorporated into the System 
                                        and made available to employers 
                                        not later than 1 year after the 
                                        date on which regulations are 
                                        published implementing 
                                        subsection (d).
                                    ``(III) Comprehensive use.--An 
                                employer may employ the additional 
                                security measures set forth in this 
                                clause with respect to all individuals 
                                the employer hires if the employer 
                                notifies the Secretary of such election 
                                at the time the employer registers for 
                                use of the System under subsection 
                                (d)(4)(A)(i) or anytime thereafter. An 
                                election under this subclause may be 
                                withdrawn 90 days after the employer 
                                notifies the Secretary of the 
                                employer's intent to discontinue such 
                                election.
                            ``(v) Automated verification.--The 
                        Secretary--
                                    ``(I) may establish a program, in 
                                addition to the identity authentication 
                                mechanism described in paragraph 
                                (F)(iii), in which the System 
                                automatically verifies information 
                                contained in a covered identity 
                                document issued by a participating 
                                State, which is presented under 
                                subparagraph (D)(i), including 
                                information needed to verify that the 
                                covered identity document matches the 
                                State's records;
                                    ``(II) may not maintain information 
                                provided by a participating State in a 
                                database maintained by U.S. Citizenship 
                                and Immigration Services; and
                                    ``(III) may not use or disclose 
                                such information, except as authorized 
                                under this section.
                    ``(G) Authority to prohibit use of certain 
                documents.--If the Secretary determines, after 
                publication in the Federal Register and an opportunity 
                for public comment, that any document or class of 
                documents specified in subparagraph (B), (C), or (D) 
                does not reliably establish identity or that employment 
                authorized status is being used fraudulently to an 
                unacceptable degree, the Secretary--
                            ``(i) may prohibit or restrict the use of 
                        such document or class of documents for 
                        purposes of this subsection; and
                            ``(ii) shall directly notify all employers 
                        registered within the System of the prohibition 
                        through appropriate means.
                    ``(H) Authority to allow use of certain 
                documents.--If the Secretary has determined that 
                another document or class of documents, such as a 
                document issued by a federally recognized Indian tribe, 
                may be used to reliably establish identity or 
                employment authorized status, the Secretary--
                            ``(i) may allow the use of that document or 
                        class of documents for purposes of this 
                        subsection after publication in the Federal 
                        Register and an opportunity for public comment;
                            ``(ii) shall publish a description of any 
                        such document or class of documents on the U.S. 
                        Citizenship and Immigration Services website; 
                        and
                            ``(iii) shall directly notify all employers 
                        registered within the System of the addition 
                        through appropriate means.
            ``(2) Individual attestation of employment authorization.--
        An individual, upon commencing employment with an employer, 
        shall--
                    ``(A) attest, under penalty of perjury, on the form 
                prescribed by the Secretary, that the individual is--
                            ``(i) a citizen of the United States;
                            ``(ii) an alien lawfully admitted for 
                        permanent residence;
                            ``(iii) an alien who has employment 
                        authorized status; or
                            ``(iv) otherwise authorized by the 
                        Secretary to be hired for such employment;
                    ``(B) provide such attestation by a handwritten, 
                electronic, or digital signature; and
                    ``(C) provide the individual's social security 
                account number to the Secretary, unless the individual 
                has not yet been issued such a number, on such form as 
                the Secretary may require.
            ``(3) Retention of verification record.--
                    ``(A) In general.--After completing a form for an 
                individual in accordance with paragraphs (1) and (2), 
                the employer shall retain a version of such completed 
                form and make such form available for inspection by the 
                Secretary or the Immigrant and Employee Rights Section 
                of the Civil Rights Division of the Department of 
                Justice during the period beginning on the hiring date 
                of the individual and ending on the later of--
                            ``(i) the date that is 3 years after such 
                        hiring date; or
                            ``(ii) the date that is 1 year after the 
                        date on which the individual's employment with 
                        the employer is terminated.
                    ``(B) Requirement for electronic retention.--The 
                Secretary--
                            ``(i) shall permit an employer to retain 
                        the form described in subparagraph (A) in 
                        electronic form; and
                            ``(ii) shall permit an employer to retain 
                        such form in paper, microfiche, microfilm, 
                        portable document format, or other media.
            ``(4) Copying of documentation and recordkeeping.--The 
        Secretary may promulgate regulations regarding--
                    ``(A) copying documents and related information 
                pertaining to employment verification presented by an 
                individual under this subsection; and
                    ``(B) retaining such information during a period 
                not to exceed the required retention period set forth 
                in paragraph (3).
            ``(5) Penalties.--An employer that fails to comply with any 
        requirement under this subsection may be penalized under 
        subsection (e)(4)(B).
            ``(6) Protection of civil rights.--
                    ``(A) In general.--Nothing in this section may be 
                construed to diminish any rights otherwise protected by 
                Federal law.
                    ``(B) Prohibition on discrimination.--An employer 
                shall use the procedures for document verification set 
                forth in this paragraph for all employees without 
                regard to race, color, religion, sex, national origin, 
                or, unless specifically permitted in this section, to 
                citizenship status.
            ``(7) Receipts.--The Secretary may authorize the use of 
        receipts for replacement documents, and temporary evidence of 
        employment authorization by an individual to meet a 
        documentation requirement under this subsection on a temporary 
        basis not to exceed 1 year, after which time the individual 
        shall provide documentation sufficient to satisfy the 
        documentation requirements under this subsection.
            ``(8) No authorization of national identification cards.--
        Nothing in this section may be construed to directly or 
        indirectly authorize the issuance, use, or establishment of a 
        national identification card.
    ``(d) Employment Verification System.--
            ``(1) In general.--
                    ``(A) Establishment.--The Secretary, in 
                consultation with the Commissioner, shall establish the 
                Employment Verification System.
                    ``(B) Monitoring.--The Secretary shall create the 
                necessary processes to monitor--
                            ``(i) the functioning of the System, 
                        including the volume of the workflow, the speed 
                        of processing of queries, and the speed and 
                        accuracy of responses;
                            ``(ii) the misuse of the System, including 
                        the prevention of fraud or identity theft;
                            ``(iii) whether the use of the System 
                        results in wrongful adverse actions or 
                        discrimination based upon a prohibited factor 
                        against citizens or nationals of the United 
                        States or individuals who have employment 
                        authorized status; and
                            ``(iv) the security, integrity, and privacy 
                        of the System.
                    ``(C) Procedures.--The Secretary--
                            ``(i) shall create processes to provide an 
                        individual with direct access to the 
                        individual's case history in the System, 
                        including--
                                    ``(I) the identities of all persons 
                                or entities that have queried the 
                                individual through the System;
                                    ``(II) the date of each such query; 
                                and
                                    ``(III) the System response for 
                                each such query; and
                            ``(ii) in consultation with the 
                        Commissioner, shall develop--
                                    ``(I) protocols to notify an 
                                individual, in a timely manner through 
                                the use of electronic correspondence or 
                                mail, that a query for the individual 
                                has been processed through the System; 
                                or
                                    ``(II) a process for the individual 
                                to submit additional queries to the 
                                System or notify the Secretary of 
                                potential identity fraud.
            ``(2) Participation requirements.--
                    ``(A) Federal government.--Except as provided in 
                subparagraph (B), all agencies and departments in the 
                executive, legislative, or judicial branches of the 
                Federal Government shall participate in the System 
                beginning on the earlier of--
                            ``(i) the date of the enactment of the E-
                        Verify Act, to the extent required under 
                        section 402(e)(1) of the Illegal Immigration 
                        Reform and Immigrant Responsibility Act of 1996 
                        (division C of Public Law 104-208; 8 U.S.C. 
                        1324a) and as already implemented by each 
                        agency or department; or
                            ``(ii) the date that is 90 days after the 
                        date of the enactment of the E-Verify Act.
                    ``(B) Federal contractors.--Federal contractors 
                shall participate in the System as provided in the 
                final rule relating to employment eligibility 
                verification published in the Federal Register on 
                November 14, 2008 (73 Fed. Reg. 67,651), or any similar 
                subsequent regulation, for which purpose references to 
                E-Verify in the final rule shall be construed to apply 
                to the System.
                    ``(C) Critical infrastructure.--
                            ``(i) In general.--Beginning on the date 
                        that is 1 year after the date on which 
                        regulations are published implementing this 
                        subsection, the Secretary may authorize or 
                        direct any employer, person, or entity 
                        responsible for granting access to, protecting, 
                        securing, operating, administering, or 
                        regulating part of the critical infrastructure 
                        (as defined in section 1016(e) of the Critical 
                        Infrastructure Protection Act of 2001 (42 
                        U.S.C. 5195c(e))) to participate in the System 
                        to the extent the Secretary determines that 
                        such participation will assist in the 
                        protection of the critical infrastructure.
                            ``(ii) Notification to employers.--The 
                        Secretary shall notify an employer required to 
                        participate in the System under this 
                        subparagraph not later than 90 days before the 
                        date on which the employer is required to 
                        participate.
                    ``(D) Employers with more than 10,000 employees.--
                Not later than 1 year after regulations are published 
                implementing this subsection, all employers with more 
                than 10,000 employees shall participate in the System 
                with respect to all newly hired employees and employees 
                with expiring temporary employment authorization 
                documents.
                    ``(E) Employers with more than 500 employees.--Not 
                later than 2 years after regulations are published 
                implementing this subsection, all employers with more 
                than 500 employees shall participate in the System with 
                respect to all newly hired employees and employees with 
                expiring temporary employment authorization documents.
                    ``(F) Employers with more than 20 employees.--Not 
                later than 3 years after regulations are published 
                implementing this subsection, all employers with more 
                than 20 employees shall participate in the System with 
                respect to all newly hired employees and employees with 
                expiring temporary employment authorization documents.
                    ``(G) Agricultural employment.--Not later than 4 
                years after regulations are published implementing this 
                subsection, employers of employees performing 
                agricultural employment (as defined in section 218A) 
                shall participate in the System with respect to all 
                newly hired employees and employees with expiring 
                temporary employment authorization documents. An 
                agricultural employee shall not be counted for purposes 
                of subparagraph (D), (E), or (F).
                    ``(H) All employers.--Not later than 4 years after 
                regulations are published implementing this subsection, 
                all employers shall participate in the System with 
                respect to all newly hired employees and employees with 
                expiring temporary employment authorization documents.
                    ``(I) Tribal government employers.--
                            ``(i) Rulemaking.--In developing 
                        regulations to implement this subsection, the 
                        Secretary shall--
                                    ``(I) consider the effects of this 
                                section on federally recognized Indian 
                                tribes and tribal members; and
                                    ``(II) consult with the governments 
                                of federally recognized Indian tribes.
                            ``(ii) Required participation.--Not later 
                        than 4 years after regulations are published 
                        implementing this subsection, all employers 
                        owned by, or entities of, the government of a 
                        federally recognized Indian tribe shall 
                        participate in the System with respect to all 
                        newly hired employees and employees with 
                        expiring temporary employment authorization 
                        documents.
                    ``(J) Immigration law violators.--
                            ``(i) Orders finding violations.--An order 
                        finding any employer to have violated this 
                        section or section 274C may, in the Secretary's 
                        discretion, require the employer to participate 
                        in the System with respect to newly hired 
                        employees and employees with expiring temporary 
                        employment authorization documents, if such 
                        employer is not otherwise required to 
                        participate in the System under this section. 
                        The Secretary shall monitor such employer's 
                        compliance with System procedures.
                            ``(ii) Pattern or practice of violations.--
                        The Secretary may require an employer that is 
                        required to participate in the System with 
                        respect to newly hired employees to participate 
                        in the System with respect to the employer's 
                        current employees if the employer is determined 
                        by the Secretary or other appropriate authority 
                        to have engaged in a pattern or practice of 
                        violations of the immigration laws of the 
                        United States.
                    ``(K) Voluntary participation.--The Secretary may 
                permit any employer that is not required to participate 
                in the System under this section to do so on a 
                voluntary basis.
