[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6454 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6454

 To extend and expand the E-verify program for employment eligibility 
                 confirmation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2008

  Mr. Cannon introduced the following bill; which was referred to the 
   Committee on the Judiciary, and in addition to the Committees on 
Education and Labor, Science and Technology, and Homeland Security, 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 extend and expand the E-verify program for employment eligibility 
                 confirmation, 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 cited as the ``E-Verify Extension and Expansion Act of 
2008.''

SEC. 2. EXTENSION AND EXPANSION OF PROGRAMS.

    Sections 401 through 405 of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) are amended 
to read as follows:

``SEC. 401. ESTABLISHMENT OF PROGRAMS.

    ``(a) In General.--The Secretary of Homeland Security shall conduct 
2 pilot programs of employment eligibility confirmation under this 
subtitle.
    ``(b) Implementation Deadline; Termination.--The Secretary of 
Homeland Security shall implement the pilot programs in a manner that 
permits persons and other entities to have elections under section 402 
made and in effect not later than 1 year after the date of the 
enactment of the E-Verify Extension and Expansion Act of 2008. Unless 
the Congress otherwise provides, the Secretary of Homeland Security 
shall terminate the pilot programs not later than December 31, 2013.
    ``(c) Scope of Operation of Pilot Programs.--The Secretary of 
Homeland Security shall provide for the operation--
            ``(1) the E-Verify pilot program (described in section 
        403(b)) in all 50 States; and
            ``(2) the secure electronic employment verification system 
        (described in section 405) in all 50 States not later than 
        December 1, 2009.
    ``(d) References in Subtitle.--In this subtitle--
            ``(1) E-verify program references.--The terms `program' or 
        `E-Verify program' refer to any of the two E-Verify programs 
        provided for under this subtitle.
            ``(2) Confirmation system.--The term `confirmation system' 
        means the confirmation system established under section 404.
            ``(3) References to section 274a.--Any reference in this 
        subtitle to section 274A (or a subdivision of such section) is 
        deemed to be a reference to section 274A of the Immigration and 
        Nationality Act (8 U.S.C. 1324a).
            ``(4) I-9 or similar form.--The term `I-9 or similar form' 
        means the form used for purposes of section 274A(b)(1)(A) of 
        the Immigration and Nationality Act (8 U.S.C. 1324a(b)(1)(A)), 
        or such other form as the Secretary of Homeland Security 
        determines to be appropriate.
            ``(5) Limited application to recruiters and referrers.--Any 
        reference to the recruitment or referral (or a recruiter or 
        referrer) in relation to employment is deemed a reference only 
        to such recruitment or referral (or recruiter or referrer) that 
        is subject to section 274A(a)(1)(B)(ii) of the Immigration and 
        Nationality Act (8 U.S.C. 1324a(a)(1)(B)(ii)).
            ``(6) United states citizenship.--The term `United States 
        citizenship' includes United States nationality.
            ``(7) State.--The term `State' has the meaning given such 
        term in section 101(a)(36) of the Immigration and Nationality 
        Act (8 U.S.C. 1101(a)(36)).

``SEC. 402. VOLUNTARY ELECTION TO PARTICIPATE IN AN E-VERIFY PROGRAM.

