Title: Legal Workforce Act
Policy area: Immigration

Summary:
Legal Workforce Act
This bill amends the Immigration and Nationality Act to direct the Department of Homeland Security (DHS) to establish an employment eligibility verification system (EEVS), patterned after the E-Verify system.
An employer shall attest, during the verification period and under penalty of perjury, that the employer has verified that an individual is not an unauthorized alien.
An individual shall attest that he or she is a U.S. citizen or national, a lawful permanent resident, or an alien authorized to work in the United States.
The bill establishes a phased-in EEVS participation deadline for different categories of employers, including agricultural employers.
The bill requires reverification of certain groups of workers who have not been verified under E-verify.
An employer may voluntarily reverify employees.
Employment recruitment and referral are included within the scope of EEVS.
The bill sets forth provisions regarding: (1) an employer utilizing a good faith defense, (2) preemption of state or local law, (3) employer penalties, and (4) worker remedies for EEVS errors.
DHS shall establish programs to: (1) block the use of misused social security numbers, (2) suspend or limit the use of social security account numbers of identity fraud victims, and (3) permit parents or legal guardians to suspend or limit the use of a minor's social security account number or other identifying information.
DHS shall establish at least two Identity Authentication Employment Eligibility Verification pilot programs using distinct technologies to provide employers with identity authentication and employment verification of enrolled new employees.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3711 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 3711

  To amend the Immigration and Nationality Act to make mandatory and 
  permanent requirements relating to use of an electronic employment 
        eligibility verification system, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 8, 2017

 Mr. Smith of Texas (for himself, Mr. Goodlatte, Mr. Calvert, Mr. Jody 
B. Hice of Georgia, Mr. King of Iowa, Mr. Duncan of South Carolina, Mr. 
Brooks of Alabama, Mr. Franks of Arizona, Mr. Pittenger, Mr. Sessions, 
Mr. Duncan of Tennessee, Mr. Francis Rooney of Florida, Mr. Chabot, Mr. 
Messer, Mr. Marchant, Mr. Labrador, Mr. Hunter, Mr. Gowdy, Mr. McCaul, 
 and Mr. Webster of Florida) introduced the following bill; which was 
  referred to the Committee on the Judiciary, and in addition to the 
 Committees on Ways and Means, and Education and the Workforce, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Immigration and Nationality Act to make mandatory and 
  permanent requirements relating to use of an electronic employment 
        eligibility verification system, and for other purposes.

    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 ``Legal Workforce Act''.

SEC. 2. EMPLOYMENT ELIGIBILITY VERIFICATION PROCESS.

