[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5197 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5197
To amend the Immigration and Nationality Act to provide for a State-
sponsored nonimmigrant pilot program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 30, 2026
Mr. Curtis (for himself and Mr. Kelly) introduced the following bill;
which was read twice and referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend the Immigration and Nationality Act to provide for a State-
sponsored nonimmigrant pilot program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``State-Sponsored Visa Pilot Program
Act of 2026''.
SEC. 2. STATE-SPONSORED NONIMMIGRANT PROGRAM.
Section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)) is amended--
(1) in subparagraph (U)(iii), by striking the ``or'' at the
end;
(2) in subparagraph (V), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(W)(i) an alien who is sponsored by a State and is coming
temporarily to the United States to reside in such State to
perform services, provide capital investment, direct the
operations of an enterprise, or otherwise contribute to the
economic development agenda of such State in a manner
determined by the State; and
``(ii) the alien spouse and minor children of any alien
described in clause (i).''.
SEC. 3. ADMISSION OF STATE-SPONSORED NONIMMIGRANTS.
(a) Requirements for State-Sponsored Nonimmigrants.--Section 214 of
the Immigration and Nationality Act (8 U.S.C. 1184) is amended--
(1) in subsection (h), by striking ``(H)(i)(b) or (c), (L),
or (V)'' and inserting ``(H)(i)(b), (H)(i)(c), (L), (V), or
(W)''; and
(2) by adding at the end the following:
``(s) Requirements Applicable to State-Sponsored Nonimmigrant
Visas.--
``(1) Definitions.--In this subsection:
``(A) Reside.--The term `reside' means to live and
establish a residence in a State for a consecutive
period of more than 14 days (not including any period
after the approval of the resident's petition for
immigrant status).
``(B) Secretary.--Except as otherwise specifically
provided in this subsection, the term `Secretary' means
the Secretary of Homeland Security.
``(C) State.--Notwithstanding section 101(a)(36),
the term `State' means a State of the United States and
the District of Columbia.
``(D) State-sponsored nonimmigrant.--The term
`State-sponsored nonimmigrant' means an alien who has
been sponsored by a State for admission under section
101(a)(15)(W).
``(E) State-sponsored nonimmigrant program.--The
term `State-sponsored nonimmigrant program' means a
nonimmigrant program to regulate the employment,
investment, and place of residence of State-sponsored
nonimmigrants.
``(F) State-sponsored nonimmigrant status.--The
term `State-sponsored nonimmigrant status' means status
granted to an alien admitted as a nonimmigrant pursuant
to section 101(a)(15)(W).
``(2) State-sponsored nonimmigrant program.--Any State may
submit an application to the Secretary to participate in the
State-sponsored nonimmigrant program by sponsoring aliens for
admission to the United States.
``(3) State-sponsored nonimmigrant program approval.--The
Secretary shall approve any application submitted by a State
(or compact of States) pursuant to paragraph (2) for a State-
sponsored nonimmigrant program that--
``(A) was approved by the legislature of the State;
``(B) regulates, in a manner determined by the
State, the employment and residence of State-sponsored
nonimmigrants;
``(C) implements procedures, in a manner determined
by the Secretary, to inform the Secretary of the
failure of a nonimmigrant to comply with the terms of
State-sponsored nonimmigrant status when the State is
made aware of such failure;
``(D) allows, in a manner determined by the State,
a State-sponsored nonimmigrant who has been admitted to
seek employment with an employer other than the
employer with which the nonimmigrant was initially
employed;
``(E) implements procedures to periodically assess
labor needs and occupational wage data in the State;
``(F) establish mechanisms to receive and
investigate complaints of United States worker
displacement in the State;
``(G) attests, in a form to be determined by the
Secretary, that the hiring of the State-sponsored
nonimmigrant has not displaced and will not displace a
United States worker; and
``(H) implements procedures, in a manner determined
by the Secretary, to annually inform the Secretary of
the place of residence and employment of all State-
sponsored nonimmigrants residing in the State.
``(4) State petition.--
``(A) In general.--A State that participates in the
State-sponsored nonimmigrant program shall submit a
petition in such form and containing such relevant
information as the Secretary shall specify to sponsor
an alien under this subsection.
