[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5265 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5265

    To continue to prohibit the hiring, recruitment, or referral of 
              unauthorized aliens, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2010

 Mr. Boswell introduced the following bill; which was referred to the 
 Committee on the Judiciary, and in addition to the Committees on Ways 
  and Means and Education and Labor, 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 continue to prohibit the hiring, recruitment, or referral of 
              unauthorized aliens, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combat Illegal Immigration Through 
Employment Verification Act''.

SEC. 2. PURPOSES.

    (a) To continue to prohibit the hiring, recruitment, or referral of 
unauthorized aliens.
    (b) To require that each employer take reasonable steps to verify 
the identity and work authorization status of all its employees, 
without regard to national origin and citizenship status.
    (c) To authorize the Secretary of Homeland Security to access 
records of other Federal agencies for the purposes of confirming 
identity, authenticating lawful presence and preventing identity theft 
and fraud related to unlawful employment.
    (d) To ensure that the Commissioner of Social Security has the 
necessary authority to provide information to the Secretary of Homeland 
Security that would assist in the enforcement of the immigration laws.
    (e) To collect information on employee hires.
    (f) To electronically secure a Social Security number in the 
Employment Eligibility Verification System (EEVS) at the request of an 
individual who has been confirmed to be the holder of that number, and 
to prevent fraudulent use of the number by others.
    (g) To provide for record retention of EEVS inquiries, to prevent 
identity fraud and employment authorization fraud.
    (h) To employ fast track regulatory and procurement procedures to 
expedite implementation of this title and pertinent sections of the 
Immigration and Nationality Act for a period of two years from 
enactment.
    (i) To establish the following:
            (1) A document verification process requiring employers to 
        inspect, copy, and retain identity and work authorization 
        documents.
            (2) An EEVS requiring employers to obtain confirmation of 
        an individual's identity and work authorization.
            (3) Procedures for employers to register for the EEVS and 
        to confirm work eligibility through the EEVS.
            (4) A streamlined enforcement procedure to ensure efficient 
        adjudication of violations of this title.
            (5) A system for the imposition of civil penalties and 
        their enforcement, remission or mitigation.
            (6) An enhancement of criminal and civil penalties.
            (7) Increased coordination of information and enforcement 
        between the Internal Revenue Service and the Department of 
        Homeland Security regarding employers who have violations 
        related to the employment of unauthorized aliens.
            (8) Increased penalties under the Internal Revenue Code for 
        employers who have violations relating to the employment of 
        unauthorized aliens.

SEC. 3. UNLAWFUL EMPLOYMENT OF ALIENS.

