[Congressional Record Volume 153, Number 13 (Tuesday, January 23, 2007)]
[Senate]
[Pages S925-S990]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 111. Mr. SUNUNU submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PUBLIC HOUSING AGENCY PLANS FOR CERTAIN QUALIFIED 
                   PUBLIC HOUSING AGENCIES.

       (a) Short Title.--This section may be cited as the ``Small 
     Public Housing Authorities Paperwork Reduction Act''.
       (b) In General.--Section 5A(b) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437c-1(b)) is amended by adding at 
     the end the following:
       ``(3) Exemption of certain phas from filing requirement.--
       ``(A) In general.--Notwithstanding paragraph (1) or any 
     other provision of this Act--
       ``(i) the requirement under paragraph (1) shall not apply 
     to any qualified public housing agency; and
       ``(ii) except as provided in subsection (e)(4)(B), any 
     reference in this section or any other provision of law to a 
     `public housing agency' shall not be considered to refer to 
     any qualified public housing agency, to the extent such 
     reference applies to the requirement to submit an annual 
     public housing agency plan under this subsection.
       ``(B) Civil rights certification.--Notwithstanding that 
     qualified public housing agencies are exempt under 
     subparagraph (A) from the requirement under this section to 
     prepare and submit an annual public housing plan, each 
     qualified public housing agency shall, on an annual basis, 
     make the certification described in paragraph (16) of 
     subsection (d), except that for purposes of such qualified 
     public housing agencies, such paragraph shall be applied by 
     substituting `the public housing program of the agency' for 
     `the public housing agency plan'.
       ``(C) Definition.--For purposes of this section, the term 
     `qualified public housing agency' means a public housing 
     agency that--
       ``(i) administers--

       ``(I) 500 or fewer public housing dwelling units; or
       ``(II) any number of vouchers under section 8(o) of this 
     Act; and

       ``(ii) is not designated under section 6(j)(2) as a 
     troubled public housing agency.''.
       (c) Resident Participation.--Section 5A of the United 
     States Housing Act of 1937 (42 U.S.C. 1437c-1) is amended--
       (1) in subsection (e), by inserting after paragraph (3) the 
     following:
       ``(4) Qualified public housing agencies.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     nothing in this section may be construed to exempt a 
     qualified public housing agency from the requirement under 
     paragraph (1) to establish 1 or more resident advisory 
     boards. Notwithstanding that qualified public housing 
     agencies are exempt under subsection (b)(3)(A) from the 
     requirement under this section to prepare and submit an 
     annual public housing plan, each qualified public housing 
     agency shall consult with, and consider the recommendations 
     of the resident advisory boards for the agency, at the annual 
     public hearing required under subsection (f)(5), regarding 
     any changes to the goals, objectives, and policies of that 
     agency.
       ``(B) Applicability of waiver authority.--Paragraph (3) 
     shall apply to qualified public housing agencies, except that 
     for purposes of such qualified public housing agencies, 
     subparagraph (B) of such paragraph shall be applied by 
     substituting `the functions described in the second sentence 
     of paragraph (4)(A)' for `the functions described in 
     paragraph (2)'.
       ``(f) Public Hearings.--''; and
       (2) in subsection (f) (as so designated by the amendment 
     made by paragraph (1)), by adding at the end the following:
       ``(5) Qualified public housing agencies.--
       ``(A) Requirement.--Notwithstanding that qualified public 
     housing agencies are exempt under subsection (b)(3)(A) from 
     the requirement under this section to conduct a public 
     hearing regarding the annual public housing plan of the 
     agency, each qualified public housing agency shall annually 
     conduct a public hearing--
       ``(i) to discuss any changes to the goals, objectives, and 
     policies of the agency; and
       ``(ii) to invite public comment regarding such changes.
       ``(B) Availability of information and notice.--Not later 
     than 45 days before the date of any hearing described in 
     subparagraph (A), a qualified public housing agency shall--
       ``(i) make all information relevant to the hearing and any 
     determinations of the agency regarding changes to the goals, 
     objectives, and policies of the agency to be considered at 
     the hearing available for inspection by the public at the 
     principal office of the public housing agency during normal 
     business hours; and
       ``(ii) publish a notice informing the public that--

       ``(I) the information is available as required under clause 
     (i); and
       ``(II) a public hearing under subparagraph (A) will be 
     conducted.''

                                 ______
                                 
  SA 112. Mr. SUNUNU submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; as follows:

       At the appropriate place, insert the following:

     SEC. __. RENEWAL GRANTS FOR WOMEN'S BUSINESS CENTERS.

       Section 29 of the Small Business Act (15 U.S.C. 656) is 
     amended by adding at the end the following:
       ``(m) Continued Funding for Centers.--
       ``(1) In general.--A nonprofit organization described in 
     paragraph (2) shall be eligible to receive, subject to 
     paragraph (3), a 3-year grant under this subsection.
       ``(2) Applicability.--A nonprofit organization described in 
     this paragraph is a nonprofit organization that--
       ``(A) has received funding under subsections (b) and (l); 
     and
       ``(B) is not eligible under the programs under such 
     subsections for the first fiscal year after the end of the 
     period of financial assistance under subsection (l).
       ``(3) Application and approval criteria.--
       ``(A) Criteria.--The Administrator shall develop and 
     publish criteria for the consideration and approval of 
     applications by nonprofit organizations under this 
     subsection.
       ``(B) Notification.--Not later than 60 days after the date 
     of the deadline to submit applications for each fiscal year, 
     the Administrator shall approve or deny any application under 
     this subsection and notify the applicant for each such 
     application.
       ``(4) Award of grants.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Administrator shall make a grant for the 
     Federal share of the cost of activities described in the 
     application to each applicant approved under this subsection.
       ``(B) Amount.--A grant under this subsection shall be for 
     not less than $90,000 and not more than $150,000, for each 
     year of that grant.
       ``(C) Federal share.--The Federal share under this 
     subsection shall be not more than 50 percent.
       ``(D) Priority.--In allocating funds made available for 
     grants under this section, the Administrator shall give 
     applications under this subsection priority over first-time 
     applications under subsection (b).
       ``(5) Renewal.--The Administrator may renew a grant under 
     this subsection for additional 3-year periods, if the 
     nonprofit organization submits an application for such 
     renewal at such time, in such manner, and accompanied by such 
     information as the Administrator may establish.''.
                                 ______
                                 
  SA 113. Mr. SMITH submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PERMANENT EXTENSION OF CERTAIN EDUCATION-RELATED TAX 
                   INCENTIVES.

       (a) Repeal of Sunset on Affordable Education Provisions.--
     Title IX of the Economic Growth and Tax Relief Reconciliation 
     Act of 2001 (relating to sunset of provisions of such Act) 
     shall not apply to title IV of such Act (relating to 
     affordable education provisions).
       (b) Permanent Extension of Above-the-Line Deduction for 
     Certain Expenses of Elementary and Secondary School 
     Teachers.--Subparagraph (D) of section 62(a)(2) of the 
     Internal Revenue Code of 1986 is amended by striking ``In the 
     case of taxable years beginning during 2002, 2003, 2004, 
     2005, 2006, or 2007, the deductions'' and inserting ``The 
     deductions''.
                                 ______
                                 
  SA 114. Mr. THUNE (for himself and Mr. Vitter) submitted an amendment

[[Page S926]]

intended to be proposed by him to the bill H.R. 2, to amend the Fair 
Labor Standards Act of 1938 to provide for an increase in the Federal 
minimum wage; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                TITLE __--SMALL BUSINESS HEALTH COVERAGE

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Small Business Health 
     Improvement Act of 2007''.

     SEC. _02. RULES GOVERNING ASSOCIATION HEALTH PLANS.

       (a) In General.--Subtitle B of title I of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     after part 7 the following new part:

           ``PART 8--RULES GOVERNING ASSOCIATION HEALTH PLANS

     ``SEC. 801. ASSOCIATION HEALTH PLANS.

       ``(a) In General.--For purposes of this part, the term 
     `association health plan' means a group health plan whose 
     sponsor is (or is deemed under this part to be) described in 
     subsection (b).
       ``(b) Sponsorship.--The sponsor of a group health plan is 
     described in this subsection if such sponsor--
       ``(1) is organized and maintained in good faith, with a 
     constitution and bylaws specifically stating its purpose and 
     providing for periodic meetings on at least an annual basis, 
     as a bona fide trade association, a bona fide industry 
     association (including a rural electric cooperative 
     association or a rural telephone cooperative association), a 
     bona fide professional association, or a bona fide chamber of 
     commerce (or similar bona fide business association, 
     including a corporation or similar organization that operates 
     on a cooperative basis (within the meaning of section 1381 of 
     the Internal Revenue Code of 1986)), for substantial purposes 
     other than that of obtaining or providing medical care;
       ``(2) is established as a permanent entity which receives 
     the active support of its members and requires for membership 
     payment on a periodic basis of dues or payments necessary to 
     maintain eligibility for membership in the sponsor; and
       ``(3) does not condition membership, such dues or payments, 
     or coverage under the plan on the basis of health status-
     related factors with respect to the employees of its members 
     (or affiliated members), or the dependents of such employees, 
     and does not condition such dues or payments on the basis of 
     group health plan participation.

     Any sponsor consisting of an association of entities which 
     meet the requirements of paragraphs (1), (2), and (3) shall 
     be deemed to be a sponsor described in this subsection.

     ``SEC. 802. CERTIFICATION OF ASSOCIATION HEALTH PLANS.

       ``(a) In General.--The applicable authority shall prescribe 
     by regulation a procedure under which, subject to subsection 
     (b), the applicable authority shall certify association 
     health plans which apply for certification as meeting the 
     requirements of this part.
       ``(b) Standards.--Under the procedure prescribed pursuant 
     to subsection (a), in the case of an association health plan 
     that provides at least one benefit option which does not 
     consist of health insurance coverage, the applicable 
     authority shall certify such plan as meeting the requirements 
     of this part only if the applicable authority is satisfied 
     that the applicable requirements of this part are met (or, 
     upon the date on which the plan is to commence operations, 
     will be met) with respect to the plan.
       ``(c) Requirements Applicable to Certified Plans.--An 
     association health plan with respect to which certification 
     under this part is in effect shall meet the applicable 
     requirements of this part, effective on the date of 
     certification (or, if later, on the date on which the plan is 
     to commence operations).
       ``(d) Requirements for Continued Certification.--The 
     applicable authority may provide by regulation for continued 
     certification of association health plans under this part.
       ``(e) Class Certification for Fully Insured Plans.--The 
     applicable authority shall establish a class certification 
     procedure for association health plans under which all 
     benefits consist of health insurance coverage. Under such 
     procedure, the applicable authority shall provide for the 
     granting of certification under this part to the plans in 
     each class of such association health plans upon appropriate 
     filing under such procedure in connection with plans in such 
     class and payment of the prescribed fee under section 807(a).
       ``(f) Certification of Self-Insured Association Health 
     Plans.--An association health plan which offers one or more 
     benefit options which do not consist of health insurance 
     coverage may be certified under this part only if such plan 
     consists of any of the following:
       ``(1) a plan which offered such coverage on the date of the 
     enactment of the Small Business Health Improvement Act of 
     2007,
       ``(2) a plan under which the sponsor does not restrict 
     membership to one or more trades and businesses or industries 
     and whose eligible participating employers represent a broad 
     cross-section of trades and businesses or industries, or
       ``(3) a plan whose eligible participating employers 
     represent one or more trades or businesses, or one or more 
     industries, consisting of any of the following: agriculture; 
     equipment and automobile dealerships; barbering and 
     cosmetology; certified public accounting practices; child 
     care; construction; dance, theatrical and orchestra 
     productions; disinfecting and pest control; financial 
     services; fishing; foodservice establishments; hospitals; 
     labor organizations; logging; manufacturing (metals); mining; 
     medical and dental practices; medical laboratories; 
     professional consulting services; sanitary services; 
     transportation (local and freight); warehousing; wholesaling/
     distributing; or any other trade or business or industry 
     which has been indicated as having average or above-average 
     risk or health claims experience by reason of State rate 
     filings, denials of coverage, proposed premium rate levels, 
     or other means demonstrated by such plan in accordance with 
     regulations.

     ``SEC. 803. REQUIREMENTS RELATING TO SPONSORS AND BOARDS OF 
                   TRUSTEES.

       ``(a) Sponsor.--The requirements of this subsection are met 
     with respect to an association health plan if the sponsor has 
     met (or is deemed under this part to have met) the 
     requirements of section 801(b) for a continuous period of not 
     less than 3 years ending with the date of the application for 
     certification under this part.
       ``(b) Board of Trustees.--The requirements of this 
     subsection are met with respect to an association health plan 
     if the following requirements are met:
       ``(1) Fiscal control.--The plan is operated, pursuant to a 
     trust agreement, by a board of trustees which has complete 
     fiscal control over the plan and which is responsible for all 
     operations of the plan.
       ``(2) Rules of operation and financial controls.--The board 
     of trustees has in effect rules of operation and financial 
     controls, based on a 3-year plan of operation, adequate to 
     carry out the terms of the plan and to meet all requirements 
     of this title applicable to the plan.
       ``(3) Rules governing relationship to participating 
     employers and to contractors.--
       ``(A) Board membership.--
       ``(i) In general.--Except as provided in clauses (ii) and 
     (iii), the members of the board of trustees are individuals 
     selected from individuals who are the owners, officers, 
     directors, or employees of the participating employers or who 
     are partners in the participating employers and actively 
     participate in the business.
       ``(ii) Limitation.--

       ``(I) General rule.--Except as provided in subclauses (II) 
     and (III), no such member is an owner, officer, director, or 
     employee of, or partner in, a contract administrator or other 
     service provider to the plan.
       ``(II) Limited exception for providers of services solely 
     on behalf of the sponsor.--Officers or employees of a sponsor 
     which is a service provider (other than a contract 
     administrator) to the plan may be members of the board if 
     they constitute not more than 25 percent of the membership of 
     the board and they do not provide services to the plan other 
     than on behalf of the sponsor.
       ``(III) Treatment of providers of medical care.--In the 
     case of a sponsor which is an association whose membership 
     consists primarily of providers of medical care, subclause 
     (I) shall not apply in the case of any service provider 
     described in subclause (I) who is a provider of medical care 
     under the plan.

       ``(iii) Certain plans excluded.--Clause (i) shall not apply 
     to an association health plan which is in existence on the 
     date of the enactment of the Small Business Health 
     Improvement Act of 2007.
       ``(B) Sole authority.--The board has sole authority under 
     the plan to approve applications for participation in the 
     plan and to contract with a service provider to administer 
     the day-to-day affairs of the plan.
       ``(c) Treatment of Franchise Networks.--In the case of a 
     group health plan which is established and maintained by a 
     franchiser for a franchise network consisting of its 
     franchisees--
       ``(1) the requirements of subsection (a) and section 801(a) 
     shall be deemed met if such requirements would otherwise be 
     met if the franchiser were deemed to be the sponsor referred 
     to in section 801(b), such network were deemed to be an 
     association described in section 801(b), and each franchisee 
     were deemed to be a member (of the association and the 
     sponsor) referred to in section 801(b); and
       ``(2) the requirements of section 804(a)(1) shall be deemed 
     met.

     The Secretary may by regulation define for purposes of this 
     subsection the terms `franchiser', `franchise network', and 
     `franchisee'.

     ``SEC. 804. PARTICIPATION AND COVERAGE REQUIREMENTS.