            ``(3) Consequence of failure to participate.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the failure, other than a de minimis 
                or inadvertent failure, of an employer that is required 
                to participate in the System to comply with the 
                requirements of the System with respect to an 
                individual--
                            ``(i) shall be treated as a violation of 
                        subsection (a)(1)(B) with respect to that 
                        individual; and
                            ``(ii) creates a rebuttable presumption 
                        that the employer has violated paragraph (1)(A) 
                        or (2) of subsection (a).
                    ``(B) Exception.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply in a criminal prosecution.
                            ``(ii) Use as evidence.--Nothing in this 
                        paragraph may be construed to limit the use in 
                        the prosecution of a Federal crime, in a manner 
                        otherwise consistent with Federal criminal law 
                        and procedure, of evidence relating to the 
                        employer's failure to comply with requirements 
                        of the System.
            ``(4) Procedures for participants in the system.--
                    ``(A) In general.--An employer participating in the 
                System shall register such participation with the 
                Secretary and, when hiring any individual for 
                employment in the United States, shall comply with the 
                following:
                            ``(i) Registration of employers.--The 
                        Secretary, through notice in the Federal 
                        Register, shall prescribe procedures that 
                        employers shall be required to follow to 
                        register with the System.
                            ``(ii) Updating information.--The employer 
                        is responsible for providing notice of any 
                        change to the information required under 
                        subclauses (I), (II), and (III) of clause (v) 
                        before conducting any further inquiries within 
                        the System, or on such other schedule as the 
                        Secretary may prescribe.
                            ``(iii) Training.--The Secretary shall 
                        require employers to undergo such training as 
                        the Secretary determines to be necessary to 
                        ensure proper use, protection of civil rights 
                        and civil liberties, privacy, integrity, and 
                        security of the System. To the extent 
                        practicable, such training shall be made 
                        available electronically on the U.S. 
                        Citizenship and Immigration Services website.
                            ``(iv) Notification to employees.--The 
                        employer shall inform individuals hired for 
                        employment that the System--
                                    ``(I) will be used by the employer;
                                    ``(II) may be used for immigration 
                                enforcement purposes; and
                                    ``(III) may not be used to 
                                discriminate or to take adverse action 
                                against a national of the United States 
                                or an alien who has employment 
                                authorized status.
                            ``(v) Provision of additional 
                        information.--The employer shall obtain from 
                        the individual (and the individual shall 
                        provide) and shall record in such manner as the 
                        Secretary may specify--
                                    ``(I) the individual's social 
                                security account number;
                                    ``(II) if the individual does not 
                                attest to United States citizenship or 
                                status as a national of the United 
                                States under subsection (c)(2), such 
                                identification or authorization number 
                                established by the Department as the 
                                Secretary shall specify; and
                                    ``(III) such other information as 
                                the Secretary may require to determine 
                                the identity and employment 
                                authorization of an individual.
                            ``(vi) Presentation of documentation.--The 
                        employer, and the individual whose identity and 
                        employment authorized status are being 
                        confirmed, shall fulfill the requirements under 
                        subsection (c).
                    ``(B) Seeking confirmation.--
                            ``(i) In general.--An employer shall use 
                        the System to confirm the identity and 
                        employment authorized status of any individual 
                        during--
                                    ``(I) the period beginning on the 
                                date on which the individual accepts an 
                                offer of employment and ending 3 
                                business days after the date on which 
                                employment begins; or
                                    ``(II) such other reasonable period 
                                as the Secretary may prescribe.
                            ``(ii) Limitation.--An employer may not 
                        make the starting date of an individual's 
                        employment or training or any other term and 
                        condition of employment dependent on the 
                        receipt of a confirmation of identity and 
                        employment authorized status by the System.
                            ``(iii) Reverification.--If an individual 
                        has a limited period of employment authorized 
                        status, the individual's employer shall re-
                        verify such status through the System not later 
                        than 3 business days after the last day of such 
                        period.
                            ``(iv) Other employment.--For employers 
                        directed by the Secretary to participate in the 
                        System under paragraph (2)(C)(i) to protect 
                        critical infrastructure or otherwise specified 
                        circumstances in this section to verify their 
                        entire workforce, the System may be used for 
                        initial verification of an individual who was 
                        hired before the employer became subject to the 
                        System, and the employer shall initiate all 
                        required procedures on or before such date as 
                        the Secretary shall specify.
                            ``(v) Notification.--
                                    ``(I) In general.--The Secretary 
                                shall provide, and the employer shall 
                                use, as part of the System, a method of 
                                notifying employers of a confirmation 
                                or nonconfirmation of an individual's 
                                identity and employment authorized 
                                status, or a notice that further action 
                                is required to verify such identity or 
                                employment eligibility (referred to in 
                                this subsection as a `further action 
                                notice').
                                    ``(II) Procedures.--The Secretary 
                                shall--
                                            ``(aa) directly notify the 
                                        individual and the employer, by 
                                        means of electronic 
                                        correspondence, mail, text 
                                        message, telephone, or other 
                                        direct communication, of a 
                                        nonconfirmation or further 
                                        action notice;
                                            ``(bb) provide information 
                                        about filing an administrative 
                                        appeal under paragraph (6) and 
                                        a filing for review before an 
                                        administrative law judge under 
                                        paragraph (7); and
                                            ``(cc) establish procedures 
                                        to directly notify the 
                                        individual and the employer of 
                                        a confirmation.
                                    ``(III) Implementation.--The 
                                Secretary may provide for a phased-in 
                                implementation of the notification 
                                requirements under this clause, as 
                                appropriate. The notification system 
                                shall cover all inquiries not later 
                                than 1 year from the date of the 
                                enactment of the E-Verify Act.
                    ``(C) Confirmation or nonconfirmation.--
                            ``(i) Initial response.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the System 
                                shall provide--
                                            ``(aa) a confirmation of an 
                                        individual's identity and 
                                        employment authorized status or 
                                        a further action notice at the 
                                        time of the inquiry; and
                                            ``(bb) an appropriate code 
                                        indicating such confirmation or 
                                        such further action notice.
                                    ``(II) Alternative deadline.--If 
                                the System is unable to provide 
                                immediate confirmation or further 
                                action notice for technological reasons 
                                or due to unforeseen circumstances, the 
                                System shall provide a confirmation or 
                                further action notice not later than 3 
                                business days after the initial 
                                inquiry.
                            ``(ii) Confirmation upon initial inquiry.--
                        If the employer receives an appropriate 
                        confirmation of an individual's identity and 
                        employment authorized status under the System, 
                        the employer shall record the confirmation in 
                        such manner as the Secretary may specify.
                            ``(iii) Further action notice and later 
                        confirmation or nonconfirmation.--
                                    ``(I) Notification and 
                                acknowledgment that further action is 
                                required.--Not later than 3 business 
                                days after an employer receives a 
                                further action notice of an 
                                individual's identity or employment 
                                eligibility under the System, or during 
                                such other reasonable time as the 
                                Secretary may prescribe, the employer 
                                shall notify the individual for whom 
                                the confirmation is sought of the 
                                further action notice and any 
                                procedures specified by the Secretary 
                                for addressing such notice. The 
                                employer shall give the further action 
                                notice to the individual in writing and 
                                the employer shall acknowledge in the 
                                System under penalty of perjury that it 
                                provided the employee with the further 
                                action notice. The individual shall 
                                affirmatively acknowledge in writing, 
                                or in such other manner as the 
                                Secretary may specify, the receipt of 
                                the further action notice from the 
                                employer. If the individual refuses to 
                                acknowledge the receipt of the further 
                                action notice, or acknowledges in 
                                writing that the individual will not 
                                contest the further action notice under 
                                subclause (II), the employer shall 
                                notify the Secretary in such manner as 
                                the Secretary may specify.
                                    ``(II) Contest.--Not later than 10 
                                business days after receiving 
                                notification of a further action notice 
                                under subclause (I), the individual 
                                shall contact the appropriate Federal 
                                agency and, if the Secretary so 
                                requires, appear in person for purposes 
                                of verifying the individual's identity 
                                and employment eligibility. The 
                                Secretary, in consultation with the 
                                Commissioner and other appropriate 
                                Federal agencies, shall specify an 
                                available secondary verification 
                                procedure to confirm the validity of 
                                information provided and to provide a 
                                confirmation or nonconfirmation. Any 
                                procedures for reexamination shall not 
                                limit in any way an employee's right to 
                                appeal a nonconfirmation.
                                    ``(III) No contest.--If the 
                                individual refuses to acknowledge 
                                receipt of the further action notice, 
                                acknowledges that the individual will 
                                not contest the further action notice 
                                as provided in subclause (I), or does 
                                not contact the appropriate Federal 
                                agency within the period specified in 
                                subclause (II), following expiration of 
                                the period specified in subclause (II), 
                                a nonconfirmation shall be issued. The 
                                employer shall record the 
                                nonconfirmation in such manner as the 
                                Secretary may specify and terminate the 
                                individual's employment. An 
                                individual's failure to contest a 
                                further action notice shall not be 
                                considered an admission of guilt with 
                                respect to any violation of this 
                                section or any provision of law.
                                    ``(IV) Confirmation or 
                                nonconfirmation.--Unless the period is 
                                extended in accordance with this 
                                subclause, the System shall provide a 
                                confirmation or nonconfirmation not 
                                later than 10 business days after the 
                                date on which the individual contests 
                                the further action notice under 
                                subclause (II). If the Secretary 
                                determines that good cause exists, 
                                after taking into account adverse 
                                impacts to the employer, and including 
                                time to permit the individual to obtain 
                                and provide needed evidence of identity 
                                or employment eligibility, the 
                                Secretary shall extend the period for 
                                providing confirmation or 
                                nonconfirmation for stated periods 
                                beyond 10 business days. When 
                                confirmation or nonconfirmation is 
                                provided, the confirmation system shall 
                                provide an appropriate code indicating 
                                such confirmation or nonconfirmation.
                                    ``(V) Reexamination.--Nothing in 
                                this section may be construed to 
                                prevent the Secretary from establishing 
                                procedures to reexamine a case where a 
                                confirmation or nonconfirmation has 
                                been provided if subsequently received 
                                information indicates that the 
                                confirmation or nonconfirmation may not 
                                have been correct. Any procedures for 
                                reexamination shall not limit in any 
                                way an employee's right to appeal a 
                                nonconfirmation.
                                    ``(VI) Employee protections.--An 
                                employer may not terminate employment 
                                or take any other adverse action 
                                against an individual solely because of 
                                a failure of the individual to have 
                                identity and employment eligibility 
                                confirmed under this subsection until--
                                            ``(aa) a nonconfirmation 
                                        has been issued;
                                            ``(bb) if the further 
                                        action notice was contested, 
                                        the period to timely file an 
                                        administrative appeal has 
                                        expired without an appeal or 
                                        the contestation to the further 
                                        action notice is withdrawn; or
                                            ``(cc) if an appeal before 
                                        an administrative law judge 
                                        under paragraph (7) has been 
                                        filed, the nonconfirmation has 
                                        been upheld or the appeal has 
                                        been withdrawn or dismissed.
                            ``(iv) Notice of nonconfirmation.--Not 
                        later than 3 business days after an employer 
                        receives a nonconfirmation, or during such 
                        other reasonable time as the Secretary may 
                        provide, the employer shall notify the 
                        individual who is the subject of the 
                        nonconfirmation, and provide information about 
                        filing an administrative appeal pursuant to 
                        paragraph (6) and a request for a hearing 
                        before an administrative law judge pursuant to 
                        paragraph (7). The employer shall give the 
                        nonconfirmation notice to the individual in 
                        writing and the employer shall acknowledge in 
                        the System under penalty of perjury that it 
                        provided the notice (or adequately attempted to 
                        provide notice, but was unable to do so despite 
                        reasonable efforts). The individual shall 
                        affirmatively acknowledge in writing, or in 
                        such other manner as the Secretary may 
                        prescribe, the receipt of the nonconfirmation 
                        notice from the employer. If the individual 
                        refuses or fails to acknowledge the receipt of 
                        the nonconfirmation notice, the employer shall 
                        notify the Secretary in such manner as the 
                        Secretary may prescribe.
