[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6417 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 6417

   To create a nonimmigrant H-2C work visa program for agricultural 
 workers, 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

                             July 18, 2018

   Mr. Goodlatte (for himself, Mr. Peterson, Mr. Smith of Texas, Mr. 
   Cuellar, Mr. Newhouse, Mr. Conaway, Mr. Meadows, Mr. Walker, Mr. 
Abraham, Mr. Aderholt, Mr. Barr, Mr. Buck, Mr. Calvert, Mr. Chabot, Mr. 
Cole, Mr. Collins of New York, Mr. Comer, Mr. Cramer, Mr. Crawford, Mr. 
 Curtis, Mr. DesJarlais, Mr. Duffy, Mr. Dunn, Mr. Estes of Kansas, Mr. 
Faso, Mr. Gallagher, Mr. Harris, Ms. Jenkins of Kansas, Mr. Jones, Mr. 
  Lucas, Mr. Marino, Mr. Marshall, Mr. Nunes, Mr. Reed, Mr. Ross, Mr. 
  Rouzer, Mr. Austin Scott of Georgia, Ms. Stefanik, Mr. Stivers, Ms. 
 Tenney, Mr. Thompson of Pennsylvania, Mr. Thornberry, Mr. Upton, Mr. 
     Yoho, Mr. Katko, Mr. Rodney Davis of Illinois, Mr. Higgins of 
 Louisiana, and Mr. Collins of Georgia) introduced the following bill; 
 which was referred to the Committee on the Judiciary, and in addition 
 to the Committees on Education and the Workforce, Ways and Means, and 
Energy and Commerce, 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 create a nonimmigrant H-2C work visa program for agricultural 
 workers, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``AG and Legal 
Workforce Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

                  TITLE I--AGRICULTURAL WORKER REFORM

SEC. 101. SHORT TITLE.

    This title may be cited as--
            (1) the ``Agricultural Guestworker Act''; or
            (2) the ``AG Act''.

SEC. 102. H-2C TEMPORARY AGRICULTURAL WORK VISA PROGRAM.

    (a) In General.--Section 101(a)(15)(H) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(15)(H)) is amended by striking ``; or 
(iii)'' and inserting ``, or (c) who is coming temporarily to the 
United States to perform agricultural labor or services; or (iii)''.
    (b) Definition.--Section 101(a) of such Act (8 U.S.C. 1101(a)) is 
amended by adding at the end the following:
    ``(53) The term `agricultural labor or services' has the meaning 
given such term by the Secretary of Agriculture in regulations and 
includes--
            ``(A) agricultural labor as defined in section 3121(g) of 
        the Internal Revenue Code of 1986;
            ``(B) agriculture as defined in section 3(f) of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 203(f));
            ``(C) the handling, planting, drying, packing, packaging, 
        processing, freezing, or grading prior to delivery for storage 
        of any agricultural or horticultural commodity in its 
        unmanufactured state;
            ``(D) all activities required for the preparation, 
        processing or manufacturing of a product of agriculture (as 
        such term is defined in such section 3(f)), or fish or 
        shellfish, for further distribution;
            ``(E) forestry-related activities;
            ``(F) aquaculture activities; and
            ``(G) activities related to the management and training of 
        equines,
except that in regard to labor or services consisting of meat or 
poultry processing, the term `agricultural labor or services' only 
includes the killing of animals and the breakdown of their 
carcasses.''.

SEC. 103. ADMISSION OF TEMPORARY H-2C WORKERS.

    (a) Procedure for Admission.--Chapter 2 of title II of the 
Immigration and Nationality Act (8 U.S.C. 1181 et seq.) is amended by 
inserting after section 218 the following:

``SEC. 218A. ADMISSION OF TEMPORARY H-2C WORKERS.

