[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1387 Introduced in Senate (IS)]






108th CONGRESS
  1st Session
                                S. 1387

     To amend the Immigration and Nationality Act to authorize the 
 establishment of guest worker programs, to provide for the adjustment 
of status of certain aliens unlawfully present in the United States to 
   the status of a nonimmigrant guest worker, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 10, 2003

Mr. Cornyn introduced the following bill; which was read twice and 
        referred to the Committee on the JudiciaryYYYYYYYYYYYYYYYYYYYYY

_______________________________________________________________________

                                 A BILL


 
     To amend the Immigration and Nationality Act to authorize the 
 establishment of guest worker programs, to provide for the adjustment 
of status of certain aliens unlawfully present in the United States to 
   the status of a nonimmigrant guest worker, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Border Security 
and Immigration Reform Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
   TITLE I--AUTHORIZATION FOR ESTABLISHMENT OF GUEST WORKER PROGRAMS

Sec. 101. Guest worker programs.
Sec. 102. Employer applications and petitions for guest workers.
Sec. 103. New nonimmigrant guest worker categories.
Sec. 104. Prohibition on adjustment of status to permanent resident 
                            status.
Sec. 105. Guest worker investment accounts.
Sec. 106. Funding.
TITLE II--ADJUSTMENT OF STATUS OF CERTAIN UNLAWFULLY PRESENT ALIENS TO 
                   NONIMMMIGRANT GUEST WORKER STATUS

Sec. 201. Adjustment of status.
Sec. 202. Enhanced civil penalties for employment of unauthorized 
                            aliens after termination date for 
                            adjustment of status.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Guest worker.--The term ``guest worker'' means an alien 
        described in section 101(a)(15)(W) of the Immigration and 
        Nationality Act, as added by section 103 of this Act.
            (2) Guest worker program.--The term ``guest worker 
        program'' or the ``program'' means, with respect to a 
        particular country or the workers of that country, the guest 
        worker program established with that country.
            (3) Guest worker program country.--The term ``guest worker 
        program country'' means a foreign country that participates in 
        a guest worker program.

   TITLE I--AUTHORIZATION FOR ESTABLISHMENT OF GUEST WORKER PROGRAMS

SEC. 101. GUEST WORKER PROGRAMS.

    The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
amended by inserting after section 218 the following:

``SEC. 218A. GUEST WORKER PROGRAMS.