    (a) In General.--Section 274A(b) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(b)) is amended to read as follows:
    ``(b) Employment Eligibility Verification Process.--
            ``(1) New hires, recruitment, and referral.--The 
        requirements referred to in paragraphs (1)(B) and (3) of 
        subsection (a) are, in the case of a person or other entity 
        hiring, recruiting, or referring an individual for employment 
        in the United States, the following:
                    ``(A) Attestation after examination of 
                documentation.--
                            ``(i) Attestation.--During the verification 
                        period (as defined in subparagraph (E)), the 
                        person or entity shall attest, under penalty of 
                        perjury and on a form, including electronic and 
                        telephonic formats, designated or established 
                        by the Secretary by regulation not later than 6 
                        months after the date of the enactment of the 
                        Legal Workforce Act, that it has verified that 
                        the individual is not an unauthorized alien 
                        by--
                                    ``(I) obtaining from the individual 
                                the individual's social security 
                                account number or United States 
                                passport number and recording the 
                                number on the form (if the individual 
                                claims to have been issued such a 
                                number), and, if the individual does 
                                not attest to United States nationality 
                                under subparagraph (B), obtaining such 
                                identification or authorization number 
                                established by the Department of 
                                Homeland Security for the alien as the 
                                Secretary of Homeland Security may 
                                specify, and recording such number on 
                                the form; and
                                    ``(II) examining--
                                            ``(aa) a document relating 
                                        to the individual presenting it 
                                        described in clause (ii); or
                                            ``(bb) a document relating 
                                        to the individual presenting it 
                                        described in clause (iii) and a 
                                        document relating to the 
                                        individual presenting it 
                                        described in clause (iv).
                            ``(ii) Documents evidencing employment 
                        authorization and establishing identity.--A 
                        document described in this subparagraph is an 
                        individual's--
                                    ``(I) unexpired United States 
                                passport or passport card;
                                    ``(II) unexpired permanent resident 
                                card that contains a photograph;
                                    ``(III) unexpired employment 
                                authorization card that contains a 
                                photograph;
                                    ``(IV) in the case of a 
                                nonimmigrant alien authorized to work 
                                for a specific employer incident to 
                                status, a foreign passport with Form I-
                                94 or Form I-94A, or other 
                                documentation as designated by the 
                                Secretary specifying the alien's 
                                nonimmigrant status as long as the 
                                period of status has not yet expired 
                                and the proposed employment is not in 
                                conflict with any restrictions or 
                                limitations identified in the 
                                documentation;
                                    ``(V) passport from the Federated 
                                States of Micronesia (FSM) or the 
                                Republic of the Marshall Islands (RMI) 
                                with Form I-94 or Form I-94A, or other 
                                documentation as designated by the 
                                Secretary, indicating nonimmigrant 
                                admission under the Compact of Free 
                                Association Between the United States 
                                and the FSM or RMI; or
                                    ``(VI) other document designated by 
                                the Secretary of Homeland Security, if 
                                the document--
                                            ``(aa) contains a 
                                        photograph of the individual 
                                        and biometric identification 
                                        data from the individual and 
                                        such other personal identifying 
                                        information relating to the 
                                        individual as the Secretary of 
                                        Homeland Security finds, by 
                                        regulation, sufficient for 
                                        purposes of this clause;
                                            ``(bb) is evidence of 
                                        authorization of employment in 
                                        the United States; and
                                            ``(cc) contains security 
                                        features to make it resistant 
                                        to tampering, counterfeiting, 
                                        and fraudulent use.
                            ``(iii) Documents evidencing employment 
                        authorization.--A document described in this 
                        subparagraph is an individual's social security 
                        account number card (other than such a card 
                        which specifies on the face that the issuance 
                        of the card does not authorize employment in 
                        the United States).
                            ``(iv) Documents establishing identity of 
                        individual.--A document described in this 
                        subparagraph is--
                                    ``(I) an individual's unexpired 
                                State issued driver's license or 
                                identification card if it contains a 
                                photograph and information such as 
                                name, date of birth, gender, height, 
                                eye color, and address;
                                    ``(II) an individual's unexpired 
                                U.S. military identification card;
                                    ``(III) an individual's unexpired 
                                Native American tribal identification 
                                document issued by a tribal entity 
                                recognized by the Bureau of Indian 
                                Affairs; or
                                    ``(IV) in the case of an individual 
                                under 18 years of age, a parent or 
                                legal guardian's attestation under 
                                penalty of law as to the identity and 
                                age of the individual.
                            ``(v) Authority to prohibit use of certain 
                        documents.--If the Secretary of Homeland 
                        Security finds, by regulation, that any 
                        document described in clause (i), (ii), or 
                        (iii) as establishing employment authorization 
                        or identity does not reliably establish such 
                        authorization or identity or is being used 
                        fraudulently to an unacceptable degree, the 
                        Secretary may prohibit or place conditions on 
                        its use for purposes of this paragraph.
                            ``(vi) Signature.--Such attestation may be 
                        manifested by either a handwritten or 
                        electronic signature.
                    ``(B) Individual attestation of employment 
                authorization.--During the verification period (as 
                defined in subparagraph (E)), the individual shall 
                attest, under penalty of perjury on the form designated 
                or established for purposes of subparagraph (A), that 
                the individual is a citizen or national of the United 
                States, an alien lawfully admitted for permanent 
                residence, or an alien who is authorized under this Act 
                or by the Secretary of Homeland Security to be hired, 
                recruited, or referred for such employment. Such 
                attestation may be manifested by either a handwritten 
                or electronic signature. The individual shall also 
                provide that individual's social security account 
                number or United States passport number (if the 
                individual claims to have been issued such a number), 
                and, if the individual does not attest to United States 
                nationality under this subparagraph, such 
                identification or authorization number established by 
                the Department of Homeland Security for the alien as 
                the Secretary may specify.
                    ``(C) Retention of verification form and 
                verification.--
                            ``(i) In general.--After completion of such 
                        form in accordance with subparagraphs (A) and 
                        (B), the person or entity shall--
                                    ``(I) retain a paper, microfiche, 
                                microfilm, or electronic version of the 
                                form and make it available for 
                                inspection by officers of the 
                                Department of Homeland Security, the 
                                Department of Justice, or the 
                                Department of Labor during a period 
                                beginning on the date of the recruiting 
                                or referral of the individual, or, in 
                                the case of the hiring of an 
                                individual, the date on which the 
                                verification is completed, and ending--
                                            ``(aa) in the case of the 
                                        recruiting or referral of an 
                                        individual, 3 years after the 
                                        date of the recruiting or 
                                        referral; and
                                            ``(bb) in the case of the 
                                        hiring of an individual, the 
                                        later of 3 years after the date 
                                        the verification is completed 
                                        or one year after the date the 
                                        individual's employment is 
                                        terminated; and
                                    ``(II) during the verification 
                                period (as defined in subparagraph 
                                (E)), make an inquiry, as provided in 
                                subsection (d), using the verification 
                                system to seek verification of the 
                                identity and employment eligibility of 
                                an individual.
                            ``(ii) Confirmation.--
                                    ``(I) Confirmation received.--If 
                                the person or other entity receives an 
                                appropriate confirmation of an 
                                individual's identity and work 
                                eligibility under the verification 
                                system within the time period 
                                specified, the person or entity shall 
                                record on the form an appropriate code 
                                that is provided under the system and 
                                that indicates a final confirmation of 
                                such identity and work eligibility of 
                                the individual.
                                    ``(II) Tentative nonconfirmation 
                                received.--If the person or other 
                                entity receives a tentative 
                                nonconfirmation of an individual's 
                                identity or work eligibility under the 
                                verification system within the time 
                                period specified, the person or entity 
                                shall so inform the individual for whom 
                                the verification is sought. If the 
                                individual does not contest the 
                                nonconfirmation within the time period 
                                specified, the nonconfirmation shall be 
                                considered final. The person or entity 
                                shall then record on the form an 
                                appropriate code which has been 
                                provided under the system to indicate a 
                                final nonconfirmation. If the 
                                individual does contest the 
                                nonconfirmation, the individual shall 
                                utilize the process for secondary 
                                verification provided under subsection 
                                (d). The nonconfirmation will remain 
                                tentative until a final confirmation or 
                                nonconfirmation is provided by the 
                                verification system within the time 
                                period specified. In no case shall an 
                                employer terminate employment of an 
                                individual because of a failure of the 
                                individual to have identity and work 
                                eligibility confirmed under this 
                                section until a nonconfirmation becomes 
                                final. Nothing in this clause shall 
                                apply to a termination of employment 
                                for any reason other than because of 
                                such a failure. In no case shall an 
                                employer rescind the offer of 
                                employment to an individual because of 
                                a failure of the individual to have 
                                identity and work eligibility confirmed 
                                under this subsection until a 
                                nonconfirmation becomes final. Nothing 
                                in this subclause shall apply to a 
