[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2164 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2164

  To amend the Immigration and Nationality Act to make mandatory and 
  permanent requirements relating to use of an electronic employment 
        eligibility verification system, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 14, 2011

    Mr. Smith of Texas (for himself, Mr. Calvert, Mr. Gallegly, Mr. 
  Chaffetz, Mr. Bilbray, Mr. Royce, Mr. Gary G. Miller of California, 
Mrs. Myrick, Mr. Sensenbrenner, Mr. Franks of Arizona, Mr. Carter, Mr. 
   Kingston, Mr. Daniel E. Lungren of California, and Mr. Goodlatte) 
 introduced the following bill; which was referred to the Committee on 
 the Judiciary, and in addition to the Committees on Education and the 
     Workforce and Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Immigration and Nationality Act to make mandatory and 
  permanent requirements relating to use of an electronic employment 
        eligibility verification system, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Legal Workforce Act''.

SEC. 2. EMPLOYMENT ELIGIBILITY VERIFICATION PROCESS.

    Section 274A(b) of the Immigration and Nationality Act (8 U.S.C. 
1324a(b)) is amended to read as follows:
    ``(b) Employment Eligibility Verification Process.--
            ``(1) New hires, recruitment, and referral.--The 
        requirements referred to in paragraphs (1)(B) and (3) of 
        subsection (a) are, in the case of a person or other entity 
        hiring, recruiting, or referring an individual for employment 
        in the United States, the following:
                    ``(A) Attestation after examination of 
                documentation.--
                            ``(i) Attestation.--During the verification 
                        period (as defined in subparagraph (F)), the 
                        person or entity shall attest, under penalty of 
                        perjury and on a form, including electronic and 
                        telephonic formats, designated or established 
                        by the Secretary by regulation not later than 6 
                        months after the date of the enactment of the 
                        Legal Workforce Act, that it has verified that 
                        the individual is not an unauthorized alien 
                        by--
                                    ``(I) obtaining from the individual 
                                the individual's social security 
                                account number and recording the number 
                                on the form (if the individual claims 
                                to have been issued such a number), 
                                and, if the individual does not attest 
                                to United States citizenship under 
                                subparagraph (B), obtaining such 
                                identification or authorization number 
                                established by the Department of 
                                Homeland Security for the alien as the 
                                Secretary of Homeland Security may 
                                specify, and recording such number on 
                                the form; and
                                    ``(II) examining--
                                            ``(aa) a document described 
                                        in clause (ii); or
                                            ``(bb) a document described 
                                        in clause (iii) and a document 
                                        described in clause (iv).
                            ``(ii) Documents evidencing employment 
                        authorization and establishing identity.--A 
                        document described in this subparagraph is an 
                        individual's--
                                    ``(I) unexpired United States 
                                passport or passport card;
                                    ``(II) unexpired permanent resident 
                                card that contains a photograph;
                                    ``(III) unexpired employment 
                                authorization card that contains a 
                                photograph;
                                    ``(IV) in the case of a 
                                nonimmigrant alien authorized to work 
                                for a specific employer incident to 
                                status, a foreign passport with Form I-
                                94 or Form I-94A bearing the same name 
                                as the passport and containing as 
                                endorsement of the alien's nonimmigrant 
                                status, as long as the period of 
                                endorsement has not yet expired and the 
                                proposed employment is not in conflict 
                                with any restrictions or limitations 
                                identified on the form;
                                    ``(V) passport from the Federated 
                                States of Micronesia (FSM) or the 
                                Republic of the Marshall Islands (RMI) 
                                with Form I-94 or Form I-94A indicating 
                                nonimmigrant admission under the 
                                Compact of Free Association Between the 
                                United Sates and the FSM or RMI; or
                                    ``(VI) other document designated by 
                                the Secretary of Homeland Security, if 
                                the document--
                                            ``(aa) contains a 
                                        photograph of the individual 
                                        and biometric identification 
                                        data from the individual and 
                                        such other personal identifying 
                                        information relating to the 
                                        individual as the Secretary of 
                                        Homeland Security finds, by 
                                        regulation, sufficient for 
                                        purposes of this clause;
                                            ``(bb) is evidence of 
                                        authorization of employment in 
                                        the United States; and
                                            ``(cc) contains security 
                                        features to make it resistant 
                                        to tampering, counterfeiting, 
                                        and fraudulent use.
                            ``(iii) Documents evidencing employment 
                        authorization.--A document described in this 
                        subparagraph is an individual's social security 
                        account number card (other than such a card 
                        which specifies on the face that the issuance 
                        of the card does not authorize employment in 
                        the United States).
                            ``(iv) Documents establishing identity of 
                        individual.--A document described in this 
                        subparagraph is--
                                    ``(I) an individual's unexpired 
                                State issued driver's license or 
                                identification card if it contains a 
                                photograph and information such as 
                                name, date of birth, gender, height, 
                                eye color, and address;
                                    ``(II) an individual's unexpired 
                                U.S. military identification card;
                                    ``(III) an individual's unexpired 
                                Native American tribal identification 
                                document; or
                                    ``(IV) in the case of an individual 
                                under 18 years of age, a parent or 
                                legal guardian's attestation under 
                                penalty of law as to the identity and 
                                age of the individual.
                            ``(v) Authority to prohibit use of certain 
                        documents.--If the Secretary of Homeland 
                        Security finds, by regulation, that any 
                        document described in clause (i), (ii), or 
                        (iii) as establishing employment authorization 
                        or identity does not reliably establish such 
                        authorization or identity or is being used 
                        fraudulently to an unacceptable degree, the 
                        Secretary may prohibit or place conditions on 
                        its use for purposes of this paragraph.
                            ``(vi) Signature.--Such attestation may be 
                        manifested by either a hand-written or 
                        electronic signature.
                    ``(B) Individual attestation of employment 
                authorization.--
                            ``(i) In general.--During the verification 
                        period (as defined in subparagraph (F)), the 
                        individual shall attest, under penalty of 
                        perjury on the form designated or established 
                        for purposes of subparagraph (A), that the 
                        individual is a citizen or national of the 
                        United States, an alien lawfully admitted for 
                        permanent residence, or an alien who is 
                        authorized under this Act or by the Secretary 
                        of Homeland Security to be hired, recruited, or 
                        referred for such employment. Such attestation 
                        may be manifested by either a hand-written or 
                        electronic signature. The individual shall also 
                        provide that individual's social security 
                        account number (if the individual claims to 
                        have been issued such a number), and, if the 
                        individual does not attest to United States 
                        citizenship under this subparagraph, such 
                        identification or authorization number 
                        established by the Department of Homeland 
                        Security for the alien as the Secretary may 
                        specify.
                            ``(ii) Criminal penalty.--
                                    ``(I) Offenses.--Any individual 
                                who, pursuant to clause (i), provides a 
                                social security account number or an 
                                identification or authorization number 
                                established by the Secretary of 
                                Homeland Security that belongs to 
                                another person, knowing that the number 
                                does not belong to the individual 
                                providing the number, shall be fined 
                                under title 18, United States Code, 
                                imprisoned not less than 1 year and not 
                                more than 15 years, or both. Any 
                                individual who, pursuant to clause (i), 
                                provides, during and in relation to any 
                                felony violation enumerated in section 
                                1028A(c) of title 18, United States 
                                Code, a social security account number 
                                or an identification or authorization 
                                number established by the Secretary of 
                                Homeland Security that belongs to 
                                another person, knowing that the number 
                                does not belong to the individual 
                                providing the number, in addition to 
                                the punishment provided for such 
                                felony, shall be fined under title 18, 
                                United States Code, imprisoned for a 
                                term of 2 years, or both.
                                    ``(II) Consecutive sentence.--
                                Notwithstanding any other provision of 
                                law--
                                            ``(aa) a court shall not 
                                        place on probation any 
                                        individual convicted of a 
                                        violation of this clause;
                                            ``(bb) except as provided 
                                        in item (dd), no term of 
                                        imprisonment imposed on an 
                                        individual under this section 
                                        shall run concurrently with any 
                                        other term of imprisonment 
                                        imposed on the individual under 
                                        any other provision of law, 
                                        including any term of 
                                        imprisonment imposed for the 
                                        felony enumerated in section 
                                        1028A(c) of title 18, United 
                                        States Code, during which the 
                                        violation of this section 
                                        occurred;
                                            ``(cc) in determining any 
                                        term of imprisonment to be 
                                        imposed for the felony 
                                        enumerated in section 1028A(c) 
                                        of title 18, United States 
                                        Code, during which the 
                                        violation of this clause 
                                        occurred, a court shall not in 
                                        any way reduce the term to be 
                                        imposed for such crime so as to 
                                        compensate for, or otherwise 
                                        take into account, any separate 
                                        term of imprisonment imposed or 
                                        to be imposed for a violation 
                                        of this clause; and
                                            ``(dd) a term of 
                                        imprisonment imposed on an 
                                        individual for a violation of 
                                        this clause may, in the 
                                        discretion of the court, run 
                                        concurrently, in whole or in 
                                        part, only with another term of 
                                        imprisonment that is imposed by 
                                        the court at the same time on 
                                        that individual for an 
                                        additional violation of this 
                                        clause, except that such 
                                        discretion shall be exercised 
                                        in accordance with any 
                                        applicable guidelines and 
                                        policy statements issued by the 
                                        United States Sentencing 
                                        Commission pursuant to section 
                                        994 of title 28, United States 
                                        Code.
                    ``(C) Retention of verification form and 
                verification.--
                            ``(i) In general.--After completion of such 
                        form in accordance with subparagraphs (A) and 
                        (B), the person or entity shall--
                                    ``(I) retain a paper, microfiche, 
                                microfilm, or electronic version of the 
                                form and make it available for 
                                inspection by officers of the 
                                Department of Homeland Security, the 
                                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--
                                            ``(aa) in the case of the 
                                        recruiting or referral of an 
                                        individual, 3 years after the 
                                        date of the recruiting or 
                                        referral; and
                                            ``(bb) in the case of the 
                                        hiring of an individual, the 