    ``(a) Establishment.--The Secretary of Homeland Security and the 
Secretary of State shall jointly establish and administer a guest 
worker program with any eligible foreign country. A foreign country is 
eligible to participate in the program if the country has entered into 
an agreement with the United States in which the country undertakes--
            ``(1) to develop standards of eligibility for the 
        enrollment in the program of workers who are natives of that 
        country, subject to the grounds of ineligibility described in 
        subsection (c);
            ``(2) to establish a procedure for the enrollment in the 
        program of eligible workers;
            ``(3) to establish, in cooperation with United States 
        employers, a training program in the country for such workers;
            ``(4) to establish procedures for providing health care;
            ``(5) to monitor, and share information with the United 
        States regarding, the departure from, and return to, the 
        country of workers enrolled in the program of that country; and
            ``(6) to accept the return of those workers from the United 
        States.
    ``(b) Program Description.--Each guest worker program with a 
foreign country shall consist of--
            ``(1) the placement of guest workers who are enrolled in 
        the program by that country in job opportunities in the United 
        States;
            ``(2) the admission to the United States of the guest 
        workers to fill those job opportunities, subject to the 
        procedures described in section 218B;
            ``(3) the performance of work in the United States in those 
        job opportunities on a seasonal or nonseasonal basis; and
            ``(4) the return of the guest worker to the guest worker 
        program country before the expiration of the worker's period of 
        authorized stay in the United States.
    ``(c) Ineligibility of Certain Aliens.--
            ``(1) In general.--Except as provided in paragraph (2), and 
        notwithstanding subsection (a)(1), the following aliens are not 
        eligible to participate in a guest worker program:
                    ``(A) Any alien under 18 years of age, except 
                accompanying, or following to join, an alien who is a 
                nonseasonal guest worker.
                    ``(B) Any alien who has been convicted of a felony 
                or 3 or more misdemeanors committed in the United 
                States.
                    ``(C) Any alien who was unlawfully present in the 
                United States.
            ``(2) Exception.--Notwithstanding paragraph (1), an alien 
        may apply for admission to the United States under section 
        101(a)(15)(W) without regard to any previous period of unlawful 
        presence in the United States if the alien applies for such 
        admission not later than 1 year after the date of enactment of 
        the Border Security and Immigration Reform Act of 2003.
    ``(d) Periods of Authorized Stay.--
            ``(1) Seasonal guest workers.--The period of authorized 
        stay in the United States for a seasonal guest worker shall not 
        exceed 270 days in any calendar year. The seasonal guest worker 
        may reapply for admission to the United States in any 
        subsequent calendar year.
            ``(2) Nonseasonal guest workers.--The period of authorized 
        stay in the United States for a nonseasonal guest worker shall 
        not exceed 12 months, except that the period may, upon 
        application, be extended by an additional period or periods of 
        12 months each and except that the total period of authorized 
        stay may not exceed 36 months unless the alien returns to the 
        guest worker program country for a period of at least 6 months 
        before readmission to the United States.
    ``(e) Work Permits.--During the period in which an alien is in 
lawful status under a guest worker program, the alien shall be granted 
authorization to engage in employment in the United States in the job 
opportunity approved under the program and be provided an appropriate 
work permit that includes a photograph of the guest worker.
    ``(f) Undocumented Guest Workers.--An alien employed in the United 
States on the date of enactment of the Border Security and Immigration 
Reform Act of 2003 who does not have proper documentation of 
authorization to enter the United States shall be required to show 
evidence that the alien--
            ``(1) was in the United States on the date of enactment of 
        the Border Security and Immigration Reform Act of 2003; and
            ``(2) is employed on the date on which the guest worker 
        registers to participate in the guest worker program.
    ``(g) Authorized Travel.--During the period an alien is in lawful 
nonimmigrant status granted under this section, the alien has the right 
to travel abroad.
    ``(h) Entry-Exit Information.--The Secretary of Homeland Security, 
in cooperation with the Secretary of State and the governments of 
participating countries, shall establish and maintain a computer 
database to--
            ``(1) monitor the entry into, and exit from, the United 
        States of guest workers;
            ``(2) track employer compliance under the guest worker 
        program; and
            ``(3) store past employment records of guest workers to 
        facilitate the return of those workers to the same employer 
        each year, if the employer and guest worker so chooses.
    ``(i) Absolution for Past Illegal Behavior.--An alien who 
participates in a guest worker program shall be absolved of all 
liability for illegal behavior, as such behavior pertains to the 
immigration status of the alien, that occurred before the alien's 
participation in the guest worker program.
    ``(j) Legal Permanent Resident Status Priority.--
            ``(1) In general.--The Secretary of Homeland Security shall 
        establish an evaluation system in accordance with paragraph 
        (2), that gives priority for adjustment of status to aliens who 
        are applying for legal permanent residency, if the alien has 
        participated in the guest worker program and has worked in the 
        United States for a continuous 3-year period. An alien guest 
        worker can only apply for legal permanent residency when that 
        alien returns to the guest worker program country.
            ``(2) Requirements.--The evaluation system established 
        under paragraph (1) shall be a point system that rates an alien 
        based on--
                    ``(A) whether the alien has an employer sponsor;
                    ``(B) whether the alien received promotions or pay 
                increases during the alien's employment periods;
                    ``(C) whether the alien paid taxes;
                    ``(D) the proficiency of the alien in speaking 
                English;
                    ``(E) the education of the alien; and
                    ``(F) whether the alien has refrained from illegal 
                activity.
    ``(k) Definitions.--In this section:
            ``(1) Employer.--The term `employer' means any person or 
        entity, including any farm labor contractor and any 
        agricultural association, that employs workers.
            ``(2) Guest worker.--The term `guest worker' means an alien 
        described in section 101(a)(15)(W).
            ``(3) Guest worker program.--The term `guest worker 
        program' or the `program' means, with respect to a particular 
        country or the workers of that country, the guest worker 
        program established with that country.
            ``(4) Guest worker program country.--The term `guest worker 
        program country' means a foreign country that participates in a 
        guest worker program.
            ``(5) Job opportunity.--The term `job opportunity' means a 
        job opening for temporary full-time employment at a place in 
        the United States to which United States workers can be 
        referred.
            ``(6) Nonseasonal guest worker.--The term `nonseasonal 
        guest worker' means an alien described in section 
        101(a)(15)(W)(ii).
            ``(7) Seasonal guest worker.--The term `seasonal guest 
        worker' means an alien described in section 
        101(a)(15)(W)(i).''.