       ``(a) Covered Employers and Individuals.--The requirements 
     of this subsection are met with respect to an association 
     health plan if, under the terms of the plan--
       ``(1) each participating employer must be--
       ``(A) a member of the sponsor,
       ``(B) the sponsor, or
       ``(C) an affiliated member of the sponsor with respect to 
     which the requirements of subsection (b) are met,

     except that, in the case of a sponsor which is a professional 
     association or other individual-based association, if at 
     least one of the officers, directors, or employees of an 
     employer, or at least one of the individuals

[[Page S927]]

     who are partners in an employer and who actively participates 
     in the business, is a member or such an affiliated member of 
     the sponsor, participating employers may also include such 
     employer; and
       ``(2) all individuals commencing coverage under the plan 
     after certification under this part must be--
       ``(A) active or retired owners (including self-employed 
     individuals), officers, directors, or employees of, or 
     partners in, participating employers; or
       ``(B) the beneficiaries of individuals described in 
     subparagraph (A).
       ``(b) Coverage of Previously Uninsured Employees.--In the 
     case of an association health plan in existence on the date 
     of the enactment of the Small Business Health Improvement Act 
     of 2007, an affiliated member of the sponsor of the plan may 
     be offered coverage under the plan as a participating 
     employer only if--
       ``(1) the affiliated member was an affiliated member on the 
     date of certification under this part; or
       ``(2) during the 12-month period preceding the date of the 
     offering of such coverage, the affiliated member has not 
     maintained or contributed to a group health plan with respect 
     to any of its employees who would otherwise be eligible to 
     participate in such association health plan.
       ``(c) Individual Market Unaffected.--The requirements of 
     this subsection are met with respect to an association health 
     plan if, under the terms of the plan, no participating 
     employer may provide health insurance coverage in the 
     individual market for any employee not covered under the plan 
     which is similar to the coverage contemporaneously provided 
     to employees of the employer under the plan, if such 
     exclusion of the employee from coverage under the plan is 
     based on a health status-related factor with respect to the 
     employee and such employee would, but for such exclusion on 
     such basis, be eligible for coverage under the plan.
       ``(d) Prohibition of Discrimination Against Employers and 
     Employees Eligible to Participate.--The requirements of this 
     subsection are met with respect to an association health plan 
     if--
       ``(1) under the terms of the plan, all employers meeting 
     the preceding requirements of this section are eligible to 
     qualify as participating employers for all geographically 
     available coverage options, unless, in the case of any such 
     employer, participation or contribution requirements of the 
     type referred to in section 2711 of the Public Health Service 
     Act are not met;
       ``(2) upon request, any employer eligible to participate is 
     furnished information regarding all coverage options 
     available under the plan; and
       ``(3) the applicable requirements of sections 701, 702, and 
     703 are met with respect to the plan.

     ``SEC. 805. OTHER REQUIREMENTS RELATING TO PLAN DOCUMENTS, 
                   CONTRIBUTION RATES, AND BENEFIT OPTIONS.

       ``(a) In General.--The requirements of this section are met 
     with respect to an association health plan if the following 
     requirements are met:
       ``(1) Contents of governing instruments.--The instruments 
     governing the plan include a written instrument, meeting the 
     requirements of an instrument required under section 
     402(a)(1), which--
       ``(A) provides that the board of trustees serves as the 
     named fiduciary required for plans under section 402(a)(1) 
     and serves in the capacity of a plan administrator (referred 
     to in section 3(16)(A));
       ``(B) provides that the sponsor of the plan is to serve as 
     plan sponsor (referred to in section 3(16)(B)); and
       ``(C) incorporates the requirements of section 806.
       ``(2) Contribution rates must be nondiscriminatory.--
       ``(A) The contribution rates for any participating small 
     employer do not vary on the basis of any health status-
     related factor in relation to employees of such employer or 
     their beneficiaries and do not vary on the basis of the type 
     of business or industry in which such employer is engaged.
       ``(B) Nothing in this title or any other provision of law 
     shall be construed to preclude an association health plan, or 
     a health insurance issuer offering health insurance coverage 
     in connection with an association health plan, from--
       ``(i) setting contribution rates based on the claims 
     experience of the plan; or
       ``(ii) varying contribution rates for small employers in a 
     State to the extent that such rates could vary using the same 
     methodology employed in such State for regulating premium 
     rates in the small group market with respect to health 
     insurance coverage offered in connection with bona fide 
     associations (within the meaning of section 2791(d)(3) of the 
     Public Health Service Act),

     subject to the requirements of section 702(b) relating to 
     contribution rates.
       ``(3) Floor for number of covered individuals with respect 
     to certain plans.--If any benefit option under the plan does 
     not consist of health insurance coverage, the plan has as of 
     the beginning of the plan year not fewer than 1,000 
     participants and beneficiaries.
       ``(4) Marketing requirements.--
       ``(A) In general.--If a benefit option which consists of 
     health insurance coverage is offered under the plan, State-
     licensed insurance agents shall be used to distribute to 
     small employers coverage which does not consist of health 
     insurance coverage in a manner comparable to the manner in 
     which such agents are used to distribute health insurance 
     coverage.
       ``(B) State-licensed insurance agents.--For purposes of 
     subparagraph (A), the term `State-licensed insurance agents' 
     means one or more agents who are licensed in a State and are 
     subject to the laws of such State relating to licensure, 
     qualification, testing, examination, and continuing education 
     of persons authorized to offer, sell, or solicit health 
     insurance coverage in such State.
       ``(5) Regulatory requirements.--Such other requirements as 
     the applicable authority determines are necessary to carry 
     out the purposes of this part, which shall be prescribed by 
     the applicable authority by regulation.
       ``(b) Ability of Association Health Plans to Design Benefit 
     Options.--Subject to section 514(d), nothing in this part or 
     any provision of State law (as defined in section 514(c)(1)) 
     shall be construed to preclude an association health plan, or 
     a health insurance issuer offering health insurance coverage 
     in connection with an association health plan, from 
     exercising its sole discretion in selecting the specific 
     items and services consisting of medical care to be included 
     as benefits under such plan or coverage, except (subject to 
     section 514) in the case of (1) any law to the extent that it 
     is not preempted under section 731(a)(1) with respect to 
     matters governed by section 711, 712, or 713, or (2) any law 
     of the State with which filing and approval of a policy type 
     offered by the plan was initially obtained to the extent that 
     such law prohibits an exclusion of a specific disease from 
     such coverage.

     ``SEC. 806. MAINTENANCE OF RESERVES AND PROVISIONS FOR 
                   SOLVENCY FOR PLANS PROVIDING HEALTH BENEFITS IN 
                   ADDITION TO HEALTH INSURANCE COVERAGE.

       ``(a) In General.--The requirements of this section are met 
     with respect to an association health plan if--
       ``(1) the benefits under the plan consist solely of health 
     insurance coverage; or
       ``(2) if the plan provides any additional benefit options 
     which do not consist of health insurance coverage, the plan--
       ``(A) establishes and maintains reserves with respect to 
     such additional benefit options, in amounts recommended by 
     the qualified actuary, consisting of--
       ``(i) a reserve sufficient for unearned contributions;
       ``(ii) a reserve sufficient for benefit liabilities which 
     have been incurred, which have not been satisfied, and for 
     which risk of loss has not yet been transferred, and for 
     expected administrative costs with respect to such benefit 
     liabilities;
       ``(iii) a reserve sufficient for any other obligations of 
     the plan; and
       ``(iv) a reserve sufficient for a margin of error and other 
     fluctuations, taking into account the specific circumstances 
     of the plan; and
       ``(B) establishes and maintains aggregate and specific 
     excess/stop loss insurance and solvency indemnification, with 
     respect to such additional benefit options for which risk of 
     loss has not yet been transferred, as follows:
       ``(i) The plan shall secure aggregate excess/stop loss 
     insurance for the plan with an attachment point which is not 
     greater than 125 percent of expected gross annual claims. The 
     applicable authority may by regulation provide for upward 
     adjustments in the amount of such percentage in specified 
     circumstances in which the plan specifically provides for and 
     maintains reserves in excess of the amounts required under 
     subparagraph (A).
       ``(ii) The plan shall secure specific excess/stop loss 
     insurance for the plan with an attachment point which is at 
     least equal to an amount recommended by the plan's qualified 
     actuary. The applicable authority may by regulation provide 
     for adjustments in the amount of such insurance in specified 
     circumstances in which the plan specifically provides for and 
     maintains reserves in excess of the amounts required under 
     subparagraph (A).
       ``(iii) The plan shall secure indemnification insurance for 
     any claims which the plan is unable to satisfy by reason of a 
     plan termination.

     Any person issuing to a plan insurance described in clause 
     (i), (ii), or (iii) of subparagraph (B) shall notify the 
     Secretary of any failure of premium payment meriting 
     cancellation of the policy prior to undertaking such a 
     cancellation. Any regulations prescribed by the applicable 
     authority pursuant to clause (i) or (ii) of subparagraph (B) 
     may allow for such adjustments in the required levels of 
     excess/stop loss insurance as the qualified actuary may 
     recommend, taking into account the specific circumstances of 
     the plan.
       ``(b) Minimum Surplus in Addition to Claims Reserves.--In 
     the case of any association health plan described in 
     subsection (a)(2), the requirements of this subsection are 
     met if the plan establishes and maintains surplus in an 
     amount at least equal to--
       ``(1) $500,000, or
       ``(2) such greater amount (but not greater than $2,000,000) 
     as may be set forth in regulations prescribed by the 
     applicable authority, considering the level of aggregate and 
     specific excess/stop loss insurance provided with

[[Page S928]]

     respect to such plan and other factors related to solvency 
     risk, such as the plan's projected levels of participation or 
     claims, the nature of the plan's liabilities, and the types 
     of assets available to assure that such liabilities are met.
       ``(c) Additional Requirements.--In the case of any 
     association health plan described in subsection (a)(2), the 
     applicable authority may provide such additional requirements 
     relating to reserves, excess/stop loss insurance, and 
     indemnification insurance as the applicable authority 
     considers appropriate. Such requirements may be provided by 
     regulation with respect to any such plan or any class of such 
     plans.
       ``(d) Adjustments for Excess/Stop Loss Insurance.--The 
     applicable authority may provide for adjustments to the 
     levels of reserves otherwise required under subsections (a) 
     and (b) with respect to any plan or class of plans to take 
     into account excess/stop loss insurance provided with respect 
     to such plan or plans.
       ``(e) Alternative Means of Compliance.--The applicable 
     authority may permit an association health plan described in 
     subsection (a)(2) to substitute, for all or part of the 
     requirements of this section (except subsection 
     (a)(2)(B)(iii)), such security, guarantee, hold-harmless 
     arrangement, or other financial arrangement as the applicable 
     authority determines to be adequate to enable the plan to 
     fully meet all its financial obligations on a timely basis 
     and is otherwise no less protective of the interests of 
     participants and beneficiaries than the requirements for 
     which it is substituted. The applicable authority may take 
     into account, for purposes of this subsection, evidence 
     provided by the plan or sponsor which demonstrates an 
     assumption of liability with respect to the plan. Such 
     evidence may be in the form of a contract of indemnification, 
     lien, bonding, insurance, letter of credit, recourse under 
     applicable terms of the plan in the form of assessments of 
     participating employers, security, or other financial 
     arrangement.
       ``(f) Measures to Ensure Continued Payment of Benefits by 
     Certain Plans in Distress.--
       ``(1) Payments by certain plans to association health plan 
     fund.--
       ``(A) In general.--In the case of an association health 
     plan described in subsection (a)(2), the requirements of this 
     subsection are met if the plan makes payments into the 
     Association Health Plan Fund under this subparagraph when 
     they are due. Such payments shall consist of annual payments 
     in the amount of $5,000, and, in addition to such annual 
     payments, such supplemental payments as the Secretary may 
     determine to be necessary under paragraph (2). Payments under 
     this paragraph are payable to the Fund at the time determined 
     by the Secretary. Initial payments are due in advance of 
     certification under this part. Payments shall continue to 
     accrue until a plan's assets are distributed pursuant to a 
     termination procedure.
       ``(B) Penalties for failure to make payments.--If any 
     payment is not made by a plan when it is due, a late payment 
     charge of not more than 100 percent of the payment which was 
     not timely paid shall be payable by the plan to the Fund.
       ``(C) Continued duty of the secretary.--The Secretary shall 
     not cease to carry out the provisions of paragraph (2) on 
     account of the failure of a plan to pay any payment when due.
       ``(2) Payments by secretary to continue excess/stop loss 
     insurance coverage and indemnification insurance coverage for 
     certain plans.--In any case in which the applicable authority 
     determines that there is, or that there is reason to believe 
     that there will be: (A) a failure to take necessary 
     corrective actions under section 809(a) with respect to an 
     association health plan described in subsection (a)(2); or 
     (B) a termination of such a plan under section 809(b) or 
     810(b)(8) (and, if the applicable authority is not the 
     Secretary, certifies such determination to the Secretary), 
     the Secretary shall determine the amounts necessary to make 
     payments to an insurer (designated by the Secretary) to 
     maintain in force excess/stop loss insurance coverage or 
     indemnification insurance coverage for such plan, if the 
     Secretary determines that there is a reasonable expectation 
     that, without such payments, claims would not be satisfied by 
     reason of termination of such coverage. The Secretary shall, 
     to the extent provided in advance in appropriation Acts, pay 
     such amounts so determined to the insurer designated by the 
     Secretary.
       ``(3) Association health plan fund.--
       ``(A) In general.--There is established on the books of the 
     Treasury a fund to be known as the `Association Health Plan 
     Fund'. The Fund shall be available for making payments 
     pursuant to paragraph (2). The Fund shall be credited with 
     payments received pursuant to paragraph (1)(A), penalties 
     received pursuant to paragraph (1)(B); and earnings on 
     investments of amounts of the Fund under subparagraph (B).
       ``(B) Investment.--Whenever the Secretary determines that 
     the moneys of the fund are in excess of current needs, the 
     Secretary may request the investment of such amounts as the 
     Secretary determines advisable by the Secretary of the 
     Treasury in obligations issued or guaranteed by the United 
     States.
       ``(g) Excess/Stop Loss Insurance.--For purposes of this 
     section--
       ``(1) Aggregate excess/stop loss insurance.--The term 
     `aggregate excess/stop loss insurance' means, in connection 
     with an association health plan, a contract--
       ``(A) under which an insurer (meeting such minimum 
     standards as the applicable authority may prescribe by 
     regulation) provides for payment to the plan with respect to 
     aggregate claims under the plan in excess of an amount or 
     amounts specified in such contract;
       ``(B) which is guaranteed renewable; and
       ``(C) which allows for payment of premiums by any third 
     party on behalf of the insured plan.
       ``(2) Specific excess/stop loss insurance.--The term 
     `specific excess/stop loss insurance' means, in connection 
     with an association health plan, a contract--
       ``(A) under which an insurer (meeting such minimum 
     standards as the applicable authority may prescribe by 
     regulation) provides for payment to the plan with respect to 
     claims under the plan in connection with a covered individual 
     in excess of an amount or amounts specified in such contract 
     in connection with such covered individual;
       ``(B) which is guaranteed renewable; and
       ``(C) which allows for payment of premiums by any third 
     party on behalf of the insured plan.
       ``(h) Indemnification Insurance.--For purposes of this 
     section, the term `indemnification insurance' means, in 
     connection with an association health plan, a contract--
       ``(1) under which an insurer (meeting such minimum 
     standards as the applicable authority may prescribe by 
     regulation) provides for payment to the plan with respect to 
     claims under the plan which the plan is unable to satisfy by 
     reason of a termination pursuant to section 809(b) (relating 
     to mandatory termination);
       ``(2) which is guaranteed renewable and noncancellable for 
     any reason (except as the applicable authority may prescribe 
     by regulation); and
       ``(3) which allows for payment of premiums by any third 
     party on behalf of the insured plan.
       ``(i) Reserves.--For purposes of this section, the term 
     `reserves' means, in connection with an association health 
     plan, plan assets which meet the fiduciary standards under 
     part 4 and such additional requirements regarding liquidity 
     as the applicable authority may prescribe by regulation.
       ``(j) Solvency Standards Working Group.--
       ``(1) In general.--Within 90 days after the date of the 
     enactment of the Small Business Health Improvement Act of 
     2007, the applicable authority shall establish a Solvency 
     Standards Working Group. In prescribing the initial 
     regulations under this section, the applicable authority 
     shall take into account the recommendations of such Working 
     Group.
       ``(2) Membership.--The Working Group shall consist of not 
     more than 15 members appointed by the applicable authority. 
     The applicable authority shall include among persons invited 
     to membership on the Working Group at least one of each of 
     the following:
       ``(A) a representative of the National Association of 
     Insurance Commissioners;
       ``(B) a representative of the American Academy of 
     Actuaries;
       ``(C) a representative of the State governments, or their 
     interests;
       ``(D) a representative of existing self-insured 
     arrangements, or their interests;
       ``(E) a representative of associations of the type referred 
     to in section 801(b)(1), or their interests; and
       ``(F) a representative of multiemployer plans that are 
     group health plans, or their interests.