    (a) Section 274A of the Immigration and Nationality Act (8 U.S.C. 
1324a) is amended to read as follows:
    ``(a) Making Employment of Unauthorized Aliens Unlawful.--
            ``(1) In general.--It is unlawful for an employer--
                    ``(A) to hire an alien for employment in the United 
                States knowing or with reckless disregard that the 
                alien is an unauthorized alien (as defined in 
                subsection (b)(1)) with respect to such employment; or
                    ``(B) to hire for employment in the United States 
                an individual without complying with the requirements 
                of subsections (c) and (d).
            ``(2) Continuing employment.--It is unlawful for an 
        employer, after hiring an alien for employment, to continue to 
        employ the alien in the United States knowing or with reckless 
        disregard that the alien is (or has become) an unauthorized 
        alien with respect to such employment.
            ``(3) Use of labor through contract.--For purposes of this 
        section, an employer who uses a contract, subcontract, or 
        exchange to obtain the labor of an alien in the United States 
        knowing that the alien is an unauthorized alien (as defined in 
        subsection (b)(1)) with respect to performing such labor, shall 
        be considered to have hired the alien for employment in the 
        United States in violation of paragraph (1)(A).
                    ``(A) By regulation, the Secretary may require, for 
                purposes of ensuring compliance with the immigration 
                laws, that an employer include in a written contract, 
                subcontract, or exchange an effective and enforceable 
                requirement that the contractor or subcontractor adhere 
                to the immigration laws of the United States, including 
                use of EEVS.
                    ``(B) The Secretary may establish procedures by 
                which an employer may obtain confirmation from the 
                Secretary that the contractor or subcontractor has 
                registered with the EEVS and is utilizing the EEVS to 
                verify its employees.
                    ``(C) The Secretary may establish such other 
                requirements for employers using contractors or 
                subcontractors as the Secretary deems necessary to 
                prevent knowing violations of this paragraph.
            ``(4) Application to federal government.--For purposes of 
        this section, the term `employer' includes entities in any 
        branch of the Federal Government.
            ``(5) Defense.--An employer that establishes that it has 
        complied in good faith with the requirements of subsections 
        (c)(1) through (c)(4), pertaining to document verification 
        requirements, and subsection (d) has established an affirmative 
        defense that the employer has not violated paragraph (1)(A) 
        with respect to such hiring, recruiting, or referral, however--
                    ``(A) until such time as the Secretary has required 
                an employer to participate in the EEVS or such 
                participation is permitted on a voluntary basis 
                pursuant to subsection (d), a defense is established 
                without a showing of compliance with subsection (d); 
                and
                    ``(B) to establish a defense, the employer must 
                also be in compliance with any additional requirements 
                that the Secretary may promulgate by regulation 
                pursuant to subsections (c), (d), and (k).
            ``(6) Failure to comply.--An employer is presumed to have 
        acted with knowledge or reckless disregard if the employer 
        fails to comply with written standards, procedures or 
        instructions issued by the Secretary. Such standards, 
        procedures or instructions shall be objective and verifiable.
    ``(b) Definitions.--
            ``(1) Definition of unauthorized alien.--As used in this 
        section, the term `unauthorized alien' means, with respect to 
        the employment of an alien at a particular time, that the alien 
        is not at that time either--
                    ``(A) an alien lawfully admitted for permanent 
                residence; or
                    ``(B) authorized to be so employed by the 
                Secretary.
            ``(2) Definition of employer.--For purposes of this 
        section, the term `employer' means any person or entity hiring, 
        recruiting, or referring an individual for employment in the 
        United States.
    ``(c) Document Verification Requirements.--Any employer hiring, 
recruiting, or referring an individual for employment in the United 
States shall take all reasonable steps to verify that the individual is 
authorized to work in the United States, including the requirements of 
subsection (d) and the following paragraphs:
            ``(1) Attestation after examination of documentation.--
                    ``(A) In general.--The employer must attest, under 
                penalty of perjury and on a form prescribed by the 
                Secretary, that it has verified the identity and work 
                authorization status of the individual by examining--
                            ``(i) a document described in subparagraph 
                        (B); or
                            ``(ii) a document described in subparagraph 
                        (C) and a document described in subparagraph 
                        (D).
                Such attestation may be manifested by a handwritten or 
                electronic signature. An employer has complied with the 
                requirement of this paragraph with respect to 
                examination of documentation if the employer has 
                followed applicable regulations and any written 
                procedures or instructions provided by the Secretary 
                and if a reasonable person would conclude that the 
                documentation is genuine and establishes the employee's 
                identity and authorization to work, taking into account 
                any information provided to the employer by the 
                Secretary, including photographs.
                    ``(B) Documents establishing both employment 
                authorization and identity.--A document described in 
                this subparagraph is an individual's--
                            ``(i) United States passport, or passport 
                        card issued pursuant to the Secretary of 
                        State's authority under 22 U.S.C. 211a; or
                            ``(ii) permanent resident card or other 
                        document issued by the Secretary or Secretary 
                        of State to aliens authorized to work in the 
                        United States, if the document--
                                    ``(I) contains a photograph of the 
                                individual, biometric data, such as 
                                fingerprints, or such other personal 
                                identifying information relating to the 
                                individual as the Secretary finds, by 
                                regulation, sufficient for the purposes 
                                of this subsection;
                                    ``(II) is evidence of authorization 
                                for employment in the United States; 
                                and
                                    ``(III) contains security features 
                                to make it resistant to tampering, 
                                counterfeiting, and fraudulent use.
                    ``(C) Documents establishing identity of 
                individual.--A document described in this subparagraph 
                includes--
                            ``(i) an individual's 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, 
                        provided that the issuing State or entity has 
                        certified to the Secretary of Homeland Security 
                        that it is in compliance with the minimum 
                        standards required under section 202 of the 
                        REAL ID Act of 2005 (division B of Public Law 
                        109-13) (49 U.S.C. 30301 note) and implementing 
                        regulations issued by the Secretary of Homeland 
                        Security once those requirements become 
                        effective;
                            ``(ii) an individual's 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 
                        which is not compliant with section 202 of the 
                        REAL ID Act of 2005 if--
                                    ``(I) the driver's license or 
                                identity card contains the individual's 
                                photograph as well as the individual's 
                                name, date of birth, gender, height, 
                                eye color, and address, and
                                    ``(II) the card is presented by the 
                                individual and examined by the employer 
                                in combination with a U.S. birth 
                                certificate, or a Certificate of 
                                Naturalization, or a Certificate of 
                                Citizenship, or such other documents as 
                                may be prescribed by the Secretary, or
                            ``(iii) other documentation evidencing 
                        identity as identified by the Secretary in his 
                        discretion, with notice to the public provided 
                        in the Federal Register, to be acceptable for 
                        purposes of this section.
                    ``(D) Special rule for minors.--Notwithstanding 
                subparagraphs (B) and (C), a minor who is under the age 
                of 18 and who is unable to produce an identity document 
                described in clause (i) through (ii) of subparagraph 
                (B) or clause (i) through (iii) of subparagraph (C) is 
                exempt from producing such a document if--
                            ``(i) a parent or legal guardian of the 
                        minor completes a form prescribed by the 
                        Secretary, and in the space for the minor's 
                        signature, the parent or legal guardian writes 
                        the words, `minor under age 18';
                            ``(ii) a parent or legal guardian of the 
                        minor completes a form prescribed by the 
                        Secretary, the `Preparer/Translator 
                        certification'; and
                            ``(iii) the employer of the minor writes in 
                        a form prescribed by the Secretary, in the 
                        space after the words `Document Identification 
                        #' the words, `minor under age 18'.
                    ``(E) Special rule for individuals with 
                disabilities.--Notwithstanding subparagraphs (B) and 
                (C), an individual with a disability (as defined in 
                section 3 of the Americans with Disabilities Act of 
                1990 (42 U.S.C. 12102)) who is unable to produce an 
                identity document described in clause (i) through (ii) 
                of subparagraph (B) or clause (i) through (iii) of 
                subparagraph (C), and who is being placed into 
                employment by a nonprofit organization or association 
                or as part of a rehabilitation program, and an 
                individual who demonstrates mental retardation whether 
                or not the individual participates in an employment 
                placement program through a nonprofit organization or 
                association or as part of a rehabilitation program, is 
                exempt from producing such a document if--
                            ``(i) a parent or legal guardian of the 
                        individual, or a representative from the 
                        nonprofit organization, association, or 
                        rehabilitation program placing the individual 
                        into a position of employment completes a form 
                        prescribed by the Secretary, and in the space 
                        for the covered individual's signature, writes 
                        the words, `special placement';
                            ``(ii) a parent or legal guardian of the 
                        individual or the program representative, 
                        completes a form prescribed by the Secretary, 
                        the `Preparer/Translator certification'; and
                            ``(iii) the employer of the covered 
                        individual writes in a form prescribed by the 
                        Secretary, in the space after the words 
                        `Document Identification #' the words, `special 
                        placement'.
                    ``(F) Documents evidencing employment 
                authorization.--The following documents may be accepted 
                as evidence of employment authorization--
                            ``(i) a Social Security account number card 
                        issued by the Commissioner of Social Security 
                        (other than a card which specifies on its face 
                        that the card is not valid for employment in 
                        the United States); or
                            ``(ii) any other documentation evidencing 
                        authorization of employment in the United 
                        States which the Secretary declares, by 
                        publication in the Federal Register, to be 
                        acceptable for purposes of this section.
                    ``(G) Authority to prohibit use of certain 
                documents.--If the Secretary finds that any document or 
                class of documents described in subparagraph (B), (C), 
                or (D) as establishing employment authorization or 
                identity does not reliably establish such authorization 
                or identity or is being used fraudulently to an 
                unacceptable degree, the Secretary shall, with notice 
                to the public provided in the Federal Register, 
                prohibit or restrict the use of that document or class 
                of documents for purposes of this subsection.
            ``(2) Individual attestation of employment authorization.--
        The individual must attest, under penalty of perjury on the 
        form prescribed by the Secretary, that the individual is a 
        citizen or national of the United States, an alien lawfully 
        admitted for permanent residence, or an alien who is authorized 
        under this Act or by the Secretary to be hired, recruited, or 
        referred for such employment. Such attestation may be 
        manifested by either a hand-written or electronic signature.
            ``(3) Retention of verification form.--After completion of 
        such form in accordance with paragraphs (1) and (2), the 
        employer must retain a paper, microfiche, microfilm, or 
        electronic version of the form and make it available for 
        inspection by officers of the Department of Homeland Security 
        (or persons designated by the Secretary), the Special Counsel 
        for Immigration-Related Unfair Employment Practices, or the 
        Department of Labor during a period beginning on the date of 
        the hiring, recruiting, or referral of the individual and 
        ending--
                    ``(A) in the case of the recruiting or referral for 
                a fee (without hiring) of an individual, five years 
                after the date of the recruiting or referral; and
                    ``(B) in the case of the hiring of an individual--
                            ``(i) five years after the date of such 
                        hiring; or
                            ``(ii) two years after the date the 
                        individual's employment is terminated, 
                        whichever is earlier.
            ``(4) Copying of documentation and recordkeeping 
        required.--
                    ``(A) Notwithstanding any other provision of law, 
                the employer shall copy all documents presented by an 
                individual pursuant to this subsection and shall retain 
                a paper, microfiche, microfilm, or electronic copy as 
                prescribed in paragraph (3), but only (except as 
                otherwise permitted under law) for the purposes of 
                complying with the requirements of this subsection. 
                Such copies shall reflect the signatures of the 
                employer and the employee, as well as the date of 
                receipt.
                    ``(B) The employer shall also maintain records of 
                Social Security Administration correspondence regarding 
                name and number mismatches or no-matches and the steps 
                taken to resolve such issues.
                    ``(C) The employer shall maintain records of all 
                actions and copies of any correspondence or action 
                taken by the employer to clarify or resolve any issue 
                that raises reasonable doubt as to the validity of the 
                alien's identity or work authorization.
                    ``(D) The employer shall maintain such records as 
                prescribed in this subsection. The Secretary may 
                prescribe the manner of recordkeeping and may require 
                that additional records be kept or that additional 
                documents be copied and maintained. The Secretary may 
                require that these documents be transmitted 
                electronically, and may develop automated capabilities 
                to request such documents.
            ``(5) Penalties.--An employer that fails to comply with any 
        requirement of this subsection shall be penalized under 
        subsection (e)(4)(B).
            ``(6) No authorization of national identification cards.--
        Nothing in this section shall be construed to authorize, 
        directly or indirectly, the issuance or use of national 
        identification cards or the establishment of a national 
        identification card.
            ``(7) Nondiscrimination.--The employer shall use the 
        procedures for document verification set forth in this 
        paragraph for all employees without regard to national origin 
        or citizenship status.
    ``(d) Employment Eligibility Verification System.--
            ``(1) In general.--The basic pilot program established 
        under section 403(a) of the Illegal Immigration Reform and 
        Immigrant Responsibility Act of 1996 (division C of Public Law 
        104-208; 8 U.S.C. 1324a note) is hereby renamed as the 
        `Employment Eligibility Verification System' or `EEVS' (and is 
        referred to in this section as such).
            ``(2) Extension of program.--The Secretary of Homeland 
        Security shall provide for the implementation of EEVS 
        throughout the United States on a timely basis, consistent with 
        the implementation of paragraph (3) and such System shall 
        continue in operation permanently and shall not terminate.
            ``(3) Implementation schedule.--
                    ``(A) Priority employers.--Not later than 1 year 
                after the date of enactment of this section, the 
                Secretary in his discretion, with notice to the public 
                provided in the Federal Register, is authorized to 
                require any employer or industry which the Secretary 
                determines to be part of the critical infrastructure, a 
                Federal contractor, or directly related to the national 
                security or homeland security of the United States to 
                participate in the EEVS. This requirement may be 
                applied to both newly hired and current employees. The 
                Secretary shall notify employers subject to this 
                subparagraph 60 days prior to required EEVS compliance.
                    ``(B) Large employers.--Not later than 2 years 
                after the date of enactment of this Act of 2007 the 
                Secretary shall require an employer with 5,000 or more 
                employees in the United States to participate in the 
                System, with respect to all employees hired by the 
                employer after the date the Secretary requires such 
                participation.
                    ``(C) Midsized employers.--Not later than 3 years 
                after the date of enactment of this Act, the Secretary 
                shall require an employer with less than 5,000 
                employees and 1,000 or more employees in the United 
                States to participate in the System, with respect to 
                all employees hired by the employer after the date the 
                Secretary requires such participation.
                    ``(D) Small employers.--Not later than 4 years 