                                        later of 3 years after the date 
                                        of such hire or one year after 
                                        the date the individual's 
                                        employment is terminated; and
                                    ``(II) during the verification 
                                period (as defined in subparagraph 
                                (F)), make an inquiry, as provided in 
                                subsection (d), using the verification 
                                system to seek verification of the 
                                identity and employment eligibility of 
                                an individual.
                            ``(ii) Verification.--
                                    ``(I) Verification received.--If 
                                the person or other entity receives an 
                                appropriate verification of an 
                                individual's identity and work 
                                eligibility under the verification 
                                system within the time period 
                                specified, the person or entity shall 
                                record on the form an appropriate code 
                                that is provided under the system and 
                                that indicates a final verification of 
                                such identity and work eligibility of 
                                the individual.
                                    ``(II) Tentative nonverification 
                                received.--If the person or other 
                                entity receives a tentative 
                                nonverification of an individual's 
                                identity or work eligibility under the 
                                verification system within the time 
                                period specified, the person or entity 
                                shall so inform the individual for whom 
                                the verification is sought. If the 
                                individual does not contest the 
                                nonverification within the time period 
                                specified, the nonverification shall be 
                                considered final. The person or entity 
                                shall then record on the form an 
                                appropriate code which has been 
                                provided under the system to indicate a 
                                tentative nonverification. If the 
                                individual does contest the 
                                nonverification, the individual shall 
                                utilize the process for secondary 
                                verification provided under subsection 
                                (d). The nonverification will remain 
                                tentative until a final verification or 
                                nonverification is provided by the 
                                verification system within the time 
                                period specified. In no case shall an 
                                employer terminate employment of an 
                                individual because of a failure of the 
                                individual to have identity and work 
                                eligibility confirmed under this 
                                section until a nonverification becomes 
                                final. Nothing in this clause shall 
                                apply to a termination of employment 
                                for any reason other than because of 
                                such a failure. In no case shall an 
                                employer rescind the offer of 
                                employment to an individual because of 
                                a failure of the individual to have 
                                identity and work eligibility confirmed 
                                under this subsection until a 
                                nonconfirmation becomes final. Nothing 
                                in this subclause shall apply to a 
                                recission of the offer of employment 
                                for any reason other than because of 
                                such a failure.
                                    ``(III) Final verification or 
                                nonverification received.--If a final 
                                verification or nonverification is 
                                provided by the verification system 
                                regarding an individual, the person or 
                                entity shall record on the form an 
                                appropriate code that is provided under 
                                the system and that indicates a 
                                verification or nonverification of 
                                identity and work eligibility of the 
                                individual.
                                    ``(IV) Extension of time.--If the 
                                person or other entity in good faith 
                                attempts to make an inquiry during the 
                                time period specified and the 
                                verification system has registered that 
                                not all inquiries were received during 
                                such time, the person or entity may 
                                make an inquiry in the first subsequent 
                                working day in which the verification 
                                system registers that it has received 
                                all inquiries. If the verification 
                                system cannot receive inquiries at all 
                                times during a day, the person or 
                                entity merely has to assert that the 
                                entity attempted to make the inquiry on 
                                that day for the previous sentence to 
                                apply to such an inquiry, and does not 
                                have to provide any additional proof 
                                concerning such inquiry.
                                    ``(V) Consequences of 
                                nonverification.--
                                            ``(aa) Termination or 
                                        notification of continued 
                                        employment.--If the person or 
                                        other entity has received a 
                                        final nonverification regarding 
                                        an individual, the person or 
                                        entity may terminate employment 
                                        of the individual (or decline 
                                        to recruit or refer the 
                                        individual). If the person or 
                                        entity does not terminate 
                                        employment of the individual or 
                                        proceeds to recruit or refer 
                                        the individual, the person or 
                                        entity shall notify the 
                                        Secretary of Homeland Security 
                                        of such fact through the 
                                        verification system or in such 
                                        other manner as the Secretary 
                                        may specify.
                                            ``(bb) Failure to notify.--
                                        If the person or entity fails 
                                        to provide notice with respect 
                                        to an individual as required 
                                        under item (aa), the failure is 
                                        deemed to constitute a 
                                        violation of subsection 
                                        (a)(1)(A) with respect to that 
                                        individual.
                                    ``(VI) Continued employment after 
                                final nonverification.--If the person 
                                or other entity continues to employ (or 
                                to recruit or refer) an individual 
                                after receiving final nonverification, 
                                a rebuttable presumption is created 
                                that the person or entity has violated 
                                subsection (a)(1)(A).
                    ``(D) Continuation of seasonal agricultural 
                employment.--An individual shall not be considered a 
                new hire subject to verification under this paragraph 
                if the individual is engaged in seasonal agricultural 
                employment and is returning to work for an employer 
                that previously employed the individual.
                    ``(E) Effective dates of new procedures.--
                            ``(i) Hiring.--Except as provided in clause 
                        (iii), the provisions of this paragraph shall 
                        apply to a person or other entity hiring an 
                        individual for employment in the United States 
                        as follows:
                                    ``(I) With respect to employers 
                                having 10,000 or more employees in the 
                                United States on the date of the 
                                enactment of the Legal Workforce Act, 
                                on the date that is 6 months after the 
                                date of the enactment of such Act.
                                    ``(II) With respect to employers 
                                having 500 or more employees in the 
                                United States, but less than 10,000 
                                employees in the United States, on the 
                                date of the enactment of the Legal 
                                Workforce Act, on the date that is 12 
                                months after the date of the enactment 
                                of such Act.
                                    ``(III) With respect to employers 
                                having 20 or more employees in the 
                                United States, but less than 500 
                                employees in the United States, on the 
                                date of the enactment of the Legal 
                                Workforce Act, on the date that is 18 
                                months after the date of the enactment 
                                of such Act.
                                    ``(IV) With respect to employers 
                                having 1 or more employees in the 
                                United States, but less than 20 
                                employees in the United States, on the 
                                date of the enactment of the Legal 
                                Workforce Act, on the date that is 24 
                                months after the date of the enactment 
                                of such Act.
                            ``(ii) Recruiting and referring.--Except as 
                        provided in clause (iii), the provisions of 
                        this paragraph shall apply to a person or other 
                        entity recruiting or referring an individual 
                        for employment in the United States on the date 
                        that is 12 months after the date of the 
                        enactment of the Legal Workforce Act.
                            ``(iii) Agricultural labor or services.--
                        With respect to an employee performing 
                        agricultural labor or services (as defined for 
                        purposes of section 101(a)(15)(H)(ii)(a)), this 
                        paragraph shall not apply with respect to the 
                        verification of the employee until the date 
                        that is 36 months after the date of the 
                        enactment of the Legal Workforce Act. An 
                        employee described in this clause shall not be 
                        counted for purposes of clause (i).
                            ``(iv) Transition rule.--Subject to 
                        paragraph (4), the following shall apply to a 
                        person or other entity hiring, recruiting, or 
                        referring an individual for employment in the 
                        United States until the effective date or dates 
                        applicable under clauses (i) through (iii):
                                    ``(I) This subsection, as in effect 
                                before the enactment of the Legal 
                                Workforce Act.
                                    ``(II) Subtitle A of title IV of 
                                the Illegal Immigration Reform and 
                                Immigrant Responsibility Act of 1996 (8 
                                U.S.C. 1324a note), as in effect before 
                                the effective date in section 7(c) of 
                                the Legal Workforce Act.
                                    ``(III) Any other provision of 
                                Federal law requiring the person or 
                                entity to participate in the E-Verify 
                                Program described in section 403(a) of 
                                the Illegal Immigration Reform and 
                                Immigrant Responsibility Act of 1996 (8 
                                U.S.C. 1324a note), as in effect before 
                                the effective date in section 7(c) of 
                                the Legal Workforce Act, including 
                                Executive Order 13465 (8 U.S.C. 1324a 
                                note; relating to Government 
                                procurement).
                    ``(F) Verification period defined.--
                            ``(i) In general.--For purposes of this 
                        paragraph:
                                    ``(I) In the case of recruitment or 
                                referral, the term `verification 
                                period' means the period ending on the 
                                date recruiting or referring commences.
                                    ``(II) In the case of hiring, the 
                                term `verification period' means the 
                                period beginning on the date on which 
                                an offer of employment is extended and 
                                ending on the date that is 3 business 
                                days after the date of hiring. The 
                                offer of employment may be conditioned 
                                in accordance with clause (ii).
                            ``(ii) Job offer may be conditional.--A 
                        person or other entity may offer a prospective 
                        employee an employment position that is 
                        conditioned on final verification of the 
                        identity and employment eligibility of the 
                        employee using the procedures established under 
                        this paragraph.
            ``(2) Reverification for individuals with limited work 
        authorization.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a person or entity shall make an 
                inquiry, as provided in subsection (d), using the 
                verification system to seek reverification of the 
                identity and employment eligibility of all individuals 
                with a limited period of work authorization employed by 
                the person or entity during the 30-day period ending on 
                the date the employee's work authorization expires as 
                follows:
                            ``(i) With respect to employers having 
                        10,000 or more employees in the United States 
                        on the date of the enactment of the Legal 
                        Workforce Act, beginning on the date that is 6 
                        months after the date of the enactment of such 
                        Act.
                            ``(ii) With respect to employers having 500 
                        or more employees in the United States, but 
                        less than 10,000 employees in the United 
                        States, on the date of the enactment of the 
                        Legal Workforce Act, beginning on the date that 
                        is 12 months after the date of the enactment of 
                        such Act.
                            ``(iii) With respect to employers having 20 
                        or more employees in the United States, but 