    ``(a) Voluntary Election.--Subject to subsection (c)(3), any person 
or other entity that conducts any hiring (or recruitment or referral) 
may elect to participate in the E-Verify program by enrolling. Except 
as specifically provided in paragraphs (1) and (2) of subsection (d), 
the Secretary of Homeland Security may not require any person or other 
entity to participate in an E-Verify program.
    ``(b) Benefit of Rebuttable Presumption.--
            ``(1) In general.--If a person or other entity is 
        participating in a pilot program and obtains confirmation of 
        identity and employment eligibility in compliance with the 
        terms and conditions of the program with respect the hiring (or 
        recruitment or referral) of an individual for employment in the 
        United States, or current employees pursuant to section 
        403(a)(1)(B), the person or entity has established a rebuttable 
        presumption that the person or entity has not violated section 
        274A(a)(1)(A) with respect to such hiring (or such recruitment 
        or referral).
            ``(2) Construction.--Paragraph (1) shall not be construed 
        as preventing a person or other entity that has an election in 
        effect under subsection (a) from establishing an affirmative 
        defense under section 274A(a)(3), if the person or entity 
        complies with the requirements of section 274A(a)(1)(a) but 
        fails to obtain confirmation under paragraph (1).
            ``(3) Protection from liability.--No person or entity 
        participating in an E-Verify program shall be civilly or 
        criminally liable under any Federal, State, or local law for 
        any action taken in good faith reliance on information provided 
        through the confirmation system.
    ``(c) General Terms of Elections.--
            ``(1) In general.--An election under subsection (a) shall 
        be in such form and manner, under such terms and conditions, 
        and shall take effect, as the Secretary of Homeland Security 
        shall specify. The Secretary of Homeland Security may not 
        impose any fees as a condition of making an election or 
        participating in the basic E-Verify program.
            ``(2) Scope of election.--Subject to paragraph (3), any 
        electing person or other entity may provide that the election 
        under subsection (a) shall apply (during the period in which 
        the election is in effect)--
                    ``(A) to all its hiring (and all recruitment and 
                referral; or
                    ``(B) to its hiring (or recruitment or referral) in 
                one or more places of hiring (or recruitment or 
                referral, as the case may be).
            ``(3) Termination of elections.--The Secretary of Homeland 
        Security may terminate an election by a person or other entity 
        under this section because the person or entity has 
        substantially failed to comply with its obligations under the 
        program. A person or other entity may terminate an election in 
        such form and manner as the Secretary of Homeland Security 
        shall specify.
    ``(d) Select Entities Required To Participate in a Pilot Program.--
            ``(1) Federal government.--
                    ``(A) Executive departments.--
                            ``(i) In general.--Each Department of the 
                        Federal Government shall elect to participate 
                        in an E-Verify program and shall comply with 
                        the terms and conditions of such an election.
                            ``(ii) Election.--Subject to clause (iii), 
                        the Secretary of each such Department--
                                    ``(I) shall elect the E-Verify 
                                program (or programs) in which the 
                                Department shall participate; and
                                    ``(II) may limit the election to 
                                hiring occurring in certain States (or 
                                geographic areas) and in specified 
                                divisions within the Department, as 
                                long as all hiring by such divisions 
                                and in such locations is covered.
                            ``(iii) Role of secretary of homeland 
                        security.--The Secretary of Homeland Security 
                        shall assist and coordinate elections under 
                        this subparagraph in such manner as assures 
                        that--
                                    ``(I) a significant portion of the 
                                total hiring within each Department 
                                within the United States is covered 
                                under such a program; and
                                    ``(II) there is significant 
                                participation by the Federal executive 
                                branch in the pilot programs.
                    ``(B) Legislative branch.--Each Member of Congress, 
                each officer of Congress, and the head of each agency 
                of the legislative branch, that conducts hiring shall 
                elect to participate in a pilot program, may specify 
                which pilot program or programs in which the Member, 
                officer, or agency will participate, and shall comply 
                with the terms and conditions of such election.
            ``(2) Application to certain violators.--An order under 
        section 274A(e)(4), or section 274B(g) of the Immigration and 
        Nationality Act (8 U.S.C. 1324b(g)), may require the subject of 
        the order to participate in, and comply with the terms of, a 
        pilot program with respect to the subject's hiring (or 
        recruitment or referral) of individuals.
            ``(3) Consequences of failure to participate.--If a person 
        other entity is required under this subsection to participate 
        in a pilot program and fails to comply with the requirements of 
        such program with respect to an individual--
                    ``(A) such failure shall be treated as a violation 
                of section 274A(a)(1)(B) with respect to that 
                individual; and
                    ``(B) a rebuttable presumption is created that the 
                person or entity has violated section 274A(a)(1)(A).
        Subparagraph (B) shall not apply in any prosecution under 
        section 274A(f)(1).
    ``(e) Construction.--This subtitle shall not affect the authority 
of the Secretary of Homeland Security under any other law (including 
section 274A(d)(4)) to conduct demonstration projects in relation to 
section 274A.

``SEC. 403. PROCEDURES FOR PARTICIPANTS IN E-VERIFY PROGRAMS.