                    ``(D) Consequences of nonconfirmation.--
                            ``(i) Termination of continued 
                        employment.--Except as provided in clause 
                        (iii), an employer that has received a 
                        nonconfirmation regarding an individual and has 
                        made reasonable efforts to notify the 
                        individual in accordance with subparagraph 
                        (C)(iv) shall terminate the employment of the 
                        individual upon the expiration of the time 
                        period specified in paragraph (7).
                            ``(ii) Continued employment after 
                        nonconfirmation.--If the employer continues to 
                        employ an individual after receiving 
                        nonconfirmation and exhaustion of all appeals 
                        or expiration of all rights to appeal if not 
                        appealed, in violation of clause (i), a 
                        rebuttable presumption is created that the 
                        employer has violated paragraphs (1)(A) and (2) 
                        of subsection (a). Such presumption shall not 
                        apply in any prosecution under subsection 
                        (k)(1).
                            ``(iii) Effect of administrative appeal or 
                        review by administrative law judge.--If an 
                        individual files an administrative appeal of 
                        the nonconfirmation within the time period 
                        specified in paragraph (6)(A), or files for 
                        review with an administrative law judge 
                        specified in paragraph (7)(A), the employer 
                        shall not terminate the individual's employment 
                        under this subparagraph prior to the resolution 
                        of the administrative appeal unless the 
                        Secretary or the Commissioner terminates the 
                        stay under paragraph (6)(B) or (7)(B).
                            ``(iv) Weekly report.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        submit a weekly report to the Assistant 
                        Secretary for Immigration and Customs 
                        Enforcement that includes, for each individual 
                        who receives final nonconfirmation through the 
                        System--
                                    ``(I) the name of such individual;
                                    ``(II) his or her social security 
                                number or alien file number;
                                    ``(III) the name and contact 
                                information for his or her current 
                                employer; and
                                    ``(IV) any other critical 
                                information that the Assistant 
                                Secretary determines to be appropriate.
                            ``(v) Other referral.--The Director of U.S. 
                        Citizenship and Immigration Services shall 
                        refer to the Assistant Secretary for 
                        Immigration and Customs Enforcement for 
                        appropriate action by the Assistant Secretary, 
                        or for referral by the Assistant Secretary to 
                        another law enforcement agency, as 
                        appropriate--
                                    ``(I) any case in which the 
                                Director believes that a social 
                                security number has been falsely or 
                                fraudulently used; and
                                    ``(II) any case in which a false or 
                                fraudulent document is used by an 
                                employee who has received a further 
                                action notice to resolve such notice.
                    ``(E) Obligation to respond to queries and 
                additional information.--
                            ``(i) In general.--Employers shall comply 
                        with requests for information from the 
                        Secretary and the Immigrant and Employee Rights 
                        Section of the Civil Rights Division of the 
                        Department of Justice, including queries 
                        concerning current and former employees, within 
                        the time frame during which records are 
                        required to be maintained under this section 
                        regarding such former employees, if such 
                        information relates to the functioning of the 
                        System, the accuracy of the responses provided 
                        by the System, or any suspected misuse, 
                        discrimination, fraud, or identity theft in the 
                        use of the System. Failure to comply with a 
                        request under this clause constitutes a 
                        violation of subsection (a)(1)(B).
                            ``(ii) Action by individuals.--
                                    ``(I) In general.--Individuals 
                                being verified through the System may 
                                be required to take further action to 
                                address questions identified by the 
                                Secretary or the Commissioner regarding 
                                the documents relied upon for purposes 
                                of subsection (c).
                                    ``(II) Notification.--Not later 
                                than 3 business days after the receipt 
                                of such questions regarding an 
                                individual, or during such other 
                                reasonable time as the Secretary may 
                                prescribe, the employer shall--
                                            ``(aa) notify the 
                                        individual of any such 
                                        requirement for further 
                                        actions; and
                                            ``(bb) record the date and 
                                        manner of such notification.
                                    ``(III) Acknowledgment.--The 
                                individual shall acknowledge the 
                                notification received from the employer 
                                under subclause (II) in writing, or in 
                                such other manner as the Secretary may 
                                prescribe.
                            ``(iii) Rulemaking.--
                                    ``(I) In general.--The Secretary, 
                                in consultation with the Commissioner 
                                and the Attorney General, is authorized 
                                to issue regulations implementing, 
                                clarifying, and supplementing the 
                                requirements under this subparagraph--
                                            ``(aa) to facilitate the 
                                        functioning, accuracy, and 
                                        fairness of the System;
                                            ``(bb) to prevent misuse, 
                                        discrimination, fraud, or 
                                        identity theft in the use of 
                                        the System; and
                                            ``(cc) to protect and 
                                        maintain the confidentiality of 
                                        information that could be used 
                                        to locate or otherwise place at 
                                        risk of harm victims of 
                                        domestic violence, dating 
                                        violence, sexual assault, 
                                        stalking, and human 
                                        trafficking, and of the 
                                        applicant or beneficiary of any 
                                        petition described in section 
                                        384(a)(2) of the Illegal 
                                        Immigration Reform and 
                                        Immigrant Responsibility Act of 
                                        1996 (8 U.S.C. 1367(a)(2)).
                                    ``(II) Notice.--The regulations 
                                issued under subclause (I) shall be--
                                            ``(aa) published in the 
                                        Federal Register; and
                                            ``(bb) provided directly to 
                                        all employers registered in the 
                                        System.
                    ``(F) Designated agents.--The Secretary shall 
                establish a process--
                            ``(i) for certifying, on an annual basis or 
                        at such times as the Secretary may prescribe, 
                        designated agents and other System service 
                        providers seeking access to the System to 
                        perform verification queries on behalf of 
                        employers, based upon training, usage, privacy, 
                        and security standards prescribed by the 
                        Secretary;
                            ``(ii) for ensuring that designated agents 
                        and other System service providers are subject 
                        to monitoring to the same extent as direct 
                        access users; and
                            ``(iii) for establishing standards for 
                        certification of electronic I-9 programs.
                    ``(G) Requirement to provide information.--
                            ``(i) In general.--No later than 3 months 
                        after the date of the enactment of the E-Verify 
                        Act, the Secretary, in consultation with the 
                        Secretary of Labor, the Secretary of 
                        Agriculture, the Commissioner, the Attorney 
                        General, the Equal Employment Opportunity 
                        Commission, and the Administrator of the Small 
                        Business Administration, shall commence a 
                        campaign to disseminate information respecting 
                        the procedures, rights, and remedies prescribed 
                        under this section.
                            ``(ii) Campaign requirements.--The campaign 
                        authorized under clause (i)--
                                    ``(I) shall be aimed at increasing 
                                the knowledge of employers, employees, 
                                and the general public concerning 
                                employer and employee rights, 
                                responsibilities, and remedies under 
                                this section; and
                                    ``(II) shall be coordinated with 
                                the public education campaign conducted 
                                by U.S. Citizenship and Immigration 
                                Services.
                            ``(iii) Assessment.--The Secretary shall 
                        assess the success of the campaign in achieving 
                        the goals of the campaign.
                            ``(iv) Authority to contract.--In order to 
                        carry out and assess the campaign under this 
                        subparagraph, the Secretary may, to the extent 
                        deemed appropriate and subject to the 
                        availability of appropriations, contract with 
                        public and private organizations for outreach 
                        and assessment activities under the campaign.
                            ``(v) Authorization of appropriations.--
                        There are authorized to be appropriated, for 
                        each of the fiscal years 2020 through 2022, 
                        such sums as may be necessary to carry out this 
                        subparagraph.
                    ``(H) Authority to modify information 
                requirements.--Based on a regular review of the System 
                and the document verification procedures to identify 
                misuse or fraudulent use and to assess the security of 
                the documents and processes used to establish identity 
                or employment authorized status, the Secretary, in 
                consultation with the Commissioner, after publication 
                of notice in the Federal Register and an opportunity 
                for public comment, may modify, if the Secretary 
                determines that the modification is necessary to ensure 
                that the System accurately and reliably determines the 
                identity and employment authorized status of employees 
                and maintains existing protections against misuse, 
                discrimination, fraud, and identity theft--
                            ``(i) the information that shall be 
                        presented to the employer by an individual;
                            ``(ii) the information that shall be 
                        provided to the System by the employer; and
                            ``(iii) the procedures that shall be 
                        followed by employers with respect to the 
                        process of verifying an individual through the 
                        System.
                    ``(I) Self-verification.--Subject to appropriate 
                safeguards to prevent misuse of the system, the 
                Secretary, in consultation with the Commissioner, shall 
                establish a secure self-verification procedure to 
                permit an individual who seeks to verify the 
                individual's own employment eligibility to contact the 
                appropriate agency and, in a timely manner, correct or 
                update the information contained in the System.
            ``(5) Protection from liability for actions taken on the 
        basis of information provided by the system.--An employer shall 
        not be liable to a job applicant, an employee, the Federal 
        Government, or a State or local government, under Federal, 
        State, or local criminal or civil law for any employment-
        related action taken with respect to a job applicant or 
        employee in good faith reliance on information provided by the 
        System.
            ``(6) Administrative appeal.--
                    ``(A) In general.--An individual who is notified of 
                a nonconfirmation may, not later than 10 business days 
                after the date that such notice is received, file an 
                administrative appeal of such nonconfirmation with the 
                Commissioner if the notice is based on records 
                maintained by the Commissioner, or in any other case, 
                with the Secretary. An individual who does not timely 
                contest a further action notice timely received by that 
                individual for which the individual acknowledged 
                receipt may not be granted a review under this 
                paragraph.
                    ``(B) Administrative stay of nonconfirmation.--The 
                nonconfirmation shall be automatically stayed upon the 
                timely filing of an administrative appeal, unless the 
                nonconfirmation resulted after the individual 
                acknowledged receipt of the further action notice but 
                failed to contact the appropriate agency within the 
                time provided. The stay shall remain in effect until 
                the resolution of the appeal, unless the Secretary or 
                the Commissioner terminates the stay based on a 
                determination that the administrative appeal is 
                frivolous or filed for purposes of delay.
                    ``(C) Review for error.--The Secretary and the 
                Commissioner shall develop procedures for resolving 
                administrative appeals regarding nonconfirmations based 
                upon the information that the individual has provided, 
                including any additional evidence or argument that was 
                not previously considered. Any such additional evidence 
                or argument shall be filed within 10 business days of 
                the date the appeal was originally filed. Appeals shall 
                be resolved within 20 business days after the 
                individual has submitted all evidence and arguments the 
                individual wishes to submit, or has stated in writing 
                that there is no additional evidence that the 
                individual wishes to submit. The Secretary and the 
                Commissioner may, on a case by case basis for good 
                cause, extend the filing and submission period in order 
                to ensure accurate resolution of an appeal before the 
                Secretary or the Commissioner.
                    ``(D) Preponderance of evidence.--Administrative 
                appeal under this paragraph shall be limited to whether 
                a nonconfirmation notice is supported by a 
                preponderance of the evidence.
                    ``(E) Damages, fees, and costs.--No money damages, 
                fees, or costs may be awarded in the administrative 
                appeal process under this paragraph.
            ``(7) Review by administrative law judge.--
                    ``(A) In general.--Not later than 30 days after the 
                date an individual receives a final determination on an 
                administrative appeal under paragraph (6), the 
                individual may obtain review of such determination by 
                filing a complaint with a Department of Justice 
                administrative law judge in accordance with this 
                paragraph.
                    ``(B) Stay of nonconfirmation.--The nonconfirmation 
                related to such final determination shall be 
                automatically stayed upon the timely filing of a 
                complaint under this paragraph, and the stay shall 
                remain in effect until the resolution of the complaint, 
                unless the administrative law judge determines that the 
                action is frivolous or filed for purposes of delay.
                    ``(C) Service.--The respondent to complaint filed 
                under this paragraph is either the Secretary or the 
                Commissioner, but not both, depending upon who issued 
                the administrative order under paragraph (6). In 
                addition to serving the respondent, the plaintiff shall 
                serve the Attorney General.
                    ``(D) Authority of administrative law judge.--
                            ``(i) Rules of practice.--The Secretary 
                        shall promulgate regulations regarding the 
                        rules of practice in appeals brought pursuant 
                        to this subsection.