                after the date of the enactment of this Act of 2007, 
                the Secretary shall require all employers with less 
                than 1,000 employees in the United States to 
                participate in the System, with respect to all 
                employees hired by the employer after the date the 
                Secretary requires such participation.
                    ``(E) All employees.--No later than 5 years after 
                the date of enactment of this section, all employers 
                shall participate in the EEVS with respect to new 
                employees and all employees whose identity and 
                employment authorization have not been previously 
                verified through EEVS. The Secretary may specify 
                earlier dates for participation in the EEVS in his 
                discretion for some or all classes of employer or 
                employee, provided that the Secretary provides 
                notification to employees and prints notification in 
                the Federal Register 60 days prior to required 
                compliance with EEVS.
                    ``(F) The Secretary shall create the necessary 
                systems and processes to monitor the functioning of the 
                EEVS, including the volume of the workflow, the speed 
                of processing of queries, and the speed and accuracy of 
                responses. These systems and processes shall be audited 
                by the Government Accountability Office 9 months after 
                the date of enactment of this section and 24 months 
                after the date of enactment of this section. The 
                Government Accountability Office shall report the 
                results of the audits to Congress.
            ``(4) Participation in eevs.--The Secretary has the 
        following discretionary authority to require or to permit 
        participation in the EEVS--
                    ``(A) to permit any employer that is not required 
                to participate in the EEVS to do so on a voluntary 
                basis; and
                    ``(B) to require any employer that is required to 
                participate in the EEVS with respect to its newly hired 
                employees also to do so with respect to its current 
                workforce if the Secretary has reasonable cause to 
                believe that the employer has engaged in any violation 
                of the immigration laws.
            ``(5) Consequence of failure to participate.--If an 
        employer is required under this subsection to participate in 
        the EEVS 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 subsection (a)(1)(B) of this section with respect to 
                that individual, and
                    ``(B) a rebuttable presumption is created that the 
                employer has violated subsection (a)(1)(A) or (a)(2) of 
                this section.
        Subparagraph (B) shall not apply in any prosecution under 
        subsection 274A(f)(1).
            ``(6) Procedures for participants in the eevs.--
                    ``(A) In general.--An employer participating in the 
                EEVS must register in the EEVS and conform to the 
                following procedures in the event of hiring, 
                recruiting, or referring any individual for employment 
                in the United States:
                            ``(i) Registration of employers.--The 
                        Secretary, through notice in the Federal 
                        Register, shall prescribe procedures that 
                        employers must follow to register in the EEVS. 
                        In prescribing these procedures, the Secretary 
                        shall have authority to require employers to 
                        provide:
                                    ``(I) employer's name;
                                    ``(II) employer's Employment 
                                Identification Number (EIN);
                                    ``(III) company address;
                                    ``(IV) name, position and Social 
                                Security number of the employer's 
                                employees accessing the EEVS; and
                                    ``(V) such other information as the 
                                Secretary deems necessary to ensure 
                                proper use and security of the EEVS.
                        The Secretary shall require employers to 
                        undergo such training as the Secretary deems 
                        necessary to ensure proper use and security of 
                        the EEVS. To the extent practicable, such 
                        training shall be made available 
                        electronically.
                            ``(ii) Provision of additional 
                        information.--The employer shall obtain from 
                        the individual (and the individual shall 
                        provide) and shall record in such manner as the 
                        Secretary may specify--
                                    ``(I) an individual's Social 
                                Security account number,
                                    ``(II) if the individual does not 
                                attest to United States nationality 
                                under subsection (c)(2) of this 
                                section, such identification or 
                                authorization number established by the 
                                Department of Homeland Security as the 
                                Secretary of Homeland Security shall 
                                specify, and
                                    ``(III) such other information as 
                                the Secretary may require to determine 
                                the identity and work authorization of 
                                an employee.
                            ``(iii) Presentation of documentation.--The 
                        employer, and the individual whose identity and 
                        employment eligibility are being confirmed, 
                        shall fulfill the requirements of subsection 
                        (c) of this section.
                    ``(B) Seeking confirmation.--
                            ``(i) The employer shall use the EEVS to 
                        provide to the Secretary all required 
                        information in order to obtain confirmation of 
                        the identity and employment eligibility of any 
                        individual no earlier than the date of hire and 
                        no later than on the first day of employment 
                        (or recruitment or referral, as the case may 
                        be). An employer may not, however, make the 
                        starting date of an individual's employment 
                        contingent on the receipt of a confirmation of 
                        the identity and employment eligibility.
                            ``(ii) For reverification of an employee 
                        with a limited period of work authorization, 
                        all required verification procedures must be 
                        complete on the date the employee's work 
                        authorization expires.
                            ``(iii) For initial verification of an 
                        employee hired before the employer is subject 
                        to the employment eligibility verification 
                        system, all required procedures must be 
                        complete on such date as the Secretary shall 
                        specify in accordance with subparagraph 
                        (d)(2)(E).
                            ``(iv) The Secretary shall provide, and the 
                        employer shall utilize, as part of EEVS, a 
                        method of communicating notices and requests 
                        for information or action on the part of the 
                        employer with respect to expiring work 
                        authorization or status and other matters. 
                        Additionally, the Secretary shall provide a 
                        method of notifying employers of a 
                        confirmation, nonconfirmation or a notice that 
                        further action is required (`further action 
                        notice'). The employer shall communicate to the 
                        individual that is the subject of the 
                        verification all information provided to the 
                        employer by the EEVS for communication to the 
                        individual in a timely manner.
                    ``(C) Confirmation or nonconfirmation.--
                            ``(i) Initial response.--The verification 
                        system shall provide a confirmation, a 
                        nonconfirmation, or a further action notice of 
                        an individual's identity and employment 
                        eligibility at the time of the inquiry, unless 
                        for technological reasons or due to unforeseen 
                        circumstances, the EEVS is unable to provide 
                        such confirmation or further action notice. In 
                        such situations, the system shall provide 
                        confirmation or further action notice within 3 
                        business days of the initial inquiry. If 
                        providing confirmation or further action 
                        notice, the EEVS shall provide an appropriate 
                        code indicating such confirmation or such 
                        further action notice.
                            ``(ii) Confirmation upon initial inquiry.--
                        When the employer receives an appropriate 
                        confirmation of an individual's identity and 
                        work eligibility under the EEVS, the employer 
                        shall record the confirmation in such manner as 
                        the Secretary may specify.
                            ``(iii) Further action notice upon initial 
                        inquiry and secondary verification.--
                                    ``(I) Further action notice.--If 
                                the employer receives a further action 
                                notice of an individual's identity or 
                                work eligibility under the EEVS, the 
                                employer shall inform the individual 
                                without delay for whom the confirmation 
                                is sought of the further action notice 
                                and any procedures specified by the 
                                Secretary for addressing the further 
                                action notice. The employee must 
                                acknowledge in writing the receipt of 
                                the further action notice from the 
                                employer.
                                    ``(II) Contest.--Within ten 
                                business days from the date of 
                                notification to the employee, the 
                                employee must contact the appropriate 
                                agency to contest the further action 
                                notice and, if the Secretary so 
                                requires, appear in person at the 
                                appropriate Federal or State agency for 
                                purposes of verifying the individual's 
                                identity and employment authorization. 
                                The Secretary, in consultation with the 
                                Commissioner of Social Security and 
                                other appropriate Federal and State 
                                agencies, shall specify an available 
                                secondary verification procedure to 
                                confirm the validity of information 
                                provided and to provide a final 
                                confirmation or nonconfirmation. An 
                                individual contesting a further action 
                                notice must attest under penalty of 
                                perjury to his identity and employment 
                                authorization.
                                    ``(III) No contest.--If the 
                                individual does not contest the further 
                                action notice within the period 
                                specified in subparagraph 
                                (5)(C)(iii)(II), a final 
                                nonconfirmation shall issue. The 
                                employer shall then record the 
                                nonconfirmation in such manner as the 
                                Secretary may specify.
                                    ``(IV) Finality.--The EEVS shall 
                                provide a final confirmation or 
                                nonconfirmation within 10 business days 
                                from the date of the employee's 
                                contesting of the further action 
                                notice. As long as the employee is 
                                taking the steps required by the 
                                Secretary and the agency that the 
                                employee has contacted to resolve a 
                                further action notice, the Secretary 
                                shall extend the period of 
                                investigation until the secondary 
                                verification procedure allows the 
                                Secretary to provide a final 
                                confirmation or nonconfirmation. If the 
                                employee fails to take the steps 
                                required by the Secretary and the 
                                appropriate agency, a final 
                                nonconfirmation may be issued to that 
                                employee.
                                    ``(V) Re-examination.--Nothing in 
                                this section shall prevent the 
                                Secretary from reexamining a case where 
                                a final confirmation has been provided 
                                if subsequently received information 
                                indicates that the individual may not 
                                be work authorized.
                                    ``(VI) Termination.--In no case 
                                shall an employer terminate employment 
                                of an individual solely because of a 
                                failure of the individual to have 
                                identity and work eligibility confirmed 
                                under this section until a 
                                nonconfirmation becomes final and the 
                                period to timely file an administrative 
                                appeal has passed, and in the case 
                                where an administrative appeal has been 
                                denied, the period to timely file a 
                                petition for judicial review has 
                                passed. When final confirmation or 
                                nonconfirmation is provided, the 
                                confirmation system shall provide an 
                                appropriate code indicating such 
                                confirmation or nonconfirmation. An 
                                individual's failure to contest a 
                                further action notice shall not be 
                                considered an admission of guilt with 
                                respect to any violation of this 
                                section or any provision of law.
                    ``(D) Consequences of nonconfirmation.--
                            ``(i) Termination of continued 
                        employment.--If the employer has received a 
                        final nonconfirmation regarding an individual, 
                        the employer shall terminate employment (or 
                        recruitment or referral) of the individual, 
                        unless the individual files an administrative 
                        appeal of a final nonconfirmation notice under 
                        paragraph (7) within the time period prescribed 
                        in that paragraph and the Secretary or the 
                        Commissioner stays the final nonconfirmation 
                        notice pending the resolution of the 
                        administrative appeal.
                            ``(ii) Continued employment after final 
                        nonconfirmation.--If the employer continues to 
                        employ (or to recruit or refer) an individual 
                        after receiving final nonconfirmation (unless 
                        the individual filed an administrative appeal 
                        of a final nonconfirmation notice under 
                        paragraph (7) within the time period prescribed 
                        in that paragraph and the Secretary of the 
                        Commissioner stayed the final nonconfirmation 
                        notice pending the resolution of the 
                        administrative appeal), a rebuttable 
                        presumption is created that the employer has 
                        violated subsections (a)(1)(A) and (a)(2) of 
                        this section. The previous sentence shall not 
                        apply in any prosecution under subsection 
                        (f)(1) of this section.
                    ``(E) Obligation to respond to queries and 
                additional information.--
                            ``(i) Employers are required to comply with 
                        requests from the Secretary through EEVS for 
                        information, including queries concerning 
                        current and former employees that relate to the 
                        functioning of the EEVS, the accuracy of the 
                        responses provided by the EEVS, and any 
                        suspected fraud or identity theft in the use of 
                        the EEVS. Failure to comply with such a request 
                        is a violation of section (a)(1)(B).
                            ``(ii) Individuals being verified through 
                        EEVS may be required to take further action to 
                        address irregularities identified in the 
                        documents relied upon for purposes of 
                        employment verification. The employer shall 
                        communicate to the individual any such 
                        requirement for further actions and shall 
                        record the date and manner of such 
                        communication. The individual must acknowledge 
                        in writing the receipt of this communication 
                        from the employer. Failure to communicate such 
                        a requirement is a violation of section 
                        (a)(1)(B).
                            ``(iii) The Secretary is authorized, with 
                        notice to the public provided in the Federal 
                        Register, to implement, clarify, and supplement 
                        the requirements of this paragraph in order to 
                        facilitate the functioning of the EEVS or to 
                        prevent fraud or identity theft in the use of 
                        the EEVS.
                    ``(F) Impermissible use of the eevs.--
                            ``(i) An employer may not use the EEVS to 
                        verify an individual prior to extending to the 
                        individual an offer of employment.
                            ``(ii) An employer may not require an 
                        individual to verify the individual's own 
                        employment eligibility through the EEVS as a 
                        condition of extending to that individual an 
                        offer of employment. Nothing in this paragraph 
                        shall be construed to prevent an employer from 
                        encouraging an employee or a prospective 
                        employee from verifying the employee's or a 
                        prospective employee's own employment 
                        eligibility prior to obtaining employment 
                        pursuant to paragraph (5)(H).
                            ``(iii) An employer may not terminate an 
                        individual's employment solely because that 