                                recission of the offer of employment 
                                for any reason other than because of 
                                such a failure.
                                    ``(III) Final confirmation or 
                                nonconfirmation received.--If a final 
                                confirmation or nonconfirmation is 
                                provided by the verification system 
                                regarding an individual, the person or 
                                entity shall record on the form an 
                                appropriate code that is provided under 
                                the system and that indicates a 
                                confirmation or nonconfirmation of 
                                identity and work eligibility of the 
                                individual.
                                    ``(IV) Extension of time.--If the 
                                person or other entity in good faith 
                                attempts to make an inquiry during the 
                                time period specified and the 
                                verification system has registered that 
                                not all inquiries were received during 
                                such time, the person or entity may 
                                make an inquiry in the first subsequent 
                                working day in which the verification 
                                system registers that it has received 
                                all inquiries. If the verification 
                                system cannot receive inquiries at all 
                                times during a day, the person or 
                                entity merely has to assert that the 
                                entity attempted to make the inquiry on 
                                that day for the previous sentence to 
                                apply to such an inquiry, and does not 
                                have to provide any additional proof 
                                concerning such inquiry.
                                    ``(V) Consequences of 
                                nonconfirmation.--
                                            ``(aa) Termination or 
                                        notification of continued 
                                        employment.--If the person or 
                                        other entity has received a 
                                        final nonconfirmation regarding 
                                        an individual, the person or 
                                        entity may terminate employment 
                                        of the individual (or decline 
                                        to recruit or refer the 
                                        individual). If the person or 
                                        entity does not terminate 
                                        employment of the individual or 
                                        proceeds to recruit or refer 
                                        the individual, the person or 
                                        entity shall notify the 
                                        Secretary of Homeland Security 
                                        of such fact through the 
                                        verification system or in such 
                                        other manner as the Secretary 
                                        may specify.
                                            ``(bb) Failure to notify.--
                                        If the person or entity fails 
                                        to provide notice with respect 
                                        to an individual as required 
                                        under item (aa), the failure is 
                                        deemed to constitute a 
                                        violation of subsection 
                                        (a)(1)(A) with respect to that 
                                        individual.
                                    ``(VI) Continued employment after 
                                final nonconfirmation.--If the person 
                                or other entity continues to employ (or 
                                to recruit or refer) an individual 
                                after receiving final nonconfirmation, 
                                a rebuttable presumption is created 
                                that the person or entity has violated 
                                subsection (a)(1)(A).
                    ``(D) Effective dates of new procedures.--
                            ``(i) Hiring.--Except as provided in clause 
                        (iii), the provisions of this paragraph shall 
                        apply to a person or other entity hiring an 
                        individual for employment in the United States 
                        as follows:
                                    ``(I) With respect to employers 
                                having 10,000 or more employees in the 
                                United States on the date of the 
                                enactment of the Legal Workforce Act, 
                                on the date that is 6 months after the 
                                date of the enactment of such Act.
                                    ``(II) With respect to employers 
                                having 500 or more employees in the 
                                United States, but less than 10,000 
                                employees in the United States, on the 
                                date of the enactment of the Legal 
                                Workforce Act, on the date that is 12 
                                months after the date of the enactment 
                                of such Act.
                                    ``(III) With respect to employers 
                                having 20 or more employees in the 
                                United States, but less than 500 
                                employees in the United States, on the 
                                date of the enactment of the Legal 
                                Workforce Act, on the date that is 18 
                                months after the date of the enactment 
                                of such Act.
                                    ``(IV) With respect to employers 
                                having 1 or more employees in the 
                                United States, but less than 20 
                                employees in the United States, on the 
                                date of the enactment of the Legal 
                                Workforce Act, on the date that is 24 
                                months after the date of the enactment 
                                of such Act.
                            ``(ii) Recruiting and referring.--Except as 
                        provided in clause (iii), the provisions of 
                        this paragraph shall apply to a person or other 
                        entity recruiting or referring an individual 
                        for employment in the United States on the date 
                        that is 12 months after the date of the 
                        enactment of the Legal Workforce Act.
                            ``(iii) Agricultural labor or services.--
                        With respect to an employee performing 
                        agricultural labor or services, this paragraph 
                        shall not apply with respect to the 
                        verification of the employee until the date 
                        that is 30 months after the date of the 
                        enactment of the Legal Workforce Act. For 
                        purposes of the preceding sentence, the term 
                        `agricultural labor or services' has the 
                        meaning given such term by the Secretary of 
                        Agriculture in regulations and includes 
                        agricultural labor as defined in section 
                        3121(g) of the Internal Revenue Code of 1986, 
                        agriculture as defined in section 3(f) of the 
                        Fair Labor Standards Act of 1938 (29 U.S.C. 
                        203(f)), the handling, planting, drying, 
                        packing, packaging, processing, freezing, or 
                        grading prior to delivery for storage of any 
                        agricultural or horticultural commodity in its 
                        unmanufactured state, all activities required 
                        for the preparation, processing or 
                        manufacturing of a product of agriculture (as 
                        such term is defined in such section 3(f)) for 
                        further distribution, and activities similar to 
                        all the foregoing as they relate to fish or 
                        shellfish facilities. An employee described in 
                        this clause shall not be counted for purposes 
                        of clause (i).
                            ``(iv) Extensions.--Upon request by an 
                        employer having 50 or fewer employees, the 
                        Secretary shall allow a one-time 6-month 
                        extension of the effective date set out in this 
                        subparagraph applicable to such employer. Such 
                        request shall be made to the Secretary and 
                        shall be made prior to such effective date.
                            ``(v) Transition rule.--Subject to 
                        paragraph (4), the following shall apply to a 
                        person or other entity hiring, recruiting, or 
                        referring an individual for employment in the 
                        United States until the effective date or dates 
                        applicable under clauses (i) through (iii):
                                    ``(I) This subsection, as in effect 
                                before the enactment of the Legal 
                                Workforce Act.
                                    ``(II) Subtitle A of title IV of 
                                the Illegal Immigration Reform and 
                                Immigrant Responsibility Act of 1996 (8 
                                U.S.C. 1324a note), as in effect before 
                                the effective date in section 7(c) of 
                                the Legal Workforce Act.
                                    ``(III) Any other provision of 
                                Federal law requiring the person or 
                                entity to participate in the E-Verify 
                                Program described in section 403(a) of 
                                the Illegal Immigration Reform and 
                                Immigrant Responsibility Act of 1996 (8 
                                U.S.C. 1324a note), as in effect before 
                                the effective date in section 7(c) of 
                                the Legal Workforce Act, including 
                                Executive Order 13465 (8 U.S.C. 1324a 
                                note; relating to Government 
                                procurement).
                    ``(E) Verification period defined.--
                            ``(i) In general.--For purposes of this 
                        paragraph:
                                    ``(I) In the case of recruitment or 
                                referral, the term `verification 
                                period' means the period ending on the 
                                date recruiting or referring commences.
                                    ``(II) In the case of hiring, the 
                                term `verification period' means the 
                                period beginning on the date on which 
                                an offer of employment is extended and 
                                ending on the date that is three 
                                business days after the date of hire, 
                                except as provided in clause (iii). The 
                                offer of employment may be conditioned 
                                in accordance with clause (ii).
                            ``(ii) Job offer may be conditional.--A 
                        person or other entity may offer a prospective 
                        employee an employment position that is 
                        conditioned on final verification of the 
                        identity and employment eligibility of the 
                        employee using the procedures established under 
                        this paragraph.
                            ``(iii) Special rule.--Notwithstanding 
                        clause (i)(II), in the case of an alien who is 
                        authorized for employment and who provides 
                        evidence from the Social Security 
                        Administration that the alien has applied for a 
                        social security account number, the 
                        verification period ends three business days 
                        after the alien receives the social security 
                        account number.
            ``(2) Reverification for individuals with limited work 
        authorization.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a person or entity shall make an 
                inquiry, as provided in subsection (d), using the 
                verification system to seek reverification of the 
                identity and employment eligibility of all individuals 
                with a limited period of work authorization employed by 
                the person or entity during the three business days 
                after the date on which the employee's work 
                authorization expires as follows:
                            ``(i) With respect to employers having 
                        10,000 or more employees in the United States 
                        on the date of the enactment of the Legal 
                        Workforce Act, beginning on the date that is 6 
                        months after the date of the enactment of such 
                        Act.
                            ``(ii) With respect to employers having 500 
                        or more employees in the United States, but 
                        less than 10,000 employees in the United 
                        States, on the date of the enactment of the 
                        Legal Workforce Act, beginning on the date that 
                        is 12 months after the date of the enactment of 
                        such Act.
                            ``(iii) With respect to employers having 20 
                        or more employees in the United States, but 
                        less than 500 employees in the United States, 
                        on the date of the enactment of the Legal 
                        Workforce Act, beginning on the date that is 18 
                        months after the date of the enactment of such 
                        Act.
                            ``(iv) With respect to employers having 1 
                        or more employees in the United States, but 
                        less than 20 employees in the United States, on 
                        the date of the enactment of the Legal 
                        Workforce Act, beginning on the date that is 24 
                        months after the date of the enactment of such 
                        Act.
                    ``(B) Agricultural labor or services.--With respect 
                to an employee performing agricultural labor or 
                services, or an employee recruited or referred by a 
                farm labor contractor (as defined in section 3 of the 