                            ``(ii) Authority of administrative law 
                        judge.--The administrative law judge shall have 
                        power to--
                                    ``(I) terminate a stay of a 
                                nonconfirmation under subparagraph (B) 
                                if the administrative law judge 
                                determines that the action is frivolous 
                                or filed for purposes of delay;
                                    ``(II) adduce evidence at a 
                                hearing;
                                    ``(III) compel by subpoena the 
                                attendance of witnesses and the 
                                production of evidence at any 
                                designated place or hearing;
                                    ``(IV) resolve claims of identity 
                                theft; and
                                    ``(V) enter, upon the pleadings and 
                                any evidence adduced at a hearing, a 
                                decision affirming or reversing the 
                                result of the agency, with or without 
                                remanding the cause for a rehearing.
                            ``(iii) Subpoena.--In case of contumacy or 
                        refusal to obey a subpoena lawfully issued 
                        under this section and upon application of the 
                        administrative law judge, an appropriate 
                        district court of the United States may issue 
                        an order requiring compliance with such 
                        subpoena and any failure to obey such order may 
                        be punished by such court as a contempt of such 
                        court.
                            ``(iv) Training.--An administrative law 
                        judge hearing cases shall have special training 
                        respecting employment authorized status 
                        verification.
                    ``(E) Order by administrative law judge.--
                            ``(i) In general.--The administrative law 
                        judge shall issue and cause to be served to the 
                        parties in the proceeding an order which may be 
                        appealed as provided in subparagraph (G).
                            ``(ii) Contents of order.--Such an order 
                        shall uphold or reverse the final determination 
                        on the request for reconsideration and order 
                        lost wages and other appropriate remedies as 
                        provided in subparagraph (F).
                    ``(F) Compensation for error.--
                            ``(i) In general.--In cases in which the 
                        administrative law judge reverses the final 
                        determination of the Secretary or the 
                        Commissioner made under paragraph (6), and the 
                        administrative law judge finds that--
                                    ``(I) the nonconfirmation was due 
                                to gross negligence or intentional 
                                misconduct of the employer, the 
                                administrative law judge may order the 
                                employer to pay the individual lost 
                                wages, and reasonable costs and 
                                attorneys' fees incurred during 
                                administrative and judicial review; or
                                    ``(II) such final determination was 
                                erroneous by reason of the negligence 
                                of the Secretary or the Commissioner, 
                                the administrative law judge may order 
                                the Secretary or the Commissioner to 
                                pay the individual lost wages, and 
                                reasonable costs and attorneys' fees 
                                incurred during the administrative 
                                appeal and the administrative law judge 
                                review.
                            ``(ii) Calculation of lost wages.--Lost 
                        wages shall be calculated based on the wage 
                        rate and work schedule that prevailed prior to 
                        termination. The individual shall be 
                        compensated for wages lost beginning on the 
                        first scheduled work day after employment was 
                        terminated and ending 120 days after completion 
                        of the administrative law judge's review 
                        described in this paragraph or the day after 
                        the individual is reinstated or obtains 
                        employment elsewhere, whichever occurs first. 
                        If the individual obtains employment elsewhere 
                        at a lower wage rate, the individual shall be 
                        compensated for the difference in wages for the 
                        period ending 120 days after completion of the 
                        administrative law judge review process. No 
                        lost wages shall be awarded for any period of 
                        time during which the individual was not in 
                        employment authorized status.
                            ``(iii) Payment of compensation.--
                        Notwithstanding any other law, payment of 
                        compensation for lost wages, costs, and 
                        attorneys' fees under this paragraph, or 
                        compromise settlements of the same, shall be 
                        made as provided by section 1304 of title 31, 
                        United States Code. Appropriations made 
                        available to the Secretary or the Commissioner, 
                        accounts provided for under section 286, and 
                        funds from the Federal Old-Age and Survivors 
                        Insurance Trust Fund or the Federal Disability 
                        Insurance Trust Fund shall not be available to 
                        pay such compensation.
                    ``(G) Appeal.--No later than 45 days after the 
                entry of such final order, any person adversely 
                affected by such final order may seek review of such 
                order in the United States Court of Appeals for the 
                circuit in which the violation is alleged to have 
                occurred or in which the employer resides or transacts 
                business.
            ``(8) Management of the system.--
                    ``(A) In general.--The Secretary is authorized to 
                establish, manage, and modify the System, which shall--
                            ``(i) respond to inquiries made by 
                        participating employers at any time through the 
                        internet, or such other means as the Secretary 
                        may designate, concerning an individual's 
                        identity and whether the individual is in 
                        employment authorized status;
                            ``(ii) maintain records of the inquiries 
                        that were made, of confirmations provided (or 
                        not provided), and of the codes provided to 
                        employers as evidence of their compliance with 
                        their obligations under the System; and
                            ``(iii) provide information to, and require 
                        action by, employers and individuals using the 
                        System.
                    ``(B) Design and operation of system.--The System 
                shall be designed and operated--
                            ``(i) to maximize its reliability and ease 
                        of use by employers consistent with protecting 
                        the privacy and security of the underlying 
                        information, and ensuring full notice of such 
                        use to employees;
                            ``(ii) to maximize its ease of use by 
                        employees, including direct notification of its 
                        use, of results, and ability to challenge 
                        results;
                            ``(iii) to respond accurately to all 
                        inquiries made by employers on whether 
                        individuals are authorized to be employed and 
                        to register any times when the system is unable 
                        to receive inquiries;
                            ``(iv) to maintain appropriate 
                        administrative, technical, and physical 
                        safeguards to prevent unauthorized disclosure 
                        of personal information, misuse by employers 
                        and employees, and discrimination;
                            ``(v) to require regularly scheduled 
                        refresher training of all users of the System 
                        to ensure compliance with all procedures;
                            ``(vi) to allow for auditing of the use of 
                        the System to detect misuse, discrimination, 
                        fraud, and identity theft, to protect privacy 
                        and assess System accuracy, and to preserve the 
                        integrity and security of the information in 
                        all of the System, including--
                                    ``(I) to develop and use tools and 
                                processes to detect or prevent fraud 
                                and identity theft, such as multiple 
                                uses of the same identifying 
                                information or documents to 
                                fraudulently gain employment;
                                    ``(II) to develop and use tools and 
                                processes to detect and prevent misuse 
                                of the system by employers and 
                                employees;
                                    ``(III) to develop tools and 
                                processes to detect anomalies in the 
                                use of the system that may indicate 
                                potential fraud or misuse of the 
                                system; and
                                    ``(IV) to audit documents and 
                                information submitted by employees to 
                                employers, including authority to 
                                conduct interviews with employers and 
                                employees, and obtain information 
                                concerning employment from the 
                                employer;
                            ``(vii) to confirm identity and employment 
                        authorization through verification and 
                        comparison of records as determined necessary 
                        by the Secretary;
                            ``(viii) to confirm electronically the 
                        issuance of the employment authorization or 
                        identity document and--
                                    ``(I) if such photograph is 
                                available, to display the digital 
                                photograph that the issuer placed on 
                                the document so that the employer can 
                                compare the photograph displayed to the 
                                photograph on the document presented by 
                                the employee; or
                                    ``(II) if a photograph is not 
                                available from the issuer, to confirm 
                                the authenticity of the document using 
                                such additional security measures set 
                                forth in subsection (c)(1)(F)(iv);
                            ``(ix) to employ specific and effective 
                        additional security measures set forth in 
                        subsection (c)(1)(F)(iv) to adequately verify 
                        the identity of an individual that are designed 
                        and operated--
                                    ``(I) to use state-of-the-art 
                                technology to determine to a high 
                                degree of accuracy whether an 
                                individual presenting biographic 
                                information is the individual with that 
                                true identity;
                                    ``(II) to retain under the control 
                                of the Secretary the use of all 
                                determinations communicated by the 
                                System, regardless of the entity 
                                operating the system pursuant to a 
                                contract or other agreement with a 
                                nongovernmental entity or entities to 
                                the extent helpful in acquiring the 
                                best technology to implement the 
                                additional security measures;
                                    ``(III) to be integrated with the 
                                System so that employment 
                                authorizations will be determined for 
                                all individuals identified as 
                                presenting their true identities 
                                through the databases maintained by the 
                                Commissioner of Social Security and the 
                                Secretary;
                                    ``(IV) to use tools and processes 
                                to detect and prevent further action 
                                notices and final nonconfirmations that 
                                are not correlated to fraud or identity 
                                theft;
                                    ``(V) to make risk-based 
                                assessments regarding the reliability 
                                of a claim of identity made by an 
                                individual presenting biographic 
                                information and to tailor the identity 
                                determination in accordance with those 
                                assessments;
                                    ``(VI) to permit queries to be 
                                presented to individuals subject to 
                                identity verification at the time their 
                                identities are being verified in a 
                                manner that permits rapid communication 
                                through the internet, mobile phone, and 
                                landline telephone connections to 
                                facilitate identity proofing;
                                    ``(VII) to generate queries that 
                                conform to the context of the identity 
                                verification process and the 
                                circumstances of the individual whose 
                                identity is being verified;
                                    ``(VIII) to use publicly available 
                                databases and databases under the 
                                jurisdiction of the Commissioner of 
                                Social Security, the Secretary, and the 
                                Secretary of State to formulate queries 
                                to be presented to individuals whose 
                                identities are being verified, as 
                                appropriate;
                                    ``(IX) to not retain data collected 
                                by the System within any database 
                                separate from the database in which the 
                                operating system is located and to 
                                limit access to the existing databases 
                                to a reference process that shields the 
                                operator of the System from acquiring 
                                possession of the data beyond the 
                                formulation of queries and verification 
                                of responses;
                                    ``(X) to not permit individuals or 
                                entities using the System to access any 
                                data related to the individuals whose 
                                identities are being verified beyond 
                                confirmations, further action notices, 
                                and final nonconfirmations of identity;
                                    ``(XI) to include, if feasible, a 
                                capability for permitting document or 
                                other inputs that can be offered to 
                                individuals and entities using the 
                                System and that may be used at the 
                                option of employees to facilitate 
                                identity verification, but would not be 
                                required of either employers or 
                                employees; and
                                    ``(XII) to the greatest extent 
                                possible, in accordance with the time 
                                frames specified in this section; and
                            ``(x) to provide appropriate notification 
                        directly to employers registered with the 
                        System of all changes made by the Secretary or 
                        the Commissioner related to allowed and 
                        prohibited documents, and use of the System.
                    ``(C) Safeguards to the system.--
                            ``(i) Requirement to develop.--The 
                        Secretary, in consultation with the 
                        Commissioner and other appropriate Federal and 
                        State agencies, shall develop policies and 
                        procedures to ensure protection of the privacy 
                        and security of personally identifiable 
                        information and identifiers contained in the 
                        records accessed or maintained by the System. 
                        The Secretary, in consultation with the 
                        Commissioner and other appropriate Federal and 
                        State agencies, shall develop and deploy 
                        appropriate privacy and security training for 
                        the Federal and State employees accessing the 
                        records under the System.
                            ``(ii) Privacy audits.--The Secretary, 
                        acting through the Chief Privacy Officer of the 
                        Department, shall conduct regular privacy 
                        audits of the policies and procedures 
                        established under clause (i) and the compliance 
                        of the Department with the limitations set 
                        forth in subsection (c)(1)(F)(iii)(IV), 
                        including any collection, use, dissemination, 
                        and maintenance of personally identifiable 
                        information and any associated information 
                        technology systems, as well as scope of 
                        requests for this information. The Chief 
                        Privacy Officer shall review the results of the 
                        audits and recommend to the Secretary any 
                        changes necessary to improve the privacy 
                        protections of the program.
                            ``(iii) Accuracy audits.--
                                    ``(I) In general.--Not later than 
                                November 30 of each year, the Inspector 
                                General of the Department of Homeland 
                                Security shall submit a report to the 
                                Secretary, with a copy to the President 
                                of the Senate and the Speaker of the 
                                House of Representatives, that sets 
                                forth the error rate of the System for 
                                the previous fiscal year and the 
                                assessments required to be submitted by 
                                the Secretary under subparagraphs (A) 
                                and (B) of paragraph (10). The report 
                                shall describe in detail the 
                                methodology employed for purposes of 
                                the report, and shall make 
                                recommendations for how error rates may 
                                be reduced.