``(B) Approval.--A visa may not be granted to an
alien described in subparagraph (A) until the Secretary
approves a petition submitted pursuant to subparagraph
(A). Such approval does not, of itself, establish that
the alien is a State-sponsored nonimmigrant.
``(C) Fee.--The Secretary may require a State that
submits a petition pursuant to subparagraph (A) to pay
a reasonable fee of an amount that is sufficient to
cover, but not exceed, the cost of processing the
application.
``(D) Fee waiver for domestic workforce
investment.--The Secretary shall waive any fee
otherwise required under subparagraph (C) with respect
to a State that demonstrates its State-sponsored
nonimmigrant program assesses a fee that is allocated
by the State to fund workforce investment activities
carried out in the State.
``(5) State-sponsored nonimmigrants.--The Secretary of
State shall approve a nonimmigrant visa for an alien and the
Secretary of Homeland Security shall admit such alien to the
United States as a State-sponsored nonimmigrant or grant State-
sponsored nonimmigrant status to the alien if the alien--
``(A) is otherwise admissible under this Act;
``(B) passes a comprehensive background check
conducted by the National Vetting Center to ensure such
alien does not pose a security risk to the United
States;
``(C) is petitioned for by a State that
participates in the State-sponsored nonimmigrant
program approved by the Secretary pursuant to paragraph
(3);
``(D) has not previously violated any term or
condition of State-sponsored nonimmigrant status; and
``(E) has paid any bond that the State may require
under paragraph (13).
``(6) Period of authorized status.--
``(A) In general.--The period of authorized status
for a State-sponsored nonimmigrant shall be a period
determined by the State, but may not exceed 3 years.
``(B) Renewal.--
``(i) Location.--Subject to clause (ii),
the period of authorized status under
subparagraph (A) shall be renewable inside or
outside of the United States.
``(ii) Condition.--Renewals under clause
(i) may be granted only if--
``(I) the sponsoring State requests
such renewal; and
``(II) the State-sponsored
nonimmigrant has resided continuously
in such sponsoring State, or States
subject to an interstate compact (not
including any period of residence after
the approval of a petition for
immigrant status of which the alien is
a beneficiary).
``(C) Termination.--The Secretary shall terminate
the period of authorized status as a State-sponsored
nonimmigrant if--
``(i) the State-sponsored nonimmigrant
resides or works outside of the State, or
States subject to an interstate compact under
paragraph (7), that sponsored the alien;
``(ii) the State-sponsored nonimmigrant,
after sufficient notice, fails to follow all
rules and regulations required by the State, as
determined by the State (following any appeals
process established by the State); or
``(iii) the State that sponsored the State-
sponsored nonimmigrant, after sufficient notice
to such State-sponsored nonimmigrant, requests
termination of such status (following any
appeals process established by the State)
unless another State sponsors the nonimmigrant.
``(D) Employment authorization.--
``(i) In general.--All aliens admitted as
State-sponsored nonimmigrants under section
101(a)(15)(W)--
``(I) shall be authorized for
employment for purposes of section
274A; and
``(II) shall be issued appropriate
documentation evidencing such
authorization.
``(ii) State regulation.--Notwithstanding
clause (i), the employment of State-sponsored
nonimmigrants may be regulated in a manner
determined by each State that participates in
the State-sponsored nonimmigrant program.
``(iii) Occupational licenses and
credentials.--Notwithstanding any other
provision of law, State-sponsored nonimmigrants
shall be eligible to apply for--
``(I) occupational licenses
regulated by the sponsoring State or
applicable interstate compact;
``(II) certificates;
``(III) credential evaluations; and
``(IV) skills assessments.
``(7) State compacts.--
``(A) In general.--States may enter into interstate
compacts for the joint implementation or administration
of the State-sponsored nonimmigrant program in such
States.
``(B) Consideration.--A State-sponsored
nonimmigrant shall be considered to be sponsored by a
State if the State-sponsored nonimmigrant is sponsored
by any State subject to an interstate compact under
subparagraph (A) and resides in any such State.
``(8) Appeals.--
``(A) Federal appeals.--The denial of an
application by a State to be a State-sponsored
nonimmigrant or the request to terminate the period of
authorized status by a State--
``(i) is not reviewable by any Federal
department, agency, or court; and
``(ii) may not be grounds for an appeal of
a termination of a visa or status for a State-
sponsored nonimmigrant.