     ``SEC. 807. REQUIREMENTS FOR APPLICATION AND RELATED 
                   REQUIREMENTS.

       ``(a) Filing Fee.--Under the procedure prescribed pursuant 
     to section 802(a), an association health plan shall pay to 
     the applicable authority at the time of filing an application 
     for certification under this part a filing fee in the amount 
     of $5,000, which shall be available in the case of the 
     Secretary, to the extent provided in appropriation Acts, for 
     the sole purpose of administering the certification 
     procedures applicable with respect to association health 
     plans.
       ``(b) Information to Be Included in Application for 
     Certification.--An application for certification under this 
     part meets the requirements of this section only if it 
     includes, in a manner and form which shall be prescribed by 
     the applicable authority by regulation, at least the 
     following information:
       ``(1) Identifying information.--The names and addresses 
     of--
       ``(A) the sponsor; and
       ``(B) the members of the board of trustees of the plan.
       ``(2) States in which plan intends to do business.--The 
     States in which participants and beneficiaries under the plan 
     are to be located and the number of them expected to be 
     located in each such State.
       ``(3) Bonding requirements.--Evidence provided by the board 
     of trustees that the bonding requirements of section 412 will 
     be met as of the date of the application or (if later) 
     commencement of operations.
       ``(4) Plan documents.--A copy of the documents governing 
     the plan (including any bylaws and trust agreements), the 
     summary plan description, and other material describing the 
     benefits that will be provided to participants and 
     beneficiaries under the plan.
       ``(5) Agreements with service providers.--A copy of any 
     agreements between the plan and contract administrators and 
     other service providers.

[[Page S929]]

       ``(6) Funding report.--In the case of association health 
     plans providing benefits options in addition to health 
     insurance coverage, a report setting forth information with 
     respect to such additional benefit options determined as of a 
     date within the 120-day period ending with the date of the 
     application, including the following:
       ``(A) Reserves.--A statement, certified by the board of 
     trustees of the plan, and a statement of actuarial opinion, 
     signed by a qualified actuary, that all applicable 
     requirements of section 806 are or will be met in accordance 
     with regulations which the applicable authority shall 
     prescribe.
       ``(B) Adequacy of contribution rates.--A statement of 
     actuarial opinion, signed by a qualified actuary, which sets 
     forth a description of the extent to which contribution rates 
     are adequate to provide for the payment of all obligations 
     and the maintenance of required reserves under the plan for 
     the 12-month period beginning with such date within such 120-
     day period, taking into account the expected coverage and 
     experience of the plan. If the contribution rates are not 
     fully adequate, the statement of actuarial opinion shall 
     indicate the extent to which the rates are inadequate and the 
     changes needed to ensure adequacy.
       ``(C) Current and projected value of assets and 
     liabilities.--A statement of actuarial opinion signed by a 
     qualified actuary, which sets forth the current value of the 
     assets and liabilities accumulated under the plan and a 
     projection of the assets, liabilities, income, and expenses 
     of the plan for the 12-month period referred to in 
     subparagraph (B). The income statement shall identify 
     separately the plan's administrative expenses and claims.
       ``(D) Costs of coverage to be charged and other expenses.--
     A statement of the costs of coverage to be charged, including 
     an itemization of amounts for administration, reserves, and 
     other expenses associated with the operation of the plan.
       ``(E) Other information.--Any other information as may be 
     determined by the applicable authority, by regulation, as 
     necessary to carry out the purposes of this part.
       ``(c) Filing Notice of Certification With States.--A 
     certification granted under this part to an association 
     health plan shall not be effective unless written notice of 
     such certification is filed with the applicable State 
     authority of each State in which at least 25 percent of the 
     participants and beneficiaries under the plan are located. 
     For purposes of this subsection, an individual shall be 
     considered to be located in the State in which a known 
     address of such individual is located or in which such 
     individual is employed.
       ``(d) Notice of Material Changes.--In the case of any 
     association health plan certified under this part, 
     descriptions of material changes in any information which was 
     required to be submitted with the application for the 
     certification under this part shall be filed in such form and 
     manner as shall be prescribed by the applicable authority by 
     regulation. The applicable authority may require by 
     regulation prior notice of material changes with respect to 
     specified matters which might serve as the basis for 
     suspension or revocation of the certification.
       ``(e) Reporting Requirements for Certain Association Health 
     Plans.--An association health plan certified under this part 
     which provides benefit options in addition to health 
     insurance coverage for such plan year shall meet the 
     requirements of section 103 by filing an annual report under 
     such section which shall include information described in 
     subsection (b)(6) with respect to the plan year and, 
     notwithstanding section 104(a)(1)(A), shall be filed with the 
     applicable authority not later than 90 days after the close 
     of the plan year (or on such later date as may be prescribed 
     by the applicable authority). The applicable authority may 
     require by regulation such interim reports as it considers 
     appropriate.
       ``(f) Engagement of Qualified Actuary.--The board of 
     trustees of each association health plan which provides 
     benefits options in addition to health insurance coverage and 
     which is applying for certification under this part or is 
     certified under this part shall engage, on behalf of all 
     participants and beneficiaries, a qualified actuary who shall 
     be responsible for the preparation of the materials 
     comprising information necessary to be submitted by a 
     qualified actuary under this part. The qualified actuary 
     shall utilize such assumptions and techniques as are 
     necessary to enable such actuary to form an opinion as to 
     whether the contents of the matters reported under this 
     part--
       ``(1) are in the aggregate reasonably related to the 
     experience of the plan and to reasonable expectations; and
       ``(2) represent such actuary's best estimate of anticipated 
     experience under the plan.
     The opinion by the qualified actuary shall be made with 
     respect to, and shall be made a part of, the annual report.

     ``SEC. 808. NOTICE REQUIREMENTS FOR VOLUNTARY TERMINATION.

       ``Except as provided in section 809(b), an association 
     health plan which is or has been certified under this part 
     may terminate (upon or at any time after cessation of 
     accruals in benefit liabilities) only if the board of 
     trustees, not less than 60 days before the proposed 
     termination date--
       ``(1) provides to the participants and beneficiaries a 
     written notice of intent to terminate stating that such 
     termination is intended and the proposed termination date;
       ``(2) develops a plan for winding up the affairs of the 
     plan in connection with such termination in a manner which 
     will result in timely payment of all benefits for which the 
     plan is obligated; and
       ``(3) submits such plan in writing to the applicable 
     authority.

     Actions required under this section shall be taken in such 
     form and manner as may be prescribed by the applicable 
     authority by regulation.

     ``SEC. 809. CORRECTIVE ACTIONS AND MANDATORY TERMINATION.

       ``(a) Actions to Avoid Depletion of Reserves.--An 
     association health plan which is certified under this part 
     and which provides benefits other than health insurance 
     coverage shall continue to meet the requirements of section 
     806, irrespective of whether such certification continues in 
     effect. The board of trustees of such plan shall determine 
     quarterly whether the requirements of section 806 are met. In 
     any case in which the board determines that there is reason 
     to believe that there is or will be a failure to meet such 
     requirements, or the applicable authority makes such a 
     determination and so notifies the board, the board shall 
     immediately notify the qualified actuary engaged by the plan, 
     and such actuary shall, not later than the end of the next 
     following month, make such recommendations to the board for 
     corrective action as the actuary determines necessary to 
     ensure compliance with section 806. Not later than 30 days 
     after receiving from the actuary recommendations for 
     corrective actions, the board shall notify the applicable 
     authority (in such form and manner as the applicable 
     authority may prescribe by regulation) of such 
     recommendations of the actuary for corrective action, 
     together with a description of the actions (if any) that the 
     board has taken or plans to take in response to such 
     recommendations. The board shall thereafter report to the 
     applicable authority, in such form and frequency as the 
     applicable authority may specify to the board, regarding 
     corrective action taken by the board until the requirements 
     of section 806 are met.
       ``(b) Mandatory Termination.--In any case in which--
       ``(1) the applicable authority has been notified under 
     subsection (a) (or by an issuer of excess/stop loss insurance 
     or indemnity insurance pursuant to section 806(a)) of a 
     failure of an association health plan which is or has been 
     certified under this part and is described in section 
     806(a)(2) to meet the requirements of section 806 and has not 
     been notified by the board of trustees of the plan that 
     corrective action has restored compliance with such 
     requirements; and
       ``(2) the applicable authority determines that there is a 
     reasonable expectation that the plan will continue to fail to 
     meet the requirements of section 806,

     the board of trustees of the plan shall, at the direction of 
     the applicable authority, terminate the plan and, in the 
     course of the termination, take such actions as the 
     applicable authority may require, including satisfying any 
     claims referred to in section 806(a)(2)(B)(iii) and 
     recovering for the plan any liability under subsection 
     (a)(2)(B)(iii) or (e) of section 806, as necessary to ensure 
     that the affairs of the plan will be, to the maximum extent 
     possible, wound up in a manner which will result in timely 
     provision of all benefits for which the plan is obligated.

     ``SEC. 810. TRUSTEESHIP BY THE SECRETARY OF INSOLVENT 
                   ASSOCIATION HEALTH PLANS PROVIDING HEALTH 
                   BENEFITS IN ADDITION TO HEALTH INSURANCE 
                   COVERAGE.

       ``(a) Appointment of Secretary as Trustee for Insolvent 
     Plans.--Whenever the Secretary determines that an association 
     health plan which is or has been certified under this part 
     and which is described in section 806(a)(2) will be unable to 
     provide benefits when due or is otherwise in a financially 
     hazardous condition, as shall be defined by the Secretary by 
     regulation, the Secretary shall, upon notice to the plan, 
     apply to the appropriate United States district court for 
     appointment of the Secretary as trustee to administer the 
     plan for the duration of the insolvency. The plan may appear 
     as a party and other interested persons may intervene in the 
     proceedings at the discretion of the court. The court shall 
     appoint such Secretary trustee if the court determines that 
     the trusteeship is necessary to protect the interests of the 
     participants and beneficiaries or providers of medical care 
     or to avoid any unreasonable deterioration of the financial 
     condition of the plan. The trusteeship of such Secretary 
     shall continue until the conditions described in the first 
     sentence of this subsection are remedied or the plan is 
     terminated.
       ``(b) Powers as Trustee.--The Secretary, upon appointment 
     as trustee under subsection (a), shall have the power--
       ``(1) to do any act authorized by the plan, this title, or 
     other applicable provisions of law to be done by the plan 
     administrator or any trustee of the plan;
       ``(2) to require the transfer of all (or any part) of the 
     assets and records of the plan to the Secretary as trustee;
       ``(3) to invest any assets of the plan which the Secretary 
     holds in accordance with the provisions of the plan, 
     regulations prescribed by the Secretary, and applicable 
     provisions of law;
       ``(4) to require the sponsor, the plan administrator, any 
     participating employer, and any employee organization 
     representing plan participants to furnish any information 
     with respect to the plan which the Secretary as

[[Page S930]]

     trustee may reasonably need in order to administer the plan;
       ``(5) to collect for the plan any amounts due the plan and 
     to recover reasonable expenses of the trusteeship;
       ``(6) to commence, prosecute, or defend on behalf of the 
     plan any suit or proceeding involving the plan;
       ``(7) to issue, publish, or file such notices, statements, 
     and reports as may be required by the Secretary by regulation 
     or required by any order of the court;
       ``(8) to terminate the plan (or provide for its termination 
     in accordance with section 809(b)) and liquidate the plan 
     assets, to restore the plan to the responsibility of the 
     sponsor, or to continue the trusteeship;
       ``(9) to provide for the enrollment of plan participants 
     and beneficiaries under appropriate coverage options; and
       ``(10) to do such other acts as may be necessary to comply 
     with this title or any order of the court and to protect the 
     interests of plan participants and beneficiaries and 
     providers of medical care.
       ``(c) Notice of Appointment.--As soon as practicable after 
     the Secretary's appointment as trustee, the Secretary shall 
     give notice of such appointment to--
       ``(1) the sponsor and plan administrator;
       ``(2) each participant;
       ``(3) each participating employer; and
       ``(4) if applicable, each employee organization which, for 
     purposes of collective bargaining, represents plan 
     participants.
       ``(d) Additional Duties.--Except to the extent inconsistent 
     with the provisions of this title, or as may be otherwise 
     ordered by the court, the Secretary, upon appointment as 
     trustee under this section, shall be subject to the same 
     duties as those of a trustee under section 704 of title 11, 
     United States Code, and shall have the duties of a fiduciary 
     for purposes of this title.
       ``(e) Other Proceedings.--An application by the Secretary 
     under this subsection may be filed notwithstanding the 
     pendency in the same or any other court of any bankruptcy, 
     mortgage foreclosure, or equity receivership proceeding, or 
     any proceeding to reorganize, conserve, or liquidate such 
     plan or its property, or any proceeding to enforce a lien 
     against property of the plan.
       ``(f) Jurisdiction of Court.--
       ``(1) In general.--Upon the filing of an application for 
     the appointment as trustee or the issuance of a decree under 
     this section, the court to which the application is made 
     shall have exclusive jurisdiction of the plan involved and 
     its property wherever located with the powers, to the extent 
     consistent with the purposes of this section, of a court of 
     the United States having jurisdiction over cases under 
     chapter 11 of title 11, United States Code. Pending an 
     adjudication under this section such court shall stay, and 
     upon appointment by it of the Secretary as trustee, such 
     court shall continue the stay of, any pending mortgage 
     foreclosure, equity receivership, or other proceeding to 
     reorganize, conserve, or liquidate the plan, the sponsor, or 
     property of such plan or sponsor, and any other suit against 
     any receiver, conservator, or trustee of the plan, the 
     sponsor, or property of the plan or sponsor. Pending such 
     adjudication and upon the appointment by it of the Secretary 
     as trustee, the court may stay any proceeding to enforce a 
     lien against property of the plan or the sponsor or any other 
     suit against the plan or the sponsor.
       ``(2) Venue.--An action under this section may be brought 
     in the judicial district where the sponsor or the plan 
     administrator resides or does business or where any asset of 
     the plan is situated. A district court in which such action 
     is brought may issue process with respect to such action in 
     any other judicial district.
       ``(g) Personnel.--In accordance with regulations which 
     shall be prescribed by the Secretary, the Secretary shall 
     appoint, retain, and compensate accountants, actuaries, and 
     other professional service personnel as may be necessary in 
     connection with the Secretary's service as trustee under this 
     section.