    ``(a) Electronic Employment Verification System.--
            ``(1) In general.--The Secretary of Homeland Security, in 
        cooperation with the Commissioner of Social Security, shall 
        establish an electronic employment verification system 
        (hereinafter in this subtitle referred to as the `system'), 
        that shall be--
                    ``(A) equipped with the capacity to determine 
                whether--
                            ``(i) the identifying information 
                        (including name, social security number, alien 
                        document number, and date of birth) submitted 
                        by an employer with respect to each employee 
                        subject to verification is consistent with the 
                        records maintained by the Secretary of Homeland 
                        Security (solely with respect to aliens) and by 
                        the Commissioner of Social Security (with 
                        respect to both nationals and aliens); and
                            ``(ii) the employee is authorized to be 
                        employed by the employer and for what period 
                        (which may be unlimited); and
                    ``(B) used only to verify newly hired employees or 
                current employees whose employment authorization has 
                expired or employees as to whom Commissioner of Social 
                Security has notified the employer in writing that the 
                employee's name and corresponding social security 
                account number fail to match the Social Security 
                Administration records or as to whom the Department of 
                Homeland Security has notified in writing that the 
                employees immigration status or employment 
                authorization document is assigned to another person or 
                that there is no agency record that the document has 
                been assigned to any person.
    ``(b) Basic E-Verify Program.--A person or other entity that elects 
to participate in the basic E-Verify program described in this 
subsection shall register in the system and agrees to conform to the 
following procedures in the case of the hiring (or recruitment or 
referral) for employment in the United States of each individual 
covered by the election:
            ``(1) Verification of employment authorization.--
                    ``(A) In general.--The Secretary of Homeland 
                Security shall, through the system--
                            ``(i) respond to each inquiry made by a 
                        registered employer through the Internet or 
                        other electronic media, or over a toll-free 
                        telephone line, regarding an individual's 
                        identity and eligibility for employment in the 
                        United States; and
                            ``(ii) maintain a record of each such 
                        inquiry and the information provided in 
                        response to such inquiry.
                    ``(B) Verification by employer.--
                            ``(i) Information required.--A registered 
                        employer shall, with respect to the hiring, or 
                        recruiting or referring for a fee, of any 
                        individual for employment in the United States, 
                        obtain from the individual--
                                    ``(I) the individual's name and 
                                date of birth and, if the individual 
                                was born in the United States, the 
                                State in which such individual was 
                                born;
                                    ``(II) the individual's social 
                                security account number; and
                                    ``(III) in the case of an 
                                individual who does not claim to be a 
                                national of the United States, such 
                                alien identification or authorization 
                                number that the Secretary of Homeland 
                                Security shall require.
                            ``(ii) Documents required.--The employer 
                        shall require that the individual produce one 
                        of the following documents consistent with the 
                        status claimed by the individual and bearing 
                        identifying information consistent with that 
                        obtained from the individual--
                                    ``(I) in the case of an individual 
                                who is a national of the United States, 
                                a United States passport or driver's 
                                license or identity card issued by a 
                                State, the Commonwealth of the Northern 
                                Mariana Islands or an outlying 
                                possession of the United States;
                                    ``(II) in the case of an alien 
                                lawfully admitted for permanent 
                                residence in the United States, a 
                                permanent resident card, as specified 
                                by the Secretary of Homeland Security;
                                    ``(III) in the case of an alien who 
                                is authorized under this Act or by the 
                                Secretary of Homeland Security to be 
                                employed in the United States, an 
                                employment authorization card, issued 
                                by the Secretary of Homeland Security 
                                that contains a photograph of the 
                                individual or other identifying 
                                information, including name, date of 
                                birth, gender, and address and contains 
                                security features to make the document 
                                resistant to tampering, counterfeiting, 
                                and fraudulent use; and
                                    ``(IV) in the case of an individual 
                                who is unable to obtain a document 
                                described in subclause (I), (II), or 
                                (III), a document designated by the 
                                Secretary of Homeland Security that 
                                contains a photograph of the individual 
                                or other identifying information, 
