119-hr251

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 251 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 251

 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

 January 9, 2025

 Mr. Calvert (for himself and Mr. McClintock) 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 
 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 one 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 one 
 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, or would have been hired 
 for 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 a 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, 2025, 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, 
2025, 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.
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