     ``SEC. 811. STATE ASSESSMENT AUTHORITY.

       ``(a) In General.--Notwithstanding section 514, a State may 
     impose by law a contribution tax on an association health 
     plan described in section 806(a)(2), if the plan commenced 
     operations in such State after the date of the enactment of 
     the Small Business Health Improvement Act of 2007.
       ``(b) Contribution Tax.--For purposes of this section, the 
     term `contribution tax' imposed by a State on an association 
     health plan means any tax imposed by such State if--
       ``(1) such tax is computed by applying a rate to the amount 
     of premiums or contributions, with respect to individuals 
     covered under the plan who are residents of such State, which 
     are received by the plan from participating employers located 
     in such State or from such individuals;
       ``(2) the rate of such tax does not exceed the rate of any 
     tax imposed by such State on premiums or contributions 
     received by insurers or health maintenance organizations for 
     health insurance coverage offered in such State in connection 
     with a group health plan;
       ``(3) such tax is otherwise nondiscriminatory; and
       ``(4) the amount of any such tax assessed on the plan is 
     reduced by the amount of any tax or assessment otherwise 
     imposed by the State on premiums, contributions, or both 
     received by insurers or health maintenance organizations for 
     health insurance coverage, aggregate excess/stop loss 
     insurance (as defined in section 806(g)(1)), specific excess/
     stop loss insurance (as defined in section 806(g)(2)), other 
     insurance related to the provision of medical care under the 
     plan, or any combination thereof provided by such insurers or 
     health maintenance organizations in such State in connection 
     with such plan.

     ``SEC. 812. DEFINITIONS AND RULES OF CONSTRUCTION.

       ``(a) Definitions.--For purposes of this part--
       ``(1) Group health plan.--The term `group health plan' has 
     the meaning provided in section 733(a)(1) (after applying 
     subsection (b) of this section).
       ``(2) Medical care.--The term `medical care' has the 
     meaning provided in section 733(a)(2).
       ``(3) Health insurance coverage.--The term `health 
     insurance coverage' has the meaning provided in section 
     733(b)(1).
       ``(4) Health insurance issuer.--The term `health insurance 
     issuer' has the meaning provided in section 733(b)(2).
       ``(5) Applicable authority.--The term `applicable 
     authority' means the Secretary, except that, in connection 
     with any exercise of the Secretary's authority regarding 
     which the Secretary is required under section 506(d) to 
     consult with a State, such term means the Secretary, in 
     consultation with such State.
       ``(6) Health status-related factor.--The term `health 
     status-related factor' has the meaning provided in section 
     733(d)(2).
       ``(7) Individual market.--
       ``(A) In general.--The term `individual market' means the 
     market for health insurance coverage offered to individuals 
     other than in connection with a group health plan.
       ``(B) Treatment of very small groups.--
       ``(i) In general.--Subject to clause (ii), such term 
     includes coverage offered in connection with a group health 
     plan that has fewer than 2 participants as current employees 
     or participants described in section 732(d)(3) on the first 
     day of the plan year.
       ``(ii) State exception.--Clause (i) shall not apply in the 
     case of health insurance coverage offered in a State if such 
     State regulates the coverage described in such clause in the 
     same manner and to the same extent as coverage in the small 
     group market (as defined in section 2791(e)(5) of the Public 
     Health Service Act) is regulated by such State.
       ``(8) Participating employer.--The term `participating 
     employer' means, in connection with an association health 
     plan, any employer, if any individual who is an employee of 
     such employer, a partner in such employer, or a self-employed 
     individual who is such employer (or any dependent, as defined 
     under the terms of the plan, of such individual) is or was 
     covered under such plan in connection with the status of such 
     individual as such an employee, partner, or self-employed 
     individual in relation to the plan.
       ``(9) Applicable state authority.--The term `applicable 
     State authority' means, with respect to a health insurance 
     issuer in a State, the State insurance commissioner or 
     official or officials designated by the State to enforce the 
     requirements of title XXVII of the Public Health Service Act 
     for the State involved with respect to such issuer.
       ``(10) Qualified actuary.--The term `qualified actuary' 
     means an individual who is a member of the American Academy 
     of Actuaries.
       ``(11) Affiliated member.--The term `affiliated member' 
     means, in connection with a sponsor--
       ``(A) a person who is otherwise eligible to be a member of 
     the sponsor but who elects an affiliated status with the 
     sponsor,
       ``(B) in the case of a sponsor with members which consist 
     of associations, a person who is a member of any such 
     association and elects an affiliated status with the sponsor, 
     or
       ``(C) in the case of an association health plan in 
     existence on the date of the enactment of the Small Business 
     Health Improvement Act of 2007, a person eligible to be a 
     member of the sponsor or one of its member associations.
       ``(12) Large employer.--The term `large employer' means, in 
     connection with a group health plan with respect to a plan 
     year, an employer who employed an average of at least 51 
     employees on business days during the preceding calendar year 
     and who employs at least 2 employees on the first day of the 
     plan year.
       ``(13) Small employer.--The term `small employer' means, in 
     connection with a group health plan with respect to a plan 
     year, an employer who is not a large employer.
       ``(b) Rules of Construction.--
       ``(1) Employers and employees.--For purposes of determining 
     whether a plan, fund, or program is an employee welfare 
     benefit plan which is an association health plan, and for 
     purposes of applying this title in connection with such plan, 
     fund, or program so determined to be such an employee welfare 
     benefit plan--
       ``(A) in the case of a partnership, the term `employer' (as 
     defined in section 3(5)) includes the partnership in relation 
     to the partners, and the term `employee' (as defined in 
     section 3(6)) includes any partner in relation to the 
     partnership; and
       ``(B) in the case of a self-employed individual, the term 
     `employer' (as defined in section 3(5)) and the term 
     `employee' (as defined in section 3(6)) shall include such 
     individual.
       ``(2) Plans, funds, and programs treated as employee 
     welfare benefit plans.--In the case of any plan, fund, or 
     program which

[[Page S931]]

     was established or is maintained for the purpose of providing 
     medical care (through the purchase of insurance or otherwise) 
     for employees (or their dependents) covered thereunder and 
     which demonstrates to the Secretary that all requirements for 
     certification under this part would be met with respect to 
     such plan, fund, or program if such plan, fund, or program 
     were a group health plan, such plan, fund, or program shall 
     be treated for purposes of this title as an employee welfare 
     benefit plan on and after the date of such demonstration.''.
       (b) Conforming Amendments to Preemption Rules.--
       (1) Section 514(b)(6) of such Act (29 U.S.C. 1144(b)(6)) is 
     amended by adding at the end the following new subparagraph:
       ``(E) The preceding subparagraphs of this paragraph do not 
     apply with respect to any State law in the case of an 
     association health plan which is certified under part 8.''.
       (2) Section 514 of such Act (29 U.S.C. 1144) is amended--
       (A) in subsection (b)(4), by striking ``Subsection (a)'' 
     and inserting ``Subsections (a) and (d)'';
       (B) in subsection (b)(5), by striking ``subsection (a)'' in 
     subparagraph (A) and inserting ``subsection (a) of this 
     section and subsections (a)(2)(B) and (b) of section 805'', 
     and by striking ``subsection (a)'' in subparagraph (B) and 
     inserting ``subsection (a) of this section or subsection 
     (a)(2)(B) or (b) of section 805'';
       (C) by redesignating subsection (d) as subsection (e); and
       (D) by inserting after subsection (c) the following new 
     subsection:
       ``(d)(1) Except as provided in subsection (b)(4), the 
     provisions of this title shall supersede any and all State 
     laws insofar as they may now or hereafter preclude, or have 
     the effect of precluding, a health insurance issuer from 
     offering health insurance coverage in connection with an 
     association health plan which is certified under part 8.
       ``(2) Except as provided in paragraphs (4) and (5) of 
     subsection (b) of this section--
       ``(A) In any case in which health insurance coverage of any 
     policy type is offered under an association health plan 
     certified under part 8 to a participating employer operating 
     in such State, the provisions of this title shall supersede 
     any and all laws of such State insofar as they may preclude a 
     health insurance issuer from offering health insurance 
     coverage of the same policy type to other employers operating 
     in the State which are eligible for coverage under such 
     association health plan, whether or not such other employers 
     are participating employers in such plan.
       ``(B) In any case in which health insurance coverage of any 
     policy type is offered in a State under an association health 
     plan certified under part 8 and the filing, with the 
     applicable State authority (as defined in section 812(a)(9)), 
     of the policy form in connection with such policy type is 
     approved by such State authority, the provisions of this 
     title shall supersede any and all laws of any other State in 
     which health insurance coverage of such type is offered, 
     insofar as they may preclude, upon the filing in the same 
     form and manner of such policy form with the applicable State 
     authority in such other State, the approval of the filing in 
     such other State.
       ``(3) Nothing in subsection (b)(6)(E) or the preceding 
     provisions of this subsection shall be construed, with 
     respect to health insurance issuers or health insurance 
     coverage, to supersede or impair the law of any State--
       ``(A) providing solvency standards or similar standards 
     regarding the adequacy of insurer capital, surplus, reserves, 
     or contributions, or
       ``(B) relating to prompt payment of claims.
       ``(4) For additional provisions relating to association 
     health plans, see subsections (a)(2)(B) and (b) of section 
     805.
       ``(5) For purposes of this subsection, the term 
     `association health plan' has the meaning provided in section 
     801(a), and the terms `health insurance coverage', 
     `participating employer', and `health insurance issuer' have 
     the meanings provided such terms in section 812, 
     respectively.''.
       (3) Section 514(b)(6)(A) of such Act (29 U.S.C. 
     1144(b)(6)(A)) is amended--
       (A) in clause (i)(II), by striking ``and'' at the end;
       (B) in clause (ii), by inserting ``and which does not 
     provide medical care (within the meaning of section 
     733(a)(2)),'' after ``arrangement,'', and by striking 
     ``title.'' and inserting ``title, and''; and
       (C) by adding at the end the following new clause:
       ``(iii) subject to subparagraph (E), in the case of any 
     other employee welfare benefit plan which is a multiple 
     employer welfare arrangement and which provides medical care 
     (within the meaning of section 733(a)(2)), any law of any 
     State which regulates insurance may apply.''.
       (4) Section 514(e) of such Act (as redesignated by 
     paragraph (2)(C)) is amended--
       (A) by striking ``Nothing'' and inserting ``(1) Except as 
     provided in paragraph (2), nothing''; and
       (B) by adding at the end the following new paragraph:
       ``(2) Nothing in any other provision of law enacted on or 
     after the date of the enactment of the Small Business Health 
     Improvement Act of 2007 shall be construed to alter, amend, 
     modify, invalidate, impair, or supersede any provision of 
     this title, except by specific cross-reference to the 
     affected section.''.
       (c) Plan Sponsor.--Section 3(16)(B) of such Act (29 U.S.C. 
     102(16)(B)) is amended by adding at the end the following new 
     sentence: ``Such term also includes a person serving as the 
     sponsor of an association health plan under part 8.''.
       (d) Disclosure of Solvency Protections Related to Self-
     Insured and Fully Insured Options Under Association Health 
     Plans.--Section 102(b) of such Act (29 U.S.C. 102(b)) is 
     amended by adding at the end the following: ``An association 
     health plan shall include in its summary plan description, in 
     connection with each benefit option, a description of the 
     form of solvency or guarantee fund protection secured 
     pursuant to this Act or applicable State law, if any.''.
       (e) Savings Clause.--Section 731(c) of such Act is amended 
     by inserting ``or part 8'' after ``this part''.
       (f) Report to the Congress Regarding Certification of Self-
     Insured Association Health Plans.--Not later than January 1, 
     2010, the Secretary of Labor shall report to the Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Health, Education, Labor, and Pensions 
     of the Senate the effect association health plans have had, 
     if any, on reducing the number of uninsured individuals.
       (g) Clerical Amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 is 
     amended by inserting after the item relating to section 734 
     the following new items:

           ``Part 8--Rules Governing Association Health Plans

``Sec. 801. Association health plans
``Sec. 802. Certification of association health plans
``Sec. 803. Requirements relating to sponsors and boards of trustees
``Sec. 804. Participation and coverage requirements
``Sec. 805. Other requirements relating to plan documents, contribution 
              rates, and benefit options
``Sec. 806. Maintenance of reserves and provisions for solvency for 
              plans providing health benefits in addition to health 
              insurance coverage
``Sec. 807. Requirements for application and related requirements
``Sec. 808. Notice requirements for voluntary termination
``Sec. 809. Corrective actions and mandatory termination
``Sec. 810. Trusteeship by the Secretary of insolvent association 
              health plans providing health benefits in addition to 
              health insurance coverage
``Sec. 811. State assessment authority
``Sec. 812. Definitions and rules of construction''.

     SEC. _03. CLARIFICATION OF TREATMENT OF SINGLE EMPLOYER 
                   ARRANGEMENTS.

       Section 3(40)(B) of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1002(40)(B)) is amended--
       (1) in clause (i), by inserting after ``control group,'' 
     the following: ``except that, in any case in which the 
     benefit referred to in subparagraph (A) consists of medical 
     care (as defined in section 812(a)(2)), two or more trades or 
     businesses, whether or not incorporated, shall be deemed a 
     single employer for any plan year of such plan, or any fiscal 
     year of such other arrangement, if such trades or businesses 
     are within the same control group during such year or at any 
     time during the preceding 1-year period,'';
       (2) in clause (iii), by striking ``(iii) the 
     determination'' and inserting the following:
       ``(iii)(I) in any case in which the benefit referred to in 
     subparagraph (A) consists of medical care (as defined in 
     section 812(a)(2)), the determination of whether a trade or 
     business is under `common control' with another trade or 
     business shall be determined under regulations of the 
     Secretary applying principles consistent and coextensive with 
     the principles applied in determining whether employees of 
     two or more trades or businesses are treated as employed by a 
     single employer under section 4001(b), except that, for 
     purposes of this paragraph, an interest of greater than 25 
     percent may not be required as the minimum interest necessary 
     for common control, or
       ``(II) in any other case, the determination'';
       (3) by redesignating clauses (iv) and (v) as clauses (v) 
     and (vi), respectively; and
       (4) by inserting after clause (iii) the following new 
     clause:
       ``(iv) in any case in which the benefit referred to in 
     subparagraph (A) consists of medical care (as defined in 
     section 812(a)(2)), in determining, after the application of 
     clause (i), whether benefits are provided to employees of two 
     or more employers, the arrangement shall be treated as having 
     only one participating employer if, after the application of 
     clause (i), the number of individuals who are employees and 
     former employees of any one participating employer and who 
     are covered under the arrangement is greater than 75 percent 
     of the aggregate number of all individuals who are employees 
     or former employees of participating employers and who are 
     covered under the arrangement,''.

     SEC. _04. ENFORCEMENT PROVISIONS RELATING TO ASSOCIATION 
                   HEALTH PLANS.