                Migrant and Seasonal Agricultural Worker Protection Act 
                (29 U.S.C. 1801)), subparagraph (A) shall not apply 
                with respect to the reverification of the employee 
                until the date that is 30 months after the date of the 
                enactment of the Legal Workforce Act. For purposes of 
                the preceding sentence, the term `agricultural labor or 
                services' has the meaning given such term by the 
                Secretary of Agriculture in regulations and includes 
                agricultural labor as defined in section 3121(g) of the 
                Internal Revenue Code of 1986, agriculture as defined 
                in section 3(f) of the Fair Labor Standards Act of 1938 
                (29 U.S.C. 203(f)), the handling, planting, drying, 
                packing, packaging, processing, freezing, or grading 
                prior to delivery for storage of any agricultural or 
                horticultural commodity in its unmanufactured state, 
                all activities required for the preparation, 
                processing, or manufacturing of a product of 
                agriculture (as such term is defined in such section 
                3(f)) for further distribution, and activities similar 
                to all the foregoing as they relate to fish or 
                shellfish facilities. An employee described in this 
                subparagraph shall not be counted for purposes of 
                subparagraph (A).
                    ``(C) Reverification.--Paragraph (1)(C)(ii) shall 
                apply to reverifications pursuant to this paragraph on 
                the same basis as it applies to verifications pursuant 
                to paragraph (1), except that employers shall--
                            ``(i) use a form designated or established 
                        by the Secretary by regulation for purposes of 
                        this paragraph; and
                            ``(ii) retain a paper, microfiche, 
                        microfilm, or electronic version of the form 
                        and make it available for inspection by 
                        officers of the Department of Homeland 
                        Security, the Department of Justice, or the 
                        Department of Labor during the period beginning 
                        on the date the reverification commences and 
                        ending on the date that is the later of 3 years 
                        after the date of such reverification or 1 year 
                        after the date the individual's employment is 
                        terminated.
            ``(3) Previously hired individuals.--
                    ``(A) On a mandatory basis for certain employees.--
                            ``(i) In general.--Not later than the date 
                        that is 6 months after the date of the 
                        enactment of the Legal Workforce Act, an 
                        employer shall make an inquiry, as provided in 
                        subsection (d), using the verification system 
                        to seek verification of the identity and 
                        employment eligibility of any individual 
                        described in clause (ii) employed by the 
                        employer whose employment eligibility has not 
                        been verified under the E-Verify Program 
                        described in section 403(a) of the Illegal 
                        Immigration Reform and Immigrant Responsibility 
                        Act of 1996 (8 U.S.C. 1324a note).
                            ``(ii) Individuals described.--An 
                        individual described in this clause is any of 
                        the following:
                                    ``(I) An employee of any unit of a 
                                Federal, State, or local government.
                                    ``(II) An employee who requires a 
                                Federal security clearance working in a 
                                Federal, State or local government 
                                building, a military base, a nuclear 
                                energy site, a weapons site, or an 
                                airport or other facility that requires 
                                workers to carry a Transportation 
                                Worker Identification Credential 
                                (TWIC).
                                    ``(III) An employee assigned to 
                                perform work in the United States under 
                                a Federal contract, except that this 
                                subclause--
                                            ``(aa) is not applicable to 
                                        individuals who have a 
                                        clearance under Homeland 
                                        Security Presidential Directive 
                                        12 (HSPD 12 clearance), are 
                                        administrative or overhead 
                                        personnel, or are working 
                                        solely on contracts that 
                                        provide Commercial Off The 
                                        Shelf goods or services as set 
                                        forth by the Federal 
                                        Acquisition Regulatory Council, 
                                        unless they are subject to 
                                        verification under subclause 
                                        (II); and
                                            ``(bb) only applies to 
                                        contracts over the simple 
                                        acquisition threshold as 
                                        defined in section 2.101 of 
                                        title 48, Code of Federal 
                                        Regulations.
                    ``(B) On a mandatory basis for multiple users of 
                same social security account number.--In the case of an 
                employer who is required by this subsection to use the 
                verification system described in subsection (d), or has 
                elected voluntarily to use such system, the employer 
                shall make inquiries to the system in accordance with 
                the following:
                            ``(i) The Commissioner of Social Security 
                        shall notify annually employees (at the 
                        employee address listed on the Wage and Tax 
                        Statement) who submit a social security account 
                        number to which more than one employer reports 
                        income and for which there is a pattern of 
                        unusual multiple use. The notification letter 
                        shall identify the number of employers to which 
                        income is being reported as well as sufficient 
                        information notifying the employee of the 
                        process to contact the Social Security 
                        Administration Fraud Hotline if the employee 
                        believes the employee's identity may have been 
                        stolen. The notice shall not share information 
                        protected as private, in order to avoid any 
                        recipient of the notice from being in the 
                        position to further commit or begin committing 
                        identity theft.
                            ``(ii) If the person to whom the social 
                        security account number was issued by the 
                        Social Security Administration has been 
                        identified and confirmed by the Commissioner, 
                        and indicates that the social security account 
                        number was used without their knowledge, the 
                        Secretary and the Commissioner shall lock the 
                        social security account number for employment 
                        eligibility verification purposes and shall 
                        notify the employers of the individuals who 
                        wrongfully submitted the social security 
                        account number that the employee may not be 
                        work eligible.
                            ``(iii) Each employer receiving such 
                        notification of an incorrect social security 
                        account number under clause (ii) shall use the 
                        verification system described in subsection (d) 
                        to check the work eligibility status of the 
                        applicable employee within 10 business days of 
                        receipt of the notification.
                    ``(C) On a voluntary basis.--Subject to paragraph 
                (2), and subparagraphs (A) through (C) of this 
                paragraph, beginning on the date that is 30 days after 
                the date of the enactment of the Legal Workforce Act, 
                an employer may make an inquiry, as provided in 
                subsection (d), using the verification system to seek 
                verification of the identity and employment eligibility 
                of any individual employed by the employer. If an 
                employer chooses voluntarily to seek verification of 
                any individual employed by the employer, the employer 
                shall seek verification of all individuals employed at 
                the same geographic location or, at the option of the 
                employer, all individuals employed within the same job 
                category, as the employee with respect to whom the 
                employer seeks voluntarily to use the verification 
                system. An employer's decision about whether or not 
                voluntarily to seek verification of its current 
                workforce under this subparagraph may not be considered 
                by any government agency in any proceeding, 
                investigation, or review provided for in this Act.
                    ``(D) Verification.--Paragraph (1)(C)(ii) shall 
                apply to verifications pursuant to this paragraph on 
                the same basis as it applies to verifications pursuant 
                to paragraph (1), except that employers shall--
                            ``(i) use a form designated or established 
                        by the Secretary by regulation for purposes of 
                        this paragraph; and
                            ``(ii) retain a paper, microfiche, 
                        microfilm, or electronic version of the form 
                        and make it available for inspection by 
                        officers of the Department of Homeland 
                        Security, the Department of Justice, or the 
                        Department of Labor during the period beginning 
                        on the date the verification commences and 
                        ending on the date that is the later of 3 years 
                        after the date of such verification or 1 year 
                        after the date the individual's employment is 
                        terminated.
            ``(4) Early compliance.--
                    ``(A) Former e-verify required users, including 
                federal contractors.--Notwithstanding the deadlines in 
                paragraphs (1) and (2), beginning on the date of the 
                enactment of the Legal Workforce Act, the Secretary is 
                authorized to commence requiring employers required to 
                participate in the E-Verify Program described in 
                section 403(a) of the Illegal Immigration Reform and 
                Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 
                note), including employers required to participate in 
                such program by reason of Federal acquisition laws (and 
                regulations promulgated under those laws, including the 
                Federal Acquisition Regulation), to commence compliance 
                with the requirements of this subsection (and any 
                additional requirements of such Federal acquisition 
                laws and regulation) in lieu of any requirement to 
                participate in the E-Verify Program.
                    ``(B) Former e-verify voluntary users and others 
                desiring early compliance.--Notwithstanding the 
                deadlines in paragraphs (1) and (2), beginning on the 
                date of the enactment of the Legal Workforce Act, the 
                Secretary shall provide for the voluntary compliance 
                with the requirements of this subsection by employers 
                voluntarily electing to participate in the E-Verify 
                Program described in section 403(a) of the Illegal 
                Immigration Reform and Immigrant Responsibility Act of 
                1996 (8 U.S.C. 1324a note) before such date, as well as 
                by other employers seeking voluntary early compliance.
            ``(5) Copying of documentation permitted.--Notwithstanding 
        any other provision of law, the person or entity may copy a 
        document presented by an individual pursuant to this subsection 
        and may retain the copy, but only (except as otherwise 
        permitted under law) for the purpose of complying with the 
        requirements of this subsection.
            ``(6) Limitation on use of forms.--A form designated or 
        established by the Secretary of Homeland Security under this 
        subsection and any information contained in or appended to such 
        form, may not be used for purposes other than for enforcement 
        of this Act and any other provision of Federal criminal law.
            ``(7) Good faith compliance.--
                    ``(A) In general.--Except as otherwise provided in 
                this subsection, a person or entity is considered to 
                have complied with a requirement of 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 minimus;
                            ``(ii) the Secretary of Homeland Security 
                        has explained to the person or entity the basis 
                        for the failure and why it is not de minimus;
                            ``(iii) the person or entity has been 
                        provided a period of not less than 30 calendar 
                        days (beginning after the date of the 
                        explanation) within which to correct the 
                        failure; and
                            ``(iv) the 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 a 
                person or entity that has or is engaging in a pattern 
                or practice of violations of subsection (a)(1)(A) or 
                (a)(2).
            ``(8) Single extension of deadlines upon certification.--In 
        a case in which the Secretary of Homeland Security has 
        certified to the Congress that the employment eligibility 
        verification system required under subsection (d) will not be 
        fully operational by the date that is 6 months after the date 
        of the enactment of the Legal Workforce Act, each deadline 
        established under this section for an employer to make an 
        inquiry using such system shall be extended by 6 months. No 
        other extension of such a deadline shall be made except as 
        authorized under paragraph (1)(D)(iv).''.
    (b) Date of Hire.--Section 274A(h) of the Immigration and 
Nationality Act (8 U.S.C. 1324a(h)) is amended by adding at the end the 
following:
            ``(4) Definition of date of hire.--As used in this section, 
        the term `date of hire' means the date of actual commencement 
        of employment for wages or other remuneration, unless otherwise 
        specified.''.