                                    ``(II) Error rate defined.--In this 
                                clause, the term `error rate' means the 
                                percentage determined by dividing--
                                            ``(aa) the number of 
                                        employment authorized 
                                        individuals who received 
                                        further action notices, 
                                        contested such notices, and 
                                        were subsequently found to be 
                                        employment authorized; by
                                            ``(bb) the number of System 
                                        inquiries submitted for 
                                        employment authorized 
                                        individuals.
                                    ``(III) Error rate determination.--
                                The audits required under this clause 
                                shall--
                                            ``(aa) determine the error 
                                        rate for identity 
                                        determinations pursuant to 
                                        subsection (c)(1)(F) for 
                                        individuals presenting their 
                                        true identities in the same 
                                        manner and applying the same 
                                        standard as for employment 
                                        authorization; and
                                            ``(bb) include 
                                        recommendations, as provided in 
                                        subclause (I), but no reduction 
                                        in fines pursuant to subclause 
                                        (IV)
                                    ``(IV) Reduction of penalties for 
                                recordkeeping or verification practices 
                                following persistent system 
                                inaccuracies.--Notwithstanding 
                                subsection (e)(4)(C)(i), in any 
                                calendar year following a report by the 
                                Inspector General under subclause (I) 
                                that the System had an error rate 
                                higher than 0.3 percent for the 
                                previous fiscal year, the civil penalty 
                                assessable by the Secretary or an 
                                administrative law judge under that 
                                subsection for each first-time 
                                violation by an employer who has not 
                                previously been penalized under this 
                                section may not exceed $1,000.
                            ``(iv) Records security program.--Any 
                        person, including a private third party vendor, 
                        who retains document verification or System 
                        data pursuant to this section shall implement 
                        an effective records security program that--
                                    ``(I) ensures that only authorized 
                                personnel have access to document 
                                verification or System data; and
                                    ``(II) ensures that whenever such 
                                data is created, completed, updated, 
                                modified, altered, or corrected in 
                                electronic format, a secure record is 
                                created that establishes the date of 
                                access, the identity of the individual 
                                who accessed the electronic record, and 
                                the particular action taken.
                            ``(v) Records security program.--In 
                        addition to the security measures described in 
                        clause (iv), a private third party vendor who 
                        retains document verification or System data 
                        pursuant to this section shall implement an 
                        effective records security program that--
                                    ``(I) provides for backup and 
                                recovery of any records maintained in 
                                electronic format to protect against 
                                information loss, such as power 
                                interruptions; and
                                    ``(II) ensures that employees are 
                                trained to minimize the risk of 
                                unauthorized or accidental alteration 
                                or erasure of such data in electronic 
                                format.
                            ``(vi) Authorized personnel defined.--In 
                        this subparagraph, the term `authorized 
                        personnel' means anyone registered as a System 
                        user, or anyone with partial or full 
                        responsibility for completion of employment 
                        authorization verification or retention of data 
                        in connection with employment authorization 
                        verification on behalf of an employer.
                    ``(D) Available facilities and alternative 
                accommodations.--The Secretary shall make appropriate 
                arrangements and develop standards to allow employers 
                or employees, including remote hires, who are otherwise 
                unable to access the System to use electronic and 
                telephonic formats (including video conferencing, 
                scanning technology, and other available technologies), 
                Federal Government facilities, public facilities, or 
                other available locations in order to use the System.
                    ``(E) Responsibilities of the secretary.--
                            ``(i) In general.--As part of the System, 
                        the Secretary shall maintain a reliable, secure 
                        method, which, operating through the System and 
                        within the time periods specified, compares the 
                        name, alien identification or authorization 
                        number, or other information as determined 
                        relevant by the Secretary, provided in an 
                        inquiry against such information maintained or 
                        accessed by the Secretary in order to confirm 
                        (or not confirm) the validity of the 
                        information provided, the correspondence of the 
                        name and number, whether the alien has 
                        employment authorized status (or, to the extent 
                        that the Secretary determines to be feasible 
                        and appropriate, whether the records available 
                        to the Secretary verify the identity or status 
                        of a national of the United States), and such 
                        other information as the Secretary may 
                        prescribe.
                            ``(ii) Photograph display.--As part of the 
                        System, the Secretary shall establish a 
                        reliable, secure method, which, operating 
                        through the System, displays the digital 
                        photograph described in subparagraph 
                        (B)(viii)(I).
                            ``(iii) Timing of notices.--The Secretary 
                        shall have authority to prescribe when a 
                        confirmation, nonconfirmation, or further 
                        action notice shall be issued.
                            ``(iv) Use of information.--The Secretary 
                        shall perform regular audits under the System, 
                        as described in subparagraph (B)(vi) and shall 
                        use the information obtained from such audits, 
                        as well as any information obtained from the 
                        Commissioner pursuant to part E of title XI of 
                        the Social Security Act (42 U.S.C. 1301 et 
                        seq.), for the purposes of this section and to 
                        administer and enforce the immigration laws.
                            ``(v) Identity fraud protection.--To 
                        prevent identity fraud, not later than 18 
                        months after the date of the enactment of the 
                        E-Verify Act, the Secretary shall--
                                    ``(I) in consultation with the 
                                Commissioner, establish a program to 
                                provide a reliable, secure method for 
                                an individual to temporarily suspend or 
                                limit the use of the individual's 
                                social security account number or other 
                                identifying information for 
                                verification by the System; and
                                    ``(II) for each individual being 
                                verified through the System--
                                            ``(aa) notify the 
                                        individual that the individual 
                                        has the option to limit the use 
                                        of the individual's social 
                                        security account number or 
                                        other identifying information 
                                        for verification by the System; 
                                        and
                                            ``(bb) provide instructions 
                                        to the individuals for 
                                        exercising the option referred 
                                        to in item (aa).
                            ``(vi) Allowing parents to prevent theft of 
                        their child's identity.--The Secretary, in 
                        consultation with the Commissioner, shall 
                        establish a program that provides a reliable, 
                        secure method by which parents or legal 
                        guardians 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 System. The 
                        Secretary may implement the program on a 
                        limited pilot program basis before making it 
                        fully available to all individuals.
                            ``(vii) Protection from multiple use.--The 
                        Secretary and the Commissioner shall establish 
                        a procedure for identifying and handling a 
                        situation in which a social security account 
                        number has been identified to be subject to 
                        unusual multiple use in the System or is 
                        otherwise suspected or determined to have been 
                        compromised by identity fraud. Such procedure 
                        shall include notifying the legitimate holder 
                        of the social security number at the 
                        appropriate time.
                            ``(viii) Monitoring and compliance unit.--
                        The Secretary shall establish or designate a 
                        monitoring and compliance unit to detect and 
                        reduce identity fraud and other misuse of the 
                        System.
                            ``(ix) Civil rights and civil liberties 
                        assessments.--
                                    ``(I) Requirement to conduct.--The 
                                Secretary shall conduct regular civil 
                                rights and civil liberties assessments 
                                of the System, including participation 
                                by employers, other private entities, 
                                and Federal, State, and local 
                                government entities.
                                    ``(II) Requirement to respond.--
                                Employers, other private entities, and 
                                Federal, State, and local entities 
                                shall timely respond to any request in 
                                connection with such an assessment.
                                    ``(III) Assessment and 
                                recommendations.--The Officer for Civil 
                                Rights and Civil Liberties of the 
                                Department shall review the results of 
                                each such assessment and recommend to 
                                the Secretary any changes necessary to 
                                improve the civil rights and civil 
                                liberties protections of the System.
                    ``(F) Grants to states.--
                            ``(i) In general.--The Secretary shall 
                        create and administer a grant program to help 
                        provide funding for States that grant--
                                    ``(I) the Secretary access to 
                                driver's license information as needed 
                                to confirm that a driver's license 
                                presented under subsection (c)(1)(D)(i) 
                                confirms the identity of the subject of 
                                the System check, and that a driver's 
                                license matches the State's records; 
                                and
                                    ``(II) such assistance as the 
                                Secretary may request in order to 
                                resolve further action notices or 
                                nonconfirmations relating to such 
                                information.
                            ``(ii) Construction with the driver's 
                        privacy protection act of 1994.--The provision 
                        of a photograph to the Secretary as described 
                        in clause (i) may not be construed as a 
                        violation of section 2721 of title 18, United 
                        States Code, and is a permissible use under 
                        subsection (b)(1) of that section.
                            ``(iii) Authorization of appropriations.--
                        There is authorized to be appropriated 
                        $500,000,000 to carry out this subparagraph.
                    ``(G) Responsibilities of the secretary of state.--
                As part of the System, the Secretary of State shall 
                provide to the Secretary access to passport and visa 
                information as needed to confirm that a passport, 
                passport card, or visa presented under subsection 
                (c)(1)(C) confirms the identity of the subject of the 
                System check, and that a passport, passport card, or 
                visa photograph matches the Secretary of State's 
                records, and shall provide such assistance as the 
                Secretary may request in order to resolve further 
                action notices or nonconfirmations relating to such 
                information.
                    ``(H) Updating information.--The Commissioner, the 
                Secretary, and the Secretary of State shall update 
                their information in a manner that promotes maximum 
                accuracy and shall provide a process for the prompt 
                correction of erroneous information.
            ``(9) Limitation on use of the system.--Notwithstanding any 
        other provision of law, no department, bureau, or other agency 
        of the United States Government or any other entity may use, 
        share, or transmit any information, database, or other records 
        assembled under this subsection for any purpose other than for 
        employment verification or to ensure secure, appropriate, and 
        nondiscriminatory use of the System.
            ``(10) Annual report and certification.--Not later than 18 
        months after the promulgation of regulations to implement this 
        subsection, and annually thereafter, the Secretary shall submit 
        a report to Congress that includes the following:
                    ``(A) An assessment, as submitted to the Secretary 
                by the Inspector General of the Department of Homeland 
                Security pursuant to paragraph (8)(C)(iii)(I), of the 
                accuracy rates of further action notices and other 
                System notices provided by employers to individuals who 
                are authorized to be employed in the United States.
                    ``(B) An assessment, as submitted to the Secretary 
                by the Inspector General of the Department of Homeland 
                Security pursuant to paragraph (8)(C)(iii)(I), of the 
                accuracy rates of further action notices and other 
                System notices provided directly (by the System) in a 
                timely fashion to individuals who are not authorized to 
                be employed in the United States.
                    ``(C) An assessment of any challenges faced by 
                small employers in using the System.
                    ``(D) An assessment of the rate of employer 
                noncompliance (in addition to failure to provide 
                required notices in a timely fashion) in each of the 
                following categories:
                            ``(i) Taking adverse action based on a 
                        further action notice.
                            ``(ii) Use of the System for nonemployees 
                        or other individuals before they are offered 
                        employment.
                            ``(iii) Use of the System to reverify 
                        employment authorized status of current 
                        employees except if authorized to do so.
                            ``(iv) Use of the System selectively, 
                        except in cases in which such use is 
                        authorized.
                            ``(v) Use of the System to deny employment 
                        or post-employment benefits or otherwise 
                        interfere with labor rights.
                            ``(vi) Requiring employees or applicants to 
                        use any self-verification feature or to provide 
                        self-verification results.
                            ``(vii) Discouraging individuals who 
                        receive a further action notice from 
                        challenging the further action notice or 
                        appealing a determination made by the System.
                    ``(E) An assessment of the rate of employee 
                noncompliance in each of the following categories:
                            ``(i) Obtaining employment when 
                        unauthorized with an employer complying with 
                        the System in good faith.
                            ``(ii) Failure to provide required 
                        documents in a timely manner.
                            ``(iii) Attempting to use fraudulent 
                        documents or documents not related to the 
                        individual.
                            ``(iv) Misuse of the administrative appeal 
                        and judicial review process.
                    ``(F) An assessment of the amount of time taken 
                for--
                            ``(i) the System to provide the 
                        confirmation or further action notice;
                            ``(ii) individuals to contest further 
                        action notices;
                            ``(iii) the System to provide a 
                        confirmation or nonconfirmation of a contested 
                        further action notice;
                            ``(iv) individuals to file an 
                        administrative appeal of a nonconfirmation; and
                            ``(v) resolving administrative appeals 
                        regarding nonconfirmations.