       (a) Criminal Penalties for Certain Willful 
     Misrepresentations.--Section 501 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1131) is amended--
       (1) by inserting ``(a)'' after ``Sec. 501.''; and

[[Page S932]]

       (2) by adding at the end the following new subsection:
       ``(b) Any person who willfully falsely represents, to any 
     employee, any employee's beneficiary, any employer, the 
     Secretary, or any State, a plan or other arrangement 
     established or maintained for the purpose of offering or 
     providing any benefit described in section 3(1) to employees 
     or their beneficiaries as--
       ``(1) being an association health plan which has been 
     certified under part 8;
       ``(2) having been established or maintained under or 
     pursuant to one or more collective bargaining agreements 
     which are reached pursuant to collective bargaining described 
     in section 8(d) of the National Labor Relations Act (29 
     U.S.C. 158(d)) or paragraph Fourth of section 2 of the 
     Railway Labor Act (45 U.S.C. 152, paragraph Fourth) or which 
     are reached pursuant to labor-management negotiations under 
     similar provisions of State public employee relations laws; 
     or
       ``(3) being a plan or arrangement described in section 
     3(40)(A)(i),

     shall, upon conviction, be imprisoned not more than 5 years, 
     be fined under title 18, United States Code, or both.''.
       (b) Cease Activities Orders.--Section 502 of such Act (29 
     U.S.C. 1132) is amended by adding at the end the following 
     new subsection:
       ``(n) Association Health Plan Cease and Desist Orders.--
       ``(1) In general.--Subject to paragraph (2), upon 
     application by the Secretary showing the operation, 
     promotion, or marketing of an association health plan (or 
     similar arrangement providing benefits consisting of medical 
     care (as defined in section 733(a)(2))) that--
       ``(A) is not certified under part 8, is subject under 
     section 514(b)(6) to the insurance laws of any State in which 
     the plan or arrangement offers or provides benefits, and is 
     not licensed, registered, or otherwise approved under the 
     insurance laws of such State; or
       ``(B) is an association health plan certified under part 8 
     and is not operating in accordance with the requirements 
     under part 8 for such certification,

     a district court of the United States shall enter an order 
     requiring that the plan or arrangement cease activities.
       ``(2) Exception.--Paragraph (1) shall not apply in the case 
     of an association health plan or other arrangement if the 
     plan or arrangement shows that--
       ``(A) all benefits under it referred to in paragraph (1) 
     consist of health insurance coverage; and
       ``(B) with respect to each State in which the plan or 
     arrangement offers or provides benefits, the plan or 
     arrangement is operating in accordance with applicable State 
     laws that are not superseded under section 514.
       ``(3) Additional equitable relief.--The court may grant 
     such additional equitable relief, including any relief 
     available under this title, as it deems necessary to protect 
     the interests of the public and of persons having claims for 
     benefits against the plan.''.
       (c) Responsibility for Claims Procedure.--Section 503 of 
     such Act (29 U.S.C. 1133) is amended by inserting ``(a) In 
     general.--'' before ``In accordance'', and by adding at the 
     end the following new subsection:
       ``(b) Association Health Plans.--The terms of each 
     association health plan which is or has been certified under 
     part 8 shall require the board of trustees or the named 
     fiduciary (as applicable) to ensure that the requirements of 
     this section are met in connection with claims filed under 
     the plan.''.

     SEC. __05. COOPERATION BETWEEN FEDERAL AND STATE AUTHORITIES.

       Section 506 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1136) is amended by adding at the end the 
     following new subsection:
       ``(d) Consultation With States With Respect to Association 
     Health Plans.--
       ``(1) Agreements with states.--The Secretary shall consult 
     with the State recognized under paragraph (2) with respect to 
     an association health plan regarding the exercise of--
       ``(A) the Secretary's authority under sections 502 and 504 
     to enforce the requirements for certification under part 8; 
     and
       ``(B) the Secretary's authority to certify association 
     health plans under part 8 in accordance with regulations of 
     the Secretary applicable to certification under part 8.
       ``(2) Recognition of primary domicile state.--In carrying 
     out paragraph (1), the Secretary shall ensure that only one 
     State will be recognized, with respect to any particular 
     association health plan, as the State with which consultation 
     is required. In carrying out this paragraph--
       ``(A) in the case of a plan which provides health insurance 
     coverage (as defined in section 812(a)(3)), such State shall 
     be the State with which filing and approval of a policy type 
     offered by the plan was initially obtained, and
       ``(B) in any other case, the Secretary shall take into 
     account the places of residence of the participants and 
     beneficiaries under the plan and the State in which the trust 
     is maintained.''.

     SEC. __06. EFFECTIVE DATE AND TRANSITIONAL AND OTHER RULES.

       (a) Effective Date.--The amendments made by this title 
     shall take effect one year after the date of the enactment of 
     this Act. The Secretary of Labor shall first issue all 
     regulations necessary to carry out the amendments made by 
     this title within one year after the date of the enactment of 
     this Act.
       (b) Treatment of Certain Existing Health Benefits 
     Programs.--
       (1) In general.--In any case in which, as of the date of 
     the enactment of this Act, an arrangement is maintained in a 
     State for the purpose of providing benefits consisting of 
     medical care for the employees and beneficiaries of its 
     participating employers, at least 200 participating employers 
     make contributions to such arrangement, such arrangement has 
     been in existence for at least 10 years, and such arrangement 
     is licensed under the laws of one or more States to provide 
     such benefits to its participating employers, upon the filing 
     with the applicable authority (as defined in section 
     812(a)(5) of the Employee Retirement Income Security Act of 
     1974 (as amended by this subtitle)) by the arrangement of an 
     application for certification of the arrangement under part 8 
     of subtitle B of title I of such Act--
       (A) such arrangement shall be deemed to be a group health 
     plan for purposes of title I of such Act;
       (B) the requirements of sections 801(a) and 803(a) of the 
     Employee Retirement Income Security Act of 1974 shall be 
     deemed met with respect to such arrangement;
       (C) the requirements of section 803(b) of such Act shall be 
     deemed met, if the arrangement is operated by a board of 
     directors which--
       (i) is elected by the participating employers, with each 
     employer having one vote; and
       (ii) has complete fiscal control over the arrangement and 
     which is responsible for all operations of the arrangement;
       (D) the requirements of section 804(a) of such Act shall be 
     deemed met with respect to such arrangement; and
       (E) the arrangement may be certified by any applicable 
     authority with respect to its operations in any State only if 
     it operates in such State on the date of certification.
     The provisions of this subsection shall cease to apply with 
     respect to any such arrangement at such time after the date 
     of the enactment of this Act as the applicable requirements 
     of this subsection are not met with respect to such 
     arrangement.
       (2) Definitions.--For purposes of this subsection, the 
     terms ``group health plan'', ``medical care'', and 
     ``participating employer'' shall have the meanings provided 
     in section 812 of the Employee Retirement Income Security Act 
     of 1974, except that the reference in paragraph (7) of such 
     section to an ``association health plan'' shall be deemed a 
     reference to an arrangement referred to in this subsection.
                                 ______
                                 
  SA 115. Mr. KYL proposed an amendment to amendment SA 100 proposed by 
Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor 
Standards Act of 1938 to provide for an increase in the Federal minimum 
wage; as follows:

       On page 4, line 21, strike ``April 1, 2008'' and insert 
     ``January 1, 2009''.
       On page 6, lines 5 and 6, strike ``April 1, 2008'' and 
     insert ``January 1, 2009''.
                                 ______
                                 
  SA 116. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the end of section 2, add the following:
       (c) State Flexibility.--Section 6 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206) is amended by adding at 
     the end the following:
       ``(h) State Flexibility.--Notwithstanding any other 
     provision of this section, an employer shall not be required 
     to pay an employee a wage that is greater than the minimum 
     wage provided for by the law of the State in which the 
     employee is employed and not less than the minimum wage in 
     effect in that State on January 1, 2007.''.
                                 ______
                                 
  SA 117. Mr. CHAMBLISS (for himself, Mr. Burr, and Mr. Isakson) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; as follows:

       At the appropriate place, add the following new section:

     SEC. __. WAGES FOR AGRICULTURAL WORKERS.

       Section (6)(a)(5) of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 206(a)(5)) is amended to read as follows:
       ``(5) if such employee is employed to provide agriculture 
     labor or services--
       ``(A) not less than the minimum wage rate in effect under 
     paragraph (1) after December 31, 1977; or
       ``(B) pursuant to the provisions of section 218 of the 
     Immigration and Nationality Act (8 U.S.C. 1188), not less 
     than the greater of--
       ``(i) the minimum wage rate in effect under paragraph (1) 
     after December 31, 1977; or
       ``(ii) the prevailing wage established by the Occupational 
     Employment Statistics program, or other wage survey, 
     conducted by the Bureau of Labor Statistics in the county of 
     intended employment, for entry level workers who are employed 
     in agriculture in the area of the work to be performed.''.
                                 ______
                                 
  SA 118. Mr. CHAMBLISS (for himself, Mr. Isakson, and Mr. Burr) 
submitted an amendment intended to be proposed

[[Page S933]]

by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following new section:

     SEC. __. WAGES FOR AGRICULTURAL WORKERS.

       Section (6)(a)(5) of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 206(a)(5)) is amended to read as follows:
       ``(5) if such employee is employed in agriculture, or is 
     employed to provide agriculture labor or services pursuant to 
     section 218 of the Immigration and Nationality Act (8 U.S.C. 
     1188), not less than the greater of--
       ``(A) the minimum wage rate in effect under paragraph (1) 
     after December 31, 1977; or
       ``(B) the prevailing wage established by the Occupational 
     Employment Statistics program, or other wage survey, 
     conducted by the Bureau of Labor Statistics in the county of 
     intended employment, for entry level workers who are employed 
     in agriculture in the area of work to be performed.''.
                                 ______
                                 
  SA 119. Mr. BUNNING submitted an amendment intended to be proposed by 
him to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the 
bill H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide 
for an increase in the Federal minimum wage; as follows:

       At the appropriate place insert the following:

     SEC. __. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL 
                   SECURITY BENEFITS.

       (a) Restoration of Prior Law Formula.--Subsection (a) of 
     section 86 (relating to social security and tier 1 railroad 
     retirement benefits) is amended to read as follows:
       ``(a) In General.--Gross income for the taxable year of any 
     taxpayer described in subsection (b) (notwithstanding section 
     207 of the Social Security Act) includes social security 
     benefits in an amount equal to the lesser of--
       ``(1) one-half of the social security benefits received 
     during the taxable year, or
       ``(2) one-half of the excess described in subsection 
     (b)(1).''.
       (b) Repeal of Adjusted Base Amount.--Subsection (c) of 
     section 86 is amended to read as follows:
       ``(c) Base Amount.--For purposes of this section, the term 
     `base amount' means--
       ``(1) except as otherwise provided in this subsection, 
     $25,000,
       ``(2) $32,000 in the case of a joint return, and
       ``(3) zero in the case of a taxpayer who--
       ``(A) is married as of the close of the taxable year 
     (within the meaning of section 7703) but does not file a 
     joint return for such year, and
       ``(B) does not live apart from his spouse at all times 
     during the taxable year.''.
       (c) Conforming Amendments.--
       (1) Subparagraph (A) of section 871(a)(3) is amended by 
     striking ``85 percent'' and inserting ``50 percent''.
       (2)(A) Subparagraph (A) of section 121(e)(1) of the Social 
     Security Amendments of 1983 (Public Law 98-21) is amended--
       (i) by striking ``(A) There'' and inserting ``There'';
       (ii) by striking ``(i)'' immediately following ``amounts 
     equivalent to''; and
       (iii) by striking ``, less (ii)'' and all that follows and 
     inserting a period.
       (B) Paragraph (1) of section 121(e) of such Act is amended 
     by striking subparagraph (B).
       (C) Paragraph (3) of section 121(e) of such Act is amended 
     by striking subparagraph (B) and by redesignating 
     subparagraph (C) as subparagraph (B).
       (D) Paragraph (2) of section 121(e) of such Act is amended 
     in the first sentence by striking ``paragraph (1)(A)'' and 
     inserting ``paragraph (1)''.
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years beginning after December 31, 2007.
       (2) Subsection (c)(1).--The amendment made by subsection 
     (c)(1) shall apply to benefits paid after December 31, 2007.
       (3) Subsection (c)(2).--The amendments made by subsection 
     (c)(2) shall apply to tax liabilities for taxable years 
     beginning after December 31, 2007.

     SEC. __. MAINTENANCE OF TRANSFERS TO HOSPITAL INSURANCE TRUST 
                   FUND.

       There are hereby appropriated to the Federal Hospital 
     Insurance Trust Fund established under section 1817 of the 
     Social Security Act (42 U.S.C. 1395i) amounts equal to the 
     reduction in revenues to the Treasury by reason of the 
     enactment of this Act. Amounts appropriated by the preceding 
     sentence shall be transferred from the general fund at such 
     times and in such manner as to replicate to the extent 
     possible the transfers which would have occurred to such 
     Trust Fund had this Act not been enacted.
                                 ______
                                 
  SA 120. Ms. SNOWE submitted an amendment intended to be proposed by 
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 201. EXTENSION AND MODIFICATIONS OF INCREASED EXPENSING 
                   FOR SMALL BUSINESSES.

       (a) Extension.--Section 179 (relating to election to 
     expense certain depreciable business assets) is amended by 
     striking ``2010'' each place it appears and inserting 
     ``2011''.
       (b) Increase in Limit and Phaseout Threshold for Expensing 
     for Small Business.--
       (1) In general.--Paragraph (1) of section 179(b) of the 
     Internal Revenue Code of 1986 (relating to dollar 
     limitation), as amended by subsection (a), is amended by 
     striking ``$25,000 ($100,000 in the case of taxable years 
     beginning after 2002 and before 2011)'' and inserting 
     ``$25,000 ($150,000 in the case of taxable years beginning 
     after 2007 and before 2011)''.
       (2) Increase in qualifying investment at which phaseout 
     begins.--Paragraph (2) of section 179(b) of such Code 
     (relating to reduction in limitation), as amended by 
     subsection (a), is amended by striking ``$200,000 ($400,000 
     in the case of taxable years beginning after 2002 and before 
     2011)'' and inserting ``$200,000 ($600,000 in the case of 
     taxable years beginning after 2007 and before 2011)''.
       (3) Inflation adjustments.--Section 179(b)(5)(A) of such 
     Code (relating to inflation adjustments), as amended by 
     subsection (a), is amended--
       (A) in the matter preceding clause (i)--
       (i) by striking ``after 2003 and before 2011'' and 
     inserting ``after 2008 and before 2011'', and
       (ii) by striking ``the $100,000 and $400,000 amounts'' and 
     inserting ``the $150,000 and $600,000 amounts'', and
       (B) in clause (ii), by striking ``calendar year 2002'' and 
     inserting ``calendar year 2007''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2007.

                                 ______
                                 
  SA 121. Ms. SNOWE submitted an amendment intended to be proposed by 
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 201. EXTENSION AND MODIFICATIONS OF INCREASED EXPENSING 
                   FOR SMALL BUSINESSES.