                                including name, date of birth, gender, 
                                and address and contains security 
                                features to make the document resistant 
                                to tampering, counterfeiting, and 
                                fraudulent use.
                            ``(iii) Attestation.--The employer shall 
                        attest, under penalty of perjury and on a form 
                        or through an electronic mechanism or 
                        telephonic connection prescribed by the 
                        Secretary of Homeland Security, that the 
                        employer has obtained information required by 
                        clause (i) and examined a consistent document 
                        required by clause (ii), using an electronic 
                        signature or telephonic identification code 
                        approved by the Secretary of Homeland Security.
                            ``(iv) Submission to system.--A registered 
                        employer shall submit an inquiry through the 
                        system to seek confirmation of the individual's 
                        identity and eligibility for employment in the 
                        United States--
                                    ``(I) anytime after the employer 
                                makes an offer of employment to the 
                                employee but before the end of the 
                                third business day after the employee 
                                has reported for duty;
                                    ``(II) anytime as permitted under 
                                the provisions of section 403(a)(1)(B); 
                                or
                                    ``(III) anytime at the request of 
                                an employee or prospective employee who 
                                wishes to make the inquiry for the 
                                purpose of ascertaining the 
                                individual's own eligibility for 
                                employment in the United States.
                    ``(C) System screening of employment eligibility.--
                            ``(i) In general.--Not later than 3 days 
                        after an employer submits an inquiry to the 
                        system regarding an individual, the Secretary 
                        of Homeland Security shall provide, through the 
                        system, to the employer approval or initial 
                        disapproval of the employment of the individual 
                        in the United States.
                            ``(ii) Redress procedure.--If an employer 
                        receives an initial disapproval from the system 
                        for an employee, the employer shall inform such 
                        employee of the issuance of such notice in 
                        writing on a form prescribed by the Secretary 
                        of Homeland Security not later than 3 days 
                        after receiving such notice. Such individual 
                        shall acknowledge receipt of such notice in 
                        writing on a form as prescribed by the 
                        Secretary of Homeland Security.
                            ``(iii) No contest.--If the individual does 
                        not contest the initial disapproval notice not 
                        later than 5 days after receiving notice from 
                        the individual's employer the Secretary of 
                        Homeland Security shall notify the employer and 
                        disapproval shall become final and the employer 
                        shall record on the system the appropriate code 
                        to indicate the individual did not contest the 
                        initial disapproval. An individual's failure to 
                        contest an initial disapproval shall not be 
                        considered an admission of any fact with 
                        respect to any violation of this Act or any 
                        other provision of law.
                            ``(iv) Contest.--If the individual contests 
                        the initial disapproval, the individual shall 
                        submit appropriate information to contest such 
                        notice under the procedures established by the 
                        Secretary of Homeland Security not later than 5 
                        days after receiving the notice from the 
                        individual's employer.
                            ``(v) Prohibition on termination.--An 
                        employer may not terminate the employment of an 
                        individual based on the initial disapproval if 
                        the employee contests the disapproval and until 
                        the employee is given an opportunity to resolve 
                        any discrepancy with the relevant government 
                        agency responsible for maintaining the 
                        information in question. Nothing in this clause 
                        shall be interpreted as requiring an employer 
                        to dismiss an employee while the inquiry 
                        regarding the employee's eligibility for 
                        employment in the United States is pending with 
                        a governmental agency.
                            ``(vi) Disapproval.--The Secretary of 
                        Homeland Security shall promptly resolve an 
                        individual's contest of the initial disapproval 
                        and issue either an approval or disapproval. If 
                        a disapproval is issued, the Secretary of 
                        Homeland Security shall give notice to the 
                        employer through the system and the employer 
                        shall terminate the employment, recruitment, or 
                        referral of the individual.
                            ``(vii) Employment after disapproval.--If 
                        the employer continues to employ, recruit, or 
                        refer the individual after receiving final 
                        disapproval, a rebuttable presumption is 
                        created that the employer has violated sections 
                        274A(a)(1)(A) and 274A(a)(2), except that such 
                        presumption shall not apply to a prosecution 
                        under section 274A(f)(1).
                            ``(viii) Information on disapproved 
                        employees.--Such employer shall provide to the 
                        Secretary of Homeland Security any information 