            ``(11) Annual gao study and report.--
                    ``(A) Requirement.--The Comptroller General shall, 
                for each year, undertake a study to evaluate the 
                accuracy, efficiency, integrity, and impact of the 
                System.
                    ``(B) Report.--Not later than 18 months after the 
                promulgation of regulations to implement this 
                subsection, and yearly thereafter, the Comptroller 
                General shall submit to Congress a report containing 
                the findings of the study carried out under this 
                paragraph. Each such report shall include, at a 
                minimum, the following:
                            ``(i) An assessment of System performance 
                        with respect to the rate at which individuals 
                        who are eligible for employment in the United 
                        States are correctly approved within the 
                        required periods, including a separate 
                        assessment of such rate for naturalized United 
                        States citizens, nationals of the United 
                        States, and aliens.
                            ``(ii) An assessment of the privacy and 
                        confidentiality of the System and of the 
                        overall security of the System with respect to 
                        cybertheft and theft or misuse of private data.
                            ``(iii) An assessment of whether the System 
                        is being implemented in a manner that is not 
                        discriminatory or used for retaliation against 
                        employees.
                            ``(iv) An assessment of the most common 
                        causes for the erroneous issuance of 
                        nonconfirmations by the System and 
                        recommendations to correct such causes.
                            ``(v) The recommendations of the 
                        Comptroller General regarding System 
                        improvements.
                            ``(vi) An assessment of the frequency and 
                        magnitude of changes made to the System and the 
                        impact on the ability for employers to comply 
                        in good faith.
                            ``(vii) An assessment of the direct and 
                        indirect costs incurred by employers in 
                        complying with the System, including costs 
                        associated with retaining potential employees 
                        through the administrative appeals process and 
                        receiving a nonconfirmation.
                            ``(viii) An assessment of any backlogs or 
                        delays in the System providing the confirmation 
                        or further action notice and impacts to hiring 
                        by employers.
                            ``(ix) An assessment of the effect of the 
                        identity authentication mechanism and any other 
                        security measures set forth in subsection 
                        (c)(1)(F)(iv) to verify identity incorporated 
                        into the System or otherwise used by employers 
                        on employees.
            ``(12) Outreach and partnership.--
                    ``(A) Outreach.--The Secretary may conduct outreach 
                and establish programs to assist employers in verifying 
                employment authorization and preventing identity fraud.
                    ``(B) Partnership initiative.--The Secretary may 
                establish partnership initiatives between the Federal 
                Government and private sector employers to foster 
                cooperative relationships and to strengthen overall 
                hiring practices.
    ``(e) Compliance.--
            ``(1) Complaints and investigations.--The Secretary shall 
        establish procedures--
                    ``(A) for individuals and entities to file 
                complaints respecting potential violations of 
                subsections (a) or (f)(1);
                    ``(B) for the investigation of those complaints 
                which the Secretary deems appropriate to investigate; 
                and
                    ``(C) for providing notification to the Immigrant 
                and Employee Rights Section of the Civil Rights 
                Division of the Department of Justice of potential 
                violations of section 274B.
            ``(2) Authority in investigations.--In conducting 
        investigations and proceedings under this subsection--
                    ``(A) immigration officers shall have reasonable 
                access to examine evidence of the employer being 
                investigated;
                    ``(B) immigration officers designated by the 
                Secretary, and administrative law judges and other 
                persons authorized to conduct proceedings under this 
                section, may compel by subpoena the attendance of 
                relevant witnesses and the production of relevant 
                evidence at any designated place in an investigation or 
                case under this subsection. In case of refusal to fully 
                comply with a subpoena lawfully issued under this 
                paragraph, the Secretary may request that the Attorney 
                General apply in an appropriate district court of the 
                United States for an order requiring compliance with 
                the subpoena, and any failure to obey such order may be 
                punished by the court as contempt. Failure to cooperate 
                with the subpoena shall be subject to further 
                penalties, including further fines and the voiding of 
                any mitigation of penalties or termination of 
                proceedings under paragraph (4)(E); and
                    ``(C) the Secretary, in cooperation with the 
                Commissioner and the Attorney General, and in 
                consultation with other relevant agencies, shall 
                establish a Joint Employment Fraud Task Force 
                consisting of, at a minimum--
                            ``(i) the System's compliance personnel;
                            ``(ii) immigration law enforcement 
                        officers;
                            ``(iii) personnel of the Immigrant and 
                        Employee Rights Section of the Civil Rights 
                        Division of the Department of Justice;
                            ``(iv) personnel of the Office for Civil 
                        Rights and Civil Liberties of the Department; 
                        and
                            ``(v) personnel of Office of Inspector 
                        General of the Social Security Administration.
            ``(3) Compliance procedures.--
                    ``(A) Pre-penalty notice.--If the Secretary has 
                reasonable cause to believe that there has been a civil 
                violation of this section in the previous 3 years, the 
                Secretary shall issue to the employer concerned a 
                written notice of the Department's intention to issue a 
                claim for a monetary or other penalty. Such pre-penalty 
                notice shall--
                            ``(i) describe the violation;
                            ``(ii) specify the laws and regulations 
                        allegedly violated;
                            ``(iii) disclose the material facts which 
                        establish the alleged violation;
                            ``(iv) describe the penalty sought to be 
                        imposed; and
                            ``(v) inform such employer that such 
                        employer shall have a reasonable opportunity to 
                        make representations as to why a monetary or 
                        other penalty should not be imposed.
                    ``(B) Employer's response.--Whenever any employer 
                receives written pre-penalty notice of a fine or other 
                penalty in accordance with subparagraph (A), the 
                employer may, within 60 days from receipt of such 
                notice, file with the Secretary its written response to 
                the notice. The response may include any relevant 
                evidence or proffer of evidence that the employer 
                wishes to present with respect to whether the employer 
                violated this section and whether, if so, the penalty 
                should be mitigated, and shall be filed and considered 
                in accordance with procedures to be established by the 
                Secretary.
                    ``(C) Right to a hearing.--Before issuance of an 
                order imposing a penalty on any employer, person, or 
                entity, the employer, person, or entity shall be 
                entitled to a hearing before an administrative law 
                judge, if requested within 60 days of the notice of 
                penalty. The hearing shall be held at the nearest 
                location practicable to the place where the employer, 
                person, or entity resides or of the place where the 
                alleged violation occurred.
                    ``(D) Issuance of orders.--If no hearing is so 
                requested, the Secretary's imposition of the order 
                shall constitute a final and unappealable order. If a 
                hearing is requested and the administrative law judge 
                determines, upon clear and convincing evidence 
                received, that there was a violation, the 
                administrative law judge shall issue the final 
                determination with a written penalty claim. The penalty 
                claim shall specify all charges in the information 
                provided under clauses (i) through (iii) of 
                subparagraph (A) and any mitigation of the penalty that 
                the administrative law judge deems appropriate under 
                paragraph (4)(E).
            ``(4) Civil penalties.--
                    ``(A) Hiring or continuing to employ unauthorized 
                aliens.--Any employer that violates any provision of 
                subsection (a)(1)(A) or (a)(2) shall--
                            ``(i) pay a civil penalty of not less than 
                        $3,500 and not more than $7,500 for each 
                        unauthorized alien with respect to which each 
                        violation of either subsection (a)(1)(A) or 
                        (a)(2) occurred;
                            ``(ii) if the employer has previously been 
                        fined as a result of a previous enforcement 
                        action or previous violation under this 
                        paragraph, pay a civil penalty of not less than 
                        $5,000 and not more than $15,000 for each 
                        unauthorized alien with respect to which a 
                        violation of either subsection (a)(1)(A) or 
                        (a)(2) occurred; and
                            ``(iii) if the employer has previously been 
                        fined more than once under this paragraph, pay 
                        a civil penalty of not less than $10,000 and 
                        not more than $25,000 for each unauthorized 
                        alien with respect to which a violation of 
                        either subsection (a)(1)(A) or (a)(2) occurred.
                    ``(B) Enhanced penalties.--After the Secretary 
                certifies to Congress that the System has been 
                established, implemented, and made mandatory for use by 
                all employers in the United States, the Secretary may 
                establish an enhanced civil penalty for an employer 
                who--
                            ``(i) fails to query the System to verify 
                        the identify and work authorized status of an 
                        individual; and
                            ``(ii) violates a Federal, State, or local 
                        law related to--
                                    ``(I) the payment of wages;
                                    ``(II) hours worked by employees; 
                                or
                                    ``(III) workplace health and 
                                safety.
                    ``(C) Recordkeeping or verification practices.--Any 
                employer that violates or fails to comply with any 
                requirement under subsection (a)(1)(B), other than a 
                minor or inadvertent failure, as determined by the 
                Secretary, shall pay a civil penalty of--
                            ``(i) not less than $500 and not more than 
                        $2,000 for each violation;
                            ``(ii) if an employer has previously been 
                        fined under this paragraph, not less than 
                        $1,000 and not more than $4,000 for each 
                        violation; and
                            ``(iii) if an employer has previously been 
                        fined more than once under this paragraph, not 
                        less than $2,000 and not more than $8,000 for 
                        each violation.
                    ``(D) Other penalties.--The Secretary may impose 
                additional penalties for violations, including cease 
                and desist orders, specially designed compliance plans 
                to prevent further violations, suspended fines to take 
                effect in the event of a further violation, and in 
                appropriate cases, the remedy provided by subsection 
                (f)(2).
                    ``(E) Mitigation.--The Secretary or, if an employer 
                requests a hearing, the administrative law judge, is 
                authorized, upon such terms and conditions as the 
                Secretary or administrative law judge deems reasonable 
                and just and in accordance with such procedures as the 
                Secretary may establish or any procedures established 
                governing the administrative law judge's assessment of 
                penalties, to reduce or mitigate penalties imposed upon 
                employers, based upon factors including, the employer's 
                hiring volume, compliance history, good-faith 
                implementation of a compliance program, the size and 
                level of sophistication of the employer, and voluntary 
                disclosure of violations of this subsection to the 
                Secretary. The Secretary or administrative law judge 
                shall not mitigate a penalty below the minimum penalty 
                provided by this section, except that the Secretary 
                may, in the case of an employer subject to penalty for 
                recordkeeping or verification violations only who has 
                not previously been penalized under this section, in 
                the Secretary's or administrative law judge's 
                discretion, mitigate the penalty below the statutory 
                minimum or remit it entirely. In any case where a civil 
                money penalty has been imposed on an employer under 
                section 274B for an action or omission that is also a 
                violation of this section, the Secretary or 
                administrative law judge shall mitigate any civil money 
                penalty under this section by the amount of the penalty 
                imposed under section 274B.
                    ``(F) Effective date.--The civil money penalty 
                amounts and the enhanced penalties provided by 
                subparagraphs (A), (B), and (C) of this paragraph and 
                by subsection (f)(2) shall apply to violations of this 
                section committed on or after the date that is 1 year 
                after the date of the enactment of the E-Verify Act. 
                For violations committed prior to such date of 
                enactment, the civil money penalty amounts provided by 
                regulations implementing this section as in effect the 
                minute before such date of enactment with respect to 
                knowing hiring or continuing employment, verification, 
                or indemnity bond violations, as appropriate, shall 
                apply.
            ``(5) Order of internal review and certification of 
        compliance.--
                    ``(A) Employer compliance.--If the Secretary has 
                reasonable cause to believe that an employer has failed 
                to comply with this section, the Secretary is 
                authorized, at any time, to require that the employer 
                certify that it is in compliance with this section, or 
                has instituted a program to come into compliance.
                    ``(B) Employer certification.--
                            ``(i) Requirement.--Except as provided in 
                        subparagraph (C), not later than 60 days after 
                        receiving a notice from the Secretary requiring 
                        a certification under subparagraph (A), an 
                        official with responsibility for, and authority 
                        to bind the company on, all hiring and 
                        immigration compliance notices shall certify 
                        under penalty of perjury that the employer is 
                        in conformance with the requirements of 
                        paragraphs (1) through (4) of subsection (c), 
                        pertaining to document verification 
                        requirements, and with subsection (d), 
                        pertaining to the System (once the System is 
                        implemented with respect to that employer 
                        according to the requirements under subsection 
                        (d)(2)), and with any additional requirements 
                        that the Secretary may promulgate by regulation 
                        pursuant to subsection (c) or (d) or that the 
                        employer has instituted a program to come into 
                        compliance with these requirements.