                        individual has been issued a further action 
                        notice.
                            ``(iv) An employer may not take the 
                        following actions solely because an individual 
                        has been issued a further action notice:
                                    ``(I) reduce salary, bonuses or 
                                other compensation due to the employee;
                                    ``(II) suspend the employee without 
                                pay;
                                    ``(III) reduce the hours that the 
                                employee is required to work if such 
                                reduction is accompanied by a reduction 
                                in salary, bonuses or other 
                                compensation due to the employee, 
                                except that, with the agreement of the 
                                employee, an employer may provide an 
                                employee with reasonable time off 
                                without pay in order to contest and 
                                resolve the further action notice 
                                received by the employee; and
                                    ``(IV) deny the employee the 
                                training necessary to perform the 
                                employment duties for which the 
                                employee has been hired.
                            ``(v) An employer may not, in the course of 
                        utilizing the procedures for document 
                        verification set forth in subsection (c), 
                        require that a prospective employee present 
                        additional documents or different documents 
                        than those prescribed under that subsection.
                            ``(vi) The Secretary of Homeland Security 
                        shall develop the necessary policies and 
                        procedures to monitor employers' use of the 
                        EEVS and their compliance with the requirements 
                        set forth in this section. Employers are 
                        required to comply with requests from the 
                        Secretary for information related to any 
                        monitoring, audit or investigation undertaken 
                        pursuant to this subparagraph.
                            ``(vii) The Secretary of Homeland Security, 
                        in consultation with the Secretary of Labor, 
                        shall establish and maintain a process by which 
                        any employee (or any prospective employee who 
                        would otherwise have been hired) who has reason 
                        to believe that an employer has violated 
                        subparagraphs (i)-(v) may file a complaint 
                        against the employer.
                            ``(viii) Any employer found to have 
                        violated subparagraphs (i)-(v) shall pay a 
                        civil penalty of up to $10,000 for each 
                        violation.
                            ``(ix) This paragraph is not intended to, 
                        and does not, create any right, benefit, trust, 
                        or responsibility, whether substantive or 
                        procedural, enforceable at law or equity by a 
                        party against the United States, its 
                        departments, agencies, instrumentalities, 
                        entities, officers, employees, or agents, or 
                        any person, nor does it create any right of 
                        review in a judicial proceeding.
                            ``(x) No later than 3 months after the date 
                        of enactment of this section, the Secretary of 
                        Homeland Security, in cooperation with the 
                        Secretary of Labor and the Administrator of the 
                        Small Business Administration, shall conduct a 
                        campaign to disseminate information respecting 
                        the rights and remedies prescribed under this 
                        section. Such campaign shall be aimed at 
                        increasing the knowledge of employers, 
                        employees, and the general public concerning 
                        employer and employee rights, responsibilities 
                        and remedies under this section.
                                    ``(I) In order to carry out the 
                                campaign under this paragraph, the 
                                Secretary of Homeland Security may, to 
                                the extent deemed appropriate and 
                                subject to the availability of 
                                appropriations, contract with public 
                                and private organizations for outreach 
                                activities under the campaign.
                                    ``(II) There are authorized to be 
                                appropriated to carry out this 
                                paragraph $40,000,000 for each fiscal 
                                year 2007 through 2009.
                    ``(G) Based on a regular review of the EEVS and the 
                document verification procedures to identify fraudulent 
                use and to assess the security of the documents being 
                used to establish identity or employment authorization, 
                the Secretary in consultation with the Commissioner of 
                Social Security may modify by Notice published in the 
                Federal Register the documents that must be presented 
                to the employer, the information that must be provided 
                to EEVS by the employer, and the procedures that must 
                be followed by employers with respect to any aspect of 
                the EEVS if the Secretary in his discretion concludes 
                that the modification is necessary to ensure that EEVS 
                accurately and reliably determines the work 
                authorization of employees while providing protection 
                against fraud and identity theft.
                    ``(H) Subject to appropriate safeguards to prevent 
                misuse of the system, the Secretary in consultation 
                with the Commissioner of Social Security, shall 
                establish secure procedures to permit an individual who 
                seeks to verify the individual's own employment 
                eligibility prior to obtaining or changing employment, 
                to contact the appropriate agency and, in a timely 
                manner, correct or update the information used by the 
                EEVS.
            ``(7) Protection from liability for actions taken on the 
        basis of information provided by the confirmation system.--No 
        employer participating in the EEVS shall be liable under any 
        law for any employment-related action taken with respect to the 
        employee in good faith reliance on information provided through 
        the confirmation system.
            ``(8) Administrative review.--
                    ``(A) In general.--An individual who receives a 
                final nonconfirmation notice may, not later than 30 
                days after the date that such notice is received, file 
                an administrative appeal of such final notice. An 
                individual who did not timely contest a further action 
                notice may not avail himself of this paragraph. Unless 
                the Secretary of Homeland Security, in consultation 
                with the Commissioner of Social Security, specifies 
                otherwise, all administrative appeals shall be filed as 
                follows:
                            ``(i) Nationals of the united states.--An 
                        individual claiming to be a national of the 
                        United States shall file the administrative 
                        appeal with the Commissioner.
                            ``(ii) Aliens.--An individual claiming to 
                        be an alien authorized to work in the United 
                        States shall file the administrative appeal 
                        with the Secretary.
                    ``(B) Review for error.--The Secretary and the 
                Commissioner shall each develop procedures for 
                resolving administrative appeals regarding final 
                nonconfirmations based upon the information that the 
                individual has provided, including any additional 
                evidence that was not previously considered. Appeals 
                shall be resolved within 30 days after the individual 
                has submitted all evidence relevant to the appeal. The 
                Secretary and the Commissioner may, on a case by case 
                basis for good cause, extend this period in order to 
                ensure accurate resolution of an appeal before him. 
                Administrative review under this paragraph (7) shall be 
                limited to whether the final nonconfirmation notice is 
                supported by the weight of the evidence.
                    ``(C) Administrative relief.--The relief available 
                under this paragraph (7) is limited to an 
                administrative order upholding, reversing, modifying, 
                amending, or setting aside the final nonconfirmation 
                notice. The Secretary or the Commissioner shall stay 
                the final nonconfirmation notice pending the resolution 
                of the administrative appeal unless the Secretary or 
                the Commissioner determines that the administrative 
                appeal is frivolous, unlikely to succeed on the merits, 
                or filed for purposes of delay and terminates the stay.
                    ``(D) Damages, fees and costs.--No money damages, 
                fees or costs may be awarded in the administrative 
                review process, and no court shall have jurisdiction to 
                award any damages, fees or costs relating to such 
                administrative review under the Equal Access to Justice 
                Act or any other law.
            ``(9) Judicial review.--
                    ``(A) Exclusive procedure.--Notwithstanding any 
                other provision of law (statutory or nonstatutory) 
                including sections 1361 and 1651 of title 28, no court 
                shall have jurisdiction to consider any claim against 
                the United States, or any of its agencies, officers, or 
                employees, challenging or otherwise relating to a final 
                nonconfirmation notice or to the EEVS, except as 
                specifically provided by this paragraph. Judicial 
                review of a final nonconfirmation notice is governed 
                only by chapter 158 of title 28, except as provided 
                below.
                    ``(B) Requirements for review of a final 
                nonconfirmation notice.--With respect to review of a 
                final nonconfirmation notice under subsection (a), the 
                following requirements apply:
                            ``(i) Deadline.--The petition for review 
                        must be filed no later than 30 days after the 
                        date of the completion of the administrative 
                        appeal.
                            ``(ii) Venue and forms.--The petition for 
                        review shall be filed with the United States 
                        Court of Appeals for the judicial circuit 
                        wherein the petitioner resided when the final 
                        nonconfirmation notice was issued. The record 
                        and briefs do not have to be printed. The court 
                        of appeals shall review the proceeding on a 
                        typewritten record and on typewritten briefs.
                            ``(iii) Service.--The respondent is either 
                        the Secretary of Homeland Security or the 
                        Commissioner of Social Security, but not both, 
                        depending upon who issued (or affirmed) the 
                        final nonconfirmation notice. In addition to 
                        serving the respondent, the petitioner must 
                        also serve the Attorney General.
                            ``(iv) Petitioner's brief.--The petitioner 
                        shall serve and file a brief in connection with 
                        a petition for judicial review not later than 
                        40 days after the date on which the 
                        administrative record is available, and may 
                        serve and file a reply brief not later than 14 
                        days after service of the brief of the 
                        respondent, and the court may not extend these 
                        deadlines, except for good cause shown. If a 
                        petitioner fails to file a brief within the 
                        time provided in this paragraph, the court 
                        shall dismiss the appeal unless a manifest 
                        injustice would result. The court of appeals 
                        may set an expedited briefing schedule.
                            ``(v) Scope and standard for review.--The 
                        court of appeals shall decide the petition only 
                        on the administrative record on which the final 
                        nonconfirmation order is based. The burden 
                        shall be on the petitioner to show that the 
                        final nonconfirmation decision was arbitrary, 
                        capricious, not supported by substantial 
                        evidence, or otherwise not in accordance with 
                        law. Administrative findings of fact are 
                        conclusive unless any reasonable adjudicator 
                        would be compelled to conclude to the contrary.
                            ``(vi) Stay.--The court of appeals shall 
                        stay the final nonconfirmation notice pending 
                        its decision on the petition for review unless 
                        the court determines that the petition for 
                        review is frivolous, unlikely to succeed on the 
                        merits, or filed for purposes of delay.
                    ``(C) Exhaustion of administrative remedies.--A 
                court may review a final nonconfirmation order only 
                if--
                            ``(i) the petitioner has exhausted all 
                        administrative remedies available to the alien 
                        as of right, and
                            ``(ii) another court has not decided the 
                        validity of the order, unless the reviewing 
                        court finds that the petition presents grounds 
                        that could not have been presented in the prior 
                        judicial proceeding or that the remedy provided 
                        by the prior proceeding was inadequate or 
                        ineffective to test the validity of the order.
                    ``(D) Limit on injunctive relief.--Regardless of 
                the nature of the action or claim or of the identity of 
                the party or parties bringing the action, no court 
                (other than the Supreme Court) shall have jurisdiction 
                or authority to enjoin or restrain the operation of the 
                provisions in this section, other than with respect to 
                the application of such provisions to an individual 
                petitioner.
            ``(10) Management of employment eligibility verification 
        system.--
                    ``(A) In general.--The Secretary shall manage and 
                modify the EEVS in order to--
                            ``(i) respond to inquiries made by 
                        participating employers at any time through the 
                        internet concerning an individual's identity 
                        and whether the individual is authorized to be 
                        employed;
                            ``(ii) maintain records of the inquiries 
                        that were made, of confirmations provided (or 
                        not provided), and of the codes provided to 
                        employers as evidence of their compliance with 
                        their obligations under the EEVS; and
                            ``(iii) provide information to, and request 
                        action by, employers and individuals using the 
                        system, including notifying employers in 
                        advance of the expiration or other relevant 
                        change in an employee's employment 
                        authorization, and directing an employer to 
                        convey to the employee a request to contact the 
                        appropriate Federal or State agency.
                    ``(B) Operation of system.--The EEVS shall be 
                operated--
                            ``(i) to maximize its reliability and ease 
                        of use by employers consistent with insulating 
                        and protecting the privacy and security of the 
                        underlying information;
                            ``(ii) to respond accurately to all 
                        inquiries made by employers on whether 
                        individuals are authorized to be employed and 
                        to register any times when the system is unable 
                        to receive inquiries;
                            ``(iii) to maintain appropriate 
                        administrative, technical, and physical 
                        safeguards to prevent unauthorized disclosure 
                        of personal information;
                            ``(iv) to allow for auditing use of the 
                        system to detect fraud and identify theft, and 
                        to preserve the security of the information in 
                        all of the system, including but not limited to 
                        the following:
                                    ``(I) to develop and use algorithms 
                                to detect potential identity theft, 
                                such as multiple uses of the same 
                                identifying information or documents;
                                    ``(II) to develop and use 
                                algorithms to detect misuse of the 
                                system by employers and employees;
                                    ``(III) to develop capabilities to 
                                detect anomalies in the use of the 
                                system that may indicate potential 
                                fraud or misuse of the system; and
                                    ``(IV) to audit documents and 
                                information submitted by potential 
                                employees to employers, including 
                                authority to conduct interviews with 
                                employers and employees;
                            ``(v) to confirm identity and work 
                        authorization through verification of records 
                        maintained by the Secretary, other Federal 
                        departments, States, the Commonwealth of the 
                        Northern Mariana Islands, or an outlying 
                        possession of the United States, as determined 
                        necessary by the Secretary, including--
                                    ``(I) records maintained by the 
                                Social Security Administration as 
                                specified in (D);
                                    ``(II) birth and death records 
                                maintained by vital statistics agencies 
                                of any state or other United States 
                                jurisdiction;
                                    ``(III) passport and visa records 
                                (including photographs) maintained by 
                                the United States Department of State; 
                                and
                                    ``(IV) State driver's license or 
                                identity card information (including 
                                photographs) maintained by State 
                                department of motor vehicles; and
                            ``(vi) to confirm electronically the 
                        issuance of the employment authorization or 
                        identity document and to display the digital 
                        photograph that the issuer placed on the 
                        document so that the employer can compare the 