                        relating to a disapproved employee that the 
                        Secretary of Homeland Security determines would 
                        assist the Secretary of Homeland Security in 
                        enforcing or administering the immigration 
                        laws.
                    ``(D) Administrative review of disapprovals.--
                            ``(i) In general.--An individual who is 
                        terminated from employment pursuant to 
                        subparagraph (C)(vi) may, not later than 60 
                        days after the date of such termination, file 
                        an appeal of the disapproval notice resulting 
                        in such termination.
                            ``(ii) Procedures.--The Secretary of 
                        Homeland Security and Commissioner of Social 
                        Security shall develop procedures to review 
                        appeals filed under clause (i) and to make 
                        final determinations on such appeals.
                            ``(iii) Review for errors.--If a final 
                        determination on an appeal filed under clause 
                        (i) results in approval of an individual's 
                        eligibility to work in the United States, the 
                        administrative review process shall require the 
                        Secretary of Homeland Security to determine if 
                        the final disapproval notice issued for the 
                        individual was the result of--
                                    ``(I) an error or negligence on the 
                                part of an employee or official 
                                operating or responsible for the 
                                system;
                                    ``(II) the rules, processes, or 
                                procedures utilized by the system; or
                                    ``(III) erroneous system 
                                information that was not the result of 
                                acts or omissions of the individual.
                            ``(iv) Compensation for error.--
                                    ``(I) In general.--If the Secretary 
                                of Homeland Security makes a 
                                determination under this subparagraph 
                                that the final disapproval notice 
                                issued for an individual was not caused 
                                by an act or omission of the 
                                individual, the Secretary of Homeland 
                                Security shall compensate the 
                                individual for lost wages.
                                    ``(II) Calculation of lost wages.--
                                Lost wages shall be calculated based on 
                                the wage rate and work schedule that 
                                prevailed prior to termination. The 
                                individual shall be compensated for 
                                wages lost beginning on the first 
                                scheduled work day after employment was 
                                terminated and ending 180 days after 
                                completion of the administrative review 
                                process described in this subparagraph 
                                or the day after the individual is 
                                reinstated or obtains employment 
                                elsewhere, whichever occurs first.
                                    ``(III) Limitation on 
                                compensation.--For purposes of 
                                determining an individual's 
                                compensation for the loss of 
                                employment, such compensation shall be 
                                reduced by any compensation earned from 
                                any employment during such period and 
                                shall not include any period in which 
                                the individual as ineligible for 
                                employment in the United States.
                    ``(E) Judicial review of disapprovals.--
                            ``(i) In general.--After the Secretary of 
                        Homeland Security makes a final determination 
                        on an appeal filed by an individual under the 
                        administrative review process described in 
                        subparagraph (D), the individual may obtain 
                        judicial review of such determination by a 
                        civil action commenced not later than 60 days 
                        after the date of such decision, or such 
                        further time as the Secretary of Homeland 
                        Security may allow.
                            ``(ii) Jurisdiction.--A civil action for 
                        such judicial review shall be brought in the 
                        district court of the United States for the 
                        judicial district in which the plaintiff 
                        resides, or has a principal place of business, 
                        or, if the plaintiff does not reside or have a 
                        principal place of business within any such 
                        judicial district, in the District Court of the 
                        United States for the District of Columbia.
                            ``(iii) Answer.--As part of the Secretary 
                        of Homeland Security's answer to a complaint 
                        for such judicial review, the Secretary of 
                        Homeland Security shall file a certified copy 
                        of the administrative record compiled during 
                        the administrative review under subparagraph 
                        (C), including the evidence received during 
                        such review. The court shall have power to 
                        enter, upon the pleading and administrative 
                        record, a judgment affirming, modifying, or 
                        reversing such administrative decision, with or 
                        without remanding the matter for further 
                        proceedings.
                            ``(iv) Compensation for error.--In cases in 
                        which such judicial review results in a 
                        determination that compensation for lost wages 
                        is due, such compensation shall be computed in 
                        accordance with subparagraph (D)(iv).