    ``(a) Definitions.--In this section and section 218B:
            ``(1) Displace.--The term `displace' means to lay off a 
        United States worker from the job for which H-2C workers are 
        sought.
            ``(2) Job.--The term `job' refers to all positions with an 
        employer that--
                    ``(A) involve essentially the same 
                responsibilities;
                    ``(B) are held by workers with substantially 
                equivalent qualifications and experience; and
                    ``(C) are located in the same place or places of 
                employment.
            ``(3) Employer.--The term `employer' includes a single or 
        joint employer, including an association acting as a joint 
        employer with its members, who hires workers to perform 
        agricultural labor or services.
            ``(4) Forestry-related activities.--The term `forestry-
        related activities' includes tree planting, timber harvesting, 
        logging operations, brush clearing, vegetation management, 
        herbicide application, the maintenance of rights-of-way 
        (including for roads, trails, and utilities), regardless of 
        whether such right-of-way is on forest land, and the harvesting 
        of pine straw.
            ``(5) H-2C worker.--The term `H-2C worker' means a 
        nonimmigrant described in section 101(a)(15)(H)(ii)(c).
            ``(6) Lay off.--
                    ``(A) In general.--The term `lay off'--
                            ``(i) means to cause a worker's loss of 
                        employment, other than through a discharge for 
                        inadequate performance, violation of workplace 
                        rules, cause, voluntary departure, voluntary 
                        retirement, or the expiration of a grant or 
                        contract (other than a temporary employment 
                        contract entered into in order to evade a 
                        condition described in paragraph (4) of 
                        subsection (b)); and
                            ``(ii) does not include any situation in 
                        which the worker is offered, as an alternative 
                        to such loss of employment, a similar position 
                        with the same employer at equivalent or higher 
                        wages and benefits than the position from which 
                        the employee was discharged, regardless of 
                        whether or not the employee accepts the offer.
                    ``(B) Construction.--Nothing in this paragraph is 
                intended to limit an employee's rights under a 
                collective bargaining agreement or other employment 
                contract.
            ``(7) United states worker.--The term `United States 
        worker' means any worker who is--
                    ``(A) a citizen or national of the United States; 
                or
                    ``(B) an alien who is lawfully admitted for 
                permanent residence, is admitted as a refugee under 
                section 207, or is granted asylum under section 208.
            ``(8) Special procedures industry.--The term `special 
        procedures industry' includes sheepherding, goat herding, and 
        the range production of livestock, itinerant commercial 
        beekeeping and pollination, itinerant animal shearing, and 
        custom combining and harvesting.
    ``(b) Petition.--An employer that seeks to employ aliens as H-2C 
workers under this section shall file with the Secretary of Homeland 
Security a petition attesting to the following:
            ``(1) Offer of employment.--The employer will offer 
        employment to the aliens on a contractual basis as H-2C workers 
        under this section for a specific period of time during which 
        the aliens may not work on an at-will basis (as provided for in 
        section 218B), and such contract shall only be required to 
        include a description of each place of employment, period of 
        employment, wages and other benefits to be provided, and the 
        duties of the positions.
            ``(2) Temporary labor or services.--
                    ``(A) In general.--The employer is seeking to 
                employ a specific number of H-2C workers on a temporary 
                basis and will provide compensation to such workers at 
                a wage rate no less than that set forth in subsection 
                (j)(2).
                    ``(B) Definition.--For purposes of this paragraph, 
                a worker is employed on a temporary basis if the 
                employer intends to employ the worker for no longer 
                than the time period set forth in subsection (m)(1) 
                (subject to the exceptions in subsection (m)(3)).
            ``(3) Benefits, wages, and working conditions.--The 
        employer will provide, at a minimum, the benefits, wages, and 
        working conditions required by subsection (k) to all workers 
        employed in the job for which the H-2C workers are sought.
            ``(4) Nondisplacement of united states workers.--The 
        employer did not displace and will not displace United States 
        workers employed by the employer during the period of 
        employment of the H-2C workers and during the 30-day period 
        immediately preceding such period of employment in the job for 
        which the employer seeks approval to employ H-2C workers.
            ``(5) Recruitment.--
                    ``(A) In general.--The employer--
                            ``(i) conducted adequate recruitment before 
                        filing the petition; and
                            ``(ii) was unsuccessful in locating 
                        sufficient numbers of willing and qualified 
                        United States workers for the job for which the 
                        H-2C workers are sought.
                    ``(B) Other requirements.--The recruitment 
                requirement under subparagraph (A) is satisfied if the 
                employer places a local job order with the State 
                workforce agency serving each place of employment, 
                except that nothing in this subparagraph shall require 
                the employer to file an interstate job order under 
                section 653 of title 20, Code of Federal Regulations. 
                The State workforce agency shall post the job order on 
                its official agency website for a minimum of 30 days 
                and not later than 3 days after receipt using the 
                employment statistics system authorized under section 
                15 of the Wagner-Peyser Act (29 U.S.C. 49l-2). The 
                Secretary of Labor shall include links to the official 
                Web sites of all State workforce agencies on a single 
                webpage of the official Web site of the Department of 
                Labor.
                    ``(C) End of recruitment requirement.--The 
                requirement to recruit United States workers for a job 
                shall terminate on the first day that work begins for 
                the H-2C workers.
            ``(6) Offers to united states workers.--The employer has 
        offered or will offer the job for which the H-2C workers are 
        sought to any eligible United States workers who--
                    ``(A) apply;
                    ``(B) are qualified for the job; and
                    ``(C) will be available at the time, at each place, 
                and for the duration, of need.
        This requirement shall not apply to United States workers who 
        apply for the job on or after the first day that work begins 
        for the H-2C workers.
            ``(7) Provision of insurance.--If the job for which the H-
        2C workers are sought is not covered by State workers' 
        compensation law, the employer will provide, at no cost to the 
        workers unless State law provides otherwise, insurance covering 
        injury and disease arising out of, and in the course of, the 
        workers' employment, which will provide benefits at least equal 
        to those provided under the State workers compensation law for 
        comparable employment.
            ``(8) Strike or lockout.--The job that is the subject of 
        the petition is not vacant because the former workers in that 
        job are on strike or locked out in the course of a labor 
        dispute.
    ``(c) List.--
            ``(1) In general.--The Secretary of Homeland Security shall 
        maintain a list of the petitions filed under this subsection, 
        which shall--
                    ``(A) be sorted by employer; and
                    ``(B) include the number of H-2C workers sought, 
                the wage rate, the period of employment, each place of 
                employment, and the date of need for each alien.
            ``(2) Availability.--The Secretary of Homeland Security 
        shall make the list available for public examination.
    ``(d) Petitioning for Admission.--
            ``(1) Consideration of petitions.--For petitions filed and 
        considered under this subsection--
                    ``(A) the Secretary of Homeland Security may not 
                require such petition to be filed more than 28 days 
                before the first date the employer requires the labor 
                or services of H-2C workers;
                    ``(B) within the appropriate time period under 
                subparagraph (C) or (D), the Secretary of Homeland 
                Security shall--
                            ``(i) approve the petition;
                            ``(ii) reject the petition; or
                            ``(iii) determine that the petition is 
                        incomplete or obviously inaccurate or that the 
                        employer has not complied with the requirements 
                        of subsection (b)(5)(A)(i) (which the Secretary 
                        can ascertain by verifying whether the employer 
                        has placed a local job order as provided for in 
                        subsection (b)(5)(B));
                    ``(C) if the Secretary determines that the petition 
                is incomplete or obviously inaccurate, or that the 
                employer has not complied with the requirements of 
                subsection (b)(5)(A)(i) (which the Secretary can 
                ascertain by verifying whether the employer has placed 
                a local job order as provided for in subsection 
                (b)(5)(B)), the Secretary shall--
                            ``(i) within 5 business days of receipt of 
                        the petition, notify the petitioner of the 
                        deficiencies to be corrected by means ensuring 
                        same or next day delivery; and
                            ``(ii) within 5 business days of receipt of 
                        the corrected petition, approve or reject the 
                        petition and provide the petitioner with notice 
                        of such action by means ensuring same or next 
                        day delivery; and
                    ``(D) if the Secretary does not determine that the 
                petition is incomplete or obviously inaccurate, the 
                Secretary shall not later than 10 business days after 
                the date on which such petition was filed, either 
                approve or reject the petition and provide the 
                petitioner with notice of such action by means ensuring 
                same or next day delivery.
            ``(2) Access.--By filing an H-2C petition, the petitioner 
        and each employer (if the petitioner is an association that is 
        a joint employer of workers who perform agricultural labor or 
        services) consent to allow access to each place of employment 
        to the Department of Agriculture and the Department of Homeland 
        Security for the purpose of investigations and audits to 
        determine compliance with the immigration laws (as defined in 
        section 101(a)(17)).
            ``(3) Confidentiality of information.--No information 
        contained in a non-fraudulent petition filed by an employer 
        pursuant to subsection (b) which is not otherwise available to 
        the Secretary of Homeland Security may be used--
                    ``(A) in a civil or criminal prosecution or 
                investigation of the petitioning employer under section 
                274A or the Internal Revenue Code of 1986 for unlawful 
                employment of an alien who is the beneficiary of such 
                petition; or
                    ``(B) for the purpose of initiating or proceeding 
                with removal proceedings with respect to an alien who 
                is the beneficiary of such petition, except in the case 
                of an alien with respect to whom a petition is denied.
    ``(e) Roles of Agricultural Associations.--
            ``(1) Treatment of associations acting as employers.--If an 
        association is a joint employer of workers who perform 
        agricultural labor or services, H-2C workers may be transferred 
        among its members to perform the agricultural labor or services 
        on a temporary basis for which the petition was approved.
            ``(2) Treatment of violations.--
                    ``(A) Individual member.--If an individual member 
                of an association that is a joint employer commits a 
                violation described in paragraph (2) or (3) of 
                subsection (h) or subsection (i)(1), the Secretary of 
                Agriculture shall invoke penalties pursuant to 
                subsections (h) and (i) against only that member of the 
                association unless the Secretary of Agriculture 
                determines that the association participated in, had 
                knowledge of, or had reason to know of the violation.
                    ``(B) Association of agricultural employers.--If an 
                association that is a joint employer commits a 
                violation described in subsections (h)(2) and (3) or 
                (i)(1), the Secretary of Agriculture shall invoke 
                penalties pursuant to subsections (h) and (i) against 
                only the association and not any individual members of 
                the association, unless the Secretary determines that 
                the member participated in the violation.
    ``(f) Expedited Administrative Appeals.--The Secretary of Homeland 
Security shall promulgate regulations to provide for an expedited 
procedure for the review of a denial of a petition under this section 
by the Secretary. At the petitioner's request, the review shall include 
a de novo administrative hearing at which new evidence may be 