       (a) Extension.--Section 179 (relating to election to 
     expense certain depreciable business assets) is amended by 
     striking ``2010'' each place it appears and inserting 
     ``2011''.
       (b) Increase in Limit and Phaseout Threshold for Expensing 
     for Small Business.--
       (1) In general.--Paragraph (1) of section 179(b) of the 
     Internal Revenue Code of 1986 (relating to dollar 
     limitation), as amended by subsection (a), is amended by 
     striking ``$25,000 ($100,000 in the case of taxable years 
     beginning after 2002 and before 2011)'' and inserting 
     ``$25,000 ($150,000 in the case of taxable years beginning 
     after 2007 and before 2011)''.
       (2) Increase in qualifying investment at which phaseout 
     begins.--Paragraph (2) of section 179(b) of such Code 
     (relating to reduction in limitation), as amended by 
     subsection (a), is amended by striking ``$200,000 ($400,000 
     in the case of taxable years beginning after 2002 and before 
     2011)'' and inserting ``$200,000 ($600,000 in the case of 
     taxable years beginning after 2007 and before 2011)''.
       (3) Inflation adjustments.--Section 179(b)(5)(A) of such 
     Code (relating to inflation adjustments), as amended by 
     subsection (a), is amended--
       (A) in the matter preceding clause (i)--
       (i) by striking ``after 2003 and before 2011'' and 
     inserting ``after 2008 and before 2011'', and
       (ii) by striking ``the $100,000 and $400,000 amounts'' and 
     inserting ``the $150,000 and $600,000 amounts'', and
       (B) in clause (ii), by striking ``calendar year 2002'' and 
     inserting ``calendar year 2007''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2007.

                                 ______
                                 
  SA 122. Ms. SNOWE (for herself and Mrs. Lincoln) submitted an 
amendment intended to be proposed by her to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE YEAR 
                   ENDING IN A MONTH FROM APRIL TO NOVEMBER.

       (a) In General.--Part I of subchapter E of chapter 1 
     (relating to accounting periods) is amended by inserting 
     after section 444 the following new section:

     ``SEC. 444A. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE 
                   YEAR ENDING IN A MONTH FROM APRIL TO NOVEMBER.

       ``(a) General Rule.--A qualified small business may elect 
     to have a taxable year, other than the required taxable year, 
     which ends on the last day of any of the months of

[[Page S934]]

     April through November (or at the end of an equivalent annual 
     period (varying from 52 to 53 weeks)).
       ``(b) Years for Which Election Effective.--An election 
     under subsection (a)--
       ``(1) shall be made not later than the due date (including 
     extensions thereof) for filing the return of tax for the 
     first taxable year of the qualified small business, and
       ``(2) shall be effective for such first taxable year or 
     period and for all succeeding taxable years of such qualified 
     small business until such election is terminated under 
     subsection (c).
       ``(c) Termination.--
       ``(1) In general.--An election under subsection (a) shall 
     be terminated on the earliest of--
       ``(A) the first day of the taxable year following the 
     taxable year for which the entity fails to meet the gross 
     receipts test,
       ``(B) the date on which the entity fails to qualify as an S 
     corporation, or
       ``(C) the date on which the entity terminates.
       ``(2) Gross receipts test.--For purposes of paragraph (1), 
     an entity fails to meet the gross receipts test if the entity 
     fails to meet the gross receipts test of section 448(c).
       ``(3) Effect of termination.--An entity with respect to 
     which an election is terminated under this subsection shall 
     determine its taxable year for subsequent taxable years under 
     any other method that would be permitted under subtitle A.
       ``(4) Income inclusion and deduction rules for period after 
     termination.--If the termination of an election under 
     paragraph (1) results in a short taxable year--
       ``(A) items relating to net profits for the period 
     beginning on the day after its last fiscal year-end and 
     ending on the day before the beginning of the taxable year 
     determined under paragraph (3) shall be includible in income 
     ratably over the 4 taxable years following the year of 
     termination, or (if fewer) the number of taxable years equal 
     to the fiscal years for which the election under this section 
     was in effect, and
       ``(B) items relating to net losses for such period shall be 
     deductible in the first taxable year after the taxable year 
     with respect to which the election terminated.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified small business.--The term `qualified small 
     business' means an entity--
       ``(A)(i) for which an election under section 1362(a) is in 
     effect for the first taxable year or period of such entity 
     and for all subsequent years, or
       ``(ii) which is treated as a partnership for the first 
     taxable year or period of such entity for Federal income tax 
     purposes,
       ``(B) which conducts an active trade or business or which 
     would qualify for an election to amortize start-up 
     expenditures under section 195, and
       ``(C) which is a start-up business.
       ``(2) Start-up business.--For purposes of paragraph (1)(C), 
     an entity shall be treated as a start-up business so long as 
     not more than 75 percent of the entity is owned by any person 
     or persons who previously conducted a similar trade or 
     business at any time within the 1-year period ending on the 
     date on which such entity is formed. For purposes of the 
     preceding sentence, a person and any other person bearing a 
     relationship to such person specified in section 267(b) or 
     707(b)(1) shall be treated as one person, and sections 267(b) 
     and 707(b)(1) shall be applied as if section 267(c)(4) 
     provided that the family of an individual consists of the 
     individual's spouse and the individual's children under the 
     age of 21.
       ``(3) Required taxable year.--The term `required taxable 
     year' has the meaning given to such term by section 444(e).
       ``(e) Tiered Structures.--The Secretary shall prescribe 
     rules similar to the rules of section 444(d)(3) to eliminate 
     abuse of this section through the use of tiered 
     structures.''.
       (b) Conforming Amendment.--Section 444(a)(1) is amended by 
     striking ``section'' and inserting ``section and section 
     444A''.
       (c) Clerical Amendment.--The table of sections for part I 
     of subchapter E of chapter 1 is amended by inserting after 
     the item relating to section 444 the following new item:

``Sec. 444A. Qualified small businesses election of taxable year ending 
              in a month from April to November.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

                                 ______
                                 
  SA 123. Ms. SNOWE (for herself and Mrs. Lincoln) submitted an 
amendment intended to be proposed by her to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE YEAR 
                   ENDING IN A MONTH FROM APRIL TO NOVEMBER.

       (a) In General.--Part I of subchapter E of chapter 1 
     (relating to accounting periods) is amended by inserting 
     after section 444 the following new section:

     ``SEC. 444A. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE 
                   YEAR ENDING IN A MONTH FROM APRIL TO NOVEMBER.

       ``(a) General Rule.--A qualified small business may elect 
     to have a taxable year, other than the required taxable year, 
     which ends on the last day of any of the months of April 
     through November (or at the end of an equivalent annual 
     period (varying from 52 to 53 weeks)).
       ``(b) Years for Which Election Effective.--An election 
     under subsection (a)--
       ``(1) shall be made not later than the due date (including 
     extensions thereof) for filing the return of tax for the 
     first taxable year of the qualified small business, and
       ``(2) shall be effective for such first taxable year or 
     period and for all succeeding taxable years of such qualified 
     small business until such election is terminated under 
     subsection (c).
       ``(c) Termination.--
       ``(1) In general.--An election under subsection (a) shall 
     be terminated on the earliest of--
       ``(A) the first day of the taxable year following the 
     taxable year for which the entity fails to meet the gross 
     receipts test,
       ``(B) the date on which the entity fails to qualify as an S 
     corporation, or
       ``(C) the date on which the entity terminates.
       ``(2) Gross receipts test.--For purposes of paragraph (1), 
     an entity fails to meet the gross receipts test if the entity 
     fails to meet the gross receipts test of section 448(c).
       ``(3) Effect of termination.--An entity with respect to 
     which an election is terminated under this subsection shall 
     determine its taxable year for subsequent taxable years under 
     any other method that would be permitted under subtitle A.
       ``(4) Income inclusion and deduction rules for period after 
     termination.--If the termination of an election under 
     paragraph (1) results in a short taxable year--
       ``(A) items relating to net profits for the period 
     beginning on the day after its last fiscal year-end and 
     ending on the day before the beginning of the taxable year 
     determined under paragraph (3) shall be includible in income 
     ratably over the 4 taxable years following the year of 
     termination, or (if fewer) the number of taxable years equal 
     to the fiscal years for which the election under this section 
     was in effect, and
       ``(B) items relating to net losses for such period shall be 
     deductible in the first taxable year after the taxable year 
     with respect to which the election terminated.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified small business.--The term `qualified small 
     business' means an entity--
       ``(A)(i) for which an election under section 1362(a) is in 
     effect for the first taxable year or period of such entity 
     and for all subsequent years, or
       ``(ii) which is treated as a partnership for the first 
     taxable year or period of such entity for Federal income tax 
     purposes,
       ``(B) which conducts an active trade or business or which 
     would qualify for an election to amortize start-up 
     expenditures under section 195, and
       ``(C) which is a start-up business.
       ``(2) Start-up business.--For purposes of paragraph (1)(C), 
     an entity shall be treated as a start-up business so long as 
     not more than 75 percent of the entity is owned by any person 
     or persons who previously conducted a similar trade or 
     business at any time within the 1-year period ending on the 
     date on which such entity is formed. For purposes of the 
     preceding sentence, a person and any other person bearing a 
     relationship to such person specified in section 267(b) or 
     707(b)(1) shall be treated as one person, and sections 267(b) 
     and 707(b)(1) shall be applied as if section 267(c)(4) 
     provided that the family of an individual consists of the 
     individual's spouse and the individual's children under the 
     age of 21.
       ``(3) Required taxable year.--The term `required taxable 
     year' has the meaning given to such term by section 444(e).
       ``(e) Tiered Structures.--The Secretary shall prescribe 
     rules similar to the rules of section 444(d)(3) to eliminate 
     abuse of this section through the use of tiered 
     structures.''.
       (b) Conforming Amendment.--Section 444(a)(1) is amended by 
     striking ``section'' and inserting ``section and section 
     444A''.
       (c) Clerical Amendment.--The table of sections for part I 
     of subchapter E of chapter 1 is amended by inserting after 
     the item relating to section 444 the following new item:

``Sec. 444A. Qualified small businesses election of taxable year ending 
              in a month from April to November.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

                                 ______
                                 
  SA 124. Ms. SNOWE submitted an amendment intended to be proposed by 
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ESTABLISHMENT OF SIMPLE CAFETERIA PLANS FOR SMALL 
                   BUSINESSES.

       (a) In General.--Section 125 (relating to cafeteria plans) 
     is amended by redesignating

[[Page S935]]

     subsections (h) and (i) as subsections (i) and (j), 
     respectively, and by inserting after subsection (g) the 
     following new subsection:
       ``(h) Simple Cafeteria Plans for Small Businesses.--
       ``(1) In general.--An eligible employer maintaining a 
     simple cafeteria plan with respect to which the requirements 
     of this subsection are met for any year shall be treated as 
     meeting any applicable nondiscrimination requirement with 
     respect to benefits provided under the plan during such year.
       ``(2) Simple cafeteria plan.--For purposes of this 
     subsection, the term `simple cafeteria plan' means a 
     cafeteria plan--
       ``(A) which is established and maintained by an eligible 
     employer, and
       ``(B) with respect to which the contribution requirements 
     of paragraph (3), and the eligibility and participation 
     requirements of paragraph (4), are met.
       ``(3) Contributions requirements.--
       ``(A) In general.--The requirements of this paragraph are 
     met if, under the plan--
       ``(i) the employer makes matching contributions on behalf 
     of each employee who is eligible to participate in the plan 
     and who is not a highly compensated or key employee in an 
     amount equal to the elective plan contributions of the 
     employee to the plan to the extent the employee's elective 
     plan contributions do not exceed 3 percent of the employee's 
     compensation, or
       ``(ii) the employer is required, without regard to whether 
     an employee makes any elective plan contribution, to make a 
     contribution to the plan on behalf of each employee who is 
     not a highly compensated or key employee and who is eligible 
     to participate in the plan in an amount equal to at least 2 
     percent of the employee's compensation.
       ``(B) Matching contributions on behalf of highly 
     compensated and key employees.--The requirements of 
     subparagraph (A)(i) shall not be treated as met if, under the 
     plan, the rate of matching contribution with respect to any 
     elective plan contribution of a highly compensated or key 
     employee at any rate of contribution is greater than that 
     with respect to an employee who is not a highly compensated 
     or key employee.
       ``(C) Special rules.--
       ``(i) Time for making contributions.--An employer shall not 
     be treated as failing to meet the requirements of this 
     paragraph with respect to any elective plan contributions of 
     any compensation, or employer contributions required under 
     this paragraph with respect to any compensation, if such 
     contributions are made no later than the 15th day of the 
     month following the last day of the calendar quarter which 
     includes the date of payment of the compensation.
       ``(ii) Form of contributions.--Employer contributions 
     required under this paragraph may be made either to the plan 
     to provide benefits offered under the plan or to any person 
     as payment for providing benefits offered under the plan.
       ``(iii) Additional contributions.--Subject to subparagraph 
     (B), nothing in this paragraph shall be treated as 
     prohibiting an employer from making contributions to the plan 
     in addition to contributions required under subparagraph (A).
       ``(D) Definitions.--For purposes of this paragraph--
       ``(i) Elective plan contribution.--The term `elective plan 
     contribution' means any amount which is contributed at the 
     election of the employee and which is not includible in gross 
     income by reason of this section.
       ``(ii) Highly compensated employee.--The term `highly 
     compensated employee' has the meaning given such term by 
     section 414(q).
       ``(iii) Key employee.--The term `key employee' has the 
     meaning given such term by section 416(i).
       ``(4) Minimum eligibility and participation requirements.--
       ``(A) In general.--The requirements of this paragraph shall 
     be treated as met with respect to any year if, under the 
     plan--
       ``(i) all employees who had at least 1,000 hours of service 
     for the preceding plan year are eligible to participate, and
       ``(ii) each employee eligible to participate in the plan 
     may, subject to terms and conditions applicable to all 
     participants, elect any benefit available under the plan.
       ``(B) Certain employees may be excluded.--For purposes of 
     subparagraph (A)(i), an employer may elect to exclude under 
     the plan employees--
       ``(i) who have less than 1 year of service with the 
     employer as of any day during the plan year,
       ``(ii) who have not attained the age of 21 before the close 
     of a plan year,
       ``(iii) who are covered under an agreement which the 
     Secretary of Labor finds to be a collective bargaining 
     agreement if there is evidence that the benefits covered 
     under the cafeteria plan were the subject of good faith 
     bargaining between employee representatives and the employer, 
     or
       ``(iv) who are described in section 410(b)(3)(C) (relating 
     to nonresident aliens working outside the United States).

     A plan may provide a shorter period of service or younger age 
     for purposes of clause (i) or (ii).
       ``(5) Eligible employer.--For purposes of this subsection--
       ``(A) In general.--The term `eligible employer' means, with 
     respect to any year, any employer if such employer employed 
     an average of 100 or fewer employees on business days during 
     either of the 2 preceding years. For purposes of this 
     subparagraph, a year may only be taken into account if the 
     employer was in existence throughout the year.
       ``(B) Employers not in existence during preceding year.--If 
     an employer was not in existence throughout the preceding 
     year, the determination under subparagraph (A) shall be based 
     on the average number of employees that it is reasonably 
     expected such employer will employ on business days in the 
     current year.
       ``(C) Growing employers retain treatment as small 
     employer.--If--
       ``(i) an employer was an eligible employer for any year (a 
     `qualified year'), and
       ``(ii) such employer establishes a simple cafeteria plan 
     for its employees for such year,

     then, notwithstanding the fact the employer fails to meet the 
     requirements of subparagraph (A) for any subsequent year, 
     such employer shall be treated as an eligible employer for 
     such subsequent year with respect to employees (whether or 
     not employees during a qualified year) of any trade or 
     business which was covered by the plan during any qualified 
     year. This subparagraph shall cease to apply if the employer 
     employs an average of 200 more employees on business days 
     during any year preceding any such subsequent year.
       ``(D) Special rules.--The rules of section 220(c)(4)(D) 
     shall apply for purposes of this paragraph.
       ``(6) Applicable nondiscrimination requirement.--For 
     purposes of this subsection, the term `applicable 
     nondiscrimination requirement' means any requirement under 
     subsection (b) of this section, section 79(d), section 
     105(h), or paragraph (2), (3), (4), or (8) of section 129(d).
       ``(7) Compensation.--The term `compensation' has the 
     meaning given such term by section 414(s).''
       (b) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2006.
                                 ______
                                 
  SA 125. Ms. SNOWE submitted an amendment intended to be proposed by 
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ESTABLISHMENT OF SIMPLE CAFETERIA PLANS FOR SMALL 
                   BUSINESSES.