``SEC. 404. DESIGN, IMPLEMENTATION, STANDARDS AND LIMITATIONS OF 
              EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

    ``(a) Design in General.--Based upon recommendations from the 
National Institute of Standards and Technology (NIST), the Secretary of 
Homeland Security shall, not later than 180 days after the date of the 
enactment of this Act, develop a system and certify a technology 
standard that can be used to verify the employment eligibility of all 
persons applying for employment in the United States by a registered 
employer participating in an E-Verify program.
            ``(1) Integrated.--The technology standard developed shall 
        be the technological basis for a cross-agency, cross-platform 
        electronic system that is a cost-effective, efficient, fully 
        integrated means to share immigration and Social Security 
        information necessary to confirm the employment eligibility of 
        all persons seeking employment. The technology shall benefit 
        from the identity features utilized in driver's licenses and 
        identity cards issued by States in compliance with title II of 
        the REAL ID Act of 2005 (49 U.S.C. 30301 note). The technology 
        shall require the Department of Homeland Security and Social 
        Security Administration to perform real-time data entry of 
        employment eligibility information that is immediately 
        available for verification purposes. The technology shall 
        ascertain when an individual's name and social security number 
        are reported by multiple employers at the same time in the 
        Social Security Administration's database before a confirmation 
        is issued as to an individual's eligibility for employment.
            ``(2) Fully electronic system.--The system shall contain a 
        mechanism for employers to attest to their compliance with 
        section 403(b)(1) through this system and to retain an 
        electronic record of such attestation without creation of paper 
        records.
            ``(3) Accessible.--The electronic system described in this 
        subsection, once implemented, shall be readily and easily 
        accessible to all participating employers via internet and 
        telephone.
            ``(4) Use of technology.--A registered employer shall be 
        permitted to utilize any technology, including technology that 
        is maintained or operated by the private sector, that is 
        consistent with this section and any regulation or guidance 
        from the Secretary of Homeland Security to streamline the 
        procedures for the attestation and verification requirements as 
        provided in this section.
            ``(5) Reports.--Not later than one year after the date of 
        the enactment of this Act and annually thereafter, the 
        Secretary of Homeland Security and Director of NIST shall 
        jointly report to Congress describing the development, 
        implementation, efficacy, necessary funding, and privacy 
        implications of the technology standard and electronic database 
        system to be developed and implemented in accordance with this 
        section.
    ``(b) Implementation of the System.--
            ``(1) Based on the standards set forth in subsection (a), 
        the Secretary of Homeland Security shall establish a reliable, 
        secure method to provide through the system, within the time 
        periods required by this subsection--
                    ``(A) a determination of whether the name and 
                identifying information and numbers provided in an 
                inquiry by an employer is consistent with such 
                information maintained by the Commissioner of Social 
                Security for nationals of the United States and by the 
                Secretary of Homeland Security for aliens in order to 
                confirm the validity of the information provided; and
                    ``(B) a determination of whether the individual is 
                authorized to be employed in the United States by the 
                employer submitting such inquiry and for what period, 
                which may be unlimited.
            ``(2) The Secretary of Homeland Security shall establish a 
        schedule for implementation of the system that is designed to 
        assure that the capacity of all aspects of the system, 
        including the equipment and personnel required to complete 
        reviews of contested initial disapprovals and corrections of 
        erroneous records within the time frames required to comply 
        with time limits set by section 403(b).
            ``(3) The schedule established pursuant to this subsection 
        shall assure that all participants in the E-Verify system are 
        to be enrolled in the new system not later than November 1, 
        2008.
            ``(4) Prior to implementing the schedule established 
        pursuant to this subsection, including each phase of expansion 
        of such schedule, the Secretary of Homeland Security shall 
        comply with the requirements of subsection (c), as determined 
        by the Government Accountability Office (GAO) to achieve the 
        standards described in subsection (c).
    ``(c) Standards for Operation of the System.--
            ``(1) Policies and procedures.--The Secretary of Homeland 
        Security and the Commissioner of Social Security shall 
        establish rules, guidelines, policies, and operating and 
        auditing procedures for collecting, removing, adding, and 
        updating data maintained in the system to ensure the accuracy 
        and integrity of the data such that the operation of the system 
        shall--
                    ``(A) incorporate a simple and timely method for 
                correcting errors regarding immigration status, work 
                authorization, or any other relevant data in a timely 
                and effective manner; determine which Government 
                official provided the data to ascertain the accuracy of 
                such data; and clarify information known to lead to 
                errors regarding immigration status, work 
                authorization, or misidentification;
                    ``(B) include procedures for individuals to examine 
                their personal record for errors, seek expedited 
                corrections of data contained in the system, and appeal 
                decisions concerning data contained in the system, 
                strictly limit the agency personnel authorized to input 
                data into the system, and identify classes of 
                prejudicial information requiring authorization of 
                supervisory personnel before entry into the system;
                    ``(C) provide 24-hour Internet and telephonic help-
                desk support to answer questions about the technology 
                as well as to resolve questions about employment status 
                and shall receive inquiries from individuals or 
                employers concerning determinations made by the 
                electronic employment eligibility verification system, 
                and shall identify for an individual, at the time of 
                inquiry, the particular data that resulted in a 
                determination that the system was unable to verify the 
                individual's identity or eligibility for employment;
                    ``(D) incorporate a clearinghouse bureau to 
