Short title

This Act may be cited as the Unlawful Employers Accountability and Illegal Alien State Reimbursement Act of 2007.

Compliance with respect to the unlawful employment of aliens

(a)

Civil penalty

Paragraph (4) of subsection (e) of section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended to read as follows:

(4)

Cease and desist order with civil money penalty for hiring, recruiting, and referral violations

(A)

In general

With respect to a violation by any person or other entity of subsection (a)(1)(A) or (a)(2), the Secretary of Homeland Security shall require such person or such entity to cease and desist from such violations and to pay a civil penalty in the amount specified in subparagraph (B). (B)

Amount of civil penalty

(i)

Schedule of penalties based on the number of unauthorized aliens

For each occurrence of a violation of subsection (a)(1)(A) or (a)(2) with respect to the alien referred to in such subsection, the civil penalty shall be the following: (I)For a violation with respect to one unauthorized alien, $5,000. (II)For a violation with respect to greater than or equal to 2 such aliens but less than or equal to 10 such aliens, $5,000 for each such alien. (III)For a violation with respect to greater than or equal to 11 such aliens but less than or equal to 25 such aliens, $15,000 for each such alien. (IV)For a violation with respect to greater than or equal to 26 such aliens but less than or equal to 50 such aliens, $25,000 for each such alien. (V)For a violation with respect to greater than or equal to 51 such aliens but less than or equal to 75 such aliens, $35,000 for each such alien. (VI)For a violation with respect to greater than 75 such aliens, $50,000 for each such alien. (ii)

Additional amounts for costs of removal

In the event of the removal of an alien from the United States based on findings developed in connection with the assessment or collection of a penalty under this paragraph, the costs incurred by the Federal Government, cooperating State and local governments, and State and local law enforcement agencies in connection with such removal shall be added to the amount of the penalty specified under clause (i). (C)

Distinct, physically separate subdivisions

In applying this subsection in the case of a person or other entity composed of distinct, physically separate subdivisions each of which provides separately for the hiring, recruiting, or referring for employment, without reference to the practices of, and not under the control of or common control with, another subdivision, each such subdivision shall be considered a separate person or other entity.

(b)

Denial of agricultural assistance for violators

Section 274A of such Act (8 U.S.C. 1324a) is further amended by adding at the end the following new subsection:

(i)

Denial of agricultural assistance for violators

In the case of a violation of subsection (a)(1)(A) or (a)(2) by an agricultural association, agricultural employer, or farm labor contractor (as defined in section 3 of the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1802)), such association, employer, or contractor shall be ineligible for agricultural assistance described in paragraphs (1), (2), and (3) of section 1211(a) of the Food Security Act of 1985 (16 U.S.C. 3811(a)) for a period not to exceed 5 years.

(c)

Good faith defense

(1)

In general

Section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is further amended— (A)by striking subsection (a)(3); and (B)by striking subsection (b)(6). (2)

Conforming amendments

Section 274A of such Act (8 U.S.C. 1324a) is further amended— (A)in subsection (a)(5), by striking paragraphs (1)(B) and (3) and inserting paragraph (1)(B); and (B)in subsection (b)— (i)in the matter preceding paragraph (1), by striking paragraphs (1)(B) and (3) and inserting paragraph (1)(B); and (ii)by striking paragraph (6). (d)

Disclosure requirements

(1)

In general

The Secretary of Homeland Security shall establish, maintain, and regularly update a publicly accessible website that contains a list of persons or other entities that the Secretary has determined to have been in violation of subsection (a)(1)(A) or (a)(2) of section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) in the preceding 5 years. (2)

Contents of website

Such website shall contain, with respect to each such person or entity, the following information: (A)The name, address, and telephone number of the person or entity. (B)The names of the owners, chief executive officers, or other similar officers of the person or entity. (C)The number of unauthorized aliens (as defined in section 274A(h)(3) of such Act (8 U.S.C. 1324a(h)(3))) found to be employed by the person or entity. (D)The aggregate dollar amount that the person or entity has received in the preceding 5 years under any Federal contract. (e)

Effective date

The amendments made by subsections (a), (b), and (c) shall take effect 30 days after the date of the enactment of this Act and shall apply to violations occurring on or after such effective date.

Debarment from Government Contracts for Employers of Unauthorized Aliens

(a)

In general

Section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a), as amended by section 2(b), is amended by adding at the end the following new subsection:

(j)

Government Contracts

If a person or other entity is determined by the Secretary of Homeland Security to be a repeat violator of this section, or is subject to criminal penalties under subsection (f)(1), the person or other entity shall be debarred from the receipt of Federal contracts (and subcontracts entered into (at any tier) under such contracts) for a period of 5 years.

(b)

Effective Date

Section 274A(j) of the Immigration and Nationality Act (8 U.S.C. 1324a(j)), as added by subsection (a), shall apply with respect to contracts and subcontracts entered into after the expiration of the 90-day period beginning on the date of enactment of this Act.

Reimbursing State and local governments for costs of serving illegal aliens

(a)

Making payments to States

(1)

In general

Not later than 30 days following the end of the fiscal year, the Secretary shall make a payment to each eligible State in an amount equal to the amount credited as of the end of the fiscal year to the account of the State within the Illegal Alien State Reimbursement Fund as described in paragraph (2). (2)

Establishment and Operation of Illegal Alien State Reimbursement Fund

(A)

Establishment of Fund

The Secretary shall establish a designated fund in the Treasury of the United States to be known as the Illegal Alien State Reimbursement Fund (in this section referred to as the Fund). (B)

State accounts

The Secretary shall create a separate account within the Fund for each State that is an eligible State during the fiscal year. (C)

Allocation method

If any amount is received from an employer of an unauthorized alien for a violation of section 274A(a) of the Immigration and Nationality Act (8 U.S.C. 1324a(a)) and if the violation occurred in an eligible State, the Secretary shall credit the account of that eligible State using the following formula: (i)If the violation occurs in a single eligible State, the Secretary shall credit the account of that eligible State with an amount equal to 75% of the amount received. (ii)If the violation occurs in multiple eligible States, the Secretary shall divide the amount described in clause (i) by the number of eligible States where the violation occurred and shall credit the account of each eligible State with an equal share. (b)

Requirements for use and redistribution of payments

(1)

Use of payments specified

A payment received under this section shall be used solely for payments to local educational agencies (as defined in section 9101(26) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801(26))), public health care providers, and law enforcement agencies for the purpose of assisting State and local governments with meeting the costs associated with serving aliens who are unlawfully present in the United States. (2)

Redistribution of payment to counties and units of local government

An eligible State shall redistribute 66 percent of the payment received under this section, within 60 days of receipt by the State, to appropriate counties and units of local government in accordance with a system that the State shall develop that provides for opportunities for input from all counties and units of local government in the state and that targets the areas of greatest need in accordance with the purpose described in paragraph (1), based on objective criteria. (c)

Definitions

For the purposes of this section, the following definitions apply: (1)

Eligible State

The term eligible State means a State that agrees— (A)to use the payment received under this section for the uses specified in subsection (b)(1); (B)to redistribute the payment received under this section to counties and units of local government in accordance with subsection (b)(2); (C)to require that any county or unit of local government to whom a payment is redistributed shall use the payment for the uses specified in subsection (b)(1); and (D)to submit information and assurances at such time and in such form as the Secretary may require. (2)

State

The term State includes each State, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, and the United States Virgin Islands. (3)

Secretary

The term Secretary means the Secretary of the Treasury. (d)

Effective date

This section shall take effect at the beginning of the next fiscal year following the date of enactment of this Act.