``(B) State appeals.--At the sole discretion of the
State and in a manner determined by the State, a State
that participates in the State-sponsored nonimmigrant
program may create a process for a State-sponsored
nonimmigrant or an alien that has applied for
participation in the State-sponsored nonimmigrant
program in the State to appeal an adjudication of an
application by the State or determination by the State
that the State-sponsored nonimmigrant violated the
terms or conditions that were created by the State for
the participation of the alien in the State-sponsored
nonimmigrant program in the State.
``(9) Waiver of rights prohibited.--
``(A) In general.--Except as provided in
subparagraph (C), a State-sponsored nonimmigrant may
not be required to waive any substantive rights or
protections under this Act.
``(B) Construction.--Nothing under this paragraph
may be construed to affect the interpretation of any
other law.
``(C) Exception.--Notwithstanding subparagraph (A)
or any other provision of law, an alien may not be
provided State-sponsored nonimmigrant status unless the
alien has waived any right--
``(i) to review or appeal under this Act of
an immigration officer's determination as to
the admissibility of the alien at the port of
entry into the United States; or
``(ii) to contest or appeal, other than on
the basis of an application for asylum, any
action for removal of the alien.
``(10) Tax responsibilities.--An employer shall comply with
all applicable Federal, State, and local tax laws with respect
to each State-sponsored nonimmigrant employed by the employer.
``(11) Labor and tax laws.--State-sponsored nonimmigrants
shall be subject to all Federal, State, and local laws
regarding taxation, employment, or hiring of persons in the
State.
``(12) Federal public benefits.--
``(A) In general.--Beginning on the date of
participation in the State-sponsored nonimmigrant
program, no State-sponsored nonimmigrant may apply for
or receive any Federal means-tested benefit or
entitlement. For purposes of this subparagraph, any
benefits received by a spouse, child, or dependent
living in the same household that is a United States
citizen or is otherwise eligible for such benefits
shall not be taken into account.
``(B) Employer fee.--For purposes of subsections
(a)(2) and (b)(1)(B) of 4980H of the Internal Revenue
Code of 1986, a State-sponsored nonimmigrant shall be
treated as a full-time employee certified as having
enrolled in a qualified health plan with respect to
which an applicable premium tax credit or cost-sharing
reduction is allowed or paid with respect to the
employee.
``(C) Employer payments.--An employer of a State-
sponsored nonimmigrant shall pay into the general fund
of the Treasury an amount equivalent to the Federal tax
on the wages paid to the nonimmigrants that the
employer would be obligated to pay under chapters 21
and 23 of the Internal Revenue Code of 1986 had the
nonimmigrants been subject to such chapters, subject to
the same penalties as provided for failure to pay such
tax.
``(D) Inclusion of nonimmigrants in save.--Not
later than 30 days after the date of the enactment of
the State-Sponsored Visa Pilot Program Act of 2026, the
Secretary shall modify the Systematic Alien
Verification for Entitlements Program of U.S.
Citizenship and Immigration Services to add any status
under section 101(a)(15)(W) as an alien category that
is ineligible for the benefits and entitlements
described in subparagraph (A).
``(13) Bonds.--
``(A) In general.--States may require State-
sponsored nonimmigrants to pay a bond in an amount
determined by the State to incentivize voluntary
compliance with the terms and conditions of the State-
sponsored nonimmigrant program.
``(B) Study.--
``(i) In general.--At the end of each
fiscal year, the Inspector General of the
Department of Homeland Security and the
Comptroller General of the United States shall
each independently submit a report to the
congressional committees specified in clause
(iii) that identifies, for each State that
participates in the State-sponsored
nonimmigrant program, the percentage of State-
sponsored nonimmigrants that have resided or
worked illegally in a State other than the
State that sponsored them (not including any
State-sponsored nonimmigrants who are
beneficiaries of approved immigration
petitions).
``(ii) Assignment.--A State-sponsored
nonimmigrant who resides or works illegally in
a State other than the State that sponsored the
nonimmigrant shall be assigned to the
percentage of the State that initially
sponsored the nonimmigrant if the State
participates in an interstate compact.
``(iii) Congressional committees.--The
congressional committees specified in this
clause are--
``(I) the Committee on Homeland
Security and Governmental Affairs of
the Senate;
``(II) the Committee on the
Judiciary of the Senate;
``(III) the Committee on Homeland
Security of the House of
Representatives; and
``(IV) the Committee on the
Judiciary of the House of
Representatives.
