[Congressional Record Volume 143, Number 154 (Thursday, November 6, 1997)]
[Senate]
[Pages S11864-S11867]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ABRAHAM:
  S. 1382. A bill to reform the naturalization process, to clarify the 
procedures for investigating the criminal background of individuals 
submitting applications in connection with certain benefits under the 
Immigration and Nationality Act, and for other purposes; to the 
Committee on the Judiciary.


                 THE NATURALIZATION REFORM ACT OF 1997

  Mr. ABRAHAM. Mr. President, today I am pleased to introduce the 
Naturalization Reform Act of 1997. This bill addresses some of the 
serious failings in the Immigration and Naturalization Service's 
conduct of the naturalization process that have come to light during 
the past 2 years. This legislation does not attempt a comprehensive 
reform of the naturalization process, a topic that likely should be a 
subject of serious consideration but regarding which much additional 
work is needed. Rather, it includes a few targeted measures designed to 
address critical issues that have emerged, particularly concerning the 
granting of citizenship to criminal aliens and the INS' conduct of 
criminal background checks. Given that these issues have been the 
subject of extensive oversight in both Houses of Congress, it is 
important that we work together on this. In that vein, I have developed 
this legislation with my counterpart on the House side, Representative 
Lamar Smith, the chairman of the House Immigration Subcommittee. Today, 
he is introducing identical legislation in the House.
  Let me state at the outset that citizenship is the most precious gift 
and honor that our Nation can bestow. I have spoken many times before--
both in the Immigration Subcommittee and elsewhere--about my own 
grandparents' experience of immigrating to America. Their citizenship 
papers give me a particular pride, and I know what citizenship papers 
mean to my own family and for millions of others across America. The 
vast majority of citizenship applicants are law-abiding legal 
immigrants who have every right and desire to become full-fledged 
American citizens.
  Nonetheless, serious concerns about the naturalization process have 
been raised this session, particularly concerning the Immigration and 
Naturalization Service's provision of citizenship papers to some 
undeserving criminal aliens. Some initial reports did overestimate the 
number of aliens who were improperly naturalized in 1995 and 1996 
despite being statutorily ineligible for naturalization based on 
criminal convictions. Regardless of the number, however, it is still a 
concern to me that any obviously ineligible criminal aliens were 
naturalized. Moreover, it remains of grave concern that the INS was 
naturalizing large numbers of applicants without having completed their 
criminal background checks, which have been central to the way the INS 
conducts its inquiry into an applicant's good moral character. Even if 
an applicant did not have a conviction making that applicant 
statutorily ineligible, one would think that the good moral character 
determination might very well have turned out differently if the INS 
had had information concerning an applicant's arrests or other criminal 
background information. The mere fact that the INS was moving forward 
in this manner in itself raises concerns about how the INS is carrying 
out its statutory responsibilities.
  Many of these problems are not new, and it is disappointing that they 
have gone unresolved for so long. Reports from the Justice Department 
and from the General Accounting Office over the past 10 years have 
repeatedly found significant faults with the fingerprint check process, 
which the INS uses to conduct its criminal background checks. For 
instance, a 1988 Department of Justice audit found that, in 47 percent 
of naturalization files reviewed at random, there was no record that a 
fingerprint check had been requested or no record of when fingerprints 
were mailed to the FBI. In a 1989 report, the Department of Justice 
audit staff discovered an almost complete absence of evidence that 
background checks and fingerprint checks were conducted in 
naturalization cases. A 1994 report of the inspector general's office 
found that the INS did not verify that fingerprints submitted with an 
application actually belonged to the applicant; that report also 
documented that the Service failed to ensure that fingerprint checks 
were completed by the FBI. A 1994 GAO report disclosed similar 
findings.
  Despite such observations and disclosures, the INS continued to 
permit applicants to submit their own fingerprints without verifying 
whether the prints belonged to the applicant, and fingerprint cards 
submitted to the FBI often contained incomplete or inaccurate 
information. The INS also continued to permit naturalizations to go 
forward after 60 days following the submission of fingerprints to the 
FBI, regardless of whether a definitive response had been received from 
the FBI on the fingerprint check.
  In 1996, weaknesses in the criminal history validation process 
received renewed attention in the midst of the President's Citizenship 
USA program, a roughly 1-year effort to speed the pace of 
naturalizations significantly. Those weaknesses were exacerbated as 
pressure grew to increase naturalizations. As a result of various 
severe problems that came to light, a number of investigations, audits, 
and reviews into the naturalization process are now taking place.
  The Department of Justice's Justice Management Division, in 
conjunction with KPMG Peat Marwick and with some participation from the 
General Accounting Office, has been conducting an ongoing review of the 
roughly 1.4 million cases of aliens naturalized under Citizenship USA. 
Preliminary results indicate that INS failed to complete criminal 
background checks on some 180,000 immigrants who were naturalized 
between August 1995 and September 1996, and that more than 71,500 
applicants who did undergo background checks had criminal records and 
were naturalized anyway. It is true that a much smaller number had 
convictions for offenses for which there is a statutory bar to 
naturalization. As I have noted, however, it remains of great concern 
that such a large number were processed improperly, regardless of what 
the particular results were.
  In response to weaknesses identified by those reviews, on November 29 
of last year, the INS finally announced major changes to its criminal 
background verification procedures in an effort to respond to some of 
the serious and ongoing problems in that area. The Service did so 
through a policy memo announcing new ``Naturalization Quality 
Procedures.'' That memo went out--or was supposed to go out--from the 
Commissioner to all INS regional, district, and local offices. That 
specific and detailed memo, which was to be effective immediately, 
provided that no naturalizations were to go forward without a response 
on the fingerprint check from the FBI and unless the new policies and 
procedures were in place.
  Unfortunately, we learned this year that the administration's policy 
failed to go into effect as mandated by the Commissioner. On April 17, 
KPMG Peat Marwick issued a report based on its review of the INS' 
management and implementation of the new criminal record verification 
guidelines. Building