SEC. 102. EMPLOYER APPLICATIONS AND PETITIONS FOR GUEST WORKERS.

    (a) Applications.--The Immigration and Nationality Act is amended 
by inserting after section 218A, as added by section 101, the 
following:

``SEC. 218B. EMPLOYER APPLICATIONS FOR GUEST WORKERS.

    ``(a) Applications to the Secretary.--
            ``(1) In general.--No alien may be admitted to the United 
        States as a guest worker, or otherwise provided status as a 
        guest worker, unless the employer has filed with the Secretary 
        of Labor an application containing--
                    ``(A) in the case of nonseasonal guest workers, a 
                request for an attestation under paragraph (2);
                    ``(B) the assurances described in subsection (b);
                    ``(C) a description of the nature and location of 
                the work to be performed;
                    ``(D) the anticipated period (expected beginning 
                and ending dates) for which workers will be needed;
                    ``(E) the wages to be paid; and
                    ``(F) the method of transportation, if necessary.
            ``(2) Labor attestation required for guest workers.--In the 
        case of the employment of any guest worker, the United States 
        employer shall apply to the Secretary of Labor for an 
        attestation that--
                    ``(A) there are not sufficient workers who are 
                able, willing, and qualified, and who will be available 
                at the time and place needed, to perform the labor or 
                services involved in the employer's petition to the 
                Secretary of Homeland Security; and
                    ``(B) the employment of the alien in such labor or 
                services will not adversely affect the wages and 
                working conditions of workers in the United States 
                similarly employed.
            ``(3) Accompanied by job offer.--Each application filed 
        under paragraph (1) shall be accompanied by a copy of the job 
        offer describing the wages and other terms and conditions of 
        employment and the bona fide occupational qualifications that 
        must be possessed by a worker to be employed in the job 
        opportunity in question.
    ``(b) Assurances for Inclusion in Applications.--The assurances 
referred to in subsection (a)(1) are the following:
            ``(1) Offers to united states workers.--The employer has 
        offered or will offer the job to any eligible United States 
        worker who applies and is equally or better qualified for the 
        job for which the nonimmigrant is, or the nonimmigrants are, 
        sought and who will be available at the time and place of need.
            ``(2) Advertising of job opportunities.--Not later than 14 
        days prior to the date on which the employer desires to employ 
        a guest worker in a temporary or seasonal job opportunity, the 
        employer shall advertise the availability of the job 
        opportunities for which the employer is seeking workers in a 
        publication in the local labor market that is likely to be 
        patronized by potential workers seeking such jobs.
            ``(3) Wage rate.--No worker shall be paid less than the 
        greater of the hourly wage prescribed under section 6(a)(1) of 
        the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) or 
        the applicable State minimum wage. All wages will be paid in a 
        timely manner and all payroll records will be maintained 
        accurately.
            ``(4) Provision of insurance.--If the job opportunity is 
        not covered by the State workers' compensation law, the 
        employer will provide, at no cost to the worker, insurance 
        covering injury and disease arising out of, and in the course 
        of, the worker's employment which will provide benefits at 
        least equal to those provided under the State's workers' 
        compensation law for comparable employment.
            ``(5) Vehicle operations.--The employer will comply with 
        all general vehicle safety obligations and provide vehicle 
        insurance coverage for the guest worker.
    ``(c) Applications by Associations on Behalf of Employer Members.--
An association may file an application under subsection (a) on behalf 
of 1 or more of its employer members that the association certifies in 
its application has or have agreed in writing to comply with the 
requirements of this section and section 218A.
    ``(d) Review and Approval of Applications.--
            ``(1) Responsibility of employers.--The employer shall make 
        available for public examination, within 1 working day after 
        the date on which an application under subsection (a) is filed, 
        at the principal place of business or work site of the 
        employer, a copy of each such application (and such 
        accompanying documents as are necessary).
            ``(2) Responsibility of the secretary.--
                    ``(A) Compilation of list.--The Secretary of Labor 
                shall compile, on a current basis, a list (by employer 
                and by occupational classification) of the applications 
                filed under this subsection. Such list shall include 
                the wage rate, number of workers sought, period of 
                intended employment, and date of need. The Secretary of 
                Labor shall make such list available for examination in 
                the District of Columbia.
                    ``(B) Review of applications.--The Secretary of 
                Labor shall review such an application only for 
                completeness and obvious inaccuracies. Unless the 
                Secretary of Labor finds that the application is 