                        less than 500 employees in the United States, 
                        on the date of the enactment of the Legal 
                        Workforce Act, beginning on the date that is 18 
                        months after the date of the enactment of such 
                        Act.
                            ``(iv) With respect to employers having 1 
                        or more employees in the United States, but 
                        less than 20 employees in the United States, on 
                        the date of the enactment of the Legal 
                        Workforce Act, beginning on the date that is 24 
                        months after the date of the enactment of such 
                        Act.
                    ``(B) Agricultural labor or services.--With respect 
                to an employee performing agricultural labor or 
                services (as defined for purposes of section 
                101(a)(15)(H)(ii)(a)), subparagraph (A) shall not apply 
                with respect to the reverification of the employee 
                until the date that is 36 months after the date of the 
                enactment of the Legal Workforce Act. An employee 
                described in this subparagraph shall not be counted for 
                purposes of subparagraph (A).
                    ``(C) Reverification.--Paragraph (1)(C)(ii) shall 
                apply to reverifications pursuant to this paragraph on 
                the same basis as it applies to verifications pursuant 
                to paragraph (1), except that employers shall--
                            ``(i) use a form designated or established 
                        by the Secretary by regulation for purposes of 
                        this paragraph in lieu of the verification form 
                        under paragraph (1); and
                            ``(ii) retain a paper, microfiche, 
                        microfilm, or electronic version of the form 
                        and make it available for inspection by 
                        officers of the Department of Homeland 
                        Security, the Special Counsel for Immigration-
                        Related Unfair Employment Practices, or the 
                        Department of Labor during the period beginning 
                        on the date the reverification commences and 
                        ending on the date that is the later of 3 years 
                        after the date of such reverification or 1 year 
                        after the date the individual's employment is 
                        terminated.
                    ``(D) Notice.--The Secretary of Homeland Security 
                shall notify a person or entity employing a person with 
                limited work authorization of the date on which the 
                limited work authorization expires.
            ``(3) Previously hired individuals.--
                    ``(A) On a mandatory basis for certain employees.--
                            ``(i) In general.--Not later than the date 
                        that is 6 months after the date of the 
                        enactment of the Legal Workforce Act, an 
                        employer shall make an inquiry, as provided in 
                        subsection (d), using the verification system 
                        to seek verification of the identity and 
                        employment eligibility of any individual 
                        described in clause (ii) employed by the 
                        employer whose employment eligibility has not 
                        been verified under the E-Verify Program 
                        described in section 403(a) of the Illegal 
                        Immigration Reform and Immigrant Responsibility 
                        Act of 1996 (8 U.S.C. 1324a note).
                            ``(ii) Individuals described.--An 
                        individual described in this clause is any of 
                        the following:
                                    ``(I) An employee of any unit of a 
                                Federal, State, or local government.
                                    ``(II) An employee who requires a 
                                Federal security clearance working in a 
                                Federal, State or local government 
                                building, a military base, a nuclear 
                                energy site, a weapons site, or an 
                                airport or other facility that requires 
                                workers to carry a Transportation 
                                Worker Identification Credential 
                                (TWIC).
                                    ``(III) An employee assigned to 
                                perform work in the United States under 
                                a Federal or State contract, except 
                                that this subclause--
                                            ``(aa) is not applicable to 
                                        individuals who have a 
                                        clearance under Homeland 
                                        Security Presidential Directive 
                                        12 (HSPD 12 clearance), are 
                                        administrative or overhead 
                                        personnel, or are working 
                                        solely on contracts that 
                                        provide Commercial Off The 
                                        Shelf goods or services as set 
                                        forth by the Federal 
                                        Acquisition Regulatory Council, 
                                        unless they are subject to 
                                        verification under subclause 
                                        (II); and
                                            ``(bb) only applies to 
                                        contacts over the simple 
                                        acquisition threshold.
                    ``(B) On a mandatory basis for multiple users of 
                same social security account number.--In the case of an 
                employer who is required by this subsection to use the 
                verification system described in subsection (d), or has 
                elected voluntarily to use such system, the employer 
                shall make inquiries to the system in accordance with 
                the following:
                            ``(i) The Commissioner of Social Security 
                        shall notify annually employees (at the 
                        employee address listed on the Wage and Tax 
                        Statement) who submit a social security account 
                        number to which more than one employer reports 
                        income and for which there is a pattern of 
                        unusual multiple use. The notification letter 
                        shall identify the number of employers to 
                        which, and the States in which, income is being 
                        reported as well as sufficient information 
                        notifying the employee of the process to 
                        contact the Social Security Administration 
                        Fraud Hotline if the employee believes the 
                        employee's identity may have been stolen. The 
                        notice shall not share information protected as 
                        private, in order to avoid any recipient of the 
                        notice being in the position to further 
                        identity theft.
                            ``(ii) If the person to whom the social 
                        security account number was issued by the 
                        Social Security Administration has been 
                        identified and confirmed by Commissioner, and 
                        indicates that the social security account 
                        number was used without their knowledge, the 
                        Secretary and the Commissioner shall lock the 
                        social security account number for employment 
                        eligibility verification purposes and shall 
                        notify the employers of the individuals who 
                        wrongfully submitted the social security 
                        account number that the employee may not be 
                        work eligible.
                            ``(iii) Each employer receiving such 
                        notification of invalid social security account 
                        number shall use the verification system 
                        described in subsection (d) to check the work 
                        eligibility status of the applicable employee 
                        within 10 business days of receipt of the 
                        notification of invalid social security account 
                        number under clause (ii).
                    ``(C) On a mandatory basis for certain mismatched 
                wage and tax statements.--
                            ``(i) In general.--In the case of an 
                        employer who is required by this subsection to 
                        use the verification system described in 
                        subsection (d), or has elected voluntarily to 
                        use such system, and who receives a notice 
                        described in clause (ii) identifying an 
                        individual employee, the employer shall, not 
                        later than 30 calendar days after receipt of 
                        such notice, use the verification system 
                        described in subsection (d) to verify the 
                        employment eligibility of the employee in 
                        accordance with the instructions in such notice 
                        if the individual is still on the payroll of 
                        the employer.
                            ``(ii) Notice.--The Commissioner of Social 
                        Security shall issue a notice to an employer 
                        submitting one or more mismatched wage and tax 
                        statements or corrected wage and tax statements 
                        containing the following:
                                    ``(I) A description of the 
                                mismatched information.
                                    ``(II) An explanation of the steps 
                                that the employer is required to take 
                                to correct the mismatched information.
                                    ``(III) An explanation of the 
                                employment eligibility verification 
                                requirement described in clause (i).
                    ``(D) On a voluntary basis.--Subject to paragraph 
                (2), and subparagraphs (A) through (C) of this 
                paragraph, beginning on the date that is 30 days after 
                the date of the enactment of the Legal Workforce Act, 
                an employer may make an inquiry, as provided in 
                subsection (d), using the verification system to seek 
                verification of the identity and employment eligibility 
                of any individual employed by the employer. If an 
                employer chooses voluntarily to seek verification of 
                any individual employed by the employer, the employer 
                shall seek verification of all individuals so employed. 
                An employer's decision about whether or not voluntarily 
                to seek verification of its current workforce under 
                this subparagraph may not be considered by any 
                government agency in any proceeding, investigation, or 
                review provided for in this Act.
                    ``(E) Verification.--Paragraph (1)(C)(ii) shall 
                apply to verifications pursuant to this paragraph on 
                the same basis as it applies to verifications pursuant 
                to paragraph (1), except that employers shall--
                            ``(i) use a form designated or established 
                        by the Secretary by regulation for purposes of 
                        this paragraph in lieu of the verification form 
                        under paragraph (1); and
                            ``(ii) retain a paper, microfiche, 
                        microfilm, or electronic version of the form 
                        and make it available for inspection by 
                        officers of the Department of Homeland 
                        Security, the Special Counsel for Immigration-
                        Related Unfair Employment Practices, or the 
                        Department of Labor during the period beginning 
                        on the date the verification commences and 
                        ending on the date that is the later of 3 years 
                        after the date of such verification or 1 year 
                        after the date the individual's employment is 
                        terminated.
            ``(4) Early compliance.--
                    ``(A) Former e-verify required users, including 
                federal contractors.--Notwithstanding the deadlines in 
                paragraphs (1) and (2), beginning on the earlier of the 
                date that is 6 months after the date of the enactment 
                of the Legal Workforce Act and the date on which the 
                Secretary implements the system under subsection (d), 
                the Secretary is authorized to commence requiring 
                employers required to participate in the E-Verify 
                Program described in section 403(a) of the Illegal 
                Immigration Reform and Immigrant Responsibility Act of 
                1996 (8 U.S.C. 1324a note), including employers 
                required to participate in such program by reason of 
                Federal acquisition laws (and regulations promulgated 
                under those laws, including the Federal Acquisition 
                Regulation), to commence compliance with the 
                requirements of this subsection (and any additional 
                requirements of such Federal acquisition laws and 
                regulation) in lieu of any requirement to participate 
                in the E-Verify Program.
                    ``(B) Former e-verify voluntary users and others 
                desiring early compliance.--Notwithstanding the 
                deadlines in paragraphs (1) and (2), beginning 30 days 
                after the date of the enactment of the Legal Workforce 
                Act, the Secretary shall provide for the voluntary 
                compliance with the requirements of this subsection by 
                employers voluntarily electing to participate in the E-
                Verify Program described in section 403(a) of the 
                Illegal Immigration Reform and Immigrant Responsibility 
                Act of 1996 (8 U.S.C. 1324a note) before such date, as 
                well as by other employers seeking voluntary early 
                compliance.
            ``(5) Copying of documentation permitted.--Notwithstanding 
        any other provision of law, the person or entity may copy a 
        document presented by an individual pursuant to this subsection 
        and may retain the copy, but only (except as otherwise 
        permitted under law) for the purpose of complying with the 
        requirements of this subsection.
            ``(6) Limitation on use of forms.--A form designated or 
        established by the Secretary of Homeland Security under this 
        subsection and any information contained in or appended to such 
        form, may not be used for purposes other than for enforcement 
        of this Act and any other provision of Federal criminal law.
            ``(7) Good faith compliance.--
                    ``(A) In general.--Except as otherwise provided in 
                this subsection, a person or entity is considered to 
                have complied with a requirement of this subsection 
                notwithstanding a technical or procedural failure to 
                meet such requirement if there was a good faith attempt 
                to comply with the requirement.
                    ``(B) Exception if failure to correct after 
                notice.--Subparagraph (A) shall not apply if--
                            ``(i) the failure is not de minimus;
                            ``(ii) the Secretary of Homeland Security 
                        has explained to the person or entity the basis 
                        for the failure and why it is not de minimus;
                            ``(iii) the person or entity has been 
                        provided a period of not less than 30 calendar 
                        days (beginning after the date of the 
                        explanation) within which to correct the 
                        failure; and
                            ``(iv) the person or entity has not 
                        corrected the failure voluntarily within such 
                        period.
                    ``(C) Exception for pattern or practice 
                violators.--Subparagraph (A) shall not apply to a 
                person or entity that has or is engaging in a pattern 
                or practice of violations of subsection (a)(1)(A) or 
                (a)(2).''.