[[Page S11865]]

on the work of others in Congress, including my predecessor as 
subcommittee chairman, I chaired a hearing earlier this year that 
examined the criminal record verification process for citizenship 
applicants and that particularly focussed on the findings of Peat 
Marwick's review of the implementation of that policy. Peat Marwick 
rated only 1 INS office of the 23 it reviewed as ``compliant'' with the 
new procedures. Of the 22 others, 15 were found ``noncompliant,'' and 7 
``marginally compliant.'' One District Office and two Citizenship USA 
sites could not produce the particular policy memo they were supposed 
to be implementing. Numerous offices were sending fingerprint cards to 
the wrong FBI address, fingerprint cards were completed incorrectly, 
and worksheets that were required to be dated and initialed showed no 
evidence of key tasks being completed. These results are simply 
astonishing in the wake of the attention that the flaws in the previous 
system received both in the Congress and in the press. Such troubling 
deficiencies in even the most basic implementation of the new policy 
have emerged that immediate action must be taken to ensure that no 
citizenship application is processed without the required fingerprint 
checks and that the INS properly considers and evaluates any criminal 
record that is revealed. Those deficiencies also suggest we need to 
take a long-term look at the entire naturalization process and indeed 
at the structure of the INS.
  The legislation I am introducing today is limited to targeted 
measures aimed at addressing in the short term some critical problems 
in the naturalization process, particularly with regard to criminal 
background checks. The bill would revise the INS' processing of 
criminal background checks in a number of ways. It provides that, in 
conducting criminal background checks on any applicant for 
naturalization or for a number of other significant immigration 
benefits, the INS may not accept for processing or transmit to the FBI 
any fingerprint card or any other means used to transmit fingerprints 
unless the applicant's fingerprints have been taken by an office of the 
INS or by a law enforcement agency. Such offices or agencies would be 
permitted to collect a fee from the applicant for the service of taking 
and transmitting the fingerprints.
  The bill further provides that if an applicant is physically unable 
to provide legible fingerprints, for example, because the applicant may 
be elderly or disabled, the requirement that the INS submit 
fingerprints to the FBI shall not apply and the FBI shall instead 
conduct a record check based on the applicant's name and other 
identifying information.
  Under the legislation, no naturalization application, or application 
for the other important immigration benefits specified in the 
legislation, like the adjustment of status to lawful permanent 
residence, could be approved until the INS receives from the FBI a 
definitive response concerning whether the applicant has a criminal 
record and receives the content of any criminal history that the 
applicant may have.
  Interviews would also now be statutorily required before applicants 
may be naturalized or may adjust their status to lawful permanent 
residence. In the case of any applicant for naturalization, the 
interview must cover any criminal background of the applicant, other 
than minor traffic violations, and must review any misrepresentations 
made on the naturalization application.
  In order to provide for an orderly transition, and to insure that the 
naturalization backlog does not increase, the bill provides for an 
effective date of October 1, 1998.
  The bill also addresses the good moral character requirement for 
naturalization. Under current law, an applicant for naturalization must 
demonstrate good moral character for the 5 years preceding the 
application for naturalization. The INS has given good moral character 
the most narrow definition possible under the statute, and has 
restricted its good moral character inquiry to whether an applicant has 
been convicted of a criminal offense that statutorily bars a finding of 
good moral character. In my view, the 5 year period is too short. Our 