``(C) Mandatory bonds.--
``(i) In general.--During the first fiscal
year following a determination under
subparagraph (B) by the Comptroller General of
the United States or the Inspector General of
the Department of Homeland Security that more
than 3 percent of the State-sponsored
nonimmigrants sponsored by a State violated the
terms and conditions of State-sponsored
nonimmigrant status in the most recently
completed fiscal year, the State shall require
each State-sponsored nonimmigrant in the State,
as a condition of participation in the State-
sponsored nonimmigrant program, to post a bond
equal to not less than $4,000.
``(ii) Subsequent bonds.--The bond amount
under clause (i) shall be raised by $1,000
during each fiscal year following a subsequent
determination under subparagraph (B) by the
Comptroller General or the Inspector General of
the Department of Homeland Security that more
than 3 percent of the State-sponsored
nonimmigrants sponsored by the State violated
the terms and conditions of State-sponsored
nonimmigrant status in the most recently
completed fiscal year.
``(iii) Inflation adjustment.--Effective
for the first fiscal year that begins more than
6 months after the date of the enactment of the
State-Sponsored Visa Pilot Program Act of 2026,
and for each fiscal year thereafter, the
amounts described in this subparagraph shall be
increased by the percentage (if any) by which
the Consumer Price Index for the month of June
preceding the date on which such increase takes
effect exceeds the Consumer Price Index for all
urban consumers published by the Department of
Labor for the same month of the preceding
calendar year.
``(D) Reimbursement of bonds.--
``(i) In general.--Bonds paid to a State
under this paragraph shall be reimbursed to any
State-sponsored nonimmigrant that has not
worked or resided in a State other than the
State that sponsored the nonimmigrant or
otherwise resided in the United States without
status under the immigration laws in accordance
with this subparagraph.
``(ii) Full reimbursement.--The full amount
of the bond shall be reimbursed in full
immediately after--
``(I)(aa) the alien applies to the
Secretary of State (or the designee of
such Secretary) at a United States
embassy, consulate, or, if specified by
the Secretary, other locations outside
the United States; and
``(bb) in connection with the
application, the State-sponsored
nonimmigrant confirms his or her
identity, or verifies his or her
departure at such time from the United
States pursuant to a biometric entry
and exit data system;
``(II) an approved petition for
lawful permanent residency is approved
on behalf of the State-sponsored
nonimmigrant; or
``(III) the State-sponsored
nonimmigrant dies.
``(iii) Payee.--
``(I) Death of nonimmigrant.--Upon
the death of a State-sponsored
nonimmigrant, payment shall be
immediately paid to such State-
sponsored nonimmigrant's next of kin,
as designated by such State-sponsored
nonimmigrant on the application to be a
State-sponsored nonimmigrant.
``(II) Bank account.--A State-
sponsored nonimmigrant may specify on
the application to be a State-sponsored
nonimmigrant a bank account to which
such amount be sent after the
satisfaction of a condition specified
in clause (ii).
``(iv) Denial of reimbursement.--Funds of a
State-sponsored nonimmigrant held under this
paragraph may not be denied by a State to the
nonimmigrant unless the State demonstrates, by
clear and convincing evidence, that the
nonimmigrant knowingly violated a term or
condition of State-sponsored nonimmigrant
status--
``(I) by failing to depart the
United States at the end of the period
of authorized status; or
``(II) working or residing in a
State that did not sponsor the
nonimmigrant.
``(v) Notice.--The Secretary of State, in
conjunction with the Secretary of Homeland
Security, shall inform the State that the
State-sponsored nonimmigrant has complied with
clause (i).
``(14) Penalties.--If a State-sponsored nonimmigrant works
or resides outside of the State, or outside of any of the
States under an interstate compact that sponsored the
nonimmigrant or fails to comply with any term or condition of
State-sponsored nonimmigrant status, the Secretary shall--
``(A) revoke the employment authorization of such
nonimmigrant; and
``(B) initiate removal in accordance with section
237.
``(15) State administration of program.--
``(A) In general.--Each State that participates in
the State-sponsored nonimmigrant program shall
establish, conduct, or maintain any assessments,
programs, and enforcements related to the
administration of the program, in accordance with
subparagraphs (B) through (F).