SEC. 3. EMPLOYMENT ELIGIBILITY VERIFICATION SYSTEM.

    Section 274A(d) of the Immigration and Nationality Act (8 U.S.C. 
1324a(d)) is amended to read as follows:
    ``(d) Employment Eligibility Verification System.--
            ``(1) In general.--Patterned on the employment eligibility 
        confirmation system established under section 404 of the 
        Illegal Immigration Reform and Immigrant Responsibility Act of 
        1996 (8 U.S.C. 1324a note), the Secretary of Homeland Security 
        shall establish and administer a verification system through 
        which the Secretary (or a designee of the Secretary, which may 
        be a nongovernmental entity)--
                    ``(A) responds to inquiries made by persons at any 
                time through a toll-free telephone line and other toll-
                free electronic media concerning an individual's 
                identity and whether the individual is authorized to be 
                employed; and
                    ``(B) maintains records of the inquiries that were 
                made, of verifications provided (or not provided), and 
                of the codes provided to inquirers as evidence of their 
                compliance with their obligations under this section.
            ``(2) Initial response.--The verification system shall 
        provide confirmation or a tentative nonconfirmation of an 
        individual's identity and employment eligibility within 3 
        working days of the initial inquiry. If providing confirmation 
        or tentative nonconfirmation, the verification system shall 
        provide an appropriate code indicating such confirmation or 
        such nonconfirmation.
            ``(3) Secondary confirmation process in case of tentative 
        nonconfirmation.--In cases of tentative nonconfirmation, the 
        Secretary shall specify, in consultation with the Commissioner 
        of Social Security, an available secondary verification process 
        to confirm the validity of information provided and to provide 
        a final confirmation or nonconfirmation not later than 10 
        working days after the date on which the notice of the 
        tentative nonconfirmation is received by the employee. The 
        Secretary, in consultation with the Commissioner, may extend 
        this deadline once on a case-by-case basis for a period of 10 
        working days, and if the time is extended, shall document such 
        extension within the verification system. The Secretary, in 
        consultation with the Commissioner, shall notify the employee 
        and employer of such extension. The Secretary, in consultation 
        with the Commissioner, shall create a standard process of such 
        extension and notification and shall make a description of such 
        process available to the public. When final confirmation or 
        nonconfirmation is provided, the verification system shall 
        provide an appropriate code indicating such confirmation or 
        nonconfirmation.
            ``(4) Design and operation of system.--The verification 
        system shall be designed and operated--
                    ``(A) to maximize its reliability and ease of use 
                by persons and other entities consistent with 
                insulating and protecting the privacy and security of 
                the underlying information;
                    ``(B) to respond to all inquiries made by such 
                persons and entities on whether individuals are 
                authorized to be employed and to register all times 
                when such inquiries are not received;
                    ``(C) with appropriate administrative, technical, 
                and physical safeguards to prevent unauthorized 
                disclosure of personal information;
                    ``(D) to have reasonable safeguards against the 
                system's resulting in unlawful discriminatory practices 
                based on national origin or citizenship status, 
                including--
                            ``(i) the selective or unauthorized use of 
                        the system to verify eligibility; or
                            ``(ii) the exclusion of certain individuals 
                        from consideration for employment as a result 
                        of a perceived likelihood that additional 
                        verification will be required, beyond what is 
                        required for most job applicants;
                    ``(E) to maximize the prevention of identity theft 
                use in the system; and
                    ``(F) to limit the subjects of verification to the 
                following individuals:
                            ``(i) Individuals hired, referred, or 
                        recruited, in accordance with paragraph (1) or 
                        (4) of subsection (b).
                            ``(ii) Employees and prospective employees, 
                        in accordance with paragraph (1), (2), (3), or 
                        (4) of subsection (b).
                            ``(iii) Individuals seeking to confirm 
                        their own employment eligibility on a voluntary 
                        basis.
            ``(5) Responsibilities of commissioner of social 
        security.--As part of the verification system, the Commissioner 
        of Social Security, in consultation with the Secretary of 
        Homeland Security (and any designee of the Secretary selected 
        to establish and administer the verification system), shall 
        establish a reliable, secure method, which, within the time 
        periods specified under paragraphs (2) and (3), compares the 
        name and social security account number provided in an inquiry 
        against such information maintained by the Commissioner in 
        order to validate (or not validate) the information provided 
        regarding an individual whose identity and employment 
        eligibility must be confirmed, the correspondence of the name 
        and number, and whether the individual has presented a social 
        security account number that is not valid for employment. The 
        Commissioner shall not disclose or release social security 
        information (other than such confirmation or nonconfirmation) 
        under the verification system except as provided for in this 
        section or section 205(c)(2)(I) of the Social Security Act.
            ``(6) Responsibilities of secretary of homeland security.--
        As part of the verification system, the Secretary of Homeland 
        Security (in consultation with any designee of the Secretary 
        selected to establish and administer the verification system), 
        shall establish a reliable, secure method, which, within the 
        time periods specified under paragraphs (2) and (3), compares 
        the name and alien identification or authorization number (or 
        any other information as determined relevant by the Secretary) 
        which are provided in an inquiry against such information 
        maintained or accessed by the Secretary in order to validate 
        (or not validate) the information provided, the correspondence 
        of the name and number, whether the alien is authorized to be 
        employed in the United States, 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.
            ``(7) Updating information.--The Commissioner of Social 
        Security and the Secretary of Homeland Security shall update 
        their information in a manner that promotes the maximum 
        accuracy and shall provide a process for the prompt correction 
        of erroneous information, including instances in which it is 
        brought to their attention in the secondary verification 
        process described in paragraph (3).
            ``(8) Limitation on use of the verification system and any 
        related systems.--
                    ``(A) No national identification card.--Nothing in 
                this section shall be construed to authorize, directly 
                or indirectly, the issuance or use of national 
                identification cards or the establishment of a national 
                identification card.
                    ``(B) Critical infrastructure.--The Secretary may 
                authorize or direct any 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 use the verification system to 
                the extent the Secretary determines that such use will 
                assist in the protection of the critical 
                infrastructure.
            ``(9) Remedies.--If an individual alleges that the 
        individual would not have been dismissed from a job but for an 
        error of the verification mechanism, the individual may seek 
        compensation only through the mechanism of the Federal Tort 
        Claims Act, and injunctive relief to correct such error. No 
        class action may be brought under this paragraph.''.