                incomplete or obviously inaccurate, the Secretary of 
                Labor shall certify that the intending employer has 
                filed with the Secretary of Labor an application as 
described in subsection (a). Such certification shall be provided 
within 14 days of the filing of the application.
                    ``(C) Report to employer.--Not later than 7 days 
                before the employer requires work to commence, the 
                Secretary of Labor shall transmit a report to the 
                employer containing the name, contact information, and 
                specific work permit information of each guest worker 
                who has been authorized to perform the work sought by 
                the employer. Upon receipt of a report, the employer 
                shall present a work contract to the guest worker for 
                signature. By signing a work contract under the guest 
                worker program, a guest worker undertakes to comply 
                with all United States laws, and the employer 
                undertakes to permit access to the workplace by 
                appropriate officials of the Department of Labor.
    ``(e) Violations of Employer Attestation.--
            ``(1) In general.--
                    ``(A) Responsibility of the secretary of labor.--
                The Secretary of Labor shall be responsible for 
                applying United States wage and hour laws within the 
                guest worker program and normal requirements for safe 
                working conditions.
                    ``(B) Penalties.--Any United States employer who 
                violates any law or regulation relating to the matters 
                described in subparagraph (A) shall be subject to--
                            ``(i) the same penalties that would apply 
                        if the employees of the employer were United 
                        States citizens; and
                            ``(ii) debarment from the guest worker 
                        program for up to 10 years.
                    ``(C) Application of debarment penalty.--A 10-year 
                debarment shall be imposed for employers found to be in 
                violation on 3 counts within 3 consecutive years, 
                excluding multiple employee complaints filed at one 
                time, except that, if multiple employee violations are 
                found and the practice continues into the next 30 days, 
                resulting in additional employee complaints, such a 
                violation shall be counted toward the 3-count 
                limitation. For purposes of this paragraph, violations 
                include unfair wages, unreasonable work hours and 
                blacklisting.
            ``(2) Process for complainants to obtain other 
        employment.--The Secretary of Labor and the Secretary of 
        Homeland Security shall establish a process under which a guest 
        worker who files a complaint regarding an employer who 
        intimidates, threatens, restrains, coerces, blacklists, 
        discharges, or in any other manner discriminates against an 
        employee because the employee has disclosed information 
        indicating an employer violation of the guest worker program to 
        enable the employee to seek other appropriate employment in the 
        United States for a period not to exceed the maximum period of 
        stay authorized by the original permit.
            ``(3) Adjudication process for dispute claims.--The 
        Secretary of Homeland Security shall develop a streamlined 
        adjudication process for processing dispute claims. The guest 
        worker shall immediately be reassigned, and the adjudication 
        process shall be limited to 30 days. If the United States 
        employer is not found in violation of the program requirements, 
        a new guest worker shall be assigned to the employer not later 
        than 15 days after the end of the adjudication proceedings.
    ``(f) Absolution for Past Illegal Behavior.--An employer who 
participates in a guest worker program shall be absolved of all 
liability for illegal behavior, as such behavior pertains to the 
immigration status of employees, that occurred before the employer's 
participation in the guest worker program.
    ``(g) Definitions.--In this section:
            ``(1) Employer.--The term `employer' means any person or 
        entity, including any farm labor contractor and any 
        agricultural association, that employs workers.
            ``(2) Guest worker.--The term `guest worker' means an alien 
        described in section 101(a)(15)(W).
            ``(3) Guest worker program.--The term `guest worker 
        program' or the `program' means, with respect to a particular 
        country or the workers of that country, the guest worker 
        program established with that country.
            ``(4) Guest worker program country.--The term `guest worker 
        program country' means a foreign country that participates in a 
        guest worker program.
            ``(5) Job opportunity.--The term `job opportunity' means a 
        job opening for temporary full-time employment at a place in 
        the United States to which United States workers can be 
        referred.
            ``(6) Nonseasonal guest worker.--The term `nonseasonal 
        guest worker' means an alien described in section 
        101(a)(15)(W)(ii).
            ``(7) Seasonal guest worker.--The term `seasonal guest 
        worker' means an alien described in section 
        101(a)(15)(W)(i).''.
    (b) Petitions.--Section 214(c)(1) of the Immigration and 
Nationality Act (8 U.S.C. 1184(c)(1)) is amended in the first sentence 
by striking ``or (P)(i)'' and inserting ``(P)(i), or (W)''.