SEC. 3. EMPLOYMENT ELIGIBILITY VERIFICATION SYSTEM.

    Section 274A(d) of the Immigration and Nationality Act (8 U.S.C. 
1324a(d)) is amended to read as follows:
    ``(d) Employment Eligibility Verification System.--
            ``(1) In general.--Patterned on the employment eligibility 
        confirmation system established under section 404 of the 
        Illegal Immigration Reform and Immigrant Responsibility Act of 
        1996 (8 U.S.C. 1324a note), the Secretary of Homeland Security 
        shall establish and administer a verification system through 
        which the Secretary (or a designee of the Secretary, which may 
        be a nongovernmental entity)--
                    ``(A) responds to inquiries made by persons at any 
                time through a toll-free telephone line and other toll-
                free electronic media concerning an individual's 
                identity and whether the individual is authorized to be 
                employed; and
                    ``(B) maintains records of the inquiries that were 
                made, of verifications provided (or not provided), and 
                of the codes provided to inquirers as evidence of their 
                compliance with their obligations under this section.
            ``(2) Initial response.--The verification system shall 
        provide verification or a tentative nonverification of an 
        individual's identity and employment eligibility within 3 
        working days of the initial inquiry. If providing verification 
        or tentative nonverification, the verification system shall 
        provide an appropriate code indicating such verification or 
        such nonverification.
            ``(3) Secondary verification process in case of tentative 
        nonverification.--In cases of tentative nonverification, the 
        Secretary shall specify, in consultation with the Commissioner 
        of Social Security, an available secondary verification process 
        to confirm the validity of information provided and to provide 
        a final verification or nonverification within 10 working days 
        after the date of the tentative nonverification. When final 
        verification or nonverification is provided, the verification 
        system shall provide an appropriate code indicating such 
        verification or nonverification.
            ``(4) Design and operation of system.--The verification 
        system shall be designed and operated--
                    ``(A) to maximize its reliability and ease of use 
                by persons and other entities consistent with 
                insulating and protecting the privacy and security of 
                the underlying information;
                    ``(B) to respond to all inquiries made by such 
                persons and entities on whether individuals are 
                authorized to be employed and to register all times 
                when such inquiries are not received;
                    ``(C) with appropriate administrative, technical, 
                and physical safeguards to prevent unauthorized 
                disclosure of personal information;
                    ``(D) to have reasonable safeguards against the 
                system's resulting in unlawful discriminatory practices 
                based on national origin or citizenship status, 
                including--
                            ``(i) the selective or unauthorized use of 
                        the system to verify eligibility; or
                            ``(ii) the exclusion of certain individuals 
                        from consideration for employment as a result 
                        of a perceived likelihood that additional 
                        verification will be required, beyond what is 
                        required for most job applicants; and
                    ``(E) to limit the subjects of verification to the 
                following individuals:
                            ``(i) Individuals hired, referred, or 
                        recruited, in accordance with paragraph (1) or 
                        (4) of subsection (b).
                            ``(ii) Employees and prospective employees, 
                        in accordance with paragraph (2), (3), or (4) 
                        of subsection (b).
                            ``(iii) Individuals seeking to confirm 
                        their own employment eligibility on a voluntary 
                        basis.
            ``(5) Responsibilities of commissioner of social 
        security.--As part of the verification system, the Commissioner 
        of Social Security, in consultation with the Secretary of 
        Homeland Security (and any designee of the Secretary selected 
        to establish and administer the verification system), shall 
        establish a reliable, secure method, which, within the time 
        periods specified under paragraphs (2) and (3), compares the 
        name and social security account number provided in an inquiry 
        against such information maintained by the Commissioner in 
        order to validate (or not validate) the information provided 
        regarding an individual whose identity and employment 
        eligibility must be confirmed, the correspondence of the name 
        and number, and whether the individual has presented a social 
        security account number that is not valid for employment. The 
        Commissioner shall not disclose or release social security 
        information (other than such verification or nonverification) 
        except as provided for in this section or section 205(c)(2)(I) 
        of the Social Security Act.
            ``(6) Responsibilities of secretary of homeland security.--
        As part of the verification system, the Secretary of Homeland 
        Security (in consultation with any designee of the Secretary 
        selected to establish and administer the verification system), 
        shall establish a reliable, secure method, which, within the 
        time periods specified under paragraphs (2) and (3), compares 
        the name and alien identification or authorization number which 
        are provided in an inquiry against such information maintained 
        by the Secretary in order to validate (or not validate) the 
        information provided, the correspondence of the name and 
        number, and whether the alien is authorized to be employed in 
        the United States.
            ``(7) Offenses.--
                    ``(A) In general.--Any person or entity that, in 
                making an inquiry under subsection (b)(1)(C)(i)(II), 
                provides to the verification system a social security 
                account number or an identification or authorization 
                number established by the Secretary of Homeland 
                Security that belongs to a person other than the 
                individual whose identity and employment authorization 
                are being verified, knowing that the number does not 
                belong to the individual whose identity and employment 
                authorization are being verified, shall be fined under 
                title 18, United States Code, imprisoned not less than 
                1 year and not more than 15 years, or both. If the 
                person or entity, in making an inquiry under subsection 
                (b)(1)(C)(i)(II), during and in relation to any felony 
                violation enumerated in section 1028A(c) of title 18, 
                United States Code, provides to the verification system 
                a social security account number or an identification 
                or authorization number established by the Secretary of 
                Homeland Security that belongs to a person other than 
                the individual whose identity and employment 
                authorization are being verified, knowing that the 
                number does not belong to the individual whose identity 
                and work authorization are being verified, in addition 
                to the punishment provided for such felony, shall be 
                fined under title 18, United States Code, imprisoned 
                for a term of 2 years, or both.
                    ``(B) Consecutive sentence.--Notwithstanding any 
                other provision of law--
                            ``(i) a court shall not place on probation 
                        any person or entity convicted of a violation 
                        of this paragraph;
                            ``(ii) except as provided in clause (iv), 
                        no term of imprisonment imposed on a person or 
                        entity under this section shall run 
                        concurrently with any other term of 
                        imprisonment imposed on the person or entity 
                        under any other provision of law, including any 
                        term of imprisonment imposed for the felony 
                        enumerated in section 1028A(c) of title 18, 
                        United States Code, during which the violation 
                        of this paragraph occurred;
                            ``(iii) in determining any term of 
                        imprisonment to be imposed for the felony 
                        enumerated in section 1028A(c) of title 18, 
                        United States Code, during which the violation 
                        of this section occurred, a court shall not in 
                        any way reduce the term to be imposed for such 
                        crime so as to compensate for, or otherwise 
                        take into account, any separate term of 
                        imprisonment imposed or to be imposed for a 
                        violation of this paragraph; and
                            ``(iv) a term of imprisonment imposed on a 
                        person or entity for a violation of this 
                        paragraph may, in the discretion of the court, 
                        run concurrently, in whole or in part, only 
                        with another term of imprisonment that is 
                        imposed by the court at the same time on that 
                        person or entity for an additional violation of 
                        this paragraph, except that such discretion 
                        shall be exercised in accordance with any 
                        applicable guidelines and policy statements 
                        issued by the United States Sentencing 
                        Commission pursuant to section 994 of title 28, 
                        United States Code.
            ``(8) Updating information.--The Commissioner of Social 
        Security and the Secretary of Homeland Security shall update 
        their information in a manner that promotes the maximum 
        accuracy and shall provide a process for the prompt correction 
        of erroneous information, including instances in which it is 
        brought to their attention in the secondary verification 
        process described in paragraph (3).
            ``(9) Limitation on use of the verification system and any 
        related systems.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, nothing in this section shall be 
                construed to permit or allow any department, bureau, or 
                other agency of the United States Government to utilize 
                any information, data base, or other records assembled 
                under this subsection for any other purpose other than 
                as provided for under this section.
                    ``(B) No national identification card.--Nothing in 
                this section shall be construed to authorize, directly 
                or indirectly, the issuance or use of national 
                identification cards or the establishment of a national 
                identification card.
            ``(10) Remedies.--If an individual alleges that the 
        individual would not have been dismissed from a job but for an 
        error of the verification mechanism, the individual may seek 
        compensation only through the mechanism of the Federal Tort 
        Claims Act, and injunctive relief to correct such error. No 
        class action may be brought under this paragraph.''.