``(B) Rules and regulations.--The State shall
enforce all the rules and regulations of the State
against employers who employ a State-sponsored
nonimmigrant to the same extent as the enforcement of
any other labor laws under State law.
``(C) Labor needs assessments.--The State shall
establish procedures for periodically assessing labor
needs in the State and the State's participation in the
State-sponsored nonimmigrant program.
``(D) Wage assessments.--The State shall
periodically conduct occupational wage assessments in
the State to ensure the State-sponsored nonimmigrant
program does not depress wage levels in the State.
``(E) Complaints.--The State shall establish a
mechanism for receiving and investigating complaints of
domestic worker displacement in the State and workplace
discrimination.
``(F) Occupational licenses.--The State shall
establish mechanisms for State-sponsored nonimmigrants
to apply for and obtain occupational licenses regulated
by the State or applicable compact, certificates,
credential evaluations, and skills assessments.
``(16) Suspension of program approval.--The Secretary shall
suspend admissions under the State-sponsored nonimmigrant
program for any State that fails--
``(A) to reimburse another State or a Federal
agency under paragraph (15)(B) not later than 1 year
after a final judgment against the State; or
``(B) to reimburse, in accordance with paragraph
(13)(D), a State-sponsored nonimmigrant who--
``(i) has departed the United States;
``(ii) did not seek employment without
authorization in a State that did not sponsor
the nonimmigrant; and
``(iii) did not otherwise reside in the
United States without status under the
immigration laws.
``(17) Fees.--
``(A) Federal fees.--A State shall pay a fee to the
Secretary for each year in which the State participates
in the State-sponsored nonimmigrant program in an
amount determined by the Secretary to be necessary to
cover the Federal costs of overseeing the State-
sponsored nonimmigrant program in the State.
``(B) State fees.--Nothing in this subsection may
be construed to limit or regulate fees required by the
State for State-sponsored nonimmigrants or employers of
State-sponsored nonimmigrants.
``(18) Numerical limitations.--
``(A) In general.--The total number of aliens who
may be issued visas or otherwise provided State-
sponsored nonimmigrant status under this subsection
during any fiscal year may not exceed the total number
of visas computed under subparagraph (B).
``(B) Distribution.--Subject to subparagraphs (C),
(D), and (E), the number of State-sponsored
nonimmigrant visas made available in a fiscal year to a
State that participates in the State-sponsored
nonimmigrant program shall be the sum of--
``(i) 5,000;
``(ii) the sum of the amounts computed
under subparagraphs (C) and (D) in the most
recently concluded year; and
``(iii) the percentage of the total
population in all States participating in the
State-sponsored nonimmigrant program
represented by the population of that State
multiplied by the sum of--
``(I) 245,000;
``(II) the number of
nonparticipating States multiplied by
5,000; and
``(III) the total number of visas
available in the previous fiscal year
that were revoked or not used.
``(C) Economic growth.--The amounts computed under
subparagraphs (A) and (B) for the most recently
concluded fiscal year shall be adjusted annually in
proportion to the percentage increase or decrease in
the Gross Domestic Product of the United States in the
prior year, as determined by the Bureau of Economic
Analysis of the Department of Commerce.
``(D) Compliance.--
``(i) Increases.--The number of State-
sponsored nonimmigrant visas made available to
a State under subparagraph (C) shall be
increased by 10 percent compared to the most
recently concluded fiscal year in each fiscal
year immediately following a fiscal year in
which fewer than 3 percent of the State-
sponsored nonimmigrants sponsored by the State
violated the terms and conditions of State-
sponsored nonimmigrant status, as determined by
the Inspector General of the Department of
Homeland Security or the Comptroller General of
the United States in the reports required under
paragraph (13)(B).
``(ii) Decreases.--The number of State-
sponsored nonimmigrant visas made available to
a State under subparagraph (C) shall be
decreased by 50 percent in each fiscal year
immediately following a fiscal year in which
more than 3 percent of the State-sponsored
nonimmigrants sponsored by the State violated
the terms and conditions of State-sponsored
nonimmigrant status, as determined by the
Inspector General of the Department of Homeland
Security or the Comptroller General of the
United States in the reports required under
paragraph (13)(B).