SEC. 103. NEW NONIMMIGRANT GUEST WORKER CATEGORIES.

    Section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)) is amended by adding at the end the following:
            ``(W)(i) an alien having a residence in a guest worker 
        program country who is coming temporarily to the United States 
as a seasonal guest worker under section 218A, and with respect to whom 
the Secretary of Labor determines and certifies to the Secretary of 
Homeland Security that the intending employer has filed with the 
Secretary of Labor an application under section 218B(b); or
            ``(ii) an alien having a residence in a guest worker 
        program country who is coming temporarily to the United States 
        as a nonseasonal guest worker under section 218A with respect 
        to whom the Secretary of Labor has approved a certification 
        under section 218B(a), and the alien spouse and minor children 
        of any such alien specified in this clause if accompanying or 
        following to join the principal alien and if the principal 
        alien has a level of income equal to or greater than 125 
        percent of the Federal poverty line (as defined in section 
        213A(h)).''.

SEC. 104. PROHIBITION ON ADJUSTMENT OF STATUS TO PERMANENT RESIDENT 
              STATUS.

    (a) Adjustment of Status.--Section 245(c) of the Immigration and 
Nationality Act (8 U.S.C. 1255(c)) is amended--
            (1) by striking ``or'' at the end of paragraph (7); and
            (2) by striking the period at the end of paragraph (8) and 
        inserting the following: ``; or (9) any alien who is employed 
        in a guest worker program under section 218A for less than 3 
        years or who has violated the terms of such a program.''.
    (b) Total Number of Legal Permanent Resident Applicants.--The 
Secretary of Homeland Security may annually adjust the total number of 
aliens whose status may be adjusted to that of an alien lawfully 
admitted for permanent residence based on economic determinations made 
by the Secretary of Labor and the number of participants in the guest 
worker program established by this title.

SEC. 105. GUEST WORKER INVESTMENT ACCOUNTS.

    (a) In General.--Section 201 of the Social Security Act (42 U.S.C. 
401) is amended by adding at the end the following:
    ``(n)(1) Notwithstanding any other provision of this section, the 
Secretary of the Treasury shall transfer at least quarterly from the 
Federal Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund 100 percent of the guest worker taxes 
to the Guest Worker Investment Fund for deposit in a guest worker 
investment account for each guest worker as specified in section 253.
    ``(2) For purposes of this subsection--
            ``(A) the term `guest worker taxes' means that portion of 
        the amounts appropriated to the Federal Old-Age and Survivors 
        Insurance Trust Fund and the Federal Disability Insurance Trust 
        Fund under this section and properly attributable to the wages 
        (as defined in section 3121 of the Internal Revenue Code of 
        1986) and self-employment income (as defined in section 1402 of 
        such Code) of guest workers as determined by the Commissioner 
        of Social Security; and
            ``(B) the term `guest worker' has the meaning given such 
        term by section 218A(k) of the Immigration and Nationality 
        Act.''.
    (b) Guest Worker Investment Accounts.--Title II of the Social 
Security Act (42 U.S.C. 401 et seq.) is amended--
            (1) by inserting before section 201 the following:

                      ``Part A--Social Security'';

        and
            (2) by adding at the end the following:

               ``Part B--Guest Worker Investment Accounts

                             ``definitions

    ``Sec. 251. For purposes of this part:
            ``(1) Guest worker.--The term `guest worker' has the 
        meaning given such term by section 218A(k) of the Immigration 
        and Nationality Act.
            ``(2) Covered employer.--The term `covered employer' means, 
        for any calendar year, any person on whom an excise tax is 
        imposed under section 3111 of the Internal Revenue Code of 1986 
        with respect to having an individual in the person's employ to 
        whom wages are paid by such person during such calendar year.
            ``(3) Guest worker investment account.--The term `guest 
        worker investment account' means an account for a guest worker 
        which is administered by the Secretary through the Guest Worker 
        Investment Fund.
            ``(4) Guest worker investment fund.--The term `Guest Worker 
        Investment Fund' means the fund established under section 253.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.

                   ``guest worker investment accounts

    ``Sec. 252. (a) In General.--A guest worker investment account 
shall be established by the Secretary in the Guest Worker Investment 
Fund for each individual not later than 10 business days after the 
covered employer of such individual submits a W-4 form (or any 
successor form) identifying such individual as a guest worker.
    ``(b) Time Account Takes Effect.--A guest worker investment account 
established under subsection (a) shall take effect with respect to the 
first pay period beginning more than 14 days after the date of such 
establishment.
    ``(c) Guest Worker's Property Right in Guest Worker Investment 
Account.--The guest worker investment account established for a guest 
worker is the sole property of the worker.

                     ``guest worker investment fund

    ``Sec. 253. (a) In General.--There is created on the books of the 
Treasury of the United States a trust fund to be known as the `Guest 
Worker Investment Fund' to be administered by the Secretary. Such Fund 
shall consist of the assets transferred under section 201(n) to each 
guest worker investment account established under section 252 and the 
income earned under subsection (e) and credited to such account.
    ``(b) Notice of Contributions.--The full amount of a guest worker's 
investment account transfers shall be shown on such worker's W-2 tax 
statement, as provided in section 6051(a)(12) of the Internal Revenue 
Code of 1986.
    ``(c) Investment Earnings Report.--
            ``(1) In general.--At least annually, the Guest Worker 
        Investment Fund shall provide to each guest worker with a guest 
        worker investment account managed by the Fund a guest worker 
        investment status report. Such report may be transmitted 
        electronically upon the agreement of the guest worker under the 
        terms and conditions established by the Secretary.
            ``(2) Contents of report.--The guest worker investment 
        status report, with respect to a guest worker investment 
        account, shall provide the following information:
                    ``(A) The total amounts transferred under section 
                201(n) in the last quarter, the last year, and since 
                the account was established.
                    ``(B) The amount and rate of income earned under 
                subsection (e) for each period described in 
                subparagraph (A).
    ``(d) Maximum Administrative Fee.--The Guest Worker Investment Fund 
shall charge each guest worker in the Fund a single, uniform annual 
administrative fee not to exceed 0.3 percent of the value of the assets 
invested in the worker's account.
    ``(e) Investment Duties of Secretary.--The Secretary shall 
establish policies for the investment and management of guest worker 
investment accounts, including policies that shall provide for prudent 
Federal Government investment instruments suitable for accumulating 
funds.

            ``guest worker investment account distributions

    ``Sec. 254. (a) Date of Distribution.--Except as provided in 
subsections (b) and (c), a distribution of the balance in a guest 
worker investment account may only be made on or after the date the 
worker permanently leaves the guest worker program established under 
section 218A of the Immigration and Nationality Act and returns to the 
worker's home country.
    ``(b) Distribution in the Event of Death.--If the guest worker dies 
before the date determined under subsection (a), the balance in the 
worker's account shall be distributed to the worker's estate under 
rules established by the Secretary.''.
    (c) Guest Worker Investment Account Transfers Shown on W-2's.--
            (1) In general.--Section 6051(a) of the Internal Revenue 
        Code of 1986 (relating to receipts for employees) is amended by 
        striking ``and'' at the end of paragraph (10), by striking the 
        period at the end of paragraph (11) and inserting ``, and'', 
        and inserting after paragraph (11) the following:
            ``(12) in the case of a guest worker (as defined in section 
        251(1) of the Social Security Act), of the amount shown 
        pursuant to paragraph (6), the total amount transferred to such 
        worker's guest worker investment account under section 201(n) 
        of such Act.''.
            (2) Conforming amendments.--
                    (A) Section 6051(a)(6) of such Code is amended by 
                inserting ``and paid as tax under section 3111'' after 
                ``section 3101''.
                    (B) Section 6051(c) of such Code is amended by 
                inserting ``and paid as tax under section 3111'' after 
                ``section 3101''.