                            ``(ii) Application.--Clause (i) shall not 
                        apply until the date that the Secretary 
                        certifies to Congress that the System has been 
                        established, implemented, and made mandatory 
                        for use by all employers in the United States.
                    ``(C) Extension of deadline.--At the request of the 
                employer, the Secretary may extend the 60-day deadline 
                for good cause.
                    ``(D) Standards or methods.--The Secretary is 
                authorized to publish in the Federal Register standards 
                or methods for such certification, require specific 
                recordkeeping practices with respect to such 
                certifications, and audit the records thereof at any 
                time. This authority shall not be construed to diminish 
                or qualify any other penalty provided by this section.
            ``(6) Requirements for review of a final determination.--
        With respect to judicial review of a final determination or 
        penalty order issued under paragraph (3)(D), the following 
        requirements apply:
                    ``(A) Deadline.--The petition for review must be 
                filed no later than 30 days after the date of the final 
                determination or penalty order issued under paragraph 
                (3)(D).
                    ``(B) Venue and forms.--The petition for review 
                shall be filed with the court of appeals for the 
                judicial circuit where the employer's principal place 
                of business was located when the final determination or 
                penalty order was made. The record and briefs do not 
                have to be printed. The court shall review the 
                proceeding on a typewritten or electronically filed 
                record and briefs.
                    ``(C) Service.--The respondent is the Secretary. In 
                addition to serving the respondent, the petitioner 
                shall serve the Attorney General.
                    ``(D) Petitioner's brief.--The petitioner shall 
                serve and file a brief in connection with a petition 
                for judicial review not later than 40 days after the 
                date on which the administrative record is available, 
                and may serve and file a reply brief not later than 14 
                days after service of the brief of the respondent, and 
                the court may not extend these deadlines, except for 
                good cause shown. If a petitioner fails to file a brief 
                within the time provided in this paragraph, the court 
                shall dismiss the appeal unless a manifest injustice 
                would result.
                    ``(E) Scope and standard for review.--The court of 
                appeals shall conduct a de novo review of the 
                administrative record on which the final determination 
                was based and any additional evidence that the Court 
                finds was previously unavailable at the time of the 
                administrative hearing.
                    ``(F) Exhaustion of administrative remedies.--A 
                court may review a final determination under paragraph 
                (3)(C) only if--
                            ``(i) the petitioner has exhausted all 
                        administrative remedies available to the 
                        petitioner as of right, including any 
                        administrative remedies established by 
                        regulation; and
                            ``(ii) another court has not decided the 
                        validity of the order, unless the reviewing 
                        court finds that the petition presents grounds 
                        that could not have been presented in the prior 
                        judicial proceeding or that the remedy provided 
                        by the prior proceeding was inadequate or 
                        ineffective to test the validity of the order.
                    ``(G) Enforcement of orders.--If the final 
                determination issued against the employer under this 
                subsection is not subjected to review as provided in 
                this paragraph, the Attorney General, upon request by 
                the Secretary, may bring a civil action to enforce 
                compliance with the final determination in any 
                appropriate district court of the United States. The 
                court, on a proper showing, shall issue a temporary 
                restraining order or a preliminary or permanent 
                injunction requiring that the employer comply with the 
                final determination issued against that employer under 
                this subsection. In any such civil action, the validity 
                and appropriateness of the final determination shall 
                not be subject to review.
            ``(7) Creation of lien.--If any employer liable for a fee 
        or penalty under this section neglects or refuses to pay such 
        liability after demand and fails to file a petition for review 
        (if applicable) as provided in paragraph (6), the amount of the 
        fee or penalty shall be a lien in favor of the United States on 
        all property and rights to property, whether real or personal, 
        belonging to such employer. If a petition for review is filed 
        as provided in paragraph (6), the lien shall arise upon the 
        entry of a final judgment by the court. The lien continues for 
        20 years or until the liability is satisfied, remitted, set 
        aside, or terminated.
            ``(8) Filing notice of lien.--
                    ``(A) Place for filing.--The notice of a lien 
                referred to in paragraph (7) shall be filed as 
                described in one of the following:
                            ``(i) Under state laws.--
                                    ``(I) Real property.--In the case 
                                of real property, in 1 office within 
                                the State (or the county, or other 
                                governmental subdivision), as 
                                designated by the laws of such State, 
                                in which the property subject to the 
                                lien is situated.
                                    ``(II) Personal property.--In the 
                                case of personal property, whether 
                                tangible or intangible, in 1 office 
                                within the State (or the county, or 
                                other governmental subdivision), as 
                                designated by the laws of such State, 
                                in which the property subject to the 
                                lien is situated, except that State law 
                                merely conforming to or reenacting 
                                Federal law establishing a national 
                                filing system does not constitute a 
                                second office for filing as designated 
                                by the laws of such State.
                            ``(ii) With clerk of district court.--In 
                        the office of the clerk of the United States 
                        district court for the judicial district in 
                        which the property subject to the lien is 
                        situated, whenever the State has not by law 
                        designated 1 office which meets the 
                        requirements of clause (i).
                            ``(iii) With recorder of deeds of the 
                        district of columbia.--In the office of the 
                        Recorder of Deeds of the District of Columbia, 
                        if the property subject to the lien is situated 
                        in the District of Columbia.
                    ``(B) Situs of property subject to lien.--For 
                purposes of subparagraph (A), property shall be deemed 
                to be situated as follows:
                            ``(i) Real property.--In the case of real 
                        property, at its physical location.
                            ``(ii) Personal property.--In the case of 
                        personal property, whether tangible or 
                        intangible, at the residence of the taxpayer at 
                        the time the notice of lien is filed.
                    ``(C) Determination of residence.--For purposes of 
                subparagraph (B)(ii), the residence of a corporation or 
                partnership shall be deemed to be the place at which 
                the principal executive office of the business is 
                located, and the residence of a taxpayer whose 
                residence is outside the United States shall be deemed 
                to be in the District of Columbia.
                    ``(D) Effect of filing notice of lien.--
                            ``(i) In general.--Upon filing of a notice 
                        of lien in the manner described in this 
                        paragraph, the lien shall be valid against any 
                        purchaser, holder of a security interest, 
                        mechanic's lien, or judgment lien creditor, 
                        except with respect to properties or 
                        transactions specified in subsection (b), (c), 
                        or (d) of section 6323 of the Internal Revenue 
                        Code of 1986 for which a notice of tax lien 
                        properly filed on the same date would not be 
                        valid.
                            ``(ii) Notice of lien.--The notice of lien 
                        shall be considered a notice of lien for taxes 
                        payable to the United States for the purpose of 
                        any State or local law providing for the filing 
                        of a notice of a tax lien. A notice of lien 
                        that is registered, recorded, docketed, or 
                        indexed in accordance with the rules and 
                        requirements relating to judgments of the 
                        courts of the State where the notice of lien is 
                        registered, recorded, docketed, or indexed 
                        shall be considered for all purposes as the 
                        filing prescribed by this section.
                            ``(iii) Other provisions.--Section 3201(e) 
                        of title 28, United States Code, shall apply to 
                        liens filed pursuant to this paragraph.
                    ``(E) Enforcement of a lien.--A lien obtained 
                through this paragraph shall be considered a debt as 
                defined by section 3002 of title 28, United States 
                Code, and enforceable pursuant to chapter 176 of such 
                title.
            ``(9) Attorney general adjudication.--The Attorney General 
        shall have jurisdiction to adjudicate administrative 
        proceedings under this subsection. Such proceedings shall be 
        conducted in accordance with section 554 of title 5, United 
        States Code.
    ``(f) Criminal and Civil Penalties and Injunctions.--
            ``(1) Prohibition of indemnity bonds.--It is unlawful for 
        an employer, in the hiring of any individual, to require the 
        individual to post a bond or security, to pay or agree to pay 
        an amount, or otherwise to provide a financial guarantee or 
        indemnity, against any potential liability arising under this 
        section relating to such hiring of the individual.
            ``(2) Civil penalty.--Any employer who is determined, after 
        notice and opportunity for mitigation of the monetary penalty 
        under subsection (e), to have violated paragraph (1) shall be 
        subject to a civil penalty of $10,000 for each violation and to 
        an administrative order requiring the return of any amounts 
        received in violation of such paragraph to the employee or, if 
        the employee cannot be located, to the general fund of the 
        Treasury.
    ``(g) Government Contracts.--
            ``(1) Contractors and recipients.--Whenever an employer who 
        is a Federal contractor (meaning an employer who holds a 
        Federal contract, grant, or cooperative agreement, or 
        reasonably may be expected to submit an offer for or be awarded 
        a government contract) is determined by the Secretary to have 
        violated this section on more than 3 occasions or is convicted 
        of a crime under this section, the employer shall be considered 
        for debarment from the receipt of Federal contracts, grants, or 
        cooperative agreements in accordance with the procedures and 
        standards and for the periods prescribed by the Federal 
        Acquisition Regulation. However, any administrative 
        determination of liability for civil penalty by the Secretary 
        or the Attorney General shall not be reviewable in any 
        debarment proceeding.
            ``(2) Inadvertent violations.--Inadvertent violations of 
        recordkeeping or verification requirements, in the absence of 
        any other violations of this section, shall not be a basis for 
        determining that an employer is a repeat violator for purposes 
        of this subsection.
            ``(3) Other remedies available.--Nothing in this subsection 
        shall be construed to modify or limit any remedy available to 
        any agency or official of the Federal Government for violation 
        of any contractual requirement to participate in the System, as 
        provided in the final rule relating to employment eligibility 
        verification published in the Federal Register on November 14, 
        2008 (73 Fed. Reg. 67,651), or any similar subsequent 
        regulation.
    ``(h) Preemption.--The provisions of this section preempt any State 
or local law, ordinance, policy, or rule, including any criminal or 
civil fine or penalty structure, relating to the hiring, continued 
employment, or status verification for employment eligibility purposes, 
of unauthorized aliens. A State, locality, municipality, or political 
subdivision may exercise its authority over business licensing and 
similar laws as a penalty for failure to use the System.
    ``(i) Deposit of Amounts Received.--Except as otherwise specified, 
civil penalties collected under this section shall be deposited by the 
Secretary into the Treasury as miscellaneous receipts.
    ``(j) Challenges to Validity of the System.--
            ``(1) In general.--Any right, benefit, or claim not 
        otherwise waived or limited pursuant to this section is 
        available in an action instituted in the United States District 
        Court for the District of Columbia, but shall be limited to 
        determinations of--
                    ``(A) whether this section, or any regulation 
                issued to implement this section, violates the 
                Constitution of the United States; or
                    ``(B) whether such a regulation issued by or under 
                the authority of the Secretary to implement this 
                section, is contrary to applicable provisions of this 
                section or was issued in violation of chapter 5 of 
                title 5, United States Code.
            ``(2) Deadlines for bringing actions.--Any action 
        instituted under this subsection must be filed no later than 
        180 days after the date the challenged section or regulation 
        described in subparagraph (A) or (B) of paragraph (1) becomes 
        effective. No court shall have jurisdiction to review any 
        challenge described in subparagraph (B) after the time period 
        specified in this subsection expires.
    ``(k) Criminal Penalties and Injunctions for Pattern or Practice 
Violations.--
            ``(1) Pattern and practice.--Any employer who engages in a 
        pattern or practice of knowing violations of subsection 
        (a)(1)(A) or (a)(2) shall be fined under title 18, United 
        States Code, no more than $10,000 for each unauthorized alien 
        with respect to whom such violation occurs, imprisoned for not 
        more than 2 years for the entire pattern or practice, or both.
            ``(2) Term of imprisonment.--The maximum term of 
        imprisonment of a person convicted of any criminal offense 
        under the United States Code shall be increased by 5 years if 
        the offense is committed as part of a pattern or practice of 
        violations of subsection (a)(1)(A) or (a)(2).