introduced.
    ``(g) Fees.--The Secretary of Homeland Security shall require, as a 
condition of approving the petition, the payment of a fee to recover 
the reasonable cost of processing the petition.
    ``(h) Enforcement.--
            ``(1) Investigations and audits.--The Secretary of 
        Agriculture shall be responsible for conducting investigations 
        and audits, including random audits, of employers to ensure 
        compliance with the requirements of the H-2C program. All 
        monetary fines levied against employers shall be paid to the 
        Department of Agriculture and used to enhance the Department of 
        Agriculture's investigative and auditing abilities to ensure 
        compliance by employers with their obligations under this 
        section.
            ``(2) Violations.--If the Secretary of Agriculture finds, 
        after notice and opportunity for a hearing, a failure to 
        fulfill an attestation required by this subsection, or a 
        material misrepresentation of a material fact in a petition 
        under this subsection, the Secretary--
                    ``(A) may impose such administrative remedies 
                (including civil money penalties in an amount not to 
                exceed $1,000 per violation) as the Secretary 
                determines to be appropriate; and
                    ``(B) may disqualify the employer from the 
                employment of H-2C workers for a period of 1 year.
            ``(3) Willful violations.--If the Secretary of Agriculture 
        finds, after notice and opportunity for a hearing, a willful 
        failure to fulfill an attestation required by this subsection, 
        or a willful misrepresentation of a material fact in a petition 
        under this subsection, the Secretary--
                    ``(A) may impose such administrative remedies 
                (including civil money penalties in an amount not to 
                exceed $5,000 per violation, or not to exceed $15,000 
                per violation if in the course of such failure or 
                misrepresentation the employer displaced one or more 
                United States workers employed by the employer during 
                the period of employment of H-2C workers or during the 
                30-day period immediately preceding such period of 
                employment) in the job the H-2C workers are performing 
                as the Secretary determines to be appropriate;
                    ``(B) may disqualify the employer from the 
                employment of H-2C workers for a period of 2 years;
                    ``(C) may, for a subsequent failure to fulfill an 
                attestation required by this subsection, or a 
                misrepresentation of a material fact in a petition 
                under this subsection, disqualify the employer from the 
                employment of H-2C workers for a period of 5 years; and
                    ``(D) may, for a subsequent willful failure to 
                fulfill an attestation required by this subsection, or 
                a willful misrepresentation of a material fact in a 
                petition under this subsection, permanently disqualify 
                the employer from the employment of H-2C workers.
    ``(i) Failure To Pay Wages or Required Benefits.--
            ``(1) In general.--If the Secretary of Agriculture finds, 
        after notice and opportunity for a hearing, that the employer 
        has failed to provide the benefits, wages, and working 
        conditions that the employer has attested that it would provide 
        under this subsection, the Secretary shall require payment of 
        back wages, or such other required benefits, due any United 
        States workers or H-2C workers employed by the employer.
            ``(2) Amount.--The back wages or other required benefits 
        described in paragraph (1)--
                    ``(A) shall be equal to the difference between the 
                amount that should have been paid and the amount that 
                was paid to such workers; and
                    ``(B) shall be distributed to the workers to whom 
                such wages or benefits are due.
    ``(j) Minimum Wages, Benefits, and Working Conditions.--
            ``(1) Preferential treatment of h-2c workers prohibited.--
                    ``(A) In general.--Each employer seeking to hire 
                United States workers for the job the H-2C workers will 
                perform shall offer such United States workers not less 
                than the same benefits, wages, and working conditions 
                that the employer will provide to the H-2C workers, 
                except that if an employer chooses to provide H-2C 
                workers with housing or a housing allowance, the 
                employer need not offer housing or a housing allowance 
                to such United States workers. No job offer may impose 
                on United States workers any restrictions or 
                obligations which will not be imposed on H-2C workers.
                    ``(B) Interpretation.--Every interpretation and 
                determination made under this section or under any 
                other law, regulation, or interpretative provision 
                regarding the nature, scope, and timing of the 
                provision of these and any other benefits, wages, and 
                other terms and conditions of employment shall be made 
                so that--
                            ``(i) the services of workers to their 
                        employers and the employment opportunities 
                        afforded to workers by the employers, including 
                        those employment opportunities that require 
                        United States workers or H-2C workers to travel 
                        or relocate in order to accept or perform 
                        employment--
                                    ``(I) mutually benefit such 
                                workers, as well as their families, and 
                                employers; and
                                    ``(II) principally benefit neither 
                                employer nor employee; and
                            ``(ii) employment opportunities within the 
                        United States benefit the United States 
                        economy.
            ``(2) Required wages.--
                    ``(A) In general.--Each employer petitioning for H-
                2C workers under this subsection (other than in the 
                case of workers who will perform agricultural labor or 
                services consisting of meat or poultry processing) will 
                offer the H-2C workers, during the period of authorized 
                employment as H-2C workers, wages that are at least the 
                greatest of--
                            ``(i) the applicable State or local minimum 
                        wage;
                            ``(ii) 115 percent of the Federal minimum 
                        wage; or
                            ``(iii) the actual wage level paid by the 
                        employer to all other individuals in the job.
                    ``(B) Special rules.--
                            ``(i) Alternate wage payment systems.--An 
                        employer can utilize a piece rate or other 
                        alternative wage payment system so long as the 
                        employer guarantees each worker a wage rate 
                        that equals or exceeds the amount required 
                        under subparagraph (A) for the total hours 
                        worked in each pay period. Compensation from a 
                        piece rate or other alternative wage payment 
                        system shall include time spent during rest 
                        breaks, moving from job to job, clean up, or 
                        any other nonproductive time, provided that 
                        such time does not exceed 20 percent of the 
                        total hours in the work day.
                            ``(ii) Meat or poultry processing.--Each 
                        employer petitioning for H-2C workers under 
                        this subsection who will perform agricultural 
                        labor or services consisting of meat or poultry 
                        processing will offer the H-2C workers, during 
                        the period of authorized employment as H-2C 
                        workers, wages that are at least the greatest 
                        of--
                                    ``(I) the applicable State or local 
                                minimum wage;
                                    ``(II) 150 percent of the Federal 
                                minimum wage;
                                    ``(III) the prevailing wage level 
                                for the occupational classification in 
                                the area of employment; or
                                    ``(IV) the actual wage level paid 
                                by the employer to all other 
                                individuals in the job.
            ``(3) Employment guarantee.--
                    ``(A) In general.--
                            ``(i) Requirement.--Each employer 
                        petitioning for workers under this subsection 
                        shall guarantee to offer the H-2C workers and 
                        United States workers performing the same job 
                        employment for the hourly equivalent of not 
                        less than 50 percent of the work hours set 
                        forth in the work contract.
                            ``(ii) Failure to meet guarantee.--If an 
                        employer affords the United States workers or 
                        the H-2C workers less employment than that 
                        required under this subparagraph, the employer 
                        shall pay such workers the amount which the 
                        workers would have earned if the workers had 
                        worked for the guaranteed number of hours.
                    ``(B) Calculation of hours.--Any hours which 
                workers fail to work, up to a maximum of the number of 
                hours specified in the work contract for a work day, 
                when the workers have been offered an opportunity to do 
                so, and all hours of work actually performed (including 
                voluntary work in excess of the number of hours 
                specified in the work contract in a work day) may be 
                counted by the employer in calculating whether the 
                period of guaranteed employment has been met.
                    ``(C) Limitation.--If the workers abandon 
                employment before the end of the work contract period, 
                or are terminated for cause, the workers are not 
                entitled to the 50 percent guarantee described in 
                subparagraph (A).
                    ``(D) Termination of employment.--
                            ``(i) In general.--If, before the 
                        expiration of the period of employment 
                        specified in the work contract, the services of 
                        the workers are no longer required due to any 
                        form of natural disaster, including flood, 
                        hurricane, freeze, earthquake, fire, drought, 
                        plant or animal disease, pest infestation, 
                        regulatory action, or any other reason beyond 
                        the control of the employer before the 
                        employment guarantee in subparagraph (A) is 
                        fulfilled, the employer may terminate the 
                        workers' employment.
                            ``(ii) Requirements.--If a worker's 
                        employment is terminated under clause (i), the 
                        employer shall--
                                    ``(I) fulfill the employment 
                                guarantee in subparagraph (A) for the 
                                work days that have elapsed during the 
                                period beginning on the first work day 
                                and ending on the date on which such 
                                employment is terminated;
                                    ``(II) make efforts to transfer the 
                                worker to other comparable employment 
                                acceptable to the worker; and
                                    ``(III) not later than 72 hours 
                                after termination, notify the Secretary 
                                of Agriculture of such termination and 
                                stating the nature of the contract 
                                impossibility.
    ``(k) Nondelegation.--The Department of Agriculture and the 
Department of Homeland Security shall not delegate their investigatory, 
enforcement, or administrative functions relating to this section or 
section 218B to other agencies or departments of the Federal 
Government.
    ``(l) Compliance With Bio-Security Protocols.--Except in the case 
of an imminent threat to health or safety, any personnel from a Federal 
agency or Federal grantee seeking to determine the compliance of an 
employer with the requirements of this section or section 218B shall, 
when visiting such employer's place of employment, make their presence 
known to the employer and sign-in in accordance with reasonable bio-
security protocols before proceeding to any other area of the place of 
employment.
    ``(m) Limitation on H-2C Workers' Stay in Status.--
            ``(1) Maximum period.--The maximum continuous period of 
        authorized stay as an H-2C worker (including any extensions) is 
        36 months.
            ``(2) Requirement to remain outside the united states.--In 
        the case of H-2C workers whose maximum continuous period of 
        authorized status as H-2C workers (including any extensions) 
        have expired, the aliens may not again be eligible to be H-2C 
        workers until they remain outside the United States for a 
        continuous period equal to at least the lesser of \1/12\ of the 
        duration of their previous period of authorized status an H-2C 
        workers or 60 days.
            ``(3) Exceptions.--
                    ``(A) The Secretary of Homeland Security shall 
                deduct absences from the United States that take place 
                during an H-2C worker's period of authorized status 
                from the period that the alien is required to remain 
                outside the United States under paragraph (2), if the 