                        photograph displayed to the photograph on the 
                        document presented by the employee. If in 
                        exceptional cases a photograph is not available 
                        from the issuer, the Secretary shall specify a 
                        temporary alternative procedure for confirming 
                        the authenticity of the document.
                    ``(C) Operational and technical regulations.--The 
                Secretary is authorized, with notice to the public 
                provided in the Federal Register, to issue regulations 
                concerning operational and technical aspects of the 
                EEVS and the efficiency, accuracy, and security of the 
                EEVS.
                    ``(D) Access to information.--
                            ``(i) Notwithstanding any other provision 
                        of law, the Secretary of Homeland Security 
                        shall have access to relevant records described 
                        at paragraph (9)(B)(v), for the purposes of 
                        preventing identity theft and fraud in the use 
                        of the EEVS and enforcing the provisions of 
                        this section governing employment verification.
                            ``(ii) The Secretary, in consultation with 
                        the Commissioner of Social Security and other 
                        appropriate Federal and State agencies, shall 
                        develop policies and procedures to ensure 
                        protection of the privacy and security of 
                        personally identifiable information and 
                        identifiers contained in the records accessed 
                        pursuant to this paragraph and subparagraph 
                        (d)(5)(E)(i). The Secretary, in consultation 
                        with the Commissioner and other appropriate 
                        Federal and State agencies, shall develop and 
                        deploy appropriate privacy and security 
                        training for the Federal and State employees 
                        accessing the records pursuant to this 
                        paragraph and subparagraph (d)(5)(E)(i).
                            ``(iii) The Chief Privacy Officer of the 
                        Department of Homeland Security shall conduct 
                        regular privacy audits of the policies and 
                        procedures established under subparagraph 
                        (9)(D)(ii), including any collection, use, 
                        dissemination, and maintenance of personally 
                        identifiable information and any associated 
                        information technology systems, as well as 
                        scope of requests for this information. The 
                        Chief Privacy Officer shall review the results 
                        of the audits and recommend to the Secretary 
                        and the Privacy and Civil Liberties Oversight 
                        Board any changes necessary to improve the 
                        privacy protections of the program.
                    ``(E) Responsibilities of the secretary of homeland 
                security.--
                            ``(i) As part of the EEVS, the Secretary 
                        shall maintain a reliable, secure method, 
                        which, operating through the EEVS and within 
                        the time periods specified, compares the name, 
                        alien identification or authorization number, 
                        or other relevant information provided in an 
                        inquiry against such information maintained or 
                        accessed by the Secretary in order to confirm 
                        (or not confirm) the validity of the 
                        information provided, the correspondence of the 
                        name and number, whether the alien is 
                        authorized to be employed in the United States 
                        (or, to the extent that the Secretary 
                        determines to be feasible and appropriate, 
                        whether the Secretary's records verify United 
                        States citizenship), and such other information 
                        as the Secretary may prescribe.
                            ``(ii) As part of the EEVS, the Secretary 
                        shall establish a reliable, secure method, 
                        which, operating through the EEVS, displays the 
                        digital photograph described in paragraph 
                        (d)(9)(B)(vi).
                            ``(iii) The Secretary shall have authority 
                        to prescribe when a confirmation, 
                        nonconfirmation or further action notice shall 
                        be issued.
                            ``(iv) The Secretary shall perform regular 
                        audits under the EEVS, as described in 
                        paragraph (d)(9)(B)(iv) of this section and 
                        shall utilize the information obtained from 
                        such audits, as well as any information 
                        obtained from the Commissioner of Social 
                        Security pursuant to section 4 of this Act, for 
                        the purposes of this Act and of immigration 
                        enforcement in general.
                            ``(v) The Secretary shall make appropriate 
                        arrangements to allow employers who are 
                        otherwise unable to access the EEVS to use 
                        Federal Government facilities or public 
                        facilities in order to utilize the EEVS.
                            ``(vi) The Secretary shall authorize 
                        certain entities to serve as liaisons between 
                        the electronic verification system and 
                        employers who wish to outsource submission of 
                        employment eligibility verification queries for 
                        newly hired or current employees. The Secretary 
                        shall establish regulations modeled on the E-
                        Verify Designated Agent program in place at the 
                        Department as of 2007. Designated agents shall 
                        register with the Department and sign a 
                        Memorandum of Understanding as determined by 
                        the Secretary. Additionally designated agents 
                        shall sign the determined Memorandum of 
                        Understanding with each employer who has 
                        designated the agent to perform verification 
                        services on their behalf. The Secretary may 
                        authorize regulations ensuring proper conduct 
                        and oversight of designated agents as 
                        appropriate. The Secretary shall make available 
                        to employers information on how to identify and 
                        enter into an agreement with a designated agent 
                        to arrange for such an agent to perform 
                        verification services on their behalf.
                    ``(F) Responsibilities of the secretary of state.--
                As part of the EEVS, the Secretary of State shall 
                provide to the Secretary access to passport and visa 
                information as needed to confirm that a passport or 
                passport card presented under section (c)(1)(B) belongs 
                to the subject of the EEVS check, or that a passport or 
                visa photograph matches an individual.
                    ``(G) Updating information.--The Commissioner of 
                Social Security and the Secretaries of Homeland 
                Security and State shall update their information in a 
                manner that promotes maximum accuracy and shall provide 
                a process for the prompt correction of erroneous 
                information.
            ``(11) Limitation on use of the employment eligibility 
        verification system.--Notwithstanding any other provision of 
        law, nothing in this subsection shall be construed to permit or 
        allow any department, bureau, or other agency of the United 
        States Government to utilize any information, database, or 
        other records assembled under this subsection for any purpose 
        other than for the enforcement and administration of the 
        immigration laws, anti-terrorism laws, or for enforcement of 
        Federal criminal law related to the functions of the EEVS, 
        including prohibitions on forgery, fraud and identity theft.
            ``(12) Unauthorized use or disclosure of information.--Any 
        employee of the Department of Homeland Security or another 
        Federal or State agency who knowingly uses or discloses the 
        information assembled under this subsection for a purpose other 
        than one authorized under this section shall pay a civil 
        penalty of $5,000-$50,000 for each violation.
            ``(13) Conforming amendment.--Public Law 104-208, div. C, 
        title IV, subtitle A, sections 402-405 are repealed, provided 
        that nothing in this subsection shall be construed to limit the 
        authority of the Secretary to allow or continue to allow the 
        participation of Basic Pilot employers in the EEVS established 
        by this subsection.
            ``(14) Funds.--In addition to any appropriated funds, the 
        Secretary is authorized to use funds provided in sections 286 
        (m) and (n), for the maintenance and operation of the EEVS. 
        EEVS shall be considered an immigration adjudication service 
        for purposes of sections 286 (m) and (n).
            ``(15) Non-discrimination.--The employer shall use the 
        procedures for EEVS specified in this section for all employees 
        without regard to national origin or citizenship status.
    ``(e) Compliance.--
            ``(1) Complaints and investigations.--The Secretary of 
        Homeland Security shall establish procedures--
                    ``(A) for individuals and entities to file 
                complaints respecting potential violations of 
                subsection (a) or (g)(1);
                    ``(B) for the investigation of those complaints 
                which the Secretary deems it appropriate to 
                investigate; and
                    ``(C) for the investigation of such other 
                violations of subsection (a) or (g)(1) as the Secretary 
                determines to be appropriate.
            ``(2) Authority in investigations.--In conducting 
        investigations and hearings under this subsection--
                    ``(A) immigration officers shall have reasonable 
                access to examine evidence of any employer being 
                investigated; and
                    ``(B) immigration officers designated by the 
                Secretary may compel by subpoena the attendance of 
                witnesses and the production of evidence at any 
                designated place in an investigation or case under this 
                subsection. In case of contumacy or refusal to obey a 
                subpoena lawfully issued under this paragraph, the 
                Secretary may request that the Attorney General apply 
                in an appropriate district court of the United States 
                for an order requiring compliance with such subpoena, 
                and any failure to obey such order may be punished by 
                such court as a contempt thereof. Failure to cooperate 
                with such subpoena shall be subject to further 
                penalties, including but not limited to further fines 
                and the voiding of any mitigation of penalties or 
                termination of proceedings under subsection (e)(3)(B).
            ``(3) Compliance procedures.--
                    ``(A) Pre-penalty notice.--If the Secretary has 
                reasonable cause to believe that there has been a civil 
                violation of this section or the requirements of this 
                section, including but not limited to subsections (b), 
                (c), (d), and (k), and determines that further 
                proceedings are warranted, the Secretary shall issue to 
                the employer concerned a written notice of the 
                Department's intention to issue a claim for a monetary 
                or other penalty. Such pre-penalty notice shall--
                            ``(i) describe the violation;
                            ``(ii) specify the laws and regulations 
                        allegedly violated;
                            ``(iii) disclose the material facts which 
                        establish the alleged violation; and
                            ``(iv) inform such employer that he or she 
                        shall have a reasonable opportunity to make 
                        representations as to why a claim for a 
                        monetary or other penalty should not be 
                        imposed.
                    ``(B) Remission or mitigation of penalties.--
                Whenever any employer receives written pre-penalty 
                notice of a fine or other penalty in accordance with 
                subparagraph (A), the employer may file, within 15 days 
                from receipt of such notice, with the Secretary a 
                petition for the remission or mitigation of such fine 
                or penalty, or a petition for termination of the 
                proceedings. The petition may include any relevant 
                evidence or proffer of evidence the employer wishes to 
                present, and shall be filed and considered in 
                accordance with procedures to be established by the 
                Secretary. If the Secretary finds that such fine, 
                penalty, or forfeiture was incurred erroneously, or 
                finds the existence of such mitigating circumstances as 
                to justify the remission or mitigation of such fine or 
                penalty, the Secretary may remit or mitigate the same 
                upon such terms and conditions as the Secretary deems 
                reasonable and just, or order termination of any 
                proceedings relating thereto. Such mitigating 
                circumstances may include, but need not be limited to, 
                good faith compliance and participation in, or 
                agreement to participate in, the EEVS, if not otherwise 
                required. This subparagraph shall not apply to an 
                employer that has or is engaged in a pattern or 
                practice of violations of subsection (a)(1)(A), 
                (a)(1)(B), or (a)(2) or of any other requirements of 
                this section.
                    ``(C) Penalty claim.--After considering evidence 
                and representations, if any, offered by the employer 
                pursuant to subparagraph (B), the Secretary shall 
                determine whether there was a violation and promptly 
                issue a written final determination setting forth the 
                findings of fact and conclusions of law on which the 
                determination is based. If the Secretary determines 
                that there was a violation, the Secretary shall issue 
                the final determination with a written penalty claim. 
                The penalty claim shall specify all charges in the 
                information provided under clauses (i) through (iii) of 
                subparagraph (A) and any mitigation or remission of the 
                penalty that the Secretary deems appropriate.
            ``(4) Civil penalties.--
                    ``(A) Hiring and continued employment of 
                unauthorized aliens.--Any employer that violates any 
                provision of subsection (a)(1)(A) or (a)(2) shall--
                            ``(i) pay a civil penalty of not less than 
                        $550 and not more than $4,400 for each 
                        unauthorized alien with respect to which each 
                        violation of either subsection (a)(1)(A) or 
                        (a)(2) occurred;
                            ``(ii) if an employer has previously been 
                        fined under subsection (e)(4)(A), pay a civil 
                        penalty of not less than $4,400 and not more 
                        than $11,000 for each unauthorized alien with 
                        respect to which a violation of either 
                        subsection (a)(1)(A) or (a)(2) occurred;
                            ``(iii) if an employer has previously been 
                        fined more than once under subsection (e)(4), 
                        pay a civil penalty of not less than $6,600 and 
                        not more than $22,000 for each unauthorized 
                        alien with respect to which a violation of 
                        either subsection has occurred. This penalty 
                        shall apply, in addition to any penalties 
                        previously assessed, to employers who fail to 
                        comply with a previously issued and final order 
                        under this section;
                            ``(iv) if an employer has previously been 
                        fined more than twice under subsection 
                        (e)(4)(A), pay a civil penalty of ``$10,000 for 
                        each alien with respect to which a violation of 
                        either subsection (a)(1) or (a)(2) occurred; 
                        and
                            ``(v) in addition to any penalties 
                        previously assessed, an employer who fails to 
                        comply with a previously issued and final order 
                        under this section shall be fined $25,000 for 
                        each violation.
                    ``(B) Recordkeeping or verification practices.--Any 
                employer that violates or fails to comply with any 
                requirement of subsection (b), (c), and (d), shall pay 
                a civil penalty as follows:
                            ``(i) Pay a civil penalty of $1,000 for 
                        each violation.
                            ``(ii) If an employer has previously been 
                        fined under subsection (e)(4)(B), pay a civil 
                        penalty of $2,000 for each violation.
                            ``(iii) If an employer has previously been 
                        fined more than once under subsection (e)(4), 
                        pay a civil penalty of $5,000 for each 
                        violation. This penalty shall apply, in 
                        addition to any penalties previously assessed, 
                        to employers who fail to comply with a 
                        previously issued and final order under this 
                        section.
                            ``(iv) If an employer has previously been 
                        fined more than twice under subsection 
                        (e)(4)(B), pay a civil penalty of $15,000 for 
                        each violation.
                            ``(v) In addition to any penalties 
                        previously assessed, an employer who fails to 
                        comply with a previously issued and final order 
                        under this section shall be fined $15,000 for 
                        each violation.
                    ``(C) Other penalties.--The Secretary may impose 
                additional penalties for violations, including cease 
                and desist orders, specially designed compliance plans 
                to prevent further violations, suspended fines to take 
                effect in the event of a further violation, and in 
                appropriate cases, the remedy provided by paragraph 
                (g)(2). All penalties in this section may be adjusted 
                every four years to account for inflation as provided 
                by law.
                    ``(D) Penalty reduction and mitigation.--The 
                Secretary is authorized to reduce or mitigate penalties 
                imposed upon employers, based upon factors including, 
                but not limited to, the employer's hiring volume, 
                compliance history, good-faith implementation of a 
                compliance program, participation in a temporary worker 
                program, and voluntary disclosure of violations of this 
                subsection to the Secretary.
            ``(5) Order of internal review and certification of 
        compliance.--If the Secretary has reasonable cause to believe 
        that an employer has failed to comply with this section, the 
        Secretary is authorized, at any time, to require that the 
        employer certify that it is in compliance with this section, or 
        has instituted a program to come into compliance. Within 60 
        days of receiving a notice from the Secretary requiring such a 