SEC. 4. RECRUITMENT, REFERRAL, AND CONTINUATION OF EMPLOYMENT.

    (a) Additional Changes to Rules for Recruitment, Referral, and 
Continuation of Employment.--Section 274A(a) of the Immigration and 
Nationality Act (8 U.S.C. 1324a(a)) is amended--
            (1) in paragraph (1)(A), by striking ``for a fee'';
            (2) in paragraph (1), by amending subparagraph (B) to read 
        as follows:
                    ``(B) to hire, continue to employ, or to recruit or 
                refer for employment in the United States an individual 
                without complying with the requirements of subsection 
                (b).'';
            (3) in paragraph (2), by striking ``after hiring an alien 
        for employment in accordance with paragraph (1),'' and 
        inserting ``after complying with paragraph (1),''; and
            (4) in paragraph (3), by striking ``hiring,'' and inserting 
        ``hiring, employing,'' each place it appears.
    (b) Definition.--Section 274A(h) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(h)) is amended by adding at the end the following:
            ``(4) Definition of recruit or refer.--As used in this 
        section, the term `refer' means the act of sending or directing 
        a person or transmitting documentation or information to 
        another, directly or indirectly, with the intent of obtaining 
        employment in the United States for such person. Only persons 
        or entities referring for remuneration (whether on a retainer 
        or contingency basis) are included in the definition, except 
        that union hiring halls that refer union members or nonunion 
        individuals who pay union membership dues are included in the 
        definition whether or not they receive remuneration, as are 
        labor service entities or labor service agencies, whether 
        public, private, for-profit, or nonprofit, that refer, 
        dispatch, or otherwise facilitate the hiring of laborers for 
        any period of time by a third party. As used in this section 
        the term `recruit' means the act of soliciting a person, 
        directly or indirectly, and referring the person to another 
        with the intent of obtaining employment for that person. Only 
        persons or entities referring for remuneration (whether on a 
        retainer or contingency basis) are included in the definition, 
        except that union hiring halls that refer union members or 
        nonunion individuals who pay union membership dues are included 
        in this definition whether or not they receive remuneration, as 
        are labor service entities or labor service agencies, whether 
        public, private, for-profit, or nonprofit that recruit, 
        dispatch, or otherwise facilitate the hiring of laborers for 
        any period of time by a third party.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 1 year after the date of the enactment of 
this Act, except that the amendments made by subsection (a) shall take 
effect 6 months after the date of the enactment of this Act insofar as 
such amendments relate to continuation of employment.