SEC. 4. RECRUITMENT, REFERRAL, AND CONTINUATION OF EMPLOYMENT.

    (a) Additional Changes to Rules for Recruitment, Referral, and 
Continuation of Employment.--Section 274A(a) of the Immigration and 
Nationality Act (8 U.S.C. 1324a(a)) is amended--
            (1) in paragraph (1)(A), by striking ``for a fee'';
            (2) in paragraph (1), by amending subparagraph (B) to read 
        as follows:
                    ``(B) to hire, continue to employ, or to recruit or 
                refer for employment in the United States an individual 
                without complying with the requirements of subsection 
                (b).''; and
            (3) in paragraph (2), by striking ``after hiring an alien 
        for employment in accordance with paragraph (1),'' and 
        inserting ``after complying with paragraph (1),''.
    (b) Definition.--Section 274A(h) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(h)), as amended by section 2(b) of this Act, is 
further amended by adding at the end the following:
            ``(5) Definition of recruit or refer.--As used in this 
        section, the term `refer' means the act of sending or directing 
        a person who is in the United States or transmitting 
        documentation or information to another, directly or 
        indirectly, with the intent of obtaining employment in the 
        United States for such person. Only persons or entities 
        referring for remuneration (whether on a retainer or 
        contingency basis) are included in the definition, except that 
        union hiring halls that refer union members or nonunion 
        individuals who pay union membership dues are included in the 
        definition whether or not they receive remuneration, as are 
        labor service entities or labor service agencies, whether 
        public, private, for-profit, or nonprofit, that refer, 
        dispatch, or otherwise facilitate the hiring of laborers for 
        any period of time by a third party. As used in this section, 
        the term `recruit' means the act of soliciting a person who is 
        in the United States, directly or indirectly, and referring the 
        person to another with the intent of obtaining employment for 
        that person. Only persons or entities referring for 
        remuneration (whether on a retainer or contingency basis) are 
        included in the definition, except that union hiring halls that 
        refer union members or nonunion individuals who pay union 
        membership dues are included in this definition whether or not 
        they receive remuneration, as are labor service entities or 
        labor service agencies, whether public, private, for-profit, or 
        nonprofit that recruit, dispatch, or otherwise facilitate the 
        hiring of laborers for any period of time by a third party.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 1 year after the date of the enactment of 
this Act, except that the amendments made by subsection (a) shall take 
effect 6 months after the date of the enactment of this Act insofar as 
such amendments relate to continuation of employment.

SEC. 5. GOOD FAITH DEFENSE.

    Section 274A(a)(3) of the Immigration and Nationality Act (8 U.S.C. 
1324a(a)(3)) is amended to read as follows:
            ``(3) Good faith defense.--
                    ``(A) Defense.--An employer (or person or entity 
                that hires, employs, recruits, or refers (as defined in 
                subsection (h)(5)), or is otherwise obligated to comply 
                with this section) who establishes that it has complied 
                in good faith with the requirements of subsection (b)--
                            ``(i) 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 through the 
                        system established under subsection (d); and
                            ``(ii) has established compliance with its 
                        obligations under subparagraphs (A) and (B) of 
                        paragraph (1) and subsection (b) absent a 
                        showing by the Secretary of Homeland Security, 
                        by clear and convincing evidence, that the 
                        employer had knowledge that an employee is an 
                        unauthorized alien.
                    ``(B) Mitigation element.--For purposes of 
                subparagraph (A)(i), if an employer proves by a 
                preponderance of the evidence that the employer uses a 
                reasonable, secure, and established technology to 
                authenticate the identity of the new employee, that 
                fact shall be taken into account for purposes of 
                determining good faith use of the system established 
                under subsection (d).
                    ``(C) Failure to seek and obtain verification.--
                Subject to the effective dates and other deadlines 
                applicable under subsection (b), in the case of a 
                person or entity in the United States that hires, or 
                continues to employ, an individual, or recruits or 
                refers an individual for employment, the following 
                requirements apply:
                            ``(i) Failure to seek verification.--
                                    ``(I) In general.--If the person or 
                                entity has not made an inquiry, under 
                                the mechanism established under 
                                subsection (d) and in accordance with 
                                the timeframes established under 
                                subsection (b), seeking verification of 
                                the identity and work eligibility of 
                                the individual, the defense under 
                                subparagraph (A) shall not be 
                                considered to apply with respect to any 
                                employment, except as provided in 
                                subclause (II).
                                    ``(II) Special rule for failure of 
                                verification mechanism.--If such a 
                                person or entity in good faith attempts 
                                to make an inquiry in order to qualify 
                                for the defense under subparagraph (A) 
                                and the verification mechanism has 
                                registered that not all inquiries were 
                                responded to during the relevant time, 
                                the person or entity can make an 
                                inquiry until the end of the first 
                                subsequent working day in which the 
                                verification mechanism registers no 
                                nonresponses and qualify for such 
                                defense.
                            ``(ii) Failure to obtain verification.--If 
                        the person or entity has made the inquiry 
                        described in clause (i)(I) but has not received 
                        an appropriate verification of such identity 
                        and work eligibility under such mechanism 
                        within the time period specified under 
                        subsection (d)(2) after the time the 
                        verification inquiry was received, the defense 
                        under subparagraph (A) shall not be considered 
                        to apply with respect to any employment after 
                        the end of such time period.''.

SEC. 6. PREEMPTION AND STATES' RIGHTS.

    Section 274A(h)(2) of the Immigration and Nationality Act (8 U.S.C. 
1324a(h)(2)) is amended to read as follows:
            ``(2) Preemption.--
                    ``(A) Single, national policy.--The provisions of 
                this section preempt any State or local law, ordinance, 
                policy, or rule, including any criminal or civil fine 
                or penalty structure, insofar as they may now or 
                hereafter relate to the hiring, continued employment, 
                or status verification for employment eligibility 
                purposes, of unauthorized aliens.
                    ``(B) State enforcement of federal law.--
                            ``(i) Business licensing.--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 verification 
                        system described in subsection (d) to verify 
                        employment eligibility when and as required 
                        under subsection (b).
                            ``(ii) General rules.--A State, at its own 
                        cost, may enforce the provisions of this 
                        section, but only insofar as such State follows 
                        the Federal regulations implementing this 
                        section, applies the Federal penalty structure 
                        set out in this section, and complies with all 
                        Federal rules and guidance concerning 
                        implementation of this section. Such State may 
                        collect any fines assessed under this section. 
                        An employer may not be subject to enforcement, 
                        including audit and investigation, by both a 
                        Federal agency and a State for the same 
                        violation under this section. Whichever entity, 
                        the Federal agency or the State, is first to 
                        initiate the enforcement action, has the right 
                        of first refusal to proceed with the 
                        enforcement action. The Secretary must provide 
                        copies of all guidance, training, and field 
                        instructions provided to Federal officials 
                        implementing the provisions of this section to 
                        each State.''.