        certification, the employer's chief executive officer or 
        similar official with responsibility for, and authority to bind 
        the company on, all hiring and immigration compliance notices 
        shall certify under penalty of perjury that the employer is in 
        conformance with the requirements of subsections (c)(1) through 
        (c)(4), pertaining to document verification requirements, and 
        with subsection (d), pertaining to the EEVS (once that system 
        is implemented according to the requirements of (d)(1)), and 
        with any additional requirements that the Secretary may 
        promulgate by regulation pursuant to subsections (c), (d), and 
        (k), or that the employer has instituted a program to come into 
        compliance with these requirements. At the request of the 
        employer, the Secretary may extend the 60-day deadline for good 
        cause. The Secretary is authorized to publish in the Federal 
        Register standards or methods for such certification, require 
        specific recordkeeping practices with respect to such 
        certifications, and audit the records thereof at any time. This 
        authority shall not be construed to diminish or qualify any 
        other penalty provided by this section.
            ``(6) Judicial review.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law (statutory or nonstatutory) including 
                sections 1361 and 1651 of title 28, no court shall have 
                jurisdiction to consider a final determination or 
                penalty claim issued under subparagraph (3)(C), except 
                as specifically provided by this paragraph. Judicial 
                review of a final determination under paragraph (e)(4) 
                is governed only by chapter 158 of title 28, except as 
                specifically provided below. The filing of a petition 
                as provided in this paragraph shall stay the 
                Secretary's determination until entry of judgment by 
                the court. The Secretary is authorized to require that 
                petitioner provide, prior to filing for review, 
                security for payment of fines and penalties through 
                bond or other guarantee of payment acceptable to the 
                Secretary.
                    ``(B) Requirements for review of a final 
                determination.--With respect to judicial review of a 
                final determination or penalty claim issued under 
                subparagraph (3)(C), the following requirements apply:
                            ``(i) Deadline.--The petition for review 
                        must be filed no later than 30 days after the 
                        date of the final determination or penalty 
                        claim issued under subparagraph (3)(C).
                            ``(ii) Venue and forms.--The petition for 
                        review shall be filed with the court of appeals 
                        for the judicial circuit wherein the employer 
                        resided when the final determination or penalty 
                        claim was issued. The record and briefs do not 
                        have to be printed. The court of appeals shall 
                        review the proceeding on a typewritten record 
                        and on typewritten briefs.
                            ``(iii) Service.--The respondent is either 
                        the Secretary of Homeland Security or the 
                        Commissioner of Social Security, but not both, 
                        depending upon who issued (or affirmed) the 
                        final nonconfirmation notice. In addition to 
                        serving the respondent, the petitioner must 
                        also serve the Attorney General.
                            ``(iv) Petitioner's brief.--The petitioner 
                        shall serve and file a brief in connection with 
                        a petition for judicial review not later than 
                        40 days after the date on which the 
                        administrative record is available, and may 
                        serve and file a reply brief not later than 14 
                        days after service of the brief of the 
                        respondent, and the court may not extend these 
                        deadlines, except for good cause shown. If a 
                        petitioner fails to file a brief within the 
                        time provided in this paragraph, the court 
                        shall dismiss the appeal unless a manifest 
                        injustice would result.
                            ``(v) Scope and standard for review.--The 
                        court of appeals shall decide the petition only 
                        on the administrative record on which the final 
                        determination is based. The burden shall be on 
                        the petitioner to show that the final 
                        determination was arbitrary, capricious, not 
                        supported by substantial evidence, or otherwise 
                        not in accordance with law. Administrative 
                        findings of fact are conclusive unless any 
                        reasonable adjudicator would be compelled to 
                        conclude to the contrary.
                    ``(C) Exhaustion of administrative remedies.--A 
                court may review a final determination under 
                subparagraph (3)(C) only if--
                            ``(i) the petitioner has exhausted all 
                        administrative remedies available to the 
                        petitioner as of right, and
                            ``(ii) another court has not decided the 
                        validity of the order, unless the reviewing 
                        court finds that the petition presents grounds 
                        that could not have been presented in the prior 
                        judicial proceeding or that the remedy provided 
                        by the prior proceeding was inadequate or 
                        ineffective to test the validity of the order.
                    ``(D) Limit on injunctive relief.--Regardless of 
                the nature of the action or claim or of the identity of 
                the party or parties bringing the action, no court 
                (other than the Supreme Court) shall have jurisdiction 
                or authority to enjoin or restrain the operation of the 
                provisions in this section, other than with respect to 
                the application of such provisions to an individual 
                petitioner.
            ``(7) Enforcement of orders.--If an employer fails to 
        comply with a final determination issued against that employer 
        under this subsection, and the final determination is not 
        subject to review as provided in paragraph (6), the Attorney 
        General may file suit to enforce compliance with the final 
        determination in any appropriate district court of the United 
        States. In any such suit, the validity and appropriateness of 
        the final determination shall not be subject to review.
            ``(8) Liens.--
                    ``(A) Creation of lien.--If any employer liable for 
                a fee or penalty under this section neglects or refuses 
                to pay such liability and fails to file a petition for 
                review (if applicable) as provided in paragraph 6 of 
                this subsection, such liability is a lien in favor of 
                the United States on all property and rights to 
                property of such person as if the liability of such 
                person were a liability for a tax assessed under the 
                Internal Revenue Code of 1986. If a petition for review 
                is filed as provided in paragraph 6 of this subsection, 
                the lien (if any) shall arise upon the entry of a final 
                judgment by the court. The lien continues for 20 years 
                or until the liability is satisfied, remitted, set 
                aside, or is terminated.
                    ``(B) Effect of filing notice of lien.--Upon filing 
                of a notice of lien in the manner in which a notice of 
                tax lien would be filed under section 6323(f) (1) and 
                (2) of the Internal Revenue Code of 1986, the lien 
                shall be valid against any purchaser, holder of a 
                security interest, mechanic's lien or judgment lien 
                creditor, except with respect to properties or 
                transactions specified in subsection (b), (c), or (d) 
                of section 6323 of the Internal Revenue Code of 1986 
                for which a notice of tax lien properly filed on the 
                same date would not be valid. The notice of lien shall 
                be considered a notice of lien for taxes payable to the 
                United States for the purpose of any State or local law 
                providing for the filing of a notice of a tax lien. A 
                notice of lien that is registered, recorded, docketed, 
                or indexed in accordance with the rules and 
                requirements relating to judgments of the courts of the 
                State where the notice of lien is registered, recorded, 
                docketed, or indexed shall be considered for all 
                purposes as the filing prescribed by this section. The 
                provisions of section 3201(e) of chapter 176 of title 
                28 shall apply to liens filed as prescribed by this 
                section.
                    ``(C) Enforcement of a lien.--A lien obtained 
                through this process shall be considered a debt as 
                defined by 28 U.S.C. 3002 and enforceable pursuant to 
                the Federal Debt Collection Procedures Act.
    ``(f) Criminal Penalties and Injunctions for Pattern or Practice 
Violations.--
            ``(1) Criminal penalty.--Any employer which engages in a 
        pattern or practice of knowing violations of subsection 
        (a)(1)(A) or (a)(2) shall be fined not more than $75,000 for 
        each unauthorized alien with respect to whom such a violation 
        occurs, imprisoned for not more than six months for the entire 
        pattern or practice, or both.
            ``(2) Enjoining of pattern or practice violations.--
        Whenever the Secretary or the Attorney General has reasonable 
        cause to believe that an employer is engaged in a pattern or 
        practice of employment, recruitment, or referral in violation 
        of paragraph (1)(A) or (2) of subsection (a), the Attorney 
        General may bring a civil action in the appropriate district 
        court of the United States requesting such relief, including a 
        permanent or temporary injunction, restraining order, or other 
        order against the employer, as the Secretary deems necessary.
    ``(g) Prohibition of Indemnity Bonds.--
            ``(1) Prohibition.--It is unlawful for an employer, in the 
        hiring, recruiting, or referring for employment of any 
        individual, to require the individual to post a bond or 
        security, to pay or agree to pay an amount, or otherwise to 
        provide a financial guarantee or indemnity, against any 
        potential liability arising under this section relating to such 
        hiring, recruiting, or referring of the individual.
            ``(2) Civil penalty.--Any employer which is determined, 
        after notice and opportunity for mitigation of the monetary 
        penalty under subsection (e), to have violated paragraph (1) of 
        this subsection shall be subject to a civil penalty of $10,000 
        for each violation and to an administrative order requiring the 
        return of any amounts received in violation of such paragraph 
        to the employee or, if the employee cannot be located, to the 
        general fund of the Treasury.
    ``(h) Government Contracts.--
            ``(1) Employers.--Whenever an employer who does not hold 
        Federal contracts, grants, or cooperative agreements is 
        determined by the Secretary to be a repeat violator of this 
        section or is convicted of a crime under this section, the 
        employer shall be subject to debarment from the receipt of 
        Federal contracts, grants, or cooperative agreements for a 
        period of up to two years in accordance with the procedures and 
        standards prescribed by the Federal Acquisition Regulations. 
        The Secretary or the Attorney General shall advise the 
        Administrator of General Services of any such debarment, and 
        the Administrator of General Services shall list the employer 
        on the List of Parties Excluded from Federal Procurement and 
        Nonprocurement Programs for the period of the debarment. The 
        Administrator of General Services, in consultation with the 
        Secretary and Attorney General, may waive operation of this 
        subsection or may limit the duration or scope of the debarment.
            ``(2) Contractors and recipients.--Whenever an employer who 
        holds Federal contracts, grants, or cooperative agreements is 
        determined by the Secretary to be a repeat violator of this 
        section or is convicted of a crime under this section, the 
        employer shall be subject to debarment from the receipt of 
        Federal contracts, grants, or cooperative agreements for a 
        period of up to two years in accordance with the procedures and 
        standards prescribed by the Federal Acquisition Regulations. 
        Prior to debarring the employer, the Secretary, in cooperation 
        with the Administrator of General Services, shall advise all 
        agencies holding contracts, grants, or cooperative agreements 
        with the employer of the proceedings to debar the employer from 
        the receipt of new Federal contracts, grants, or cooperative 
        agreements for a period of up to two years. After consideration 
        of the views of agencies holding contracts, grants or 
        cooperative agreements with the employer, the Secretary may, in 
        lieu of proceedings to debar the employer from the receipt of 
        new Federal contracts, grants, or cooperative agreements for a 
        period of up to two years, waive operation of this subsection, 
        limit the duration or scope of the proposed debarment, or may 
        refer to an appropriate lead agency the decision of whether to 
        seek debarment of the employer, for what duration, and under 
        what scope in accordance with the procedures and standards 
        prescribed by the Federal Acquisition Regulation. However, any 
        proposed debarment predicated on an administrative 
        determination of liability for civil penalty by the Secretary 
        or the Attorney General shall not be reviewable in any 
        debarment proceeding.
            ``(3) Suspension.--Indictments for violations of this 
        section or adequate evidence of actions that could form the 
        basis for debarment under this subsection shall be considered a 
        cause for suspension under the procedures and standards for 
        suspension prescribed by the Federal Acquisition Regulation.
            ``(4) Inadvertent violation.--Inadvertent violations of 
        recordkeeping or verification requirements, in the absence of 
        any other violations of this section, shall not be a basis for 
        determining that an employer is a repeat violator for purposes 
        of this subsection.
    ``(i) Miscellaneous Provisions.--
            ``(1) Documentation.--In providing documentation or 
        endorsement of authorization of aliens (other than aliens 
        lawfully admitted for permanent residence) authorized to be 
        employed in the United States, the Secretary shall provide that 
        any limitations with respect to the period or type of 
        employment or employer shall be conspicuously stated on the 
        documentation or endorsement.
            ``(2) Preemption.--The provisions of this section preempt 
        any State or local law that requires the use of the EEVS in a 
        fashion that conflicts with Federal policies, procedures or 
        timetables, or that imposes civil or criminal sanctions (other 
        than through licensing and similar laws) upon those who employ, 
        or recruit or refer for a fee for employment, unauthorized 
        aliens.
    ``(j) Deposit of Amounts Received.--Except as otherwise specified, 
civil penalties collected under this section shall be deposited by the 
Secretary into the general fund of the Treasury.
    ``(k) No Match Notice.--
            ``(1) In general.--For the purpose of this subsection, a no 
        match notice is written notice from the Social Security 
        Administration (SSA) to an employer reporting earnings on a 
        Form W-2 that employees' names or corresponding social security 
        account numbers fail to match SSA records. The Secretary, in 
        consultation with the Commissioner of the Social Security 
        Administration, is authorized to establish by regulation 
        requirements for verifying the identity and work authorization 
        of employees who are the subject of no-match notices.
            ``(2) Notification of employee.--An employee subject to a 
        no-match notice shall also be issued a no-match notice, within 
        5 days of the employer, which shall explain--
                    ``(A) that the no-match notice has been issued to 
                employer;
                    ``(B) that the no-match notice does not represent a 
                binding decision on employment status;
                    ``(C) that the employee has the right to resolve 
                the no-match notice within the period of time 
                designated by (k)(2); and
                    ``(D) that the employee is protected from adverse 
                employment consequences during the period of time 
                designated by (k)(2).
            ``(3) Time period for resolution.--The Secretary shall 
        establish by regulation a reasonable period of time during 
        which an employer must allow an employee who is subject to a 
        no-match notice to resolve the no-match notice with no adverse 
        employment consequences. The period of time shall be extended 
        in such cases where an employee has sought resolution of the 
        no-match notice, at an office of the Social Security 
        Administration or other appropriate entity, during the 
        designated period of time but final resolution or non-
        resolution of the no-match noticed has yet to be determined by 
        the office or entity in question. The period of time shall be 
        extended until such time as the pending final resolution or 
        non-resolution of the no-match notice is determined, provided 
        that the employee has acted in good faith cooperation with the 
        office or entity in question.
            ``(4) Continued employment in case of unresolved no-
        match.--The Secretary shall establish by regulation a procedure 
        for verifying employer compliance with any provision of 
        subsection (a)(2) in the case of unresolved no-match notices.
            ``(5) Challenges to validity.--
                    ``(A) In general.--Any right, benefit, or claim not 
                otherwise waived or limited pursuant to this section is 
                available in an action instituted in the United States 
                District Court for the District of Columbia, but shall 
                be limited to determinations of--
                            ``(i) whether this section, or any 
                        regulation issued to implement this section, 
                        violates the Constitution of the United States; 
                        or
                            ``(ii) whether such a regulation issued by 
                        or under the authority of the Secretary to 
                        implement this section, is contrary to 
                        applicable provisions of this section or was 
                        issued in violation of title 5, chapter 5, 
                        United States Code.
                    ``(B) Deadlines for bringing actions.--Any action 
                instituted under this paragraph must be filed no later 
                than 90 days after the date the challenged section or 
                regulation described in clause (i) or (ii) of 
                subparagraph (A) is first implemented.
                    ``(C) Class actions.--The court may not certify a 
                class under Rule 23 of the Federal Rules of Civil 
                Procedure in any action under this section.
                    ``(D) Rule of construction.--In determining whether 
                the Secretary's interpretation regarding any provision 
                of this section is contrary to law, a court shall 
                accord to such interpretation the maximum deference 
                permissible under the Constitution.
                    ``(E) No attorneys' fees.--Notwithstanding any 
                other provision of law, the court shall not award fees 
                or other expenses to any person or entity based upon 
                any action relating to this title brought pursuant to 
                this subsection.''.