            ``(3) Enjoining of pattern or practice violations.--
        Whenever the Secretary or the Attorney General has reasonable 
        cause to believe that an employer is engaged in a pattern or 
        practice of employment in violation of subsection (a)(1)(A) or 
        (a)(2), the Attorney General may bring a civil action in the 
        appropriate district court of the United States requesting such 
        relief, including a permanent or temporary injunction, 
        restraining order, or other order against the employer, as the 
        Secretary or the Attorney General determines to be necessary.
    ``(l) Criminal Penalties for Unlawful and Abusive Employment.--
            ``(1) In general.--Any person who, during any 12-month 
        period, knowingly employs or hires, employs, recruits, or 
        refers for a fee for employment 10 or more individuals within 
        the United States who are under the control and supervision of 
        such person--
                    ``(A) knowing that the individuals are unauthorized 
                aliens; and
                    ``(B) under conditions that violate section 5(a) of 
                the Occupational Safety and Health Act of 1970 (29 
                U.S.C. 654(a)) (relating to occupational safety and 
                health), section 6 or 7 of the Fair Labor Standards Act 
                of 1938 (29 U.S.C. 206 and 207) (relating to minimum 
                wages and maximum hours of employment), section 3142 of 
                title 40, United States Code (relating to required 
                wages on construction contracts), or section 6703 or 
                6704 of title 41, United States Code (relating to 
                required wages on service contracts),
        shall be fined under title 18, United States Code, or 
        imprisoned for not more than 10 years, or both.
            ``(2) Attempt and conspiracy.--Any person who attempts or 
        conspires to commit any offense under this section shall be 
        punished in the same manner as a person who completes the 
        offense.
    ``(m) Limitation on Adjustment of Status.--The Secretary may not 
adjust the status of aliens who have been granted registered 
provisional immigrant status, except for aliens granted blue card 
status as described in section 245D(b), unless the Secretary, after 
consultation with the Comptroller General of the United States, 
certifies in writing to the President and Congress that the Secretary 
has implemented the System, including the full incorporation of the 
photo tool and additional security measures, required by this section, 
and has required the use of the System by all employers to prevent 
unauthorized workers from obtaining employment in the United States.''.

SEC. 3. REPORT ON USE OF THE SYSTEM IN THE AGRICULTURAL INDUSTRY.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Homeland Security, in 
consultation with the Secretary of Agriculture, shall submit a report 
to Congress that assesses implementation of the Employment Verification 
System established under section 274A(d) of the Immigration and 
Nationality Act, as amended by section 2, in the agricultural industry, 
including the use of such System technology in agriculture industry 
hiring processes, user, contractor, and third-party employer agent 
employment practices, timing and logistics regarding employment 
verification and reverification processes to meet agriculture industry 
practices, and identification of potential challenges and modifications 
to meet the unique needs of the agriculture industry.
    (b) Contents.--The report required under subsection (a) shall 
review--
            (1) the modality of access, training and outreach, customer 
        support, processes for further action notices and secondary 
        verifications for short-term workers, monitoring, and 
        compliance procedures for such System;
            (2) the interaction of such System with the process to 
        admit nonimmigrant workers pursuant to section 218 or 218A of 
        the Immigration and Nationality Act (8 U.S.C. 1188 et seq.) and 
        with enforcement of the immigration laws; and
            (3) the collaborative use of processes of other Federal and 
        State agencies that intersect with the agriculture industry.

SEC. 4. REPORT ON IMPACT OF THE SYSTEM ON EMPLOYERS.

    Not later than 18 months after the date of the enactment of this 
Act, the Secretary of Homeland Security shall submit a report to 
Congress that assesses--
            (1) the implementation by employers of the Employment 
        Verification System established under section 274A(d) of the 
        Immigration and Nationality Act, as amended by section 2;
            (2) any adverse impact on the revenues, business processes, 
        or profitability of employers required to use such System; and
            (3) the economic impact of such System on small businesses.

SEC. 5. GOVERNMENT ACCOUNTABILITY OFFICE STUDY OF THE EFFECTS OF 
              DOCUMENT REQUIREMENTS ON EMPLOYMENT AUTHORIZED PERSONS 
              AND EMPLOYERS.

    (a) Study.--The Comptroller General of the United States shall 
carry out a study of--
            (1) the effects of the documentary requirements under 
        section 274A of the Immigration and Nationality Act, as amended 
        by section 2, on employers, naturalized United States citizens, 
        nationals of the United States, and individuals with employment 
        authorized status; and
            (2) the challenges such employers, citizens, nationals, or 
        individuals may face in obtaining the documentation required 
        under that section.
    (b) Report.--
            (1) In general.--Not later than 4 years after the date of 
        the enactment of this Act, the Comptroller General shall submit 
        a report to Congress containing the findings of the study 
        carried out under subsection (a).
            (2) Contents.--The report required under paragraph (1) 
        shall include--
                    (A) an assessment of available information 
                regarding the number of working age nationals of the 
                United States and individuals who have employment 
                authorized status who lack documents required for 
                employment by such section 274A;
                    (B) a description of the additional steps required 
                for individuals who have employment authorized status 
                and do not possess the documents required by such 
                section 274A to obtain such documents;
                    (C) a general assessment of the average financial 
                costs for individuals who have employment authorized 
                status who do not possess the documents required by 
                such section 274A to obtain such documents;
                    (D) a general assessment of the average financial 
                costs and challenges for employers who have been 
                required to participate in the Employment Verification 
                System established by subsection (d) of such section 
                274A;
                    (E) a description of the barriers to individuals 
                who have employment authorized status in obtaining the 
                documents required by such section 274A, including 
                barriers imposed by the executive branch of the 
                Government; and
                    (F) any particular challenges facing individuals 
                who have employment authorized status who are members 
                of a federally recognized Indian tribe in complying 
                with the provisions of such section 274A.

SEC. 6. REPEAL OF PILOT PROGRAMS AND E-VERIFY AND TRANSITION 
              PROCEDURES.

    (a) Repeal.--Sections 401, 402, 403, 404, and 405 of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 1996 (division C 
of Public Law 104-208; 8 U.S.C. 1324a note) are repealed.
    (b) Transition Procedures.--
            (1) Continuation of e-verify program.--Notwithstanding the 
        repeals made by subsection (a), the Secretary of Homeland 
        Security shall continue to operate the E-Verify Program 
        described in section 403 of the Illegal Immigration Reform and 
        Immigrant Responsibility Act of 1996 (division C of Public Law 
        104-208; 8 U.S.C. 1324a note), as in effect on the day 
        immediately preceding the date of the enactment of this Act, 
        until the Secretary determines that the transition to the 
        System described in section 274A(d) of the Immigration and 
        Nationality Act, as amended by section 2, is complete.
            (2) Transition to the system.--Any employer that was 
        participating in the E-Verify Program described in section 403 
        of the Illegal Immigration Reform and Immigrant Responsibility 
        Act of 1996 (division C of Public Law 104-208; 8 U.S.C. 1324a 
        note), as in effect on the day immediately preceding the date 
        of the enactment of this Act, shall participate in the System 
        described in section 274A(d) of the Immigration and Nationality 
        Act, as amended by section 2, to the same extent and in the 
        same manner that the employer participated in such E-Verify 
        Program.
    (c) Construction.--The repeal made by subsection (a) may not be 
construed to limit the authority of the Secretary of Homeland Security 
to allow, or continue to allow, the participation in such System of 
employers who have participated in such E-Verify Program, as in effect 
on the day immediately preceding the date of the enactment of this Act.
    (d) Conforming Amendment.--Section 274(a) of the Immigration and 
Nationality Act (8 U.S.C. 1324(a)) is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraph (4) as paragraph (3).

SEC. 7. TAXPAYER ADDRESS INFORMATION.

    Section 6103(m) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following:
            ``(8) Taxpayer address information furnished to secretary 
        of homeland security.--Upon written request from the Secretary 
        of Homeland Security, the Secretary shall disclose the mailing 
        address of any taxpayer who is entitled to receive a 
        notification from the Secretary of Homeland Security pursuant 
        to paragraphs (1)(C) and (8)(E)(vii) of section 274A(d) of the 
        Immigration and Nationality Act (8 U.S.C. 1324a(d)) for use 
        only by employees of the Department of Homeland for the purpose 
        of mailing such notification to such taxpayer.''.

SEC. 8. SOCIAL SECURITY ACCOUNT STATEMENTS.

    Section 1143(a)(2) of the Social Security Act (42 U.S.C. 1320b-
13(a)(2)) is amended--
     (a) in subparagraph (D), by striking ``and'' at the end;
    (b) in subparagraph (E), by striking the period at the end and 
inserting ``; and''; and
    (c) by adding at the end the following:
                    ``(F) to the extent resources are available, 
                information in the Commissioner's records indicating 
                that a query was submitted to the employment 
                verification system established under section 274A(d) 
                of the Immigration and Nationality Act (8 U.S.C. 
                1324a(d)) under that individual's name or social 
                security number; and
                    ``(G) a toll-free telephone number operated by the 
                Department of Homeland Security for employment 
                verification system inquiries and a link to self-
                verification procedure established under section 
                274A(d)(4)(I) of such Act (8 U.S.C. 1324a(d)(4)(I)).''.

SEC. 9. GOOD FAITH COMPLIANCE.

    Section 274B(a) of the Immigration and Nationality Act (8 U.S.C. 
1324b(a)) is amended by adding at the end the following:
            ``(7) Treatment of certain violations after reasonable 
        steps in good faith.--Notwithstanding paragraphs (4) and (6), a 
        person, other entity, or employment agency shall not be liable 
        for civil penalties described in subsection (g)(2)(B)(iv) that 
        are related to a violation of any such paragraph if the person, 
        entity, or employment agency has taken reasonable steps, in 
        good faith, to comply with such paragraphs at issue, unless the 
        person, other entity, or employment agency--
                    ``(A) was, for similar conduct, subject to--
                            ``(i) a reasonable cause determination by 
                        the Office of Special Counsel for Immigration 
                        Related Unfair Employment Practices; or
                            ``(ii) a finding by an administrative law 
                        judge that a violation of this section has 
                        occurred; or
                    ``(B) committed the violation in order to interfere 
                with workplace rights (as defined in section 
                274A(b)(8)).
            ``(8) Good faith.--As used in paragraph (7), the term `good 
        faith' shall not include any action taken in order to interfere 
        with `workplace rights' (as defined in section 274A(b)(8)). 
        Neither the Office of Special Counsel nor an administrative law 
        judge hearing a claim under this section shall have any 
        authority to assess workplace rights other than those 
        guaranteed under this section.
            ``(9) Rules of construction.--Nothing in this section may 
        be construed--
                    ``(A) to permit the Office of Special Counsel for 
                Immigration-Related Unfair Employment Practices or an 
                administrative law judge hearing a claim under this 
                Section to enforce any workplace rights other than 
                those guaranteed under this section; or
                    ``(B) to prohibit any person, other entity, or 
                employment agency from using an identity verification 
                system, service, or method (in addition to the 
                employment verification system described in section 
                274A(d)), until the date on which the employer is 
                required to participate in the System under section 
                274A(d)(2) and the additional security measures 
                mandated by section 274A(c)(F)(iv) have become 
                available to verify the identity of a newly hired 
                employee, if such system--
                            ``(i) is used in a uniform manner for all 
                        newly hired employees;
                            ``(ii) is not used for the purpose or with 
                        the intent of discriminating against any 
                        individual;
                            ``(iii) provides for timely notice to 
                        employees run through the system of a mismatch 
                        or failure to confirm identity; and
                            ``(iv) sets out procedures for employees 
                        run through the system to resolve a mismatch or 
                        other failure to confirm identity.
            ``(10) Liability.--A person, entity, or employment agency 
        that uses an identity verification system, service, or method 
        in a way that conflicts with the requirements under paragraph 
        (7) shall be subject to liability under paragraph (4)(I).
    ``(j) Maintenance of Reasonable Levels of Service and 
Enforcement.--There are authorized to be appropriated such sums as may 
be necessary to maintain reasonable levels of service and enforcement 
in administering the Employment Verification System.''.
                                 <all>