       (a) In General.--Section 125 (relating to cafeteria plans) 
     is amended by redesignating subsections (h) and (i) as 
     subsections (i) and (j), respectively, and by inserting after 
     subsection (g) the following new subsection:
       ``(h) Simple Cafeteria Plans for Small Businesses.--
       ``(1) In general.--An eligible employer maintaining a 
     simple cafeteria plan with respect to which the requirements 
     of this subsection are met for any year shall be treated as 
     meeting any applicable nondiscrimination requirement with 
     respect to benefits provided under the plan during such year.
       ``(2) Simple cafeteria plan.--For purposes of this 
     subsection, the term `simple cafeteria plan' means a 
     cafeteria plan--
       ``(A) which is established and maintained by an eligible 
     employer, and
       ``(B) with respect to which the contribution requirements 
     of paragraph (3), and the eligibility and participation 
     requirements of paragraph (4), are met.
       ``(3) Contributions requirements.--
       ``(A) In general.--The requirements of this paragraph are 
     met if, under the plan--
       ``(i) the employer makes matching contributions on behalf 
     of each employee who is eligible to participate in the plan 
     and who is not a highly compensated or key employee in an 
     amount equal to the elective plan contributions of the 
     employee to the plan to the extent the employee's elective 
     plan contributions do not exceed 3 percent of the employee's 
     compensation, or
       ``(ii) the employer is required, without regard to whether 
     an employee makes any elective plan contribution, to make a 
     contribution to the plan on behalf of each employee who is 
     not a highly compensated or key employee and who is eligible 
     to participate in the plan in an amount equal to at least 2 
     percent of the employee's compensation.
       ``(B) Matching contributions on behalf of highly 
     compensated and key employees.--The requirements of 
     subparagraph (A)(i) shall not be treated as met if, under the 
     plan, the rate of matching contribution with respect to any 
     elective plan contribution of a highly compensated or key 
     employee at any rate of contribution is greater than that 
     with respect to an employee who is not a highly compensated 
     or key employee.
       ``(C) Special rules.--
       ``(i) Time for making contributions.--An employer shall not 
     be treated as failing to meet the requirements of this 
     paragraph with respect to any elective plan contributions of 
     any compensation, or employer contributions required under 
     this paragraph with respect to any compensation, if such 
     contributions are made no later than the 15th day of the 
     month following the last day of the calendar quarter which 
     includes the date of payment of the compensation.
       ``(ii) Form of contributions.--Employer contributions 
     required under this paragraph

[[Page S936]]

     may be made either to the plan to provide benefits offered 
     under the plan or to any person as payment for providing 
     benefits offered under the plan.
       ``(iii) Additional contributions.--Subject to subparagraph 
     (B), nothing in this paragraph shall be treated as 
     prohibiting an employer from making contributions to the plan 
     in addition to contributions required under subparagraph (A).
       ``(D) Definitions.--For purposes of this paragraph--
       ``(i) Elective plan contribution.--The term `elective plan 
     contribution' means any amount which is contributed at the 
     election of the employee and which is not includible in gross 
     income by reason of this section.
       ``(ii) Highly compensated employee.--The term `highly 
     compensated employee' has the meaning given such term by 
     section 414(q).
       ``(iii) Key employee.--The term `key employee' has the 
     meaning given such term by section 416(i).
       ``(4) Minimum eligibility and participation requirements.--
       ``(A) In general.--The requirements of this paragraph shall 
     be treated as met with respect to any year if, under the 
     plan--
       ``(i) all employees who had at least 1,000 hours of service 
     for the preceding plan year are eligible to participate, and
       ``(ii) each employee eligible to participate in the plan 
     may, subject to terms and conditions applicable to all 
     participants, elect any benefit available under the plan.
       ``(B) Certain employees may be excluded.--For purposes of 
     subparagraph (A)(i), an employer may elect to exclude under 
     the plan employees--
       ``(i) who have less than 1 year of service with the 
     employer as of any day during the plan year,
       ``(ii) who have not attained the age of 21 before the close 
     of a plan year,
       ``(iii) who are covered under an agreement which the 
     Secretary of Labor finds to be a collective bargaining 
     agreement if there is evidence that the benefits covered 
     under the cafeteria plan were the subject of good faith 
     bargaining between employee representatives and the employer, 
     or
       ``(iv) who are described in section 410(b)(3)(C) (relating 
     to nonresident aliens working outside the United States).

     A plan may provide a shorter period of service or younger age 
     for purposes of clause (i) or (ii).
       ``(5) Eligible employer.--For purposes of this subsection--
       ``(A) In general.--The term `eligible employer' means, with 
     respect to any year, any employer if such employer employed 
     an average of 100 or fewer employees on business days during 
     either of the 2 preceding years. For purposes of this 
     subparagraph, a year may only be taken into account if the 
     employer was in existence throughout the year.
       ``(B) Employers not in existence during preceding year.--If 
     an employer was not in existence throughout the preceding 
     year, the determination under subparagraph (A) shall be based 
     on the average number of employees that it is reasonably 
     expected such employer will employ on business days in the 
     current year.
       ``(C) Growing employers retain treatment as small 
     employer.--If--
       ``(i) an employer was an eligible employer for any year (a 
     `qualified year'), and
       ``(ii) such employer establishes a simple cafeteria plan 
     for its employees for such year,

     then, notwithstanding the fact the employer fails to meet the 
     requirements of subparagraph (A) for any subsequent year, 
     such employer shall be treated as an eligible employer for 
     such subsequent year with respect to employees (whether or 
     not employees during a qualified year) of any trade or 
     business which was covered by the plan during any qualified 
     year. This subparagraph shall cease to apply if the employer 
     employs an average of 200 more employees on business days 
     during any year preceding any such subsequent year.
       ``(D) Special rules.--The rules of section 220(c)(4)(D) 
     shall apply for purposes of this paragraph.
       ``(6) Applicable nondiscrimination requirement.--For 
     purposes of this subsection, the term `applicable 
     nondiscrimination requirement' means any requirement under 
     subsection (b) of this section, section 79(d), section 
     105(h), or paragraph (2), (3), (4), or (8) of section 129(d).
       ``(7) Compensation.--The term `compensation' has the 
     meaning given such term by section 414(s).''
       (b) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2006.
                                 ______
                                 
  SA 126. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. HEALTH PROFESSIONS TRAINING DEMONSTRATION PROJECT.

       Section 171 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2916) is amended by adding at the end the following:
       ``(e) Health Professions Training Demonstration Project.--
       ``(1) Definitions.--In this subsection:
       ``(A) Covered community.--The term `covered community' 
     means a community or region that--
       ``(i) has experienced a significant percentage decline in 
     positions in the manufacturing or service sectors; and
       ``(ii)(I) is eligible for designation under section 332 of 
     the Public Health Service Act (42 U.S.C. 254e) as a health 
     professional shortage area;
       ``(II) is eligible to be served by a health center under 
     section 330 or a grantee under section 330(h) (relating to 
     homeless individuals) of the Public Health Service Act (42 
     U.S.C. 254b, 254b(h));
       ``(III) has a shortage of personal health services, as 
     determined under criteria issued by the Secretary of Health 
     and Human Services under section 1861(aa)(2) of the Social 
     Security Act (relating to rural health clinics) (42 U.S.C. 
     1395x(aa)(2)); or
       ``(IV) is designated by a Governor (in consultation with 
     the medical community) as a shortage area or medically 
     underserved community.
       ``(B) Covered worker.--The term `covered worker' means an 
     individual who--
       ``(i)(I) has been terminated or laid off, or who has 
     received a notice of termination or layoff, from employment 
     in a manufacturing or service sector;
       ``(II)(aa) is eligible for or has exhausted entitlement to 
     unemployment compensation; or
       ``(bb) has been employed for a duration sufficient to 
     demonstrate, to the appropriate entity at a one-stop center 
     referred to in section 134(c), attachment to the workforce, 
     but is not eligible for unemployment compensation due to 
     insufficient earnings or having performed services for an 
     employer that were not covered under a State unemployment 
     compensation law; and
       ``(III) is unlikely to return to a previous industry or 
     occupation; or
       ``(ii)(I) has been terminated or laid off, or has received 
     a notice of termination or layoff, from employment in a 
     manufacturing or service sector as a result of any permanent 
     closure of, or any substantial layoff at, a plant, facility, 
     or enterprise; or
       ``(II) is employed in a manufacturing or service sector at 
     a facility at which the employer has made a general 
     announcement that such facility will close within 180 days.
       ``(C) Health care professional.--The term `health care 
     professional'--
       ``(i) means an individual who is involved with--

       ``(I) the delivery of health care services, or related 
     services, pertaining to--

       ``(aa) the identification, evaluation, and prevention of 
     diseases, disorders, or injuries; or
       ``(bb) home-based or community-based long-term care;

       ``(II) the delivery of dietary and nutrition services; or
       ``(III) rehabilitation and health systems management; and

       ``(ii) includes nurses, home health aides, nursing 
     assistants, physician assistants, dental hygienists, 
     diagnostic medical sonographers, dietitians, medical 
     technologists, occupational therapists, physical therapists, 
     radiographers, respiratory therapists, emergency medical 
     service technicians, speech-language pathologists, and 
     specific occupational needs of the community served by the 
     eligible entities as defined in section (e)(4) of this Act.
       ``(2) Establishment of project.--In accordance with 
     subsection (b), the Secretary shall establish and carry out a 
     health professions training demonstration project.
       ``(3) Grants.--In carrying out the project, the Secretary, 
     after consultation with the Secretary of Health and Human 
     Services, shall make grants to eligible entities to enable 
     the entities to carry out programs in covered communities to 
     train covered workers for employment as health care 
     professionals. The Secretary shall make each grant in an 
     amount of not less than $100,000 and not more than $500,000.
       ``(4) Eligible entities.--Notwithstanding subsection 
     (b)(2)(B), to be eligible to receive a grant under this 
     subsection to carry out a program in a covered community, an 
     entity shall be a partnership that is--
       ``(A) under the direction of a local workforce investment 
     board established under section 117 that is serving the 
     covered community; and
       ``(B) composed of members serving the covered community, 
     such as--
       ``(i) a 4-year institution of higher education;
       ``(ii) an accredited community college;
       ``(iii) an accredited vocational or technical school;
       ``(iv) a health clinic or hospital;
       ``(v) a home-based or community-based long-term care 
     facility or program; or
       ``(vi) a health care facility administered by the Secretary 
     of Veterans Affairs.
       ``(5) Applications.--To be eligible to receive a grant 
     under this subsection, an entity shall submit an application 
     to the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require, including, at 
     a minimum--
       ``(A) a proposal to use the grant funds to establish or 
     expand a training program in order to train covered workers 
     for employment as health care professionals or 
     paraprofessionals;
       ``(B) information demonstrating the need for the training 
     and support services to be provided through the program;
       ``(C) information describing the manner in which the entity 
     will expend the grant funds,

[[Page S937]]

     and the activities to be carried out with the funds;
       ``(D) information demonstrating that the entity meets the 
     requirements of paragraph (4); and
       ``(E) with respect to training programs carried out by the 
     applicant, information--
       ``(i) on the graduation rates of the programs involved;
       ``(ii) on the retention measures carried out by the 
     applicant;
       ``(iii) on the length of time necessary to complete the 
     training programs of the applicant; and
       ``(iv) on the number of qualified trainees that are refused 
     admittance into the training programs because of lack of 
     capacity.
       ``(6) Selection.--In making grants under paragraph (3), the 
     Secretary, after consultation with the Secretary of Health 
     and Human Services, shall--
       ``(A) consider the date submitted by the applicant under 
     paragraph (5)(E); and
       ``(B) select--
       ``(i) eligible entities submitting applications that meet 
     such criteria as the Secretary of Labor determines to be 
     appropriate; and
       ``(ii) among such entities, the eligible entities serving 
     the covered communities with the greatest need for the grants 
     and the greatest potential to benefit from the grants.
       ``(7) Use of funds.--
       ``(A) In general.--An entity that receives a grant under 
     this subsection shall use the funds made available through 
     the grant for training and support services that meet the 
     needs described in the application submitted under paragraph 
     (5), which may include--
       ``(i) increasing capacity, subject to subparagraph (B)(i), 
     at an educational institution or training center to train 
     individuals for employment as health professionals, such as 
     by--

       ``(I) expanding a facility, subject to subparagraph 
     (B)(ii);
       ``(II) expanding course offerings;
       ``(III) hiring faculty;
       ``(IV) providing a student loan repayment program for the 
     faculty;
       ``(V) establishing or expanding clinical education 
     opportunities;
       ``(VI) purchasing equipment, such as computers, books, 
     clinical supplies, or a patient simulator; or
       ``(VII) conducting recruitment; or

       ``(ii) providing support services for covered workers 
     participating in the training, such as--

       ``(I) providing tuition assistance;
       ``(II) establishing or expanding distance education 
     programs;
       ``(III) providing transportation assistance; or
       ``(IV) providing child care.

       ``(B) Limitation.--To be eligible to use the funds to 
     expand a facility, the eligible entity shall demonstrate to 
     the Secretary in an application submitted under paragraph (5) 
     that the entity can increase the capacity described in 
     subparagraph (E)(iv) of such facility only by expanding the 
     facility.
       ``(8) Funding.--Of the amounts appropriated to, and 
     available at the discretion of, the Secretary or the 
     Secretary of Health and Human Services for programmatic and 
     administrative expenditures, a total of $25,000,000 shall be 
     used to establish and carry out the demonstration project 
     described in paragraph (2) in accordance with this 
     subsection.''.

                                 ______
                                 
  SA 127. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 4. ANNUAL REPORT ON ACQUISITIONS OF ARTICLES, MATERIALS, 
                   AND SUPPLIES MANUFACTURED OUTSIDE THE UNITED 
                   STATES.

       Section 2 of the Buy American Act (41 U.S.C. 10a) is 
     amended--
       (1) by striking ``Notwithstanding'' and inserting the 
     following:
       ``(a) In General.--Notwithstanding''; and
       (2) by adding at the end the following:
       ``(b) Reports.--
       ``(1) In general.--Not later than 180 days after the end of 
     each fiscal year, the head of each Federal agency shall 
     submit a report to Congress on the amount of the acquisitions 
     made by the agency of articles, materials, or supplies 
     purchased from entities that manufacture the articles, 
     materials, or supplies outside of the United States in that 
     fiscal year.
       ``(2) Contents of report.--The report required by paragraph 
     (1) shall separately include--
       ``(A) the dollar value of any articles, materials, or 
     supplies that were manufactured outside the United States;
       ``(B) an itemized list of all waivers granted with respect 
     to such articles, materials, or supplies under this Act, and 
     a citation to the treaty, international agreement, or other 
     law under which each waiver was granted;
       ``(C) if any articles, materials, or supplies were acquired 
     from entities that manufacture articles, materials, or 
     supplies outside the United States, the specific exception 
     under this section that was used to purchase such articles, 
     materials, or supplies; and
       ``(D) a summary of--
       ``(i) the total procurement funds expended on articles, 
     materials, and supplies manufactured inside the United 
     States; and
       ``(ii) the total procurement funds expended on articles, 
     materials, and supplies manufactured outside the United 
     States.
       ``(3) Public availability.--The head of each Federal agency 
     submitting a report under paragraph (1) shall make the report 
     publicly available to the maximum extent practicable.
       ``(4) Exception for intelligence community.--This 
     subsection shall not apply to acquisitions made by an agency, 
     or component thereof, that is an element of the intelligence 
     community as specified in, or designated under, section 3(4) 
     of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.