SEC. 4. EFFECTIVE DATE.

    This title shall become effective on the date of enactment.

SEC. 5. DISCLOSURE OF CERTAIN TAXPAYER INFORMATION TO ASSIST IN 
              IMMIGRATION ENFORCEMENT.

    (a) Disclosure of Certain Taxpayer Identity Information.--
            (1) In general.--Section 6103(l) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(21) Disclosure of certain taxpayer identity information 
        by social security administration to department of homeland 
        security.--
                    ``(A) In general.--From taxpayer identity 
                information or other information which has been 
                disclosed or otherwise made available to the Social 
                Security Administration and upon written request by the 
                Secretary of Homeland Security (in this paragraph 
                referred to as the `Secretary'), the Commissioner of 
                Social Security shall disclose directly to officers, 
                employees, and contractors of the Department of 
                Homeland Security--
                            ``(i) the taxpayer identity information of 
                        each person who has filed an information return 
                        required by reason of section 6051 after 
                        calendar year 2005 and before the date 
                        specified in subparagraph (D) which contains--
                                    ``(I) 1 (or any greater number the 
                                Secretary shall request) taxpayer 
                                identifying number, name, and address 
                                of any employee (within the meaning of 
                                such section) that did not match the 
                                records maintained by the Commissioner 
                                of Social Security, or
                                    ``(II) 2 (or any greater number the 
                                Secretary shall request) names, and 
                                addresses of employees (within the 
                                meaning of such section), with the same 
                                taxpayer identifying number, and the 
                                taxpayer identity of each such 
                                employee, and
                            ``(ii) the taxpayer identity of each person 
                        who has filed an information return required by 
                        reason of section 6051 after calendar year 2005 
                        and before the date specified in subparagraph 
                        (D) which contains the taxpayer identifying 
                        number (assigned under section 6109) of an 
                        employee (within the meaning of section 6051)--
                                    ``(I) who is under the age of 14 
                                (or any lesser age the Secretary shall 
                                request), according to the records 
                                maintained by the Commissioner of 
                                Social Security,
                                    ``(II) whose date of death, 
                                according to the records so maintained, 
                                occurred in a calendar year preceding 
                                the calendar year for which the 
                                information return was filed,
                                    ``(III) whose taxpayer identifying 
                                number is contained in more than one 
                                (or any greater number the Secretary 
                                shall request) information return filed 
                                in such calendar year, or
                                    ``(IV) who is not authorized to 
                                work in the United States, according to 
                                the records maintained by the 
                                Commissioner of Social Security,
                        and the taxpayer identity and date of birth of 
                        each such employee.
                    ``(B) Reimbursement.--The Secretary shall transfer 
                to the Commissioner the funds necessary to cover the 
                additional cost directly incurred by the Commissioner 
                in carrying out the searches or manipulations requested 
                by the Secretary.''.
                    (2) Compliance by dhs contractors with 
                confidentiality safeguards.--
                            (A) In general.--Section 6103(p) of such 
                        Code is amended by adding at the end the 
                        following new paragraph:
            ``(9) Disclosure to dhs contractors.--Notwithstanding any 
        other provision of this section, no return or return 
        information shall be disclosed to any contractor of the 
        Department of Homeland Security unless such Department, to the 
        satisfaction of the Secretary--
                    ``(A) has requirements in effect which require each 
                such contractor which would have access to returns or 
                return information to provide safeguards (within the 
                meaning of paragraph (4)) to protect the 
                confidentiality of such returns or return information,
                    ``(B) agrees to conduct an on-site review every 3 
                years (mid-point review in the case of contracts or 
                agreements of less than 3 years in duration) of each 
                contractor to determine compliance with such 
                requirements,
                    ``(C) submits the findings of the most recent 
                review conducted under subparagraph (B) to the 
                Secretary as part of the report required by paragraph 
                (4)(E), and
                    ``(D) certifies to the Secretary for the most 
                recent annual period that such contractor is in 
                compliance with all such requirements.
        The certification required by subparagraph (D) shall include 
        the name and address of each contractor, a description of the 
        contract or agreement with such contractor, and the duration of 
        such contract or agreement.''.
            (3) Conforming amendments.--
                    (A) Section 6103(a)(3) of such Code is amended by 
                striking ``or (20)'' and inserting ``(20), or (21)''.
                    (B) Section 6103(p)(3)(A) of such Code is amended 
                by adding at the end the following new sentence: ``The 
                Commissioner of Social Security shall provide to the 
                Secretary such information as the Secretary may require 
                in carrying out this paragraph with respect to return 
                information inspected or disclosed under the authority 
                of subsection (l)(21).''.
                    (C) Section 6103(p)(4) of such Code is amended--
                            (i) by striking ``or (17)'' both places it 
                        appears and inserting ``(17), or (21)''; and
                            (ii) by striking ``or (20)'' each place it 
                        appears and inserting ``(20), or (21)''.
                    (D) Section 6103(p)(8)(B) of such Code is amended 
                by inserting ``or paragraph (9)'' after ``subparagraph 
                (A)''.
                    (E) Section 7213(a)(2) of such Code is amended by 
                striking ``or (20)'' and inserting ``(20), or (21)''.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Homeland Security such sums as are 
necessary to carry out the amendments made by this section.
    (c) Repeal of Reporting Requirements.--
            (1) Report on earnings of aliens not authorized to work.--
        Subsection (c) of section 290 of the Immigration and 
        Nationality Act (8 U.S.C. 1360) is repealed.
            (2) Report on fraudulent use of social security account 
        numbers.--Subsection (b) of section 414 of the Illegal 
        Immigration Reform and Immigrant Responsibility Act of 1996 
        (division C of Public Law 104-208; 8 U.S.C. 1360 note) is 
        repealed.
    (d) Effective Dates.--
            (1) In general.--The amendments made by subsection (a) 
        shall apply to disclosures made after the date of the enactment 
        of this Act.
            (2) Certifications.--The first certification under section 
        6103(p)(9)(D) of the Internal Revenue Code of 1986, as added by 
        subsection (a)(2), shall be made with respect to calendar year 
        2007.
            (3) Repeals.--The repeals made by subsection (c) shall take 
        effect on the date of the enactment of this Act.