SEC. 7. REPEAL.

    (a) In General.--Subtitle A of title IV of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
is repealed.
    (b) References.--Any reference in any Federal law, Executive order, 
rule, regulation, or delegation of authority, or any document of, or 
pertaining to, the Department of Homeland Security, Department of 
Justice, or the Social Security Administration, to the employment 
eligibility confirmation system established under section 404 of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 
U.S.C. 1324a note) is deemed to refer to the employment eligibility 
confirmation system established under section 274A(d) of the 
Immigration and Nationality Act, as amended by section 3 of this Act.
    (c) Effective Date.--This section shall take effect on the date 
that is 30 months after the date of the enactment of this Act.
    (d) Clerical Amendment.--The table of sections, in section 1(d) of 
the Illegal Immigration Reform and Immigrant Responsibility Act of 
1996, is amended by striking the items relating to subtitle A of title 
IV.

SEC. 8. PENALTIES.

    Section 274A of the Immigration and Nationality Act (8 U.S.C. 
1324a) is amended--
            (1) in subsection (e)(1)--
                    (A) by striking ``Attorney General'' each place 
                such term appears and inserting ``Secretary of Homeland 
                Security''; and
                    (B) in subparagraph (D), by striking ``Service'' 
                and inserting ``Department of Homeland Security'';
            (2) in subsection (e)(4)--
                    (A) in subparagraph (A), in the matter before 
                clause (i), by inserting ``, subject to paragraph 
                (10),'' after ``in an amount'';
                    (B) in subparagraph (A)(i), by striking ``not less 
                than $250 and not more than $2,000'' and inserting 
                ``not less than $2,500 and not more than $5,000'';
                    (C) in subparagraph (A)(ii), by striking ``not less 
                than $2,000 and not more than $5,000'' and inserting 
                ``not less than $5,000 and not more than $10,000'';
                    (D) in subparagraph (A)(iii), by striking ``not 
                less than $3,000 and not more than $10,000'' and 
                inserting ``not less than $10,000 and not more than 
                $25,000''; and
                    (E) by moving the margin of the continuation text 
                following subparagraph (B) two ems to the left and by 
                amending subparagraph (B) to read as follows:
                    ``(B) may require the person or entity to take such 
                other remedial action as is appropriate.'';
            (3) in subsection (e)(5)--
                    (A) in the paragraph heading, strike ``paperwork'';
                    (B) by inserting ``, subject to paragraphs (10) 
                through (12),'' after ``in an amount'';
                    (C) by striking ``$100'' and inserting ``$1,000'';
                    (D) by striking ``$1,000'' and inserting 
                ``$25,000''; and
                    (E) by adding at the end the following: ``Failure 
                by a person or entity to utilize the employment 
                eligibility verification system as required by law, or 
                providing information to the system that the person or 
                entity knows or reasonably believes to be false, shall 
                be treated as a violation of subsection (a)(1)(A).'';
            (4) by adding at the end of subsection (e) the following:
            ``(10) Exemption from penalty for good faith violation.--In 
        the case of imposition of a civil penalty under paragraph 
        (4)(A) with respect to a violation of subsection (a)(1)(A) or 
        (a)(2) for hiring or continuation of employment or recruitment 
        or referral by person or entity and in the case of imposition 
        of a civil penalty under paragraph (5) for a violation of 
        subsection (a)(1)(B) for hiring or recruitment or referral by a 
        person or entity, the penalty otherwise imposed may be waived 
        or reduced if the violator establishes that the violator acted 
        in good faith.
            ``(11) Mitigation element.--For purposes of paragraph (4), 
        the size of the business shall be taken into account when 
        assessing the level of civil money penalty.
            ``(12) Authority to debar employers for certain 
        violations.--
                    ``(A) In general.--If a person or entity is 
                determined by the Secretary of Homeland Security to be 
                a repeat violator of paragraph (1)(A) or (2) of 
                subsection (a), or is convicted of a crime under this 
                section, such person or entity may be considered for 
                debarment from the receipt of Federal contracts, 
                grants, or cooperative agreements in accordance with 
                the debarment standards and pursuant to the debarment 
                procedures set forth in the Federal Acquisition 
                Regulation.
                    ``(B) Does not have contract, grant, agreement.--If 
                the Secretary of Homeland Security or the Attorney 
                General wishes to have a person or entity considered 
                for debarment in accordance with this paragraph, and 
                such an person or entity does not hold a Federal 
                contract, grant or cooperative agreement, the Secretary 
                or Attorney General shall refer the matter to the 
                Administrator of General Services to determine whether 
                to list the person or entity on the List of Parties 
                Excluded from Federal Procurement, and if so, for what 
                duration and under what scope.
                    ``(C) Has contract, grant, agreement.--If the 
                Secretary of Homeland Security or the Attorney General 
                wishes to have a person or entity considered for 
                debarment in accordance with this paragraph, and such 
                person or entity holds a Federal contract, grant or 
                cooperative agreement, the Secretary or Attorney 
                General shall advise all agencies or departments 
                holding a contract, grant, or cooperative agreement 
                with the person or entity of the Government's interest 
                in having the person or entity considered for 
                debarment, and after soliciting and considering the 
                views of all such agencies and departments, the 
                Secretary or Attorney General may refer the matter to 
                any appropriate lead agency to determine whether to 
                list the person or entity on the List of Parties 
                Excluded from Federal Procurement, and if so, for what 
                duration and under what scope.
                    ``(D) Review.--Any decision to debar a person or 
                entity in accordance with this paragraph shall be 
                reviewable pursuant to part 9.4 of the Federal 
                Acquisition Regulation.
            ``(13) Office for state and local government complaints.--
        The Secretary of Homeland Security shall establish an office--
                    ``(A) to which State and local government agencies 
                may submit information indicating potential violations 
                of subsection (a), (b), or (g)(1) that were generated 
                in the normal course of law enforcement or the normal 
                course of other official activities in the State or 
                locality;
                    ``(B) that is required to indicate to the 
                complaining State or local agency within five business 
                days of the filing of such a complaint by identifying 
                whether the Secretary will further investigate the 
                information provided;
                    ``(C) that is required to investigate those 
                complaints filed by State or local government agencies 
                that, on their face, have a substantial probability of 
                validity;
                    ``(D) that is required to notify the complaining 
                State or local agency of the results of any such 
                investigation conducted; and
                    ``(E) that is required to report to the Congress 
                annually the number of complaints received under this 
                paragraph, the States and localities that filed such 
                complaints, and the resolution of the complaints 
                investigated by the Secretary.''; and
            (5) by amending paragraph (1) of subsection (f) to read as 
        follows:
            ``(1) Criminal penalty.--Any person or entity which engages 
        in a pattern or practice of violations of subsection (a)(1) or 
        (2) shall be fined not more than $5,000 for each unauthorized 
        alien with respect to which such a violation occurs, imprisoned 
        for not more than 18 months, or both, notwithstanding the 
        provisions of any other Federal law relating to fine levels.''.

SEC. 9. FRAUD AND MISUSE OF DOCUMENTS.