                                 ______
                                 
  SA 128. Mr. KERRY (for himself and Ms. Snowe) submitted an amendment 
intended to be proposed by him to the bill H.R. 2, to amend the Fair 
Labor Standards Act of 1938 to provide for an increase in the Federal 
minimum wage; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SMALL BUSINESS REGULATORY ASSISTANCE.

       (a) Purpose.--The purpose of this section is to establish a 
     4-year pilot program to--
       (1) provide confidential assistance to small business 
     concerns;
       (2) provide small business concerns with the information 
     necessary to improve their rate of compliance with Federal 
     and State regulations derived from Federal law;
       (3) create a partnership among Federal agencies to increase 
     outreach efforts to small business concerns with respect to 
     regulatory compliance;
       (4) provide a mechanism for unbiased feedback to Federal 
     agencies on the regulatory environment for small business 
     concerns; and
       (5) expand the services delivered by the Small Business 
     Development Centers under section 21(c)(3)(H) of the Small 
     Business Act to improve access to programs to assist small 
     business concerns with regulatory compliance.
       (b) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Administration.--The term ``Administration'' means the 
     Small Business Administration.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Administration, acting through the 
     Associate Administrator for Small Business Development 
     Centers.
       (3) Association.--The term ``association'' means the 
     association established pursuant to section 21(a)(3)(A) of 
     the Small Business Act (15 U.S.C. 648(a)(3)(A)) representing 
     a majority of Small Business Development Centers.
       (4) Participating small business development center.--The 
     term ``participating Small Business Development Center'' 
     means a Small Business Development Center participating in 
     the pilot program established under this section.
       (5) Regulatory compliance assistance.--The term 
     ``regulatory compliance assistance'' means assistance 
     provided by a Small Business Development Center to a small 
     business concern to assist and facilitate the concern in 
     complying with Federal and State regulatory requirements 
     derived from Federal law.
       (6) Small business development center.--The term ``Small 
     Business Development Center'' means a Small Business 
     Development Center described in section 21 of the Small 
     Business Act (15 U.S.C. 648).
       (7) State.--The term ``State'' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, American Samoa, and Guam.
       (c) Small Business Regulatory Assistance Pilot Program.--
       (1) Authority.--In accordance with this section, the 
     Administrator shall establish a pilot program to provide 
     regulatory compliance assistance to small business concerns 
     through participating Small Business Development Centers.
       (2) Small business development centers.--
       (A) In general.--In carrying out the pilot program 
     established under this section, the Administrator shall enter 
     into arrangements with participating Small Business 
     Development Centers under which such Centers shall--
       (i) provide access to information and resources, including 
     current Federal and State nonpunitive compliance and 
     technical assistance programs similar to those established 
     under section 507 of the Clean Air Act Amendments of 1990 (42 
     U.S.C. 7661f);
       (ii) conduct training and educational activities;
       (iii) offer confidential, free-of-charge, one-on-one, in-
     depth counseling to the owners and operators of small 
     business concerns regarding compliance with Federal and State 
     regulations derived from Federal law, provided that such 
     counseling is not considered to be the practice of law in a 
     State in which a Small Business Development Center is located 
     or in which such counseling is conducted;
       (iv) provide technical assistance;
       (v) give referrals to experts and other providers of 
     compliance assistance who meet such standards for 
     educational, technical, and professional competency as are 
     established by the Administrator; and

[[Page S938]]

       (vi) form partnerships with Federal compliance programs.
       (B) Reports.--Each participating Small Business Development 
     Center shall transmit to the Administrator and the Chief 
     Counsel for Advocacy of the Administration, as the 
     Administrator may direct, a quarterly report that includes--
       (i) a summary of the regulatory compliance assistance 
     provided by the Center under the pilot program;
       (ii) the number of small business concerns assisted under 
     the pilot program; and
       (iii) for every fourth report, any regulatory compliance 
     information based on Federal law that a Federal or State 
     agency has provided to the Center during the preceding year 
     and requested that it be disseminated to small business 
     concerns.
       (3) Eligibility.--A Small Business Development Center shall 
     be eligible to receive assistance under the pilot program 
     established under this section only if such Center is 
     certified under section 21(k)(2) of the Small Business Act 
     (15 U.S.C. 648(k)(2)).
       (4) Selection of participating state programs.--
       (A) Groupings.--
       (i) Consultation.--In consultation with the association, 
     and giving substantial weight to the recommendations of the 
     association, the Administrator shall select the Small 
     Business Development Center Programs of 2 States from each of 
     the groups of States described in clauses (ii) through (xi) 
     to participate in the pilot program established under this 
     section.
       (ii) Group 1.--Group 1 shall consist of Maine, 
     Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode 
     Island.
       (iii) Group 2.--Group 2 shall consist of New York, New 
     Jersey, Puerto Rico, and the Virgin Islands.
       (iv) Group 3.--Group 3 shall consist of Pennsylvania, 
     Maryland, West Virginia, Virginia, the District of Columbia, 
     and Delaware.
       (v) Group 4.--Group 4 shall consist of Georgia, Alabama, 
     North Carolina, South Carolina, Mississippi, Florida, 
     Kentucky, and Tennessee.
       (vi) Group 5.--Group 5 shall consist of Illinois, Ohio, 
     Michigan, Indiana, Wisconsin, and Minnesota.
       (vii) Group 6.--Group 6 shall consist of Texas, New Mexico, 
     Arkansas, Oklahoma, and Louisiana.
       (viii) Group 7.--Group 7 shall consist of Missouri, Iowa, 
     Nebraska, and Kansas.
       (ix) Group 8.--Group 8 shall consist of Colorado, Wyoming, 
     North Dakota, South Dakota, Montana, and Utah.
       (x) Group 9.--Group 9 shall consist of California, Guam, 
     American Samoa, Hawaii, Nevada, and Arizona.
       (xi) Group 10.--Group 10 shall consist of Washington, 
     Alaska, Idaho, and Oregon.
       (B) Deadline for selection.--The Administrator shall make 
     selections under this paragraph not later than 60 days after 
     the date of publication of final regulations under subsection 
     (d).
       (C) Coordination to avoid duplication with other 
     programs.--In selecting Small Business Development Center 
     Programs under this paragraph, the Administrator shall give a 
     preference to any such program that has a plan for consulting 
     with Federal and State agencies to ensure that any assistance 
     provided under this section is not duplicated by a Federal or 
     State program.
       (5) Matching requirement.--Subparagraphs (A) and (B) of 
     section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) shall apply to assistance made available under the 
     pilot program established under this section.
       (6) Grant amounts.--Each State program selected to receive 
     a grant under paragraph (4) shall be eligible to receive a 
     grant in an amount equal to--
       (A) not less than $150,000 per fiscal year; and
       (B) not more than $300,000 per fiscal year.
       (7) Evaluation and report.--The Comptroller General of the 
     United States shall--
       (A) not later than 30 months after the date of disbursement 
     of the first grant under the pilot program established under 
     this section, initiate an evaluation of the pilot program; 
     and
       (B) not later than 6 months after the date of the 
     initiation of the evaluation under subparagraph (A), transmit 
     to the Administrator, the Committee on Small Business and 
     Entrepreneurship of the Senate, and the Committee on Small 
     Business of the House of Representatives, a report 
     containing--
       (i) the results of the evaluation; and
       (ii) any recommendations as to whether the pilot program, 
     with or without modification, should be extended to include 
     the participation of all Small Business Development Centers.
       (8) Authorization of appropriations.--
       (A) In general.--There are authorized to be appropriated to 
     carry out this section--
       (i) $5,000,000 for the first fiscal year beginning after 
     the date of enactment of this Act; and
       (ii) $5,000,000 for each of the 3 fiscal years following 
     the fiscal year described in clause (i).
       (B) Limitation on use of other funds.--The Administrator 
     may carry out the pilot program established under this 
     section only with amounts appropriated in advance 
     specifically to carry out this section.
       (9) Termination.--The Small Business Regulatory Assistance 
     Pilot Program established under this section shall terminate 
     4 years after the date of disbursement of the first grant 
     under the pilot program.
       (d) Rulemaking.--After providing notice and an opportunity 
     for comment, and after consulting with the association (but 
     not later than 180 days after the date of enactment of this 
     Act), the Administrator shall promulgate final regulations to 
     carry out this section, including regulations that 
     establish--
       (1) priorities for the types of assistance to be provided 
     under the pilot program established under this section;
       (2) standards relating to educational, technical, and 
     support services to be provided by participating Small 
     Business Development Centers;
       (3) standards relating to any national service delivery and 
     support function to be provided by the association under the 
     pilot program;
       (4) standards relating to any work plan that the 
     Administrator may require a participating Small Business 
     Development Center to develop; and
       (5) standards relating to the educational, technical, and 
     professional competency of any expert or other assistance 
     provider to whom a small business concern may be referred for 
     compliance assistance under the pilot program.
                                 ______
                                 
  SA 129. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place insert the following:

     SEC. ___. MODIFICATION OF DETERMINATION OF EXCLUSION FOR 
                   TRACTORS WEIGHING NOT MORE THAN 19,500 POUNDS 
                   FROM FEDERAL EXCISE TAX ON HEAVY TRUCKS AND 
                   TRAILERS.

       (a) In General.--Subparagraph (B) of section 4051(a)(4) is 
     amended to read as follows:
       ``(B) the gross combined weight (as determined by the 
     Secretary) of such tractor, in combination with a trailer or 
     a semitrailer, does not exceed the tractor's gross vehicle 
     weight by 26,000 pounds or more.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 11112(a) of Safe, Accountable, Flexible, Efficient 
     Transportation Equity Act: A Legacy for Users.
                                 ______
                                 
  SA 130. Mr. VOINOVICH submitted an amendment intended to be proposed 
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. __. EXTENSION OF WORK OPPORTUNITY TAX CREDIT TO 
                   QUALIFIED RESTAURANT EMPLOYEES.

       (a) In General.--Section 51(d)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``or'' at the end of 
     subparagraph (H), by striking the period at the end of 
     subparagraph (I) and inserting ``, or'', and by adding at the 
     end the following new subparagraph:
       ``(J) a qualified restaurant employee.''.
       (b) Qualified Restaurant Employee.--Section 51(d) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     paragraphs (11) through (13) as paragraphs (12) through (14), 
     respectively, and by inserting after paragraph (10) the 
     following new paragraph:
       ``(11) Qualified restaurant employee.--
       ``(A) In general.--The term `qualified restaurant employee' 
     means any individual--
       ``(i) who performs services in a restaurant where tipping 
     is not customary,
       ``(ii) who is not exempt under the Fair Labor Standards Act 
     and earns at least the Federal minimum wage, and
       ``(iii) who is certified by the employer during the hiring 
     process as having attained age 16 but not 20 on the hiring 
     date.
       ``(B) Special rule for determining amount of credit.--For 
     purposes of applying this subpart to wages paid or incurred 
     to any qualified restaurant employee, subsection (b)(3) shall 
     be applied by substituting `$3,000' for `$6,000'.''.
       (c) Special Rule for Certifications.--Subparagraph (A) of 
     section 51(d)(14) of the Internal Revenue Code of 1986, as 
     redesignated by subsection (b), is amended by inserting ``, 
     other than an individual described in paragraph (11),'' after 
     ``An individual''.
       (d) Nonqualifying Rehires.--Paragraph (2) of section 51(i) 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(2) Nonqualifying rehires.--
       ``(A) In general.--No wages shall be taken into account 
     under subsection (a) with respect to any individual, other 
     than an individual described in subsection (d)(11), if, prior 
     to the hiring date of such individual, such individual had 
     been employed by the employer at any time.
       ``(B) Qualified restaurant employees.--In the case of an 
     individual described in subsection (d)(11), no wages shall be 
     taken into account under subsection (a) if, prior to the 
     hiring date of such individual, such individual had been 
     employed by the employer within the prior 90 day period.''.
       (e) Minimum Employment Periods.--Section 51(i)(3) of the 
     Internal Revenue Code of

[[Page S939]]

     1986 is amended by adding at the end the following new 
     subparagraph:
       ``(C) Nonapplication to qualified restaurant employees.--
     Subparagraphs (A) and (B) shall not apply to an individual 
     described in subsection (d)(11).''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after the date of the enactment of this Act.
                                 ______
                                 
  SA 131. Mr. VOINOVICH submitted an amendment intended to be proposed 
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. ___. DEDUCTIBILITY OF INTEREST EXPENSE INCURRED BY 
                   ELECTING SMALL BUSINESS TRUST TO ACQUIRE S 
                   CORPORATION STOCK.

       (a) In General.--Subparagraph (C) of section 641(c)(2) of 
     the Internal Revenue Code of 1986 (relating to modifications) 
     is amended by inserting after clause (iii) the following new 
     clause:
       ``(iv) Any interest expense incurred to acquire stock in an 
     S corporation.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
  SA 132. Mr. SMITH (for himself and Mr. Schumer) submitted an 
amendment intended to be proposed by him to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. EXPANSION OF DEDUCTION FOR HEALTH INSURANCE COSTS OF 
                   SELF-EMPLOYED INDIVIDUALS.

       (a) In General.--Paragraph (1) of section 162(l) of the 
     Internal Revenue Code of 1986 (relating to special rules for 
     health insurance costs of self-employed individuals) is 
     amended to read as follows:
       ``(1) Allowance of deduction.--In the case of a taxpayer 
     who is an employee within the meaning of section 401(c)(1), 
     there shall be allowed as a deduction under this section an 
     amount equal to the amount paid during the taxable year for 
     insurance which constitutes medical care for--
       ``(A) the taxpayer,
       ``(B) the taxpayer's spouse,
       ``(C) the taxpayer's dependents,
       ``(D) any individual--
       ``(i) who was not the spouse, determined without regard to 
     section 7703, of the taxpayer at any time during the taxable 
     year of the taxpayer,
       ``(ii) who--

       ``(I) has not attained the age of 19 as of the close of the 
     calendar year in which the taxable year of the taxpayer 
     begins, or
       ``(II) is a student who has not attained the age of 24 as 
     of the close of such calendar year,

       ``(iii) who, for the taxable year of the taxpayer, has the 
     same principal place of abode as the taxpayer and is a member 
     of the taxpayer's household, and
       ``(iv) with respect to whom the taxpayer provides over one-
     half of the individual's support for the calendar year in 
     which the taxpayer's taxable year begins, and
       ``(E) an individual--
       ``(i) who is designated by the taxpayer for purposes of 
     this paragraph,
       ``(ii) who is not the spouse or qualifying child of such 
     taxpayer or any other taxpayer for any taxable year beginning 
     in the calendar year in which the taxpayer's taxable year 
     begins, and
       ``(iii) who, for the taxable year of the taxpayer, has the 
     same principal place of abode as the taxpayer and is a member 
     of the taxpayer's household.

     For purposes of subparagraph (E