legislation extends that period to 10 years. I also hope that the INS 
will, through regulation, examine many more factors than it currently 
does in assessing good moral character.
  This legislation also begins to approach the question of citizenship 
testing. Hearings beginning to look into this issue have been held in 
the House and were held last Congress by my predecessor. While we need 
to know more before we can definitively decide how to approach 
citizenship testing, we can take some measures to address fraud 
problems. With respect to non-governmental outside testing entities 
that are authorized by INS to do citizenship testing, the bill 
safeguards the integrity of the testing process in a number of ways. It 
requires the INS to conduct regular inspections of testing sites, 
prevents outside testing entities from delegating their testing 
authority to any other companies, and allows the Attorney General to 
require retests when the testing process is impaired by cheating, 
fraud, or negligence. The bill requires GAO to do a comprehensive study 
and report to Congress on the overall integrity of the outside testing 
process so that we can decide if other reforms are necessary.
  The bill also includes a provision specifying that any alien approved 
for naturalization would not be able to receive his or her 
naturalization certificate until the alien turns in the alien's green 
card or submits an affidavit describing how the green card was lost, 
stolen, or destroyed. To further discourage the misuse, sale, or 
fraudulent transfer of green cards, the legislation requires any alien 
whose green card is lost, stolen or destroyed to report it to the INS 
promptly or pay a $50 fine for failing to do so.
  To address the INS' continued management difficulties in the 
naturalization area, the legislation puts into place quality assurance 
procedures and will improve oversight for the naturalization process. 
In particular, the legislation requires the Attorney General to 
establish a process, which is to include internal or other audit 
procedures, to review the ongoing compliance by each office of the 
Service that is involved in the naturalization process with all 
naturalization processes and procedures. Then, within 30 days after the 
end of each of the next 4 fiscal years, the Attorney General is to 
submit a report to the Senate and House Judiciary Committees concerning 
the INS' compliance with naturalization processes and procedures during 
the preceding years.
  Again, this legislation is designed to address some immediate 
problems requiring our attention. I look forward to continuing to work 
with my colleagues on the Senate Immigration Subcommittee, and with our 
colleagues in the House and others, on this legislation and on 
addressing the longer-term problems the INS is facing in the 
naturalization area.
  I ask unanimous consent that the entire text of the bill be placed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1382

       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 ``Naturalization Reform Act of 
     1997''.

     SEC. 2. BAR TO NATURALIZATION FOR ALIENS DEPORTABLE FOR 
                   CRIMES.

       (a) In General.--Section 316(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1427(a)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking ``States.'' and inserting 
     ``States, and''; and
       (3) by adding at the end the following: ``(4) on the date 
     of the application, is not deportable under paragraph (1) 
     (other than subparagraph (A)), (2), (3), or (6) of section 
     237(a), subparagraph (A), (B), or (D) of paragraph (4) of 
     such section, or paragraph (1)(A) of such section (but only 
     to the extent that such paragraph relates to inadmissibility 
     under paragraph (2), (6), (8), or (9) of section 212(a), 
     subparagraph (A), (B), or (E) of section 212(a)(3), or 
     subparagraph (A), (C), (D), or (E) of section 212(a)(10)).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 1998, and shall apply to 
     applications for naturalization submitted on or after such 
     date.

     SEC. 3. EXTENSION TO 10 YEARS OF GOOD MORAL CHARACTER PERIOD 
                   FOR NATURALIZATION.