``(iii) Suspension.--State-sponsored
nonimmigrant visas shall not be made available
for a State during the 5-year period following
4 consecutive fiscal years in which more than 3
percent of the State-sponsored nonimmigrants
sponsored by the State violated the terms and
conditions of State-sponsored nonimmigrant
status, as determined by the Inspector General
of the Department of Homeland Security or the
Comptroller General of the United States in the
reports required under paragraph (13)(B).
``(E) Principal aliens.--
``(i) In general.--The numerical
limitations under this paragraph shall only
apply to principal aliens being admitted to the
United States from another country and not to
aliens accompanying or following to join the
principal alien under section 101(a)(15)(W)(ii)
or aliens who were previously admitted.
``(ii) State exclusion.--The Secretary may
not grant a visa or nonimmigrant status to an
alien who is not the principal alien sponsored
by a State if the State request that no such
aliens be admitted.
``(19) Admissibility determination.--
``(A) In general.--At the request of a State that
participates in the State-based nonimmigrant program,
the Secretary shall waive the grounds of
inadmissibility under subparagraphs (A), (B), (C), and
(G) of section 212(a)(6), paragraphs (7) and (9) of
section 212(a), and sections 240B(d)(1)(B) and
241(a)(5) and the grounds of deportability under
subparagraphs (A) through (D) of section 237(a)(1) and
section 237(a)(3) on behalf of an alien described in
subparagraph (B).
``(B) Aliens described.--An alien described in this
subparagraph is an alien who--
``(i) was physically present in the United
States on December 31, 2016;
``(ii) is sponsored by a State under the
State-based nonimmigrant program;
``(iii) otherwise meets the requirements of
State-based nonimmigrant status under paragraph
(5); and
``(iv) fulfills the requirements under
paragraph (20).
``(C) Savings provision.--Nothing in this paragraph
may be construed to exempt an alien described in
subparagraph (B) or exempt a State from the numerical
limitation under paragraph (18).
``(20) Requirements.--
``(A) Application.--An alien may apply to the
Secretary for a waiver of inadmissibility or
deportability under paragraph (19)(A) concurrently with
an application for a visa or State-sponsored
nonimmigrant status under section 101(a)(15)(W).
``(B) Evidence of presence or employment.--
``(i) Conclusive documents.--An alien may
conclusively demonstrate presence in the United
States in compliance with paragraph (19)(B)(i)
by submitting records demonstrating such
presence that have been maintained by the
Social Security Administration, the Internal
Revenue Service, or any other Federal, State,
or local government agency or educational
institution.
``(ii) Other documents.--An alien who is
unable to submit a document described in
subparagraph (A) may satisfy the requirements
under this section by submitting at least 3
other types of reliable documents that provide
evidence of presence, employment, or study in
the United States, including--
``(I) bank or remittance records;
``(II) business or employer
records;
``(III) records of any organization
that assists workers in employment;
``(IV) education records; and
``(V) deeds, mortgages, or
contracts to which the alien has been a
party.
``(C) Fees.--
``(i) In general.--An alien submitting an
application pursuant to subparagraph (A) shall
pay a fee in an amount determined by the
Secretary to be necessary to cover the cost of
adjudicating the application and reviewing the
application for fraud.
``(ii) Penalty.--In addition to the fee
under clause (i), an alien seeking a waiver
under paragraph (19) shall pay a penalty of not
less than $1,000, which shall be deposited into
the general fund of the Treasury of the United
States after the approval of the application
under subparagraph (A).
``(D) Criminal penalty.--
``(i) Violation.--It shall be unlawful for
any person to knowingly--
``(I) file, or assist in filing, an
application under this paragraph if
such application--
``(aa) falsifies,
misrepresents, conceals, or
covers up a material fact;
``(bb) makes any false,
fictitious, or fraudulent
statements or representations;
or
``(cc) makes or uses any
false writing or document
knowing the same to contain any
false, fictitious, or
fraudulent statement or entry;
or
``(II) create or supply a false
writing or document for use in making
such an application.
``(ii) Penalty.--Any person who violates
clause (i) shall be fined in accordance with
title 18, United States Code, imprisoned not
more than 5 years, or both.
``(iii) Inadmissibility.--An alien who is
convicted of violating clause (i) shall be
considered to be inadmissible to the United
States on the ground described in section
212(a)(6)(C)(i) and shall be subject to
immediate removal from the United States.