                alien or the alien's employer requests such a 
                deduction, and provides clear and convincing proof that 
                the alien qualifies for such a deduction. Such proof 
                shall consist of evidence such as arrival and departure 
                records, copies of tax returns, and records of 
                employment abroad.
                    ``(B) There is no maximum continuous period of 
                authorized status as set forth in paragraph (1) or a 
                requirement to remain outside the United States as set 
                forth in paragraph (2) for H-2C workers employed as a 
                sheepherder, goatherder, in the range production of 
                livestock, or who return to the workers' permanent 
                residence outside the United States each day.
    ``(n) Period of Admission.--
            ``(1) In general.--In addition to the maximum continuous 
        period of authorized status, workers' authorized period of 
        admission shall include--
                    ``(A) a period of not more than 7 days prior to the 
                beginning of authorized employment as H-2C workers for 
                the purpose of travel to the place of employment; and
                    ``(B) a period of not more than 14 days after the 
                conclusion of their authorized employment for the 
                purpose of departure from the United States or a period 
                of not more than 30 days following the employment for 
                the purpose of seeking a subsequent offer of employment 
                by an employer pursuant to a petition under this 
                section (or pursuant to at-will employment under 
                section 218B during such times as that section is in 
                effect) if they have not reached their maximum 
                continuous period of authorized employment under 
                subsection (m) (subject to the exceptions in subsection 
                (m)(3)) unless they accept subsequent offers of 
                employment as H-2C workers or are otherwise lawfully 
                present.
            ``(2) Failure to depart.--H-2C workers who do not depart 
        the United States within the periods referred to in paragraph 
        (1) or, as applicable, paragraph (3), will be considered to 
        have failed to maintain nonimmigrant status as H-2C workers and 
        shall be subject to removal under section 237(a)(1)(C)(i). Such 
        aliens shall be considered to be inadmissible pursuant to 
        section 212(a)(9)(B)(i) for having been unlawfully present, 
        with the aliens considered to have been unlawfully present for 
        181 days as of the 15th day following their period of 
        employment for the purpose of departure or as of the 31st day 
        following their period of employment for the purpose of seeking 
        subsequent offers of employment.
            ``(3) Application for maximum period.--Notwithstanding the 
        duration of the work requested by the employer petitioning for 
        the admission of an H-2C worker, if the alien is granted a 
        visa, at the request of the alien, the term of the visa shall 
        be for the maximum period described in subsection (m)(1), 
        except that if such an alien is unable to secure subsequent 
        employment 30 days after the conclusion of their authorized 
        employment, the alien shall be required to depart the United 
        States as described in paragraph (1)(B).
    ``(o) Abandonment of Employment.--
            ``(1) Report by employer.--Not later than 72 hours after an 
        employer learns of the abandonment of employment by H-2C 
        workers before the conclusion of their work contracts, the 
        employer shall notify the Secretary of Agriculture and the 
        Secretary of Homeland Security of such abandonment.
            ``(2) Replacement of aliens.--An employer may designate 
        eligible aliens to replace H-2C workers who abandon employment 
        notwithstanding the numerical limitation found in section 
        214(g)(1)(C).
    ``(p) Change to H-2C Status.--
            ``(1) Waiver.--In the case of an alien described in 
        paragraph (2), the Secretary of Homeland Security shall waive 
        the grounds of inadmissibility under paragraphs (5)(A), (6)(A), 
        (6)(C), (7), (9)(B), and (9)(C) of section 212(a), and the 
        grounds of deportability under paragraphs (1)(A) (with respect 
        to the grounds of inadmissibility waived under this paragraph), 
        (1)(B), (1)(C), (3)(A), and (3)(C) of section 237(a), with 
        respect to conduct that occurred prior to the alien first 
        receiving status as an H-2C worker, solely in order to provide 
        the alien with such status.
            ``(2) Alien described.--An alien described in this 
        paragraph is an alien who--
                    ``(A) was unlawfully present in the United States 
                on July 11, 2018; and
                    ``(B) performed agricultural labor or services in 
                the United States for at least 5.75 hours during each 
                of at least 180 days during the 2-year period ending on 
                July 11, 2018.
            ``(3) Special approval procedures.--Before an alien 
        described in paragraph (2) can be provided with nonimmigrant 
        status under section 101(a)(15)(H)(ii)(C), the alien must 
        depart the United States for a period during the interval 
        between the date of issuance of final rules carrying out the AG 
        Act and the date that is 12 months after such issuance. If such 
        an alien is the beneficiary of an approved H-2C petition, for 
        the purpose of meeting such requirement to depart the United 
        States before being provided with nonimmigrant status under 
        section 101(a)(15)(H)(ii)(C), the Secretary shall authorize 
        parole for the alien to travel to the United States without a 
        visa and shall issue an appropriate document authorizing such 
        travel. Prior to authorizing parole for the alien, the 
        Secretary shall conduct an in person interview, as appropriate, 
        and a background check to determine that the alien is not 
        inadmissible to the United States under section 212(a) or 
        deportable under section 237(a), except with regard to the 
        grounds of inadmissibility and grounds of deportability waived 
        under paragraph (1).
    ``(q) Trust Fund To Assure Worker Return.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a trust fund (in this section referred to 
        as the `Trust Fund') for the purpose of providing a monetary 
        incentive for H-2C workers to return to their country of origin 
        upon expiration of their visas.
            ``(2) Withholding of wages; payment into the trust fund.--
                    ``(A) In general.--Notwithstanding the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 201 et seq.) and State 
                and local wage laws, all employers of H-2C workers 
                shall withhold from the wages of all H-2C workers other 
                than those employed as sheepherders, goatherders, in 
                the range production of livestock, or who return to the 
                their permanent residence outside the United States 
                each day, an amount equivalent to 10 percent of the 
                gross wages of each worker in each pay period and, on 
                behalf of each worker, transfer such withheld amount to 
                the Trust Fund.
                    ``(B) Jobs that are not of a temporary or seasonal 
                nature.--Employers of H-2C workers employed in jobs 
                that are not of a temporary or seasonal nature, other 
                than those employed as a sheepherder, goatherder, or in 
                the range production of livestock, shall also pay into 
                the Trust Fund an amount equivalent to the Federal tax 
                on the wages paid to H-2C workers that the employer 
                would be obligated to pay under chapters 21 and 23 of 
                the Internal Revenue Code of 1986 had the H-2C workers 
                been subject to such chapters.
            ``(3) Distribution of funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), amounts paid into the Trust Fund on 
                behalf of an H-2C worker, and held pursuant to 
                paragraph (2)(A) and interest earned thereon, shall be 
                transferred from the Trust Fund to the Secretary of 
                Homeland Security, who shall distribute them to the 
                worker if the worker--
                            ``(i) applies to the Secretary of Homeland 
                        Security (or the designee of the Secretary) for 
                        payment within 120 days of the expiration of 
                        the alien's last authorized stay in the United 
                        States as an H-2C worker, for which they seek 
                        amounts from the Trust Fund;
                            ``(ii) establishes to the satisfaction of 
                        the Secretary of Homeland Security that they 
                        have complied with the terms and conditions of 
                        the H-2C program;
                            ``(iii) once approved by the Secretary of 
                        Homeland Security for payment, physically 
                        appears at a United States embassy or consulate 
                        in the worker's home country; and
                            ``(iv) establishes their identity to the 
                        satisfaction of the Secretary of Homeland 
                        Security.
                    ``(B) Exception.--The Secretary of Homeland 
                Security shall not distribute any funds described in 
                subparagraph (A) to a worker for any period of 
                employment as an H-2C worker during which the worker 
                failed to obtain and maintain health insurance required 
                under section 107(b) of the AG and Legal Workforce Act.
            ``(4) Administrative expenses.--The amounts paid into the 
        Trust Fund and held pursuant to paragraph (2)(B), and interest 
        earned thereon, shall be distributed annually to the Secretary 
        of Agriculture and the Secretary of Homeland Security in 
        amounts proportionate to the expenses incurred by such 
        officials in the administration and enforcement of the terms of 
        the H-2C program.
            ``(5) Law enforcement.--Notwithstanding any other provision 
        of law, amounts paid into the Trust Fund under paragraph (2), 
        and interest earned thereon, that are not needed to carry out 
        paragraphs (3) and (4) shall, to the extent provided in advance 
        in appropriations Acts, be made available to the Secretary of 
        Homeland Security.
            ``(6) Investment of trust fund.--
                    ``(A) In general.--It shall be the duty of the 
                Secretary of the Treasury to invest such portion of the 
                Trust Fund as is not, in the Secretary's judgment, 
                required to meet current withdrawals. Such investments 
                may be made only in interest-bearing obligations of the 
                United States or in obligations guaranteed as to both 
                principal and interest by the United States.
                    ``(B) Credits to trust fund.--The interest on, and 
                the proceeds from the sale or redemption of, any 
                obligations held in the Trust Fund shall be credited to 
                and form a part of the Trust Fund.
                    ``(C) Report to congress.--It shall be the duty of 
                the Secretary of the Treasury to hold the Trust Fund, 
                and (after consultation with the Secretary of Homeland 
                Security) to report to the Congress each year on the 
                financial condition and the results of the operations 
                of the Trust Fund during the preceding fiscal year and 
                on its expected condition and operations during the 
                next fiscal year. Such report shall be printed as both 
                a House and a Senate document of the session of the 
                Congress in which the report is made.
    ``(r) Procedures for Special Procedures Industries.--
            ``(1) Work locations.--The Secretary of Homeland Security 
        shall permit an employer in a special procedures industry or 
        that engages in a forestry-related activity that does not 
        operate at a single fixed place of employment to provide, as 
        part of its petition, a list of places of employment, which--
                    ``(A) may include an itinerary; and
                    ``(B) may be subsequently amended at any time by 
                the employer, after notice to the Secretary.
            ``(2) Wages.--Notwithstanding subsection (j)(2), the 
        Secretary of Agriculture may establish monthly, weekly, or 
        biweekly wage rates for occupations in a Special Procedures 
        Industry for a State or other geographic area. For an employer 
        in a Special Procedures Industry that typically pays a monthly 
        wage, the Secretary shall require that H-2C workers be paid not 
        less frequently than monthly and at a rate no less than the 
        legally required monthly cash wage in an amount as re-
        determined annually by the Secretary.
            ``(3) Allergy limitation.--An employer engaged in the 
        commercial beekeeping or pollination services industry may 
        require that job applicants be free from bee-related allergies, 
        including allergies to pollen and bee venom.
    ``(s) Flexibility With Respect to Start Dates.--Upon approval of a 
petition with regard to jobs that are of a temporary or seasonal 
nature, the employer may begin the employment of petitioned-for H-2C 
workers up to ten months after the first date the employer requires the 
labor or services of H-2C workers.
    ``(t) Adjustment of Status.--In applying section 245 to an alien 
who is an H-2C worker who was the beneficiary of a waiver under 
subsection (p)(1)--
            ``(1) such alien shall be deemed to have been inspected and 
        admitted into the United States; and
            ``(2) in determining the alien's admissibility as an 
        immigrant, paragraphs (5)(A), (6)(A), (6)(C), (7), (9)(B), and 
        (9)(C)(i)(I) of section 212(a) shall not apply with respect to 
        conduct that occurred prior to the alien first receiving status 
        as an H-2C worker.''.
    (b) At-Will Employment.--Chapter 2 of title II of the Immigration 
and Nationality Act (8 U.S.C. 1181 et seq.) is amended by inserting 
after section 218A (as inserted by subsection (a) of this section) the 
following:

``SEC. 218B. AT-WILL EMPLOYMENT OF TEMPORARY H-2C WORKERS.

    ``(a) In General.--An employer that is designated as a `registered 
agricultural employer' pursuant to subsection (c) may employ aliens as 
H-2C workers. However, an H-2C worker may only perform labor or 
services pursuant to this section if the worker is already lawfully 
present in the United States as an H-2C worker, having been admitted or 
otherwise provided nonimmigrant status pursuant to section 218A, and 
has completed the period of employment specified in the job offer the 
worker accepted pursuant to section 218A or the employer has terminated 
the worker's employment pursuant to section 218A(j)(3)(D)(i). An H-2C 
worker who abandons the employment which was the basis for admission or 
status pursuant to section 218A may not perform labor or services 
pursuant to this section until the worker has returned to their home 
country, been readmitted as an H-2C worker pursuant to section 218A and 
has completed the period of employment specified in the job offer the 
worker accepted pursuant to section 218A or the employer has terminated 
the worker's employment pursuant to section 218A(j)(3)(D)(i).
    ``(b) Period of Stay.--H-2C workers performing at-will labor or 
services for a registered agricultural employer are subject to the 
period of admission, limitation of stay in status, and requirement to 
remain outside the United States contained in subsections (m) and (n) 
of section 218A.
    ``(c) Registered Agricultural Employers.--The Secretary of 
Agriculture shall establish a process to accept and adjudicate 
applications by employers to be designated as registered agricultural 
employers. The Secretary shall require, as a condition of approving the 
application, the payment of a fee to recover the reasonable cost of 
processing the application. The Secretary shall designate an employer 
as a registered agricultural employer if the Secretary determines that 
the employer--
            ``(1) employs (or plans to employ) individuals who perform 
        agricultural labor or services;
            ``(2) has not been subject to debarment from receiving 
        temporary agricultural labor certifications pursuant to section 
        101(a)(15)(H)(ii)(a) within the last three years;
            ``(3) has not been subject to disqualification from the 
        employment of H-2C workers within the last five years;
            ``(4) agrees to, if employing H-2C workers pursuant to this 
        section, fulfill the attestations contained in section 218A(b) 
        as if it had submitted a petition making those attestations 
        (excluding subsection (j)(3) of such section) and not to employ 
        H-2C workers who have reached their maximum continuous period 
        of authorized status under section 218A(m) (subject to the 
        exceptions contained in section 218A(m)(3)) or if the workers 
        have complied with the terms of section 218A(m)(2); and
            ``(5) agrees to notify the Secretary of Agriculture and the 
        Secretary of Homeland Security each time it employs H-2C 
        workers pursuant to this section within 72 hours of the 
        commencement of employment and within 72 hours of the cessation 
        of employment.
    ``(d) Length of Designation.--An employer's designation as a 
registered agricultural employer shall be valid for 3 years, and the 
Secretary may extend such designation for additional 3-year terms upon 
the reapplication of the employer. The Secretary shall revoke a 
designation before the expiration of its 3-year term if the employer is 
subject to disqualification from the employment of H-2C workers 
subsequent to being designated as a registered agricultural employer.
    ``(e) Enforcement.--The Secretary of Agriculture shall be 
responsible for conducting investigations and audits, including random 
audits, of employers to ensure compliance with the requirements of this 
section. All monetary fines levied against employers shall be paid to 
the Department of Agriculture and used to enhance the Department of 
Agriculture's investigatory and audit abilities to ensure compliance by 
employers with their obligations under this section and section 218A. 
The Secretary of Agriculture's enforcement powers and an employer's 
liability described in subsections (h) through (i) of section 218A are 
applicable to employers employing H-2C workers pursuant to this 
section.''.
    (c) Prohibition on Family Members.--Section 101(a)(15)(H) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)) is amended by 
striking ``him;'' at the end and inserting ``him, except that no spouse 
or child may be admitted under clause (ii)(c);''.
    (d) Numerical Cap.--Section 214(g)(1) of the Immigration and 
Nationality Act (8 U.S.C. 1184(g)(1)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) under section 101(a)(15)(H)(ii)(c)--
                    ``(i) may not exceed 40,000 for aliens issued visas 
                or otherwise provided nonimmigrant status under such 
                section for the purpose of performing agricultural 
                labor or services consisting or meat or poultry 
                processing;
                    ``(ii) except as otherwise provided under this 
                subparagraph, may not exceed 410,000 for aliens issued 
                visas or otherwise provided nonimmigrant status under 
                such section for the purpose of performing agricultural 
                labor or services other than agricultural labor or 
                services consisting of meat or poultry processing;
                    ``(iii) if the base allocation under clause (ii) is 
                exhausted during any fiscal year the base allocation 
                for that and subsequent fiscal years shall be increased 
                by the lesser of 10 percent (as a percentage of the 
                base allocation for that fiscal year) or a percentage 
                representing the number of petitioned-for aliens (as a 
                percentage of the base allocation for that fiscal year) 
                who would be eligible to be issued visas or otherwise 
                provided nonimmigrant status described in that clause 
                during that fiscal year but for the base allocation 
                being exhausted, and if the increased base allocation 
                is itself exhausted during a subsequent fiscal year, 
                the base allocation for that and subsequent fiscal 
                years shall be further increased by the lesser of 10 
                percent (as a percentage of the increased base 
                allocation for that fiscal year) or a percentage 
                representing the number of petitioned-for aliens (as a 
                percentage of the increased base allocation for that 
                fiscal year) who would be eligible to be issued visas 
                or otherwise provided nonimmigrant status described in 
                that clause during that fiscal year but for the 
                increased base allocation being exhausted (subject to 
                clause (iv));
                    ``(iv) if the base allocation under clause (ii) is 
                not exhausted during any fiscal year, the base 
                allocation under such clause for subsequent fiscal 
                years shall be decreased by the greater of 5 percent 
                (as a percentage of the base allocation for that fiscal 
                year) or a percentage representing the unutilized 
                portion of the base allocation (as a percentage of the 
                base allocation for that fiscal year) during that 
                fiscal year, and if in a subsequent fiscal year the 
                decreased base allocation is itself not exhausted, the 
                base allocation for fiscal years subsequent to that 
                fiscal year shall be further decreased by the greater 
                of 5 percent (as a percentage of the decreased base 
                allocation for that fiscal year) or a percentage 
                representing the unutilized portion of the decreased 
                base allocation (as a percentage of the decreased base 
                allocation for that fiscal year) during that fiscal 
                year (subject to clause (iii) and except that the base 
                allocation shall not fall below 410,000);
                    ``(v) for purposes of clause (ii), the numerical 
                limitations shall not apply to any alien--
                            ``(I) who--
                                    ``(aa) was physically present in 
                                the United States on July 11, 2018; and
                                    ``(bb) performed agricultural labor 
                                or services in the United States for at 
                                least 5.75 hours during each of at 
                                least 180 days during the 2-year period 
                                ending on July 11, 2018; or
                            ``(II) who has previously been issued a 
                        visa or otherwise provided nonimmigrant status 
                        pursuant to subclause (a) or (b) of section 
                        101(a)(15)(H)(ii), but only to the extent that 
                        the alien is being petitioned for by an 
                        employer pursuant to section 218A(b) who 
                        previously employed the alien pursuant to 
                        subclause (a) or (b) of section 
                        101(a)(15)(H)(ii) beginning no later than July 
                        11, 2018; and
                    ``(vi) if, pursuant to clause (iii), the base 
                allocation has been increased by 10 percent in a fiscal 
                year, once petitioned-for aliens have been issued visas 
                or otherwise provided nonimmigrant status accounting 
                for 80 percent of that 10-percent increase in the base 
                allocation, the total number of aliens described in 
                clause (ii) who may be issued visas or otherwise 
                provided nonimmigrant status under this paragraph 
                during that year shall be increased, in addition to any 
                increase under clause (iii), by--
                            ``(I) for the first 2 fiscal years after 
                        the effective date of this paragraph, a number 
                        determined appropriate by the Secretary; and
                            ``(II) for any subsequent fiscal year, by 
                        the lesser of 10 percent (as a percentage of 
                        the base allocation for that fiscal year) or a 
                        percentage representing the number of 
                        petitioned-for aliens (as a percentage of the 
                        base allocation for that fiscal year) who would 
                        be eligible to be issued visas or otherwise 
                        provided nonimmigrant status described in that 
                        clause during that fiscal year but for the 
                        increased base allocation being exhausted,
                and such further increase under this clause shall not 
                to be considered a part of the base allocation for that 
                fiscal year for the purpose calculating the base 
                allocation for subsequent fiscal years.''.
    (e) Secretary of Agriculture Review of Agricultural Work Needs.--
Section 214 of the Immigration and Nationality Act (8 U.S.C. 1184) is 
amended by adding at the end the following:
    ``(s) Secretary of Agriculture Review of Agricultural Work Needs.--
The Secretary of Agriculture shall conduct a review, on a continual 
basis, of--
            ``(1) whether there are indicators of a shortage or surplus 
        of workers performing agricultural labor or services;
            ``(2) the growth or contraction in the United States 
        agricultural industry and whether such growth or contraction 
        has increased or decreased the demand for workers to perform 
        agricultural labor or services;
            ``(3) the level of unemployment and underemployment of 
        United States workers (as defined in section 218A(a)(7)) in 
        agricultural labor or services;
            ``(4) the number of H-2C workers (as defined in section 
        218A(a)(5)) who in the preceding fiscal year had to depart from 
        the United States or be subject to removal under section 
        237(a)(1)(C)(i) because they could not find additional at-will 
        employment within 30 days pursuant to section 218B; and
            ``(5) the estimated number of nonimmigrant agricultural 
        workers issued a visa or otherwise provided nonimmigrant status 
        pursuant to section 101(a)(15)(H)(ii)(a) or (c) during 
        preceding fiscal years who remain in the United States out of 
        compliance with the terms of their status.''.
    (f) Intent.--Section 214(b) of the Immigration and Nationality Act 
(8 U.S.C. 1184(b)) is amended by striking ``section 101(a)(15)(H)(i) 
except subclause (b1) of such section'' and inserting ``clause (i), 
except subclause (b1), or (ii)(c) of section 101(a)(15)(H)''.
    (g) Clerical Amendment.--The table of contents for the Immigration 
and Nationality Act (8 U.S.C. 1101 et seq.) is amended by inserting 
after the item relating to section 218 the following:

``Sec. 218B. At-will employment of temporary H-2C workers.''.

SEC. 104. MEDIATION.

    Nonimmigrants having status under section 101(a)(15)(H)(ii)(c) of 
the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(c)) 
may not bring civil actions for damages against their employers, nor 
may any other attorneys or individuals bring civil actions for damages 
on behalf of such nonimmigrants against the nonimmigrants' employers, 
unless at least 90 days prior to bringing an action a request has been 
made to the Federal Mediation and Conciliation Service to assist the 
parties in reaching a satisfactory resolution of all issues involving 
all parties to the dispute and mediation has been attempted.

SEC. 105. MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION.

    Section 3(8)(B)(ii) of the Migrant and Seasonal Agricultural Worker 
Protection Act (29 U.S.C. 1802(8)(B)(ii)) is amended by striking 
``under sections 101(a)(15)(H)(ii)(a) and 214(c) of the Immigration and 
Nationality Act.'' and inserting ``under subclauses (a) and (c) of 
section 101(a)(15)(H)(ii), and section 214(c), of the Immigration and 
Nationality Act.''.

SEC. 106. BINDING ARBITRATION.

    (a) Applicability.--H-2C workers may, as a condition of employment 
with an employer, be subject to mandatory binding arbitration and 
mediation of any grievance relating to the employment relationship. An 
employer shall provide any such workers with notice of such condition 
of employment at the time it makes job offers.
    (b) Allocation of Costs.--Any cost associated with such arbitration 
and mediation process shall be equally divided between the employer and 
the H-2C workers, except that each party shall be responsible for the 
cost of its own counsel, if any.
    (c) Definitions.--As used in this section:
            (1) The term ``condition of employment'' means a term, 
        condition, obligation, or requirement that is part of the job 
        offer, such as the term of employment, job responsibilities, 
        employee conduct standards, and the grievance resolution 
        process, and to which applicants or prospective H-2C workers 
        must consent or accept in order to be hired for the position.
            (2) The term ``H-2C worker'' means a nonimmigrant described 
        in section 218A(a)(5) of the Immigration and Nationality Act, 
        as added by this title.

SEC. 107. COVERAGE THROUGH HEALTH EXCHANGES; REQUIRED HEALTH INSURANCE 
              COVERAGE.

    (a) Coverage Through Health Exchanges.--In applying section 
1312(f)(3) of the Patient Protection and Affordable Care Act (42 U.S.C. 
18032(f)(3)), an H-2C worker (as defined in section 218A(a)(5) of the 
Immigration and Nationality Act, as added by this title) shall not be 
treated as an individual who is, or is reasonably expected to be, a 
citizen or national of the United States or an alien lawfully present 
in the United States.
    (b) Requirement Regarding Health Insurance Coverage.--
            (1) In general.--Notwithstanding the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 201 et seq.) and State and local wage 
        laws, not later than 21 days after being issued a visa or 
        otherwise provided nonimmigrant status under section 
        101(a)(15)(H)(ii)(c) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)(15)(H)(ii)(c)), an alien shall, in the case that 
        qualifying health coverage is offered in the State of 
        employment or State of residence of such alien and the alien is 
        eligible for such coverage, for the period of employment 
        specified in section 218A(b)(1) of the Immigration and 
        Nationality Act, be enrolled under qualifying health coverage.
            (2) Qualifying health coverage.--For purposes of paragraph 
        (1), the term ``qualifying health coverage means'', with 
        respect to an alien described in such paragraph, the higher of 
        the following levels of coverage applicable to such alien:
                    (A) At a minimum, catastrophic health insurance 
                coverage that provides coverage of such individual with 
                respect to at least the State of employment and State 
                of residence of the alien.
                    (B) In the case of an alien whose State of 
                residence or State of employment requires such an alien 
                to maintain coverage under health insurance, such 
                health insurance.

SEC. 108. ESTABLISHMENT OF AN AGRICULTURAL WORKER EMPLOYMENT POOL.

    The Secretary of Agriculture may establish an agricultural worker 
employment pool and an electronic Internet-based portal to assist H-2C 
workers (as such term is defined in section 218A of the Immigration and 
Nationality Act), prospective H-2C workers, and employers to identify 
job opportunities in the H-2C program and willing, able, and available 
workers for the program, respectively, and may charge a fee for the use 
of such portal.

SEC. 109. PREVAILING WAGE.

    Section 212(p) of the Immigration and Nationality Act (8 U.S.C. 
1182(p)) is amended--
            (1) in paragraph (1), by inserting after ``subsections 
        (a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II)'' the 
        following: ``of this section and section 218A(j)(2)(B)(ii)''; 
        and
            (2) in paragraph (3), by inserting after ``subsections 
        (a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II)'' the 
        following: ``of this section and section 218A(j)(2)(B)(ii)''.

SEC. 110. PORTABILITY OF H-2C STATUS.

    Section 214(n)(1) of the Immigration and Nationality Act (8 U.S.C. 
1184(n)(1)) is amended by inserting after ``section 
101(a)(15)(H)(i)(b)'' the following: ``or 101(a)(15)(H)(ii)(c)''.

SEC. 111. EFFECTIVE DATES; SUNSET; REGULATIONS.

    (a) Effective Dates; Regulations.--
            (1) In general.--Sections 102 and 104 through 106 of this 
        title, subsections (a) and (c) through (f) of section 103 of 
        this title, and the amendments made by the sections, shall take 
        effect on the date on which the Secretary issues the rules 
        under paragraph (3), and the Secretary of Homeland Security 
        shall accept petitions pursuant to section 218A of the 
        Immigration and Nationality Act, as inserted by this Act, 
        beginning no later than that date. Sections 107 and 109 of this 
        title shall take effect on the date of the enactment of this 
        Act.
            (2) At-will employment.--Section 103(b) of this title and 
        the amendments made by that subsection shall take effect when--
                    (A) it becomes unlawful for all persons or other 
                entities to hire, or to recruit or refer for a fee, for 
                employment in the United States an individual (as 
                provided in section 274A(a)(1) of the Immigration and 
                Nationality Act (8 U.S.C. 1324a(a)(1))) without using 
                the verification system set forth in section 274A(d) of 
                such Act, as amended by section 203 of title II, to 
                seek verification of the employment eligibility of an 
                individual; and
                    (B) such verification system, in providing 
                confirmation of an individual's employment eligibility, 
                indicates whether an individual is eligible to be 
                employed in all occupations or only to perform 
                agricultural labor or services as a nonimmigrant who 
                has been issued a visa or otherwise provided 
                nonimmigrant status under section 101(a)(15)(H)(ii)(C) 
                of the Immigration and Nationality Act.
            (3) Regulations.--Notwithstanding any other provision of 
        law, not later than the first day of the seventh month that 
        begins after the date of the enactment of this Act, the 
        Secretary of Homeland Security shall issue final rules, on an 
        interim or other basis, to carry out this title.
    (b) Operation and Sunset of the H-2A Program.--
            (1) Application of existing regulations.--Except as 
        provided in paragraph (2), the Department of Labor H-2A program 
        regulations published at 73 Federal Register 77110 et seq. 
        (2008) shall be in force for all petitions approved under 
        sections 101(a)(15)(H)(ii)(a) and 218 of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(15)(h)(ii)(a); 8 U.S.C. 1188) 
        beginning on the date of the enactment of this Act, except that 
        the following, as in effect on such date, shall remain in 
        effect, and, to the extent that any rule published at 73 
        Federal Register 77110 et seq. is in conflict, such rule shall 
        have no force and effect:
                    (A) Paragraph (a) and subparagraphs (1) and (3) of 
                paragraph (b) of section 655.200 of title 20, Code of 
                Federal Regulations.
                    (B) Section 655.201 of title 20, Code of Federal 
                Regulations, except the paragraphs entitled 
                ``Production of Livestock'' and ``Range''.
                    (C) Paragraphs (c), (d) and (e) of section 655.210 
                of title 20, Code of Federal Regulations.
                    (D) Section 655.230 of title 20, Code of Federal 
                Regulations.
                    (E) Section 655.235 of title 20, Code of Federal 
                Regulations.
                    (F) The Special Procedures Labor Certification 
                Process for Employers in the Itinerant Animal Shearing 
                Industry under the H-2A Program in effect under the 
                Training and Employment Guidance Letter No. 17-06, 
                Change 1, Attachment B, Section II, with an effective 
                date of October 1, 2011.
            (2) Exception.--
                    (A) In general.--The regulations described in 
                paragraph (1) shall not have any force or effect with 
                respect to any requirement regarding the seasonal 
                nature of agricultural labor or services consisting of 
                dairy cattle and milk production.
                    (B) Amendment.--Section 101(a)(15)(H)(ii)(a) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(15)(H)(ii)(a)) is amended by inserting 
                ``(except that agricultural labor or services 
                consisting of dairy cattle and milk production need not 
                be of a temporary or seasonal nature)'' after 
                ``seasonal nature''.
            (3) Sunset.--Beginning on the date that is one year after 
        the date on which employers can file petitions pursuant to 
        section 218A of the Immigration and Nationality Act, as added 
        by section 103(a) of this title, no new petitions under 
        sections 101(a)(15)(H)(ii)(a) and 218 of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(a); 8 U.S.C. 1188) 
        shall be accepted.

SEC. 112. REPORT ON COMPLIANCE AND VIOLATIONS.