                centralize and streamline the process through which 
                members of the public can seek to correct erroneous or 
                inaccurate information contained in the system that is 
                related to immigration status or otherwise impedes the 
                issuance of a Social Security number operated under 
                specific time schedules for reviewing data correction 
                requests, rendering decisions on such requests, and 
                implementing appropriate correcting action in a timely 
                manner; and
                    ``(E) make available or provide to employers, upon 
                request, not later than 60 days prior to the time such 
                employers are required to enroll in the system, 
                appropriate training materials to facilitate compliance 
                with section 274A(b).
            ``(2) Data maintenance procedures.--The Secretary of 
        Homeland Security and the Commissioner of Social Security shall 
        establish rules, guidelines, policies, and operating and 
        auditing procedures for collecting, removing, updating, and 
        adding data to the system to ensure the accuracy and integrity 
        of the data and to limit access to the data to authorized 
        personnel.
            ``(3) Information to employee.--The Secretary of Homeland 
        Security shall develop a written form for employers to provide 
        to individuals who receive an initial or final disapproval 
        notice. Such form shall be made available in a language other 
        than English, as necessary and reasonable, and shall include--
                    ``(A) information about the reason for such notice;
                    ``(B) the right to contest such notice; and
                    ``(C) contact information for the appropriate 
                agency and instructions for initiating such contest.
            ``(4) Public education.--The Secretary of Homeland Security 
        shall develop a public education campaign regarding the 
        obligations imposed on employees and employers by this Act, as 
        well as tutorials without cost to the public regarding how to 
        use the newly developed verification system. The public 
        education campaign shall be implemented no later than 12 months 
        after the enactment of this Act.
            ``(5) Training and outreach.--Not later than 12 months 
        after the date of the enactment of this Act, the Secretary of 
        Homeland Security shall develop and implement training on the 
        rules, guidelines, policies, and procedures established for all 
        personnel authorized to access information maintained in the 
        system. The Secretary of Homeland Security shall also conduct 
        informational seminars to participating employers and employees 
        regarding the operation and benefits of using the verification 
        system described in this section.
            ``(6) Enumeration.--The Secretary of Homeland Security, in 
        consultation with the Secretary of State and the Commissioner 
        of Social Security, shall establish such rules, guidelines, 
        policies, and operating and auditing procedures for collecting, 
        updating, and adding information to the system to ensure the 
        issuance of social security numbers to all non-citizens 
        authorized to work in the United States not later than 10 days 
        after lawful admission to the United States or approval of a 
        change of nonimmigrant status by the Secretary of Homeland 
        Security.
            ``(7) Responsibilities of the commissioner of social 
        security.--The Commissioner of Social Security shall carry out 
        the responsibilities set forth in section 205(c)(2) of the 
        Social Security Act (42 U.S.C. 405(c)(2)) in such a manner as 
        to support the operation of the verification systems 
        established in accordance with this section.
            ``(8) Annual report and certification.--Not later than 
        January 1, 2009, and annually thereafter, the Secretary of 
        Homeland Security shall submit to Congress a report that 
        includes a certified determination of the percentage of 
        inquiries that result in a final approval or disapproval 
        notice, within the period described in section 403(b)(1)(C), 
        that are not overturned in a subsequent contest of a 
        disapproval, and if that percentage is less than 99 percent of 
        the cases, the steps being taken to bring the percentage to 99 
        percent or higher within 90 days.
    ``(d) Limitation on Collection and Use of Data.--
            ``(1) Limitation on collection of data.--
                    ``(A) In general.--The system shall collect and 
                maintain only the minimum data necessary to facilitate 
                the successful operation of the system, and in no case 
                shall the data be other than--
                            ``(i) information necessary to enroll 
                        employers under section 402(a);
                            ``(ii) information necessary to establish 
                        and enforce compliance under section 403;
                            ``(iii) information necessary to detect and 
                        prevent employment related identity fraud; and
                            ``(iv) such other information the Secretary 
                        of Homeland Security determines is necessary, 
                        through rulemaking in accordance with section 
                        553 of title 5, United States Code.
                    ``(B) Penalties.--Any officer, employee, or 
                contractor who willfully and knowingly collects and 
                maintains data in the system other than data described 
                in subparagraph (A)(i) shall be guilty of a misdemeanor 
                and fined nor more than $1,000 for each violation.
            ``(2) Limitation on use of data.--Whoever willfully and 
        knowingly accesses, discloses, or uses any information obtained 
        or maintained by the system--
                    ``(A) for the purpose of committing identity fraud, 
                or assisting another person in committing identity 
                fraud, as defined in section 1028 of title 18, United 
                States Code;
                    ``(B) for the purpose of unlawfully obtaining 
                employment in the United States for any other person; 
                or
                    ``(C) for any purpose other than as provided for 
                under any provision of law;
        shall be guilty of a felony and upon conviction shall be fined 
        under title 18, United States Code, or imprisoned for not more 
        than 5 years, or both.
            ``(3) Exceptions.--Nothing in paragraph (1) or (2) may be 
        construed to limit the collection, maintenance, or use of data 
        by the Commissioner of Internal Revenue or the Commissioner of 
        Social Security as provided by law.
            ``(4) GAO study.--Not later than one year after the date of 
        the enactment of this Act, the GAO shall submit to Congress a 
        comprehensive review regarding the process by which the 
        Departments of Homeland Security and Health and Human Services 
        are ensuring the system's readiness to handle expanded 
        participation by all employers in the United States.