``(E) Fraud prevention program.--The Secretary and
the Attorney General shall jointly develop an
administrative program to prevent fraud with respect to
applications submitted under this paragraph that
provides for--
``(i) fraud prevention training for
administrative adjudicators;
``(ii) the regular audit of pending and
approved applications for examples and patterns
of fraud or abuse;
``(iii) the receipt and evaluation of
reports of fraud or abuse;
``(iv) the identification of deficiencies
in administrative practice or procedure that
encourage fraud or abuse;
``(v) the remedy of any identified
deficiencies; and
``(vi) the referral of cases of identified
or suspected fraud or other misconduct for
investigation.
``(F) Ineligible aliens.--
``(i) Removal authorized.--Except as
provided in clause (ii), if the Secretary makes
a final determination to deny an application
under this subsection, the Secretary shall
place the applicant in removal proceedings to
which the alien would otherwise be subject.
``(ii) Aliens with prior orders.--If the
final determination to deny an application
under this subsection concerns an alien with an
existing order of exclusion, deportation,
removal, or voluntary departure from the United
States, such order shall be enforced to the
same extent as if such application had not been
made.
``(G) Employment records.--Copies of employment
records or other evidence of employment provided by an
alien or by an alien's employer in support of an
alien's application under this subsection may not be
used in a civil or criminal prosecution or
investigation of that employer under section 247A or
the tax laws of the United States for the prior
unlawful employment of such alien, regardless of the
adjudication of such application or reconsideration by
the Secretary of such alien's prima facie eligibility
determination. Employers that provide unauthorized
aliens with copies of employment records or other
evidence of employment pursuant to an application under
this title shall not be subject to civil and criminal
liability pursuant to such section 274A for employing
such unauthorized aliens. The protections for employers
and aliens shall not apply if the aliens or employers
submit employment records that are deemed to be
fraudulent.
``(H) Rule of construction.--Nothing in this
subsection may be construed to limit the authority of a
State to require additional monetary penalties, other
evidence of physical presence, or any other requirement
for aliens described in paragraph (19)(B) to
participate in the State-based nonimmigrant program in
such State.''.
(b) Judicial Review.--Section 242(a)(2) of the Immigration and
Nationality Act (8 U.S.C. 1252(a)(2)) is amended by adding at the end
the following:
``(E) Judicial review of certain eligibility
determinations.--If an alien's application under
section 214(s)(20) is denied or revoked, judicial
review--
``(i) shall be instituted in the United
States District Court for the District of
Columbia; and
``(ii) shall be limited to determinations
of the constitutionality of section 214(s), or
any regulations implemented pursuant to such
section.''.
(c) Nonimmigrants With Approved Immigrant Petitions.--Section 245
of the Immigration and Nationality Act (8 U.S.C. 1255) is amended--
(1) in subsection (a)--
(A) by striking ``if (1) the alien'' and inserting
the following: ``if--
``(1) the alien'';
(B) by striking ``adjustment, (2) the alien'' and
inserting the following: ``adjustment;
``(2) the alien'';
(C) by striking ``residence, and (3) an immigrant
visa'' and inserting the following: ``residence; and
``(3) an immigrant visa''; and
(D) in paragraph (3), by striking ``him at the time
his application is filed'' and inserting ``the alien at
the time the alien's application is adjudicated''; and
(2) by adding at the end the following:
``(o) Adjustment of Status Application After an Approved Immigrant
Petition.--
``(1) Application.--An alien who has an approved immigrant
petition may file an adjustment of status application under
subsection (a), which shall remain pending until a visa number
becomes available.
``(2) Status.--An alien who has properly filed an
adjustment of status application pursuant to subsection (a)
shall, throughout the pendency of such application--
``(A) have a lawful status and be considered
lawfully present for purposes of section 212; and
``(B) following a biometric background check, be
eligible for employment and travel authorization
incident to such status.''.
SEC. 4. RULEMAKING.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of Homeland Security, in consultation with the
Secretary of Labor and the Attorney General, shall promulgate
regulations to carry out and implement the State-sponsored nonimmigrant
program authorized under section 214(s) of the Immigration and
Nationality Act, as added by section 3 of this Act.
SEC. 5. EFFECTIVE DATE.
The amendments made by this Act shall take effect on the first day
of the first fiscal year that begins after the date of the enactment of
this Act.
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