SEC. 5. GOOD FAITH DEFENSE.

    Section 274A(a)(3) of the Immigration and Nationality Act (8 U.S.C. 
1324a(a)(3)) is amended to read as follows:
            ``(3) Good faith defense.--
                    ``(A) Defense.--An employer (or person or entity 
                that hires, employs, recruits or refers for fee, or is 
                otherwise obligated to comply with this section) who 
                establishes that it has complied in good faith with the 
                requirements of subsection (b)--
                            ``(i) shall not be liable to a job 
                        applicant, an employee, the Federal Government, 
                        or a State or local government, under Federal, 
                        State, or local criminal or civil law for any 
                        employment-related action taken with respect to 
                        a job applicant or employee in good-faith 
                        reliance on information provided through the 
                        system established under subsection (d); and
                            ``(ii) has established compliance with its 
                        obligations under subparagraphs (A) and (B) of 
                        paragraph (1) and subsection (b) absent a 
                        showing by the Secretary of Homeland Security, 
                        by clear and convincing evidence, that the 
                        employer had knowledge that an employee is an 
                        unauthorized alien.
                    ``(B) Failure to seek and obtain verification.--
                Subject to the effective dates and other deadlines 
                applicable under subsection (b), in the case of a 
                person or entity in the United States that hires, or 
                continues to employ, an individual, or recruits or 
                refers an individual for employment, the following 
                requirements apply:
                            ``(i) Failure to seek verification.--
                                    ``(I) In general.--If the person or 
                                entity has not made an inquiry, under 
                                the mechanism established under 
                                subsection (d) and in accordance with 
                                the timeframes established under 
                                subsection (b), seeking verification of 
                                the identity and work eligibility of 
                                the individual, the defense under 
                                subparagraph (A) shall not be 
                                considered to apply with respect to any 
                                employment, except as provided in 
                                subclause (II).
                                    ``(II) Special rule for failure of 
                                verification mechanism.--If such a 
                                person or entity in good faith attempts 
                                to make an inquiry in order to qualify 
                                for the defense under subparagraph (A) 
                                and the verification mechanism has 
                                registered that not all inquiries were 
                                responded to during the relevant time, 
                                the person or entity can make an 
                                inquiry until the end of the first 
                                subsequent working day in which the 
                                verification mechanism registers no 
                                nonresponses and qualify for such 
                                defense.
                            ``(ii) Failure to obtain verification.--If 
                        the person or entity has made the inquiry 
                        described in clause (i)(I) but has not received 
                        an appropriate verification of such identity 
                        and work eligibility under such mechanism 
                        within the time period specified under 
                        subsection (d)(2) after the time the 
                        verification inquiry was received, the defense 
                        under subparagraph (A) shall not be considered 
                        to apply with respect to any employment after 
                        the end of such time period.''.

SEC. 6. PREEMPTION.

    Section 274A(h)(2) of the Immigration and Nationality Act (8 U.S.C. 
1324a(h)(2)) is amended to read as follows:
            ``(2) Preemption.--The provisions of this section preempt 
        any State or local law, ordinance, policy, or rule, including 
        any criminal or civil fine or penalty structure, insofar as 
        they may now or hereafter relate to the hiring, continued 
        employment, or status verification for employment eligibility 
        purposes, of unauthorized aliens. A State, locality, 
        municipality, or political subdivision may exercise its 
        authority over business licensing and similar laws as a penalty 
        for failure to use the verification system described in 
        subsection (d) to verify employment eligibility when and as 
        required under subsection (b).''.

SEC. 7. REPEAL.

    (a) In General.--Subtitle A of title IV of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1234a note) 
is repealed.
    (b) References.--Any reference in any Federal law, Executive order, 
rule, regulation, or delegation of authority, or any document of, or 
pertaining to, the Department of Homeland Security or the Social 
Security Administration, to the employment eligibility confirmation 
system established under section 404 of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is 
deemed to refer to the employment eligibility confirmation system 
established under section 274A(d) of the Immigration and Nationality 
Act, as amended by section 3 of this Act.
    (c) Effective Date.--This section shall take effect on the date 
that is 36 months after the date of the enactment of this Act.

SEC. 8. PENALTIES.

    Section 274A of the Immigration and Nationality Act (8 U.S.C. 
1324a) is amended--
            (1) in subsection (e)(4)--
                    (A) in subparagraph (A), in the matter before 
                clause (i), by inserting ``, subject to paragraph 
                (10),'' after ``in an amount'';
                    (B) in subparagraph (A)(i), by striking ``not less 
                than $250 and not more than $2,000'' and inserting 
                ``not less than $2,500 and not more than $5,000'';
                    (C) in subparagraph (A)(ii), by striking ``not less 
                than $2,000 and not more than $5,000'' and inserting 
                ``not less than $5,000 and not more than $10,000'';
                    (D) in subparagraph (A)(iii), by striking ``not 
                less than $3,000 and not more than $10,000'' and 
                inserting ``not less than $10,000 and not more than 
                $25,000''; and
                    (E) by amending subparagraph (B) to read as 
                follows:
                    ``(B) may require the person or entity to take such 
                other remedial action as is appropriate.'';
            (2) in subsection (e)(5)--
                    (A) in the paragraph heading, strike ``paperwork'';
                    (B) by inserting ``, subject to paragraphs (10) 
                through (12),'' after ``in an amount'';
                    (C) by striking ``$100'' and inserting ``$1,000'';
                    (D) by striking ``$1,000'' and inserting 
                ``$25,000'';
                    (E) by adding at the end the following: ``Failure 
                by a person or entity to utilize the employment 
                eligibility verification system as required by law, or 
                providing information to the system that the person or 
                entity knows or reasonably believes to be false, shall 
                be treated as a violation of subsection (a)(1)(A).'';
            (3) by adding at the end of subsection (e) the following:
            ``(10) Exemption from penalty for good faith violation.--In 
        the case of imposition of a civil penalty under paragraph 
        (4)(A) with respect to a violation of subsection (a)(1)(A) or 
        (a)(2) for hiring or continuation of employment or recruitment 
        or referral by person or entity and in the case of imposition 
        of a civil penalty under paragraph (5) for a violation of 
        subsection (a)(1)(B) for hiring or recruitment or referral by a 
        person or entity, the penalty otherwise imposed may be waived 
        or reduced if the violator establishes that the violator acted 
        in good faith.
            ``(11) Authority to debar employers for certain 
        violations.--
                    ``(A) In general.--If a person or entity is 
                determined by the Secretary of Homeland Security to be 
                a repeat violator of paragraph (1)(A) or (2) of 
                subsection (a), or is convicted of a crime under this 
                section, such person or entity may be considered for 
                debarment from the receipt of Federal contracts, 
                grants, or cooperative agreements in accordance with 
                the debarment standards and pursuant to the debarment 
                procedures set forth in the Federal Acquisition 
                Regulation.
                    ``(B) Does not have contract, grant, agreement.--If 
                the Secretary of Homeland Security or the Attorney 
                General wishes to have a person or entity considered 
                for debarment in accordance with this paragraph, and 
                such an person or entity does not hold a Federal 
                contract, grant or cooperative agreement, the Secretary 
                or Attorney General shall refer the matter to the 
                Administrator of General Services to determine whether 
                to list the person or entity on the List of Parties 
                Excluded from Federal Procurement, and if so, for what 
                duration and under what scope.
                    ``(C) Has contract, grant, agreement.--If the 
                Secretary of Homeland Security or the Attorney General 
                wishes to have a person or entity considered for 
                debarment in accordance with this paragraph, and such 
                person or entity holds a Federal contract, grant or 
                cooperative agreement, the Secretary or Attorney 
                General shall advise all agencies or departments 
                holding a contract, grant, or cooperative agreement 
                with the person or entity of the Government's interest 
                in having the person or entity considered for 
                debarment, and after soliciting and considering the 
                views of all such agencies and departments, the 
                Secretary or Attorney General may refer the matter to 
                any appropriate lead agency to determine whether to 
                list the person or entity on the List of Parties 
                Excluded from Federal Procurement, and if so, for what 
                duration and under what scope.
                    ``(D) Review.--Any decision to debar a person or 
                entity under in accordance with this paragraph shall be 
                reviewable pursuant to part 9.4 of the Federal 
                Acquisition Regulation.'';
            (4) by amending paragraph (1) of subsection (f) to read as 
        follows:
            ``(1) Criminal penalty.--Any person or entity which engages 
        in a pattern or practice of violations of subsection (a)(1) or 
        (2) shall be fined not more than $15,000 for each unauthorized 
        alien with respect to which such a violation occurs, imprisoned 
        for not less than one year and not more than 10 years, or both, 
        notwithstanding the provisions of any other Federal law 
        relating to fine levels.''; and
            (5) in subsection (f)(2), by striking ``Attorney General'' 
        each place it appears and inserting ``Secretary of Homeland 
        Security''.