SEC. 6. RESPONSIBILITIES OF THE SOCIAL SECURITY ADMINISTRATION.

    Section 205(c)(12) of the Social Security Act, 42 U.S.C. 405(c)(2), 
is amended by adding at the end the following new subparagraphs:
                    ``(I) Responsibilities of the commissioner of 
                social security.--
                            ``(i) Employment verification.--As part of 
                        the verification system, the Commissioner of 
                        Social Security shall, subject to the 
                        provisions of section 274A(d) of the 
                        Immigration and Nationality Act, establish a 
                        reliable, secure method that, operating through 
                        the EEVS and within the time periods specified 
                        in section 274A(d) of the Immigration and 
                        Nationality Act:
                                    ``(I) compares the name, Social 
                                Security account number and available 
                                citizenship information provided in an 
                                inquiry against such information 
                                maintained by the Commissioner in order 
                                to confirm (or not confirm) the 
                                validity of the information provided 
                                regarding an individual whose identity 
                                and employment eligibility must be 
                                confirmed;
                                    ``(II) the correspondence of the 
                                name, number, and any other identifying 
                                information;
                                    ``(III) whether the name and number 
                                belong to an individual who is 
                                deceased;
                                    ``(IV) whether an individual is a 
                                national of the United States (when 
                                available); and
                                    ``(V) whether the individual has 
                                presented a Social Security account 
                                number that is not valid for 
                                employment.
                        The EEVS shall not disclose or release social 
                        security information to employers through the 
                        confirmation system (other than such 
                        confirmation or nonconfirmation).
                            ``(ii) Social security administration 
                        database improvements.--For purposes of 
                        preventing identity theft, protecting 
                        employees, and reducing burden on employers, 
                        and notwithstanding section 6103 of title 26, 
                        United States Code, the Commissioner of Social 
                        Security, in consultation with the Secretary, 
                        shall review the Social Security Administration 
                        databases and information technology to 
                        identify any deficiencies and discrepancies 
                        related to name, birth date, citizenship 
                        status, or death records of the Social Security 
                        accounts and Social Security account holders 
                        likely to contribute to fraudulent use of 
                        documents, or identity theft, or to affect the 
                        proper functioning of the EEVS or accuracy of 
                        no-match notices and shall correct any 
                        identified errors. The Commissioner shall 
                        ensure that a system for identifying and 
                        correcting such deficiencies and discrepancies 
                        is adopted to ensure the accuracy of the Social 
                        Security Administration's databases.
                            ``(iii) Social security update public 
                        information campaign.--The Commissioner shall 
                        implement a public information campaign 
                        explaining the importance of verifying the 
                        accuracy of a citizen's or other authorized 
                        Social Security card holder's information in 
                        the Social Security Administration Database.
                                    ``(I) The campaign shall include 
                                information on how to verify that an 
                                individual's record in the Social 
                                Security Database is correct and make 
                                corrections if needed.
                                    ``(II) The campaign shall target 
                                groups of individuals who are most 
                                likely to have outdated records, such 
                                as persons who have changed their name 
                                (such as may be the case in marriage or 
                                divorce), naturalized citizens, and 
                                other groups of individuals identified 
                                by the Commissioner.
                                    ``(III) In order to carry out the 
                                campaign under this paragraph, the 
                                Commissioner may, to the extent deemed 
                                appropriate and subject to the 
                                availability of appropriations, 
                                contract with public and private 
                                organizations for outreach activities 
                                under the campaign.
                                    ``(IV) There are authorized to be 
                                appropriated to carry out this 
                                paragraph $10,000,000 for each fiscal 
                                year 2008 through 2010.
                            ``(iv) Notification to `freeze' use of 
                        social security number.--The Commissioner of 
                        Social Security, in consultation with the 
                        Secretary of Homeland Security, shall establish 
                        a secure process whereby an individual can 
                        request that the Commissioner preclude any 
                        confirmation under the EEVS based on that 
                        individual's Social Security number until it is 
                        reactivated by that individual.
                            ``(v) Social security administration no-
                        match resolution support.--The Commissioner 
                        shall take necessary steps to ensure prompt 
                        final resolution or non-resolution of no-match 
                        notices when employees subject to such notices 
                        inquire about the no-match notice at an office 
                        of the Social Security Administration whenever 
                        possible.''.

SEC. 7. IMMIGRATION ENFORCEMENT SUPPORT BY THE INTERNAL REVENUE SERVICE 
              AND THE SOCIAL SECURITY ADMINISTRATION.

    (a) Tightening Requirements for the Provision of Social Security 
Numbers on Form W-2 Wage and Tax Statements.--Section 6724 of the 
Internal Revenue Code of 1986 (relating to waiver; definitions and 
special rules) is amended by adding at the end the following new 
subsection:
    ``(f) Special Rules With Respect to Social Security Numbers on 
Withholding Exemption Certificates.--
            ``(1) Employee social security account number exemption.--
        Subsection (a) shall not apply with respect to the Social 
        Security account number of an employee furnished under section 
        6051(a)(2).
            ``(2) Exception.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the exemption to reasonable cause 
                waiver eligibility for employee Social Security account 
                numbers shall not apply in any case in which the 
                employer--
                            ``(i) receives confirmation that the 
                        discrepancy described in section 205(c)(2)(I) 
                        of the Social Security Act has been resolved, 
                        or
                            ``(ii) corrects a clerical error made by 
                        the employer with respect to the Social 
                        Security account number of an employee within 
                        60 days after notification under section 
                        205(c)(2)(1) of the Social Security Act that 
                        the Social Security account number contained in 
                        wage records provided to the Social Security 
                        Administration by the employer with respect to 
                        the employee does not match the Social Security 
                        account number of the employee contained in 
                        relevant records otherwise maintained by the 
                        Social Security Administration.
                    ``(B) Exception not applicable to frequent 
                offenders.--Subparagraph (A) shall not apply--
                            ``(i) in any case in which not less than 50 
                        of the statements required to be made by an 
                        employer pursuant to section 6051 either fail 
                        to include an employee's social security 
                        account number or include an incorrect Social 
                        Security account number, or
                            ``(ii) with respect to any employer who has 
                        received written notification under section 
                        205(c)(2)(1) of the Social Security Act during 
                        each of the 3 preceding taxable years that the 
                        social security account numbers in the wage 
                        records provided to the Social Security 
                        Administration by such employer with respect to 
                        10 more employees do not match relevant records 
                        otherwise maintained by the Social Security 
                        Administration.''.
    (b) Enforcement.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of the Treasury, in 
        consultation with the Secretary of Homeland Security, shall 
        establish a unit within the Criminal Investigation office of 
        the Internal Revenue Service to investigate violations of the 
        Internal Revenue Code of 1986 related to the employment of 
        individuals who are not authorized to work in the United 
        States.
            (2) Special agents; support staff.--The Secretary of the 
        Treasury shall assign to the unit a minimum of 10 full-time 
        special agents and necessary support staff and is authorized to 
        employ up to 200 full time special agents for this unit based 
        on investigative requirements and work load.
            (3) Reports.--During each of the first 5 calendar years 
        beginning after the establishment of such unit and biennially 
        thereafter, the unit shall transmit to Congress a report that 
        describes its activities and includes the number of 
        investigations and cases referred for prosecution.
    (c) Increase in Penalty on Employer Failing To File Correct 
Information Returns.--Section 6721 of such Code (relating to failure to 
file correct information returns) is amended as follows--
            (1) in subsection (a)(1)--
                    (A) by striking ``$50'' and inserting ``$200'', and
                    (B) by striking ``$250,000'' and inserting 
                ``$1,000,000'',
            (2) in subsection (b)(1)(A), by striking ``$15 in lieu of 
        $50'' and inserting ``$60 in lieu of $200'',
            (3) in subsection (b)(1)(B), by striking ``$75,000'' and 
        inserting ``$300,000'',
            (4) in subsection (b)(2)(A), by striking ``$30 in lieu of 
        $50'' and inserting ``$120 in lieu of $200'',
            (5) in subsection (b)(2)(B), by striking ``$150,000'' and 
        inserting ``$600,000'',
            (6) in subsection (d)(A) in paragraph (1)--
                    (A) by striking ```$100,000' for `$250,000''' and 
                inserting ```$400,000' for `$1,000,000''' in 
                subparagraph (A),
                    (B) by striking ```$25,000' for `$75,000''' and 
                inserting ```$100,000' for `$300,000''' in subparagraph 
                (B), and
                    (C) by striking ```$50,000' for `$150,000''' and 
                inserting ```$200,000' for `$600,000''' in subparagraph 
                (C),
                    (D) in paragraph (2)(A), by striking ``$5,000,000'' 
                and inserting ``$2,000,000'', and
                    (E) in the heading, by striking ``$5,000,000'' and 
                inserting ``$2,000,000'',
            (7) in subsection (e)(2)--
                    (A) by striking ``$100'' and inserting ``$400'',
                    (B) by striking ``$25,000'' and inserting 
                ``$100,000'' in subparagraph (C)(i), and
                    (C) by striking ``$100,000'' and inserting 
                ``$400,000'' in subparagraph (C)(ii), and
            (8) in subsection (e)(3)(A), by striking ``$250,000'' and 
        inserting ``$1,000,000''.
    (d) Effective Date.--The amendments made by subsections (b) and (c) 
shall apply to failures occurring after enactment of this Act.

SEC. 8. ADDITIONAL WORKSITE ENFORCEMENT AND FRAUD DETECTION AGENTS.

    (a) Increase in Number of Personnel.--The Secretary shall, subject 
to the availability of appropriations for such purpose, increase, by 
not less than 1,150, the number of personnel of the Bureau of 
Immigration and Customs Enforcement during the 5-year period beginning 
on the date of the enactment of this Act for the purpose of increasing 
enforcement of compliance with sections 274A and 274C of the 
Immigration and Nationality Act (8 U.S.C. 1324a and 1324c).
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of the fiscal years 2007 through 
2011 such sums as may be necessary to carry out this section.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) There are authorized to be appropriated to the Secretary of 
Homeland Security such sums as may be necessary to carry out the 
provisions of this Act, and the amendments made by this Act, including 
the following appropriations:
            (1) In each of the five years beginning on the date of the 
        enactment of this Act, the appropriations necessary to increase 
        to a level not less than 4500 the number of personnel of the 
        Department of Homeland Security assigned exclusively or 
        principally to an office or offices dedicated to monitoring and 
        enforcing compliance with sections 274A and 274C of the 
        Immigration and Nationality Act (8 U.S.C. 1324a and 1324c), 
        including compliance with the requirements of the EEVS. These 
        personnel shall perform the following compliance and monitoring 
        activities:
                    (A) Verify Employment Identification Numbers of 
                employers participating in the EEVS.
                    (B) Verify compliance of employers participating in 
                the EEVS with the requirements for participation that 
                are prescribed by the Secretary.
                    (C) Monitor the EEVS for multiple uses of Social 
                Security Numbers and any immigration identification 
                numbers for evidence that could indicate identity theft 
                or fraud.
                    (D) Monitor the EEVS to identify discriminatory 
                practices.
                    (E) Monitor the EEVS to identify employers who are 
                not using the system properly, including employers who 
                fail to make appropriate records with respect to their 
                queries and any notices of confirmation, 
                nonconfirmation, or further action.
                    (F) Identify instances where employees allege that 
                an employer violated their privacy rights.
                    (G) Analyze and audit the use of the EEVS and the 
                data obtained through the EEVS to identify fraud 
                trends, including fraud trends across industries, 
                geographical areas, or employer size.
                    (H) Analyze and audit the use of the EEVS and the 
                data obtained through the EEVS to develop compliance 
                tools as necessary to respond to changing patterns of 
                fraud.
                    (I) Provide employers with additional training and 
                other information on the proper use of the EEVS.
                    (J) Perform threshold evaluation of cases for 
                referral to the U.S. Immigration and Customs 
                Enforcement and to liaise with the U.S. Immigration and 
                Customs Enforcement with respect to these referrals.
                    (K) Any other compliance and monitoring activities 
                that, in the Secretary's judgment, are necessary to 
                ensure the functioning of the EEVS.
                    (L) Investigate identity theft and fraud detected 
                through the EEVS and undertake the necessary 
                enforcement actions.
                    (M) Investigate use of fraudulent documents or 
                access to fraudulent documents through local 
                facilitation and undertake the necessary enforcement 
                actions.
                    (N) Provide support to the U.S. Citizenship and 
                Immigration Services with respect to the evaluation of 
                cases for referral to the U.S. Immigration and Customs 
                Enforcement.
                    (O) Perform any other investigations that, in the 
                Secretary's judgment, are necessary to ensure the 
                functioning of the EEVS, and undertake any enforcement 
                actions necessary as a result of these investigations.
            (2) The appropriations necessary to acquire, install and 
        maintain technological equipment necessary to support the 
        functioning of the EEVS and the connectivity between U.S. 
        Citizenship and Immigration Services and the U.S. Immigration 
        and Customs Enforcement with respect to the sharing of 
        information to support the EEVS and related immigration 
        enforcement actions.
    (b) There are authorized to be appropriated to Commissioner of 
Social Security such sums as may be necessary to carry out the 
provisions of this Act, including section 6 of this Act.
                                 <all>