SEC. 106. FUNDING.

    Funds appropriated to the Secretary of Labor for the United States 
Employment Service shall be available to pay the costs of the 
Department of Labor in carrying out its responsibilities under sections 
218A and 218B of the Immigration and Nationality Act, as added by 
sections 101 and 102 of this Act.

TITLE II--ADJUSTMENT OF STATUS OF CERTAIN UNLAWFULLY PRESENT ALIENS TO 
                   NONIMMMIGRANT GUEST WORKER STATUS

SEC. 201. ADJUSTMENT OF STATUS.

    (a) In General.--The Secretary of Homeland Security shall adjust 
the status of an alien unlawfully present in the United States as of 
the date of enactment of this Act to that of an alien admitted to the 
United States as a nonimmigrant guest worker under section 
101(a)(15)(W) of the Immigration and Nationality Act, as added by 
section 103 of this Act, if the Secretary of Homeland Security is 
satisfied that the following requirements are satisfied with respect to 
the alien:
            (1) Application period.--The alien must apply for such 
        adjustment not later than 12 months after the date of enactment 
        of this Act.
            (2) Admissibility.--The alien must establish that the alien 
        is otherwise admissible to the United States under section 
        101(a)(15)(W) of the Immigration and Nationality Act, as added 
        by section 103 of this Act.
            (3) Attestation by united states employer.--A United States 
        employer must file an attestation with the Secretary of Labor 
        that the alien is employed by the United States employer.
    (b) Treatment as Nonimmigrant ``W'' Workers.--All requirements 
applicable to aliens admitted to the United States under section 
101(a)(15)(W) of the Immigration and Nationality Act, as added by 
section 103 of this Act, shall apply to aliens receiving adjustment of 
status under this section, except that--
            (1) the country of the alien's birth shall be considered 
        the guest worker program country; and
            (2) the attestation described in subsection (a)(3) shall 
        substitute for an application by the United States employer 
        under section 218B of the Immigration and Nationality Act, as 
        added by section 102.

SEC. 202. ENHANCED CIVIL PENALTIES FOR EMPLOYMENT OF UNAUTHORIZED 
              ALIENS AFTER TERMINATION DATE FOR ADJUSTMENT OF STATUS.

    (a) In General.--In addition to such civil penalties as may be 
imposed for the employment of unauthorized aliens under section 274 of 
the Immigration and Nationality Act (8 U.S.C. 1324), the Secretary of 
Homeland Security, after notice and an opportunity to be heard, shall 
issue an order imposing a civil penalty upon any United States employer 
that knowingly employs an unauthorized alien after the expiration of 
the application period for adjustment of status under section 201(a).
    (b) Cease and Desist Order With Civil Money Penalty for Hiring 
Unauthorized Aliens.--With respect to a violation of subsection (a), 
the order under that subsection shall require the United States 
employer to cease and desist from such violations and to pay a civil 
penalty in an amount of--
            (1) not less than $500 and not more than $2,500 for each 
        unauthorized alien with respect to whom a violation occurred;
            (2) not less than $2,000 and not more than $5,000 for each 
        such alien in the case of a United States employer previously 
        subject to 1 order under subsection (a);
            (3) not less than $4,000 and not more than $10,000 for each 
        such alien in the case of a United States employer previously 
        subject to 2 orders under subsection (a), plus debarment from 
        the guest worker program for a period of 5 years; and
            (4) not less than $10,000 for each such alien in the case 
        of a United States employer previously subject to 3 orders 
        under subsection (a), plus permanent debarment from the guest 
        worker program.
    (c) Effect on Guest Worker of Hiring by Debarred Employer.--Any 
guest worker employed by a United States employer that is debarred from 
participation in the guest worker program shall be granted a new work 
contract and shall be entitled to remain in the United States for the 
period of stay authorized with respect to the original work contract.
                                 <all>