SEC. 9. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.

    (a) Funding Under Agreement.--Effective for fiscal years beginning 
on or after October 1, 2012, the Commissioner of Social Security and 
the Secretary of Homeland Security shall enter into and maintain an 
agreement which shall--
            (1) provide funds to the Commissioner for the full costs of 
        the responsibilities of the Commissioner under section 274A(d) 
        of the Immigration and Nationality Act (8 U.S.C. 1324a(d)), as 
        amended by section 3 of this Act, including (but not limited 
        to)--
                    (A) acquiring, installing, and maintaining 
                technological equipment and systems necessary for the 
                fulfillment of the responsibilities of the Commissioner 
                under such section 274A(d), but only that portion of 
                such costs that are attributable exclusively to such 
                responsibilities; and
                    (B) responding to individuals who contest a 
                tentative nonconfirmation provided by the employment 
                eligibility verification system established under such 
                section;
            (2) provide such funds quarterly in advance of the 
        applicable quarter based on estimating methodology agreed to by 
        the Commissioner and the Secretary (except in such instances 
        where the delayed enactment of an annual appropriation may 
        preclude such quarterly payments); and
            (3) require an annual accounting and reconciliation of the 
        actual costs incurred and the funds provided under the 
        agreement, which shall be reviewed by the Office of Inspector 
        General of the Social Security Administration and the 
        Department of Homeland Security.
    (b) Continuation of Employment Verification in Absence of Timely 
Agreement.--In any case in which the agreement required under 
subsection (a) for any fiscal year beginning on or after October 1, 
2012, has not been reached as of October 1 of such fiscal year, the 
latest agreement between the Commissioner and the Secretary of Homeland 
Security providing for funding to cover the costs of the 
responsibilities of the Commissioner under section 274A(d) of the 
Immigration and Nationality Act (8 U.S.C. 1324a(d)) shall be deemed in 
effect on an interim basis for such fiscal year until such time as an 
agreement required under subsection (a) is subsequently reached, except 
that the terms of such interim agreement shall be modified by the 
Director of the Office of Management and Budget to adjust for inflation 
and any increase or decrease in the volume of requests under the 
employment eligibility verification system. In any case in which an 
interim agreement applies for any fiscal year under this subsection, 
the Commissioner and the Secretary shall, not later than October 1 of 
such fiscal year, notify the Committee on Ways and Means, the Committee 
on the Judiciary, and the Committee on Appropriations of the House of 
Representatives and the Committee on Finance, the Committee on the 
Judiciary, and the Committee on Appropriations of the Senate of the 
failure to reach the agreement required under subsection (a) for such 
fiscal year. Until such time as the agreement required under subsection 
(a) has been reached for such fiscal year, the Commissioner and the 
Secretary shall, not later than the end of each 90-day period after 
October 1 of such fiscal year, notify such Committees of the status of 
negotiations between the Commissioner and the Secretary in order to 
reach such an agreement.

SEC. 10. FRAUD PREVENTION.

    (a) Blocking Misused Social Security Account Numbers.--The 
Secretary of Homeland Security and the Commissioner of Social Security 
shall establish a program in which social security account numbers that 
have been identified to be subject to unusual multiple use in the 
employment eligibility verification system established under section 
274A(d) of the Immigration and Nationality Act (8 U.S.C. 1324a(d)), as 
amended by section 3 of this Act, or that are otherwise suspected or 
determined to have been compromised by identity fraud or other misuse, 
shall be blocked from use for such system purposes unless the 
individual using such number is able to establish, through secure and 
fair additional security procedures, that the individual is the 
legitimate holder of the number.
    (b) Allowing Suspension of Use of Certain Social Security Account 
Numbers.--The Secretary of Homeland Security, in consultation with the 
Commissioner of Social Security, shall establish a program which shall 
provide a reliable, secure method by which victims of identity fraud 
and other individuals may suspend or limit the use of their social 
security account number or other identifying information for purposes 
of the employment eligibility verification system established under 
section 274A(d) of the Immigration and Nationality Act (8 U.S.C. 
1324a(d)), as amended by section 3 of this Act. The Secretary may 
implement the program on a limited pilot program basis before making it 
fully available to all individuals.
    (c) Blocking Use of Certain Social Security Account Numbers.--
            (1) In general.--The Secretary of Homeland Security shall 
        establish a program in which the social security account 
        numbers of an alien described in paragraph (2) shall be blocked 
        from use for purposes of the employment eligibility 
        verification system established under section 274A(d) of the 
        Immigration and Nationality Act (8 U.S.C. 1324a(d)), as amended 
        by section 3 of this Act, unless the alien is subsequently 
        admitted lawfully to the United States in, or the Secretary has 
        subsequently changed the alien's status lawfully to, a status 
        that permits employment as a condition of the alien's admission 
        or subsequent change of status, or the Secretary has 
        subsequently granted work authorization lawfully to the alien.
            (2) Aliens described.--An alien is described in this 
        paragraph if the alien--
                    (A) has a final order of removal from the United 
                States;
                    (B) voluntarily departs the United States;
                    (C) is voluntarily returned; or
                    (D) is a nonimmigrant described in section 
                101(a)(15) of the Immigration and Nationality Act (8 
                U.S.C. 1101(a)(15)) whose work authorization has 
                expired and who is not the subject of an application or 
                petition that would authorize the alien's employment.

SEC. 11. BIOMETRIC EMPLOYMENT ELIGIBILITY VERIFICATION PILOT PROGRAM.