``SEC. 405. ESTABLISHMENT OF SECURE ELECTRONIC EMPLOYMENT VERIFICATION 
              SYSTEM.

    ``(a) Establishment of System.--The Secretary of Homeland Security 
shall within two years of enactment of this section establish a Secure 
Employment Eligibility Verification System (SEEVS) program with an 
advanced technology employment verification system to be administered 
by the Secretary or a private entity certified by the Secretary that 
can be adopted by employers on a voluntary pilot basis to comply with 
their obligations under section 403, which program shall comply with 
the following requirements:
            ``(1) The system shall be based on one or more technologies 
        that have been screened and approved by NIST, after 
        consultation with employers and prospective providers of the 
        system technology, to meet or exceed the following standards--
                    ``(A) all approved technologies must be 
                interoperable such that any employer that adopts 
                participation in the system can verify any prospective 
                employee enrolled with any certified provider;
                    ``(B) all approved technologies must be based on a 
                verification of identity, identifying data, and 
                personal traits (including biometric identifiers) 
                determined by NIST to provide a high level of accuracy;
                    ``(C) biometric data shall be segregated and 
                encoded such that it is separate from identifying 
                information and can be linked to such identifying 
                information only through activation by the subject 
                individual voluntarily activating the linkage through 
                the verification process or approved correction 
                mechanism; and
                    ``(D) databases controlled by the Secretary of 
                Homeland Security and by the Commissioner of Social 
                Security shall be maintained in a manner to capture new 
                entries and new status information in a real time 
                manner and to interact with other enrollment databases 
                approved by the Secretary of Homeland Security to keep 
                employment authorization status current on a daily 
                basis.
            ``(2) The system shall be limited in application to hiring 
        decisions made after implementation of the system and specific 
        defined circumstances of expiration of prior authorized 
        employment or affirmative, credible evidence of lack of 
        authorization.
            ``(3) The system shall provide for the enrollment of 
        prospective employees in a manner that provides a high level of 
        certainty as to their true identities using comparison to 
        Social Security and immigration identifying information, 
        forensic review of identity documents, and background screening 
        verification techniques using publicly available information.
            ``(4) The enrollment process shall result in the 
        association of an accurate name, date of birth, social security 
        number, and immigration identification number (if any) with the 
        established identity of each enrollee.
            ``(5) The system shall provide for databases of identifying 
        information subject to privacy standards established and 
        enforced by the Secretary of Homeland Security, including a 
        requirement that biometric and other identifying traits of 
        enrollees be stored through an encoding process that keeps 
        their accurate names, dates of birth, social security numbers, 
        and immigration identification numbers (if any) separate except 
        during electronic verification.
            ``(6) The system shall permit individuals to specify that 
        their enrollment be cancelled at any time and all identifying 
        information and biometrics removed from the system without 
        prejudice to future enrollments.
            ``(7) The system shall provide for regular updating at 
        least once per business day of all records contained in all 
        provider databases with the employment authorization status of 
        each enrolled individual.
            ``(8) The system shall require that verification be 
        accomplished by employers after a job offer has been made and 
        accepted, but can be prior to the commencement of work.
            ``(9) The system shall require that verification be 
        performed by enrolled employers or certified agents using 
        technologies approved pursuant to paragraph (1) such that a 
        secure identity and identifying information are screened 
        against the databases of all enrolled individuals.
            ``(10) Employers shall be permitted to attest to compliance 
        with this section for employees by use of any electronic 
        program so long as such program--
                    ``(A) allows the employer to complete such 
                attestation and the verification of employment 
                eligibility in a single transaction;
                    ``(B) is compatible and interoperable with the 
                system; and
                    ``(C) keeps an electronic record of attestation by 
                employers and employees without requiring additional 
                paper-based forms as part of the record that is 
                retained in a manner that is accessible to the 
                Secretary of Homeland Security for inspection and audit 
                purposes.
            ``(11) Employers that elect participation in the system 
        shall arrange and pay a reasonable fee directly related to cost 
        of the enrollment of any employee requiring verification who 
        has not previously enrolled with the Secretary or a certified 
        provider.
            ``(12) Employers shall not be permitted to selectively use 
        the system for any class level or category of employee, but can 
        implement the system at selected locations without implementing 
        it at all locations.
            ``(13) Enrolled individuals shall be permitted to access 
        the system to verify their own employment authorization and 
        shall be provided with readily available processes to correct 
        and update their enrollment and employment authorization 
        information.
            ``(14) Review, challenge, and anti-discrimination 
        protections regarding the verification responses and their uses 
        from the system shall provide the same level of rights and 
        protections to employees as those afforded under section 403.
            ``(15) Employers shall be permitted to make employment 
        decisions in reliance on the employment authorization 
        information provided by the system in the same manner as 
        provided under section 402.
            ``(16) Employers shall be immune from liability under this 
        section for all locations in which the system is operated for 
        all employment decisions made in accordance with the procedures 
        established for use of the system, provided that the system is 
        used in accordance with its requirements and employment 
        decisions are not made contrary to the authorization responses 
        received.
            ``(17) No data stored pursuant to the system shall be 
        accessible to any person other than those operating the system 
        to verify employment without the written consent of each 
        enrolled individual given specifically for each instance of 
        disclosure or in response to a warrant issued on the basis of 
        probable cause issued by a judicial authority in a criminal 
        proceeding.''.

SEC. 3. ENHANCEMENT OF FEDERAL PREEMPTION STANDARDS.

    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.--No State or local government law or 
        contract shall--
                    ``(A) impose civil or criminal sanctions upon 
                employers who employ or otherwise do business with 
                unauthorized aliens;
                    ``(B) prohibit, require, authorize or permit a 
                system of verification of the authorization of 
                employees or employment applicants to accept employment 
                except as explicitly authorized by Federal law;
                    ``(C) require, authorize, or permit the use of a 
                federally mandated employment verification system for 
                any other purpose other than required by Federal law, 
                including obtaining or retaining a business or other 
                license provided by the unit of government; and
                    ``(D) require employers to use an employment 
                verification system for any purpose, except as required 
                by Federal law, including without limitation such 
                purposes as--
                            ``(i) a condition of receiving a government 
                        contract;
                            ``(ii) a condition of receiving a business 
                        license; or
                            ``(iii) the basis of assessing a 
                        penalty.''.
                                 <all>