       (a) In General.--Section 316(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1427(a)(3)) is amended by striking 
     ``during all the periods referred to in this subsection''

[[Page S11866]]

     and inserting ``during the ten years immediately preceding 
     the date of filing of the application''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 1998, and shall apply to 
     applications for naturalization submitted on or after such 
     date.

     SEC. 4. INVESTIGATION OF CRIMINAL BACKGROUND OF CERTAIN 
                   ALIENS AND PERSONS SPONSORING ALIENS FOR ENTRY.

       (a) In General.--Title I of the Immigration and Nationality 
     Act (8 U.S.C. 1101 et seq.) is amended by adding at the end 
     the following:


``investigation of criminal background of an alien applying for certain 
    benefits and certain petitioners for classification of an alien

       ``Sec. 106. (a) In General.--With respect to a person 
     described in a subparagraph of subsection (c)(1) who is 
     petitioning, or applying to, the Attorney General to grant 
     the benefit or take the action described in such subparagraph 
     (and with respect to an individual described in subparagraph 
     (E) of such subsection whose residence is the home of such a 
     person), the Attorney General may not grant the benefit or 
     take the action, unless, during the pendency of the person's 
     petition or application, the following has been completed:
       ``(1) An employee of the Service, or a Federal, State, or 
     local criminal law enforcement agency, after verifying the 
     person's identity, has prepared a complete and legible set of 
     fingerprints of the person.
       ``(2) The Commissioner has requested the Director of the 
     Federal Bureau of Investigation to conduct a criminal history 
     background check on the person for the appropriate purpose 
     described in subsection (c)(2), and the Commissioner has 
     submitted the fingerprints to the Director, along with any 
     supplementary information required by the Director to 
     complete the check.
       ``(3) The Director of the Federal Bureau of Investigation, 
     using the fingerprints and information provided by the 
     Commissioner, has conducted the check, and has provided the 
     Commissioner with a response describing the person's criminal 
     history, as reflected in records maintained by the Federal 
     Bureau of Investigation.
       ``(4) The Commissioner has conducted an investigation of 
     the person's criminal history, including all criminal 
     offenses listed in the Director's response, all criminal 
     offenses listed in informational databases maintained by the 
     Service, and all other criminal offenses of which the 
     Commissioner has knowledge, for the appropriate purpose 
     described in subsection (c)(2).
       ``(5) In a case where the investigation under paragraph (4) 
     of an applicant for naturalization reveals criminal history 
     that bears upon the applicant's eligibility for 
     naturalization, and the employee designated under section 335 
     to conduct the examination under such section has determined 
     that the application should be granted, such determination 
     has been reviewed by at least one Service officer whose 
     duties include performing such reviews.
       ``(b) Exception.--Notwithstanding subsection (a), when the 
     Attorney General certifies to the Director of the Federal 
     Bureau of Investigation that a person described in subsection 
     (c)(1) is physically unable to provide legible fingerprints--
       ``(1) the requirement that the Commissioner submit 
     fingerprints to the Director shall not apply; and
       ``(2) the Director shall conduct a criminal history 
     background check based on the person's name and any other 
     method of positive identification other than fingerprints 
     used by the Federal Bureau of Investigation for criminal 
     history background checks.
       ``(c) Persons Subject to, and Purposes for, Background 
     Checks.--
       ``(1) Persons and petitions described.--The persons (and 
     applications and petitions) described in this paragraph are 
     as follows:
       ``(A) An alien 14 through 79 years of age applying for 
     adjustment of status to that of an alien lawfully admitted 
     for permanent residence.
       ``(B) An alien 14 through 75 years of age applying for 
     naturalization as a citizen of the United States.
       ``(C) An alien 14 years of age or older applying for 
     asylum, or treatment as a spouse or child accompanying an 
     asylee.
       ``(D) An alien 14 years of age or older applying for 
     temporary protected status under section 244.
       ``(E) A person who has filed a petition to accord a child 
     defined in section 101(b)(1)(F) classification as an 
     immediate relative under section 201(b)(2)(A)(i), and any 
     additional individual, over the age of 18, whose principal or 
     only residence is the home of such person.
       ``(F) A person who has submitted a guarantee of legal 
     custody and financial responsibility under paragraphs (2)(B) 
     and (4) of section 204(f) in connection with a petition to 
     accord an alien, who is the subject of the guarantee, 
     classification under section 201(b), 203(a)(1), or 203(a)(3).
       ``(2) Purposes for checks described.--
       ``(A) Aliens applying for benefits.--With respect to the 
     aliens, and the applications, described in subparagraphs (A) 
     through (D) of paragraph (1), the requirements of subsection 
     (a) shall be applied (subject to subsection (b)) for the 
     purpose of determining whether the alien has a criminal 
     history that bears upon the alien's eligibility for the 
     benefit for which the alien applied.
       ``(B) Orphan petitions.--With respect to a person described 
     in paragraph (1)(E), the requirements of subsection (a) shall 
     be applied (subject to subsection (b)) for the purpose of 
     determining whether the person has a criminal history that 
     bears upon whether proper care will be furnished the child 
     described in such paragraph.
       ``(C) Amerasian petitions.--With respect to a person 
     described in paragraph (1)(F), the requirements of subsection 
     (a) shall be applied (subject to subsection (b)) for the 
     purpose of determining whether the person is of good moral 
     character.
       ``(d) Fee.--The Attorney General may charge a person 
     described in subsection (c)(1) a fee to cover the actual cost 
     of the criminal background check process under this section.
       ``(e) Construction.--This section shall not be construed to 
     affect or impair the ability of the Attorney General to 
     require a criminal history background check as a condition 
     for obtaining any benefit under this Act (including a 
     classification under section 204) that is not described in 
     subsection (c)(1).''.
       (b) Clerical Amendment.--The table of contents of the 
     Immigration and Nationality Act is amended by inserting after 
     the item relating to section 105 the following:

``Sec. 106.  Investigation of criminal background of an alien applying 
              for certain benefits and certain petitioners for 
              classification of an alien.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1998, and shall apply to 
     applications for a benefit under the Immigration and 
     Nationality Act (including petitions to accord a 
     classification under section 204 of such Act) submitted on or 
     after such date.

     SEC. 5. INTERVIEW FOR ADJUSTMENT OF STATUS.

       (a) In General.--The Immigration and Nationality Act is 
     amended by inserting after section 245A the following:


  ``interview for adjustment of status to that of person admitted for 
                          permanent residence

       ``Sec. 245B. Before the status of an alien may be adjusted 
     by the Attorney General to that of an alien lawfully admitted 
     for permanent residence, the alien shall appear before an 
     employee of the Service, who shall conduct a personal 
     interview of the alien for the purpose of verifying that the 
     alien is eligible for such adjustment.''.
       (b) Clerical Amendment.--The table of contents of the 
     Immigration and Nationality Act is amended by inserting after 
     the item relating to section 245A the following:

``Sec. 245B.  Interview for adjustment of status to that of person 
              admitted for permanent residence.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1998, and shall apply to 
     applications for adjustment of status submitted on or after 
     such date.

     SEC. 6. INTERVIEW FOR NATURALIZATION.

       (a) In General.--Section 332 of the Immigration and 
     Nationality Act (8 U.S.C. 1443) is amended by adding at the 
     end the following:
       ``(i) The examination under subsection (a) shall include a 
     personal interview of the applicant, conducted by an employee 
     of the Service who--
       ``(1) shall require the applicant to demonstrate the 
     ability to speak and understand words in ordinary usage in 
     the English language, in accordance with section 312(a)(1), 
     unless the applicant is exempt from the requirements of such 
     section pursuant to section 312(b);
       ``(2) shall require the applicant to describe any criminal 
     law violations, other than minor traffic violations, for 
     which the applicant has ever been arrested, charged, 
     convicted, fined, or imprisoned, or which the applicant has 
     committed but for which the applicant has not been arrested, 
     charged, convicted, fined, or imprisoned; and
       ``(3) shall verify each statement or representation made by 
     the applicant in the written application for naturalization, 
     and in any documents submitted in support of the application, 
     and shall examine the applicant to determine whether the 
     applicant has willfully made any false statements or 
     misrepresentations, or committed any fraud, for the purpose 
     of obtaining United States citizenship.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 1998, and shall apply to 
     applications for naturalization submitted on or after such 
     date.

     SEC. 7. CITIZENSHIP TESTING BY OUTSIDE TESTING ENTITIES.