    (a) In General.--Not later than 18 months after the date of the 
enactment of the Legal Workforce Act, the Secretary of Homeland 
Security, after consultation with the Commissioner of Social Security 
and the Director of the National Institute of Standards and Technology, 
shall establish by regulation a Biometric Employment Eligibility 
Verification pilot program (the ``Biometric Pilot''). The purpose of 
the Biometric Pilot shall be to provide for identity authentication and 
employment eligibility verification with respect to enrolled new 
employees which shall be available to subject employers who elect to 
participate in the Biometric Pilot. Any subject employer may cancel the 
employer's participation in the Biometric Pilot after one year after 
electing to participate without prejudice to future participation.
    (b) Minimum Requirements.--In accordance with the regulations 
prescribed by the Secretary pursuant to subsection (a), the following 
shall apply:
            (1) Identity authentication and employment eligibility 
        verification by enrollment providers.--The Biometric Pilot 
        shall utilize the services of private sector entities 
        (``enrollment providers''), with appropriate expertise, which 
        shall be subject to initial and periodic certification by the 
        Secretary, to provide--
                    (A) enrollment under the Biometric Pilot of new 
                employees by means of identity authentication in a 
                manner that provides a high level of certainty as to 
                their true identities, using immigration and 
                identifying information maintained by the Social 
                Security Administration and the Department of Homeland 
                Security, review of identity documents, and background 
                screening verification techniques using publicly 
                available information;
                    (B) protection of the authenticated information 
                through biometric technology; and
                    (C) verification of employment eligibility of such 
                new employees.
            (2) Database management.--The Biometric Pilot shall provide 
        for databases of identifying information which may be retained 
        by the enrollment providers. Databases controlled by the 
        Commissioner and Secretary of Homeland Security shall be 
        maintained in a manner to capture new entries and new status 
        information in a timely manner and to interact with the private 
        enrollment databases to keep employment authorization status 
        and identifying information current on a daily basis. The 
        information maintained in such databases shall be subject to 
        the requirements established pursuant to subsection (e), except 
        that--
                    (A) use of the data shall be limited to obtaining 
                employment eligibility verification only, unless the 
                new employee consents to use the data for other 
                purposes, as provided in regulations prescribed by the 
                Secretary; and
                    (B) other identifying traits of the new employees 
                shall be stored through an encoding process that keeps 
                their accurate names, dates of birth, social security 
                numbers, and immigration identification numbers (if 
                any) separate, except during electronic verification.
            (3) Accessibility to employers.--Availability of data 
        maintained in the Biometric Pilot shall be managed so that any 
        subject employer who participates in the Biometric Pilot can 
        obtain verification with respect to any new employee enrolled 
        with any enrollment provider serving in the Biometric Pilot.
            (4) Limitations relating to biometric data.--Any biometric 
        data maintained in the Biometric Pilot relating to any new 
        employee shall be--
                    (A) encrypted and segregated from identifying 
                information relating to the new employee, and
                    (B) maintained and linked to identifying 
                information relating to the new employee only by 
                consent of the new employee for the purpose of 
                verifying employment eligibility or approved correction 
                processes or for other purposes specifically authorized 
                by the employee as provided in regulations prescribed 
                by the Secretary.
            (5) Accuracy of association of data with enrolled new 
        employees.--The enrollment process under the Biometric Pilot 
        shall be managed, in the case of each new employee enrolled in 
        the Biometric Pilot, so as to result in the accurate 
        association of data consisting of name, date of birth, social 
        security number, and immigration identification number (if any) 
        with the established identity of the new employee.
            (6) Limitations on accessibility of information.--Data 
        stored in Biometric Pilot relating to any enrolled new employee 
        shall not be accessible to any person other than those 
        operating the Biometric Pilot and for the sole purpose of 
        identity authentication and employment eligibility verification 
        in connection with the new employee, except--
                    (A) by the written consent of the new employee 
                given specifically for each instance or category of 
                disclosure for any other purpose as provided in 
                regulations prescribed by the Secretary; or
                    (B) in response to a warrant issued by a judicial 
                authority of competent jurisdiction in a criminal 
                proceeding.
            (7) Public education.--The Secretary shall conduct a 
        program of ongoing, comprehensive public education campaign 
        relating to the Biometric Pilot.
    (c) Employer Responsibilities.--In accordance with the regulations 
prescribed by the Secretary pursuant to subsection (a), the following 
shall apply:
            (1) Use limited to enrolled new employees.--Use of the 
        Biometric Pilot by subject employers participating in the 
        Biometric Pilot shall be limited to use in connection with the 
        hiring of new employees occurring after their enrollment in the 
        Biometric Pilot.
            (2) Use for limited period.--Use of the Biometric Pilot by 
        any subject employer participating in the Biometric Pilot in 
        connection with any new employee may occur only during the 
        period beginning on the date of hire and ending at the end of 
        the third business day after the employee has reported for 
        duty. Use of the Biometric Pilot with respect to recruitment or 
        referral for a fee may occur only until the first day of such 
        recruitment or referral.
            (3) Responsibility of employers to enroll new employees.--
        In connection with the hiring by any subject employer of a new 
        employee who has not been previously enrolled in the Biometric 
        Pilot, enrollment of the new employee shall occur only upon 
        application by the subject employer submitted to an enrollment 
        provider, together with payment of any costs associated with 
        the enrollment.
            (4) Limitations on selective use.--No subject employer may 
        use the Biometric Pilot selectively to verify any class, level, 
        or category of new employees. Nothing in this subparagraph 
        shall be construed to preclude subject employers from utilizing 
        the Biometric Pilot in connection with hiring at selected 
        employment locations without implementing such usage at all 
        locations of the employer.
    (d) Employee Protections.--In accordance with the regulations 
prescribed by the Secretary pursuant to subsection (a), the following 
shall apply:
            (1) Access for employees to correct and update 
        information.--Employees enrolled in the Biometric Pilot shall 
        be provided access to the Biometric Pilot to verify information 
        relating to their employment authorization and readily 
        available processes to correct and update their enrollment 
        information and information relating to employment 
        authorization.
            (2) Right to cancel enrollment.--Each employee enrolled in 
        the Biometric Pilot shall have the right to cancel such 
        employee's enrollment at any time after the identity 
        authentication and employment eligibility verification 
        processes are completed by the subject employer described in 
        subsection (c)(3). Such cancellation shall remove from the 
        Biometric Pilot all identifying information and biometrics in 
        connection with such employee without prejudice to future 
        enrollments.
    (e) Maintenance of Security and Confidentiality of Information.--
            (1) In general.--Every person who is a subject employer 
        participating in the Biometric Pilot or an officer or 
        contractor of such a subject employer and who has access to any 
        information obtained at any time from the Department of 
        Homeland Security shall maintain the security and 
        confidentiality of such information. No such person may 
        disclose any file, record, report, paper, or other item 
        containing information so obtained at any time by any such 
        person from the Secretary or from any officer or employee of 
        the Department of Homeland Security except as the Secretary may 
        by regulations prescribe or as otherwise provided by Federal 
        law.
            (2) Penalty for disclosure in violation of subparagraph 
        (a).--Any person described in paragraph (1) who knowingly 
        violates paragraph (1) shall be guilty of a felony and, upon 
        conviction thereof, shall be punished by a fine not exceeding 
        $10,000 for each occurrence of a violation, or by imprisonment 
        not exceeding 5 years, or both.
            (3) Penalty for knowing disclosure of fraudulent 
        information.--Any person who willfully and knowingly accesses, 
        discloses, or uses any information which such person purports 
        to be information obtained as described in paragraph (1) 
        knowing such information to be false shall be guilty of a 
        felony and, upon conviction thereof, shall be punished by a 
        fine not exceeding $10,000 for each occurrence of a violation, 
        or by imprisonment not exceeding 5 years, or both.
            (4) Restitution.--
                    (A) In general.--Any Federal court, when sentencing 
                a defendant convicted of an offense under this 
                paragraph, may order, in addition to or in lieu of any 
                other penalty authorized by law, that the defendant 
                make restitution to the victims of such offense 
                specified in subparagraph (B). Sections 3612, 3663, and 
                3664 of title 18, United States Code, shall apply with 
                respect to the issuance and enforcement of orders of 
                restitution to victims of such offense under this 
                subparagraph. If the court does not order restitution, 
                or orders only partial restitution, under this 
                subsection, the court shall state on the record the 
                reasons therefor.
                    (B) Victims specified.--The victims specified in 
                this clause are the following:
                            (i) Any individual who suffers a financial 
                        loss as a result of the disclosure described in 
                        paragraph (2) or (3).
                            (ii) The Secretary of Homeland Security, to 
                        the extent that the disclosure described in 
                        paragraph (2) or (3) results in the 
                        inappropriate payment of a benefit by the 
                        Commissioner of Social Security.
                    (C) Deposit in the trust funds of amounts paid as 
                restitution to the commissioner.--Funds paid to the 
                Commissioner as restitution pursuant to a court order 
                under this subparagraph shall be deposited in the 
                Federal Old-Age and Survivors Insurance Trust Fund or 
                the Federal Disability Insurance Trust Fund, as 
                appropriate.
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