    Section 1546(b) of title 18, United States Code, is amended--
            (1) in paragraph (1), by striking ``identification 
        document,'' and inserting ``identification document or document 
        meant to establish work authorization (including the documents 
        described in section 274A(b) of the Immigration and Nationality 
        Act),''; and
            (2) in paragraph (2), by striking ``identification 
        document'' and inserting ``identification document or document 
        meant to establish work authorization (including the documents 
        described in section 274A(b) of the Immigration and Nationality 
        Act),''.

SEC. 10. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.

    (a) Funding Under Agreement.--Effective for fiscal years beginning 
on or after October 1, 2019, the Commissioner of Social Security and 
the Secretary of Homeland Security shall enter into and maintain an 
agreement which shall--
            (1) provide funds to the Commissioner for the full costs of 
        the responsibilities of the Commissioner under section 274A(d) 
        of the Immigration and Nationality Act (8 U.S.C. 1324a(d)), as 
        amended by section 3 of this Act, including (but not limited 
        to)--
                    (A) acquiring, installing, and maintaining 
                technological equipment and systems necessary for the 
                fulfillment of the responsibilities of the Commissioner 
                under such section 274A(d), but only that portion of 
                such costs that are attributable exclusively to such 
                responsibilities; and
                    (B) responding to individuals who contest a 
                tentative nonconfirmation provided by the employment 
                eligibility verification system established under such 
                section;
            (2) provide such funds annually in advance of the 
        applicable quarter based on estimating methodology agreed to by 
        the Commissioner and the Secretary (except in such instances 
        where the delayed enactment of an annual appropriation may 
        preclude such quarterly payments); and
            (3) require an annual accounting and reconciliation of the 
        actual costs incurred and the funds provided under the 
        agreement, which shall be reviewed by the Inspectors General of 
        the Social Security Administration and the Department of 
        Homeland Security.
    (b) Continuation of Employment Verification in Absence of Timely 
Agreement.--In any case in which the agreement required under 
subsection (a) for any fiscal year beginning on or after October 1, 
2019, has not been reached as of October 1 of such fiscal year, the 
latest agreement between the Commissioner and the Secretary of Homeland 
Security providing for funding to cover the costs of the 
responsibilities of the Commissioner under section 274A(d) of the 
Immigration and Nationality Act (8 U.S.C. 1324a(d)) shall be deemed in 
effect on an interim basis for such fiscal year until such time as an 
agreement required under subsection (a) is subsequently reached, except 
that the terms of such interim agreement shall be modified by the 
Director of the Office of Management and Budget to adjust for inflation 
and any increase or decrease in the volume of requests under the 
employment eligibility verification system. In any case in which an 
interim agreement applies for any fiscal year under this subsection, 
the Commissioner and the Secretary shall, not later than October 1 of 
such fiscal year, notify the Committee on Ways and Means, the Committee 
on the Judiciary, and the Committee on Appropriations of the House of 
Representatives and the Committee on Finance, the Committee on the 
Judiciary, and the Committee on Appropriations of the Senate of the 
failure to reach the agreement required under subsection (a) for such 
fiscal year. Until such time as the agreement required under subsection 
(a) has been reached for such fiscal year, the Commissioner and the 
Secretary shall, not later than the end of each 90-day period after 
October 1 of such fiscal year, notify such Committees of the status of 
negotiations between the Commissioner and the Secretary in order to 
reach such an agreement.

SEC. 11. FRAUD PREVENTION.

    (a) Blocking Misused Social Security Account Numbers.--The 
Secretary of Homeland Security, in consultation with the Commissioner 
of Social Security, shall establish a program in which social security 
account numbers that have been identified to be subject to unusual 
multiple use in the employment eligibility verification system 
established under section 274A(d) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(d)), as amended by section 3 of this Act, or that 
are otherwise suspected or determined to have been compromised by 
identity fraud or other misuse, shall be blocked from use for such 
system purposes unless the individual using such number is able to 
establish, through secure and fair additional security procedures, that 
the individual is the legitimate holder of the number.
    (b) Allowing Suspension of Use of Certain Social Security Account 
Numbers.--The Secretary of Homeland Security, in consultation with the 
Commissioner of Social Security, shall establish a program which shall 
provide a reliable, secure method by which victims of identity fraud 
and other individuals may suspend or limit the use of their social 
security account number or other identifying information for purposes 
of the employment eligibility verification system established under 
section 274A(d) of the Immigration and Nationality Act (8 U.S.C. 
1324a(d)), as amended by section 3 of this Act. The Secretary may 
implement the program on a limited pilot program basis before making it 
fully available to all individuals.
    (c) Allowing Parents To Prevent Theft of Their Child's Identity.--
The Secretary of Homeland Security, in consultation with the 
Commissioner of Social Security, shall establish a program which shall 
provide a reliable, secure method by which parents or legal 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 employment eligibility verification system established 
under 274A(d) of the Immigration and Nationality Act (8 U.S.C. 
1324a(d)), as amended by section 3 of this Act. The Secretary may 
implement the program on a limited pilot program basis before making it 
fully available to all individuals.

SEC. 12. USE OF EMPLOYMENT ELIGIBILITY VERIFICATION PHOTO TOOL.

    An employer who uses the photo matching tool used as part of the E-
Verify System shall match the photo tool photograph to both the 
photograph on the identity or employment eligibility document provided 
by the employee and to the face of the employee submitting the document 
for employment verification purposes.

SEC. 13. IDENTITY AUTHENTICATION EMPLOYMENT ELIGIBILITY VERIFICATION 
              PILOT PROGRAMS.

    Not later than 24 months after the date of the enactment of this 
Act, the Secretary of Homeland Security, after consultation with the 
Commissioner of Social Security and the Director of the National 
Institute of Standards and Technology, shall establish by regulation 
not less than 2 Identity Authentication Employment Eligibility 
Verification pilot programs, each using a separate and distinct 
technology (the ``Authentication Pilots''). The purpose of the 
Authentication Pilots shall be to provide for identity authentication 
and employment eligibility verification with respect to enrolled new 
employees which shall be available to any employer that elects to 
participate in either of the Authentication Pilots. Any participating 
employer may cancel the employer's participation in the Authentication 
Pilot after one year after electing to participate without prejudice to 
future participation. The Secretary shall report to the Committee on 
the Judiciary of the House of Representatives and the Committee on the 
Judiciary of the Senate the Secretary's findings on the Authentication 
Pilots, including the authentication technologies chosen, not later 
than 12 months after commencement of the Authentication Pilots.

SEC. 14. INSPECTOR GENERAL AUDITS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Inspector General of the Social Security 
Administration shall complete audits of the following categories in 
order to uncover evidence of individuals who are not authorized to work 
in the United States:
            (1) Workers who dispute wages reported on their social 
        security account number when they believe someone else has used 
        such number and name to report wages.
            (2) Children's social security account numbers used for 
        work purposes.
            (3) Employers whose workers present significant numbers of 
        mismatched social security account numbers or names for wage 
        reporting.
    (b) Submission.--The Inspector General of the Social Security 
Administration shall submit the audits completed under subsection (a) 
to the Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate for review of the evidence of 
individuals who are not authorized to work in the United States. The 
Chairmen of those Committees shall then determine information to be 
shared with the Secretary of Homeland Security so that such Secretary 
can investigate the unauthorized employment demonstrated by such 
evidence.
                                 <all>