       (a) In General.--
       (1) Testing by persons other than attorney general.--
     Section 312 of the Immigration and Nationality Act (8 U.S.C. 
     1423) is amended by adding at the end the following:
       ``(c)(1) An applicant for naturalization may satisfy the 
     reading and writing requirements of subsection (a)(1), and 
     the knowledge and understanding requirements of subsection 
     (a)(2), by passing a test approved by the Attorney General 
     and administered by a person, other than the Attorney 
     General, who, not later than the date of the enactment of the 
     Naturalization Reform Act of 1997, is authorized by the 
     Attorney General to administer such a test.
       ``(2) The Attorney General shall revoke the authorization 
     granted to a person to administer tests referred to in 
     paragraph (1), unless--

[[Page S11867]]

       ``(A) the person has not subcontracted, franchised, or 
     otherwise delegated the person's testing authority to any 
     other person; and
       ``(B) at any time after the person has been authorized by 
     the Attorney General to administer such tests and has 
     administered them for at least 6 months during the period 
     beginning on the date of the enactment of the Naturalization 
     Reform Act of 1997, the person and the Attorney General are 
     able to demonstrate that--
       ``(i) in not less than 5 of the 6 preceding months, the 
     Attorney General has conducted unannounced inspections of at 
     least 10 percent of the testing sites operated by the person 
     in each such month;
       ``(ii) during each such site inspection, the Attorney 
     General has checked the integrity and security of the testing 
     process and has memorialized the findings from the inspection 
     in a written report and, after the inspection, has provided 
     copies of the report to the person; and
       ``(iii) after reviewing each such inspection report, the 
     Attorney General--
       ``(I) has determined and certified that the person 
     continues to maintain the overall integrity and security of 
     the person's testing program, and has remedied any serious 
     flaws discovered by the inspections; and
       ``(II) has provided a copy of the certification to the 
     person.
       ``(3) The Attorney General shall require an applicant for 
     naturalization who has passed a test administered under this 
     subsection to retake and repass such a test in circumstances 
     where the Attorney General has reasonable grounds to believe 
     that the administration of the test was impaired by fraud, 
     misrepresentation, or other misconduct or negligence that 
     jeopardizes the reliability of the test results.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on October 1, 1998, and shall apply to 
     applications for naturalization submitted on or after such 
     date.
       (b) Study on Integrity of Testing Process.--
       (1) Report.--Not later than the date that is 6 months after 
     the date of the enactment of this Act, the Comptroller 
     General of the United States shall prepare and transmit to 
     the Committee on the Judiciary of the House of 
     Representatives and the Committee on the Judiciary of the 
     Senate the report described in paragraph (2).
       (2) Contents.--The report referred to in paragraph (1) 
     shall describe the results of a comprehensive study conducted 
     by the Comptroller General of the United States to determine 
     the extent to which tests administered by persons other than 
     the Attorney General, by which an applicant for 
     naturalization may satisfy the reading and writing 
     requirements of subsection (a)(1), and the knowledge and 
     understanding requirements of subsection (a)(2), of section 
     312 of the Immigration and Nationality Act, are impaired by 
     fraud, misrepresentation, or other misconduct or negligence 
     that jeopardizes the reliability of the test results.

     SEC. 8. REQUIREMENTS WITH RESPECT TO RESIDENT ALIEN CARDS.

       (a) Civil Penalty for Failure to Report Loss, Theft, or 
     Destruction of Resident Alien Card.--
       (1) In general.--The Immigration and Nationality Act is 
     amended by inserting after section 274D the following:


 ``civil penalty for failure to report loss, theft, or destruction of 
                          resident alien card

       ``Sec. 274E. Any alien who has been issued by the Attorney 
     General an alien registration receipt card indicating the 
     alien's status as an alien lawfully admitted for permanent 
     residence, and who fails to report to the Attorney General 
     the loss, theft, or destruction of the card by the date that 
     is 7 days after the date the alien discovers such loss, 
     theft, or destruction, shall pay a civil penalty to the 
     Commissioner of $50 per violation.''.
       (2) Clerical amendment.--The table of contents of the 
     Immigration and Nationality Act is amended by inserting after 
     the item relating to section 274D the following new item:

``Sec. 274E. Civil penalty for failure to report loss, theft, or 
              destruction of resident alien card.''.