    (a) In General.--Not later than 1 year after the first day on which 
employers can file petitions pursuant to section 218A of the 
Immigration and Nationality Act, as added by section 103(a) of this 
title, the Secretary of Homeland Security, in consultation with the 
Secretary of Agriculture, shall submit to the Committees on the 
Judiciary of the House of Representatives and the Senate a report on 
compliance by H-2C workers with the requirements of this title and the 
Immigration and Nationality Act, as amended by this title. In the case 
of a violation of a term or condition of the temporary agricultural 
work visa program established by this title, the report shall identify 
the provision or provisions of law violated.
    (b) Definition.--As used in this section, the term ``H-2C worker'' 
means a nonimmigrant described in section 218A(a)(4) of the Immigration 
and Nationality Act, as added by section 103(a) of this title.

                     TITLE II--LEGAL WORKFORCE ACT

SEC. 201. SHORT TITLE.

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

SEC. 202. EMPLOYMENT ELIGIBILITY VERIFICATION PROCESS.

    (a) In General.--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 (E)), 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 or United States 
                                passport 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 nationality 
                                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 relating 
                                        to the individual presenting it 
                                        described in clause (ii); or
                                            ``(bb) a document relating 
                                        to the individual presenting it 
                                        described in clause (iii) and a 
                                        document relating to the 
                                        individual presenting it 
                                        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, or other 
                                documentation as designated by the 
                                Secretary specifying the alien's 
                                nonimmigrant status as long as the 
                                period of status has not yet expired 
                                and the proposed employment is not in 
                                conflict with any restrictions or 
                                limitations identified in the 
                                documentation;
                                    ``(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, or other 
                                documentation as designated by the 
                                Secretary, indicating nonimmigrant 
                                admission under the Compact of Free 
                                Association Between the United States 
                                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 
                                driver's license or identification card 
                                if it was issued by a State or American 
                                Samoa and 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 issued by a tribal entity 
                                recognized by the Bureau of Indian 
                                Affairs; 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 handwritten or 
                        electronic signature.
                    ``(B) Individual attestation of employment 
                authorization.--During the verification period (as 
                defined in subparagraph (E)), 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 handwritten 
                or electronic signature. The individual shall also 
                provide that individual's social security account 
                number or United States passport number (if the 
                individual claims to have been issued such a number), 
                and, if the individual does not attest to United States 
                nationality under this subparagraph, such 
                identification or authorization number established by 
                the Department of Homeland Security for the alien as 
                the Secretary may specify.
                    ``(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 
                                Department of Justice, or the 
                                Department of Labor during a period 
                                beginning on the date of the recruiting 
                                or referral of the individual, or, in 
                                the case of the hiring of an 
                                individual, the date on which the 
                                verification is completed, 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 
                                        the verification is completed 
                                        or one year after the date the 
                                        individual's employment is 
                                        terminated; and
                                    ``(II) during the verification 
                                period (as defined in subparagraph 
                                (E)), 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) Confirmation.--
                                    ``(I) Confirmation received.--If 
                                the person or other entity receives an 
                                appropriate confirmation 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 confirmation of 
                                such identity and work eligibility of 
                                the individual.
                                    ``(II) Tentative nonconfirmation 
                                received.--If the person or other 
                                entity receives a tentative 
                                nonconfirmation 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 
                                nonconfirmation within the time period 
                                specified, the nonconfirmation 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 
                                final nonconfirmation. If the 
                                individual does contest the 
                                nonconfirmation, the individual shall 
                                utilize the process for secondary 
                                verification provided under subsection 
                                (d). The nonconfirmation will remain 
                                tentative until a final confirmation or 
                                nonconfirmation 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 nonconfirmation 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 
                                rescission of the offer of employment 
                                for any reason other than because of 
                                such a failure.
                                    ``(III) Final confirmation or 
                                nonconfirmation received.--If a final 
                                confirmation or nonconfirmation 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 
                                confirmation or nonconfirmation 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 
                                nonconfirmation.--
                                            ``(aa) Termination or 
                                        notification of continued 
                                        employment.--If the person or 
                                        other entity has received a 
                                        final nonconfirmation 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 nonconfirmation.--If the person 
                                or other entity continues to employ (or 
                                to recruit or refer) an individual 
                                after receiving final nonconfirmation, 
                                a rebuttable presumption is created 
                                that the person or entity has violated 
                                subsection (a)(1)(A).
                    ``(D) 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, this paragraph 
                        shall not apply with respect to the 
                        verification of the employee until the date 
                        that is 24 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) Extensions.--Upon request by an 
                        employer having 50 or fewer employees, the 
                        Secretary shall allow a one-time 6-month 
                        extension of the effective date set out in this 
                        subparagraph applicable to such employer. Such 
                        request shall be made to the Secretary and 
                        shall be made prior to such effective date.
                            ``(v) 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).
                    ``(E) 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 three 
                                business days after the date of hire, 
                                except as provided in clause (iii). 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.
                            ``(iii) Special rule.--Notwithstanding 
                        clause (i)(II), in the case of an alien who is 
                        authorized for employment and who provides 
                        evidence from the Social Security 
                        Administration that the alien has applied for a 
                        social security account number, the 
                        verification period ends three business days 
                        after the alien receives the social security 
                        account number.
            ``(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 three business days 
                after the date on which 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, or an employee recruited or referred by a 
                farm labor contractor (as defined in section 3 of the 
                Migrant and Seasonal Agricultural Worker Protection Act 
                (29 U.S.C. 1801)), subparagraph (A) shall not apply 
                with respect to the reverification of the employee 
                until the date that is 24 months after the date of the 
                enactment of the Legal Workforce Act. For purposes of 
                the preceding sentence, the term `agricultural labor or 
                services' has the meaning given such term by the 
                Secretary of Agriculture in regulations and includes 
                agricultural labor as defined in section 3121(g) of the 
                Internal Revenue Code of 1986, agriculture as defined 
                in section 3(f) of the Fair Labor Standards Act of 1938 
                (29 U.S.C. 203(f)), the handling, planting, drying, 
                packing, packaging, processing, freezing, or grading 
                prior to delivery for storage of any agricultural or 
                horticultural commodity in its unmanufactured state, 
                all activities required for the preparation, 
                processing, or manufacturing of a product of 
                agriculture (as such term is defined in such section 
                3(f)) for further distribution, and activities similar 
                to all the foregoing as they relate to fish or 
                shellfish facilities. 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; 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 Department of Justice, 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.
            ``(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 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 
                                        contracts over the simple 
                                        acquisition threshold as 
                                        defined in section 2.101 of 
                                        title 48, Code of Federal 
                                        Regulations.
                    ``(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 
                        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 from being in the 
                        position to further commit or begin committing 
                        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 the 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 an incorrect social security 
                        account number under clause (ii) 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.
                    ``(C) 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 employed at 
                the same geographic location or, at the option of the 
                employer, all individuals employed within the same job 
                category, as the employee with respect to whom the 
                employer seeks voluntarily to use the verification 
                system. 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.
                    ``(D) 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; 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 Department of Justice, 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 date of the 
                enactment of the Legal Workforce Act, 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 on 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).
            ``(8) Single extension of deadlines upon certification.--In 
        a case in which the Secretary of Homeland Security has 
        certified to the Congress that the employment eligibility 
        verification system required under subsection (d) will not be 
        fully operational by the date that is 6 months after the date 
        of the enactment of the Legal Workforce Act, each deadline 
        established under this section for an employer to make an 
        inquiry using such system shall be extended by 6 months. No 
        other extension of such a deadline shall be made except as 
        authorized under paragraph (1)(D)(iv).''.
    (b) Date of Hire.--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 date of hire.--As used in this section, 
        the term `date of hire' means the date of actual commencement 
        of employment for wages or other remuneration, unless otherwise 
        specified.''.

SEC. 203. 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 confirmation or a tentative nonconfirmation of an 
        individual's identity and employment eligibility within 3 
        working days of the initial inquiry. If providing confirmation 
        or tentative nonconfirmation, the verification system shall 
        provide an appropriate code indicating such confirmation or 
        such nonconfirmation.
            ``(3) Secondary confirmation process in case of tentative 
        nonconfirmation.--In cases of tentative nonconfirmation, 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 confirmation or nonconfirmation not later than 10 
        working days after the date on which the notice of the 
        tentative nonconfirmation is received by the employee. The 
        Secretary, in consultation with the Commissioner, may extend 
        this deadline once on a case-by-case basis for a period of 10 
        working days, and if the time is extended, shall document such 
        extension within the verification system. The Secretary, in 
        consultation with the Commissioner, shall notify the employee 
        and employer of such extension. The Secretary, in consultation 
        with the Commissioner, shall create a standard process of such 
        extension and notification and shall make a description of such 
        process available to the public. When final confirmation or 
        nonconfirmation is provided, the verification system shall 
        provide an appropriate code indicating such confirmation or 
        nonconfirmation.
            ``(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;
                    ``(E) to maximize the prevention of identity theft 
                use in the system; and
                    ``(F) 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 (1), (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 confirmation or nonconfirmation) 
        under the verification system 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.--
                    ``(A) In general.--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 (or any other 
                information as determined relevant by the Secretary) 
                which are provided in an inquiry against such 
                information maintained or accessed by the Secretary in 
                order to validate (or not validate) the information 
                provided, the correspondence of the name and number, 
                whether the alien is authorized to be employed in the 
                United States, or to the extent that the Secretary 
                determines to be feasible and appropriate, whether the 
                records available to the Secretary verify the identity 
                or status of a national of the United States.
                    ``(B) Agricultural laborers.--The Secretary of 
                Homeland Security shall ensure that, by the date that 
                is 24 months after the date of the enactment of the 
                Legal Workforce Act, whenever the verification system 
                provides confirmation of an individual's employment 
                eligibility, it indicates whether the individual is 
                eligible to be employed in all occupations or only to 
                perform agricultural labor or services as a 
                nonimmigrant who has been issued a visa or otherwise 
                provided nonimmigrant status under section 
                101(a)(15)(H)(ii)(C).
            ``(7) 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).
            ``(8) Limitation on use of the verification system and any 
        related systems.--
                    ``(A) 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.
                    ``(B) Critical infrastructure.--The Secretary may 
                authorize or direct any person or entity responsible 
                for granting access to, protecting, securing, 
                operating, administering, or regulating part of the 
                critical infrastructure (as defined in section 1016(e) 
                of the Critical Infrastructure Protection Act of 2001 
                (42 U.S.C. 5195c(e))) to use the verification system to 
                the extent the Secretary determines that such use will 
                assist in the protection of the critical 
                infrastructure.
            ``(9) 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. 204. 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).''; and
            (3) in paragraph (2), by striking ``after hiring an alien 
        for employment in accordance with paragraph (1),'' and 
        inserting ``after complying with paragraph (1),''.
    (b) Definition.--Section 274A(h) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(h)), as amended by this title, is further amended 
by adding at the end the following:
            ``(5) Definition of recruit or refer.--As used in this 
        section, the term `refer' means the act of sending or directing 
        a person who is in the United States 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 who is 
        in the United States, 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. 205. 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 (as defined in 
                subsection (h)(5)), 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) Mitigation element.--For purposes of 
                subparagraph (A)(i), if an employer proves by a 
                preponderance of the evidence that the employer uses a 
                reasonable, secure, and established technology to 
                authenticate the identity of the new employee, that 
                fact shall be taken into account for purposes of 
                determining good faith use of the system established 
                under subsection (d).
                    ``(C) 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. 206. PREEMPTION AND STATES' RIGHTS.

    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.--
                    ``(A) Single, national policy.--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.
                    ``(B) State enforcement of federal law.--
                            ``(i) Business licensing.--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).
                            ``(ii) General rules.--A State, at its own 
                        cost, may enforce the provisions of this 
                        section, but only insofar as such State follows 
                        the Federal regulations implementing this 
                        section, applies the Federal penalty structure 
                        set out in this section, and complies with all 
                        Federal rules and guidance concerning 
                        implementation of this section. Such State may 
                        collect any fines assessed under this section. 
                        An employer may not be subject to enforcement, 
                        including audit and investigation, by both a 
                        Federal agency and a State for the same 
                        violation under this section. Whichever entity, 
                        the Federal agency or the State, is first to 
                        initiate the enforcement action, has the right 
                        of first refusal to proceed with the 
                        enforcement action. The Secretary must provide 
                        copies of all guidance, training, and field 
                        instructions provided to Federal officials 
                        implementing the provisions of this section to 
                        each State.''.

SEC. 207. REPEAL.

    (a) In General.--Subtitle A of title IV of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 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, Department of 
Justice, 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 this title.
    (c) Effective Date.--This section shall take effect on the date 
that is 24 months after the date of the enactment of this Act.
    (d) Clerical Amendment.--The table of sections, in section 1(d) of 
the Illegal Immigration Reform and Immigrant Responsibility Act of 
1996, is amended by striking the items relating to subtitle A of title 
IV.

SEC. 208. PENALTIES.

    Section 274A of the Immigration and Nationality Act (8 U.S.C. 
1324a) is amended--
            (1) in subsection (e)(1)--
                    (A) by striking ``Attorney General'' each place 
                such term appears and inserting ``Secretary of Homeland 
                Security''; and
                    (B) in subparagraph (D), by striking ``Service'' 
                and inserting ``Department of Homeland Security'';
            (2) 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 moving the margin of the continuation text 
                following subparagraph (B) two ems to the left and by 
                amending subparagraph (B) to read as follows:
                    ``(B) may require the person or entity to take such 
                other remedial action as is appropriate.'';
            (3) 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''; and
                    (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).'';
            (4) 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) Mitigation element.--For purposes of paragraph (4), 
        the size of the business shall be taken into account when 
        assessing the level of civil money penalty.
            ``(12) 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 in accordance with this paragraph shall be 
                reviewable pursuant to part 9.4 of the Federal 
                Acquisition Regulation.
            ``(13) Office for state and local government complaints.--
        The Secretary of Homeland Security shall establish an office--
                    ``(A) to which State and local government agencies 
                may submit information indicating potential violations 
                of subsection (a), (b), or (g)(1) that were generated 
                in the normal course of law enforcement or the normal 
                course of other official activities in the State or 
                locality;
                    ``(B) that is required to indicate to the 
                complaining State or local agency within five business 
                days of the filing of such a complaint by identifying 
                whether the Secretary will further investigate the 
                information provided;
                    ``(C) that is required to investigate those 
                complaints filed by State or local government agencies 
                that, on their face, have a substantial probability of 
                validity;
                    ``(D) that is required to notify the complaining 
                State or local agency of the results of any such 
                investigation conducted; and
                    ``(E) that is required to report to the Congress 
                annually the number of complaints received under this 
                paragraph, the States and localities that filed such 
                complaints, and the resolution of the complaints 
                investigated by the Secretary.''; and
            (5) 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 $5,000 for each unauthorized 
        alien with respect to which such a violation occurs, imprisoned 
        for not more than 18 months, or both, notwithstanding the 
        provisions of any other Federal law relating to fine levels.''.

SEC. 209. FRAUD AND MISUSE OF DOCUMENTS.

    Section 1546(b) of title 18, United States Code, is amended--
            (1) in paragraph (1), by striking ``identification 
        document,'' and inserting ``identification document or document 
        meant to establish work authorization (including the documents 
        described in section 274A(b) of the Immigration and Nationality 
        Act),''; and
            (2) in paragraph (2), by striking ``identification 
        document'' and inserting ``identification document or document 
        meant to establish work authorization (including the documents 
        described in section 274A(b) of the Immigration and Nationality 
        Act),''.

SEC. 210. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.

    (a) Funding Under Agreement.--Effective for fiscal years beginning 
on or after October 1, 2019, 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 this title, 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 annually 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 Inspectors 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, 
2019, 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. 211. FRAUD PREVENTION.

    (a) Blocking Misused Social Security Account Numbers.--The 
Secretary of Homeland Security, in consultation with 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 this title, 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 this title. The Secretary may implement the 
program on a limited pilot program basis before making it fully 
available to all individuals.
    (c) Allowing Parents To Prevent Theft of Their Child's Identity.--
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 parents or legal guardians 
may suspend or limit the use of the social security account number or 
other identifying information of a minor under their care for the 
purposes of the employment eligibility verification system established 
under 274A(d) of the Immigration and Nationality Act (8 U.S.C. 
1324a(d)), as amended by this title. The Secretary may implement the 
program on a limited pilot program basis before making it fully 
available to all individuals.

SEC. 212. USE OF EMPLOYMENT ELIGIBILITY VERIFICATION PHOTO TOOL.

    An employer or entity who uses the photo matching tool, if required 
by the Secretary as part of the verification system, shall match, 
either visually, or using facial recognition or other verification 
technology approved or required by the Secretary, the photo matching 
tool photograph to the photograph on the identity or employment 
eligibility document provided by the individual or to the face of the 
employee submitting the document for employment verification purposes, 
or both, as determined by the Secretary.

SEC. 213. IDENTITY AUTHENTICATION EMPLOYMENT ELIGIBILITY VERIFICATION 
              PILOT PROGRAMS.

    Not later than 24 months after the date of the enactment of this 
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 
not less than 2 Identity Authentication Employment Eligibility 
Verification pilot programs, each using a separate and distinct 
technology (the ``Authentication Pilots''). The purpose of the 
Authentication Pilots shall be to provide for identity authentication 
and employment eligibility verification with respect to enrolled new 
employees which shall be available to any employer that elects to 
participate in either of the Authentication Pilots. Any participating 
employer may cancel the employer's participation in the Authentication 
Pilot after one year after electing to participate without prejudice to 
future participation. The Secretary shall report to the Committee on 
the Judiciary of the House of Representatives and the Committee on the 
Judiciary of the Senate the Secretary's findings on the Authentication 
Pilots, including the authentication technologies chosen, not later 
than 12 months after commencement of the Authentication Pilots.

SEC. 214. INSPECTOR GENERAL AUDITS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Inspector General of the Social Security 
Administration shall complete audits of the following categories in 
order to uncover evidence of individuals who are not authorized to work 
in the United States:
            (1) Workers who dispute wages reported on their social 
        security account number when they believe someone else has used 
        such number and name to report wages.
            (2) Children's social security account numbers used for 
        work purposes.
            (3) Employers whose workers present significant numbers of 
        mismatched social security account numbers or names for wage 
        reporting.
    (b) Submission.--The Inspector General of the Social Security 
Administration shall submit the audits completed under subsection (a) 
to the Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate for review of the evidence of 
individuals who are not authorized to work in the United States. The 
Chairmen of those Committees shall then determine information to be 
shared with the Secretary of Homeland Security so that such Secretary 
can investigate the unauthorized employment demonstrated by such 
evidence.
                                 <all>