       (3) Effective date.--The amendments made by this subsection 
     shall take effect on October 1, 1998, and shall apply to 
     alien registration receipt cards that are lost, stolen, or 
     destroyed on or after such date.
       (b) Surrender of Resident Alien Card Upon Naturalization.--
       (1) In general.--Section 338 of the Immigration and 
     Nationality Act (8 U.S.C. 1449) is amended--
       (A) by inserting ``(a)'' before ``A person''; and
       (B) by adding at the end the following:
       ``(b)(1) Notwithstanding subsection (a), the Attorney 
     General may not deliver a certificate of naturalization to 
     any person to whom the Attorney General previously had issued 
     an alien registration receipt card indicating the person's 
     status as an alien lawfully admitted for permanent residence, 
     unless--
       ``(A) the person has surrendered the card to the Attorney 
     General; or
       ``(B) the person has submitted an affidavit to the Attorney 
     General stating that the card was lost, stolen, or destroyed, 
     and describing any facts known to the alien with respect to 
     the circumstances of such loss, theft, or destruction, and a 
     period of not less than 30 days has elapsed since such 
     submission, during which period the Attorney General may 
     conduct an investigation of such loss, theft, or destruction.
       ``(2) The Attorney General may charge a person described in 
     paragraph (1)(B) a fee to cover the cost of an investigation 
     described in such paragraph.''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on October 1, 1998, and shall apply to 
     certificates of naturalization delivered on or after such 
     date.

     SEC. 9. REVOCATION OF NATURALIZATION.

       (a) Clarification of Materiality Requirement.--Section 
     340(a) of the Immigration and Nationality Act (8 U.S.C. 
     1451(a)) is amended--
       (1) by striking ``(a)'' and inserting ``(a)(1)''; and
       (2) by adding at the end the following:
       ``(2) For purposes of this section, a fact with respect to 
     a naturalized person may not be considered immaterial solely 
     because the fact, had it been known to the Attorney General 
     before the person was naturalized, would not, by itself, have 
     required the Attorney General to deny the person's 
     application for naturalization.''.
       (b) Rebuttable Presumption of Willfulness.--Section 340 of 
     the Immigration and Nationality Act (8 U.S.C. 1451) is 
     amended--
       (1) by redesignating subsections (d) through (h) as 
     subsections (e) though (i), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) In any proceeding under this section in which the 
     United States proves that an order admitting a person to 
     citizenship was procured by the person's concealment or 
     misrepresentation of a material fact, such proof shall be 
     considered prima facie evidence that the person acted 
     willfully with respect to the concealment or 
     misrepresentation, and, in the absence of countervailing 
     evidence, such proof shall be sufficient to authorize the 
     revocation and setting aside of the order and the 
     cancellation of the certificate of naturalization.''.
       (c) Limitation on Administrative Revocations.--Section 340 
     of the Immigration and Nationality Act (8 U.S.C. 1451), as 
     amended by subsection (b), is further amended--
       (1) in subsection (i), by striking ``Nothing'' and 
     inserting ``Subject to subsection (j), nothing''; and
       (2) by inserting after subsection (i) the following:
       ``(j) The Attorney General shall commence any proceeding 
     administratively to correct, reopen, alter, modify, or vacate 
     an order naturalizing a person not later than 5 years after 
     the effective date of the order.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1998, and shall apply to any 
     order naturalizing a person with an effective date that is on 
     or after October 1, 1998.

     SEC. 10. QUALITY ASSURANCE AND IMPROVED OVERSIGHT FOR 
                   NATURALIZATION.

       (a) In General.--Not later than 60 days after the date of 
     the enactment of this Act, the Attorney General shall 
     establish a process (including internal audit procedures, 
     other audit procedures, or both) to review the ongoing 
     compliance with all laws, policies, and procedures affecting 
     naturalization by each office of the Immigration and 
     Naturalization Service that has duties with respect to 
     naturalization.
       (b) Reports.--Not later than 30 days after the termination 
     of each of fiscal years 1998, 1999, 2000, and 2001, the 
     Attorney General shall submit a report to the Committee on 
     the Judiciary of the Senate and the Committee on the 
     Judiciary of the House of Representatives concerning the 
     compliance by the Commissioner of Immigration and 
     Naturalization and the Immigration and Naturalization Service 
     with all laws, policies, and procedures affecting 
     naturalization during such terminated fiscal year.
       (c) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act, and shall cease to be 
     effective upon the submission, under subsection (b), of the 
     report with respect to fiscal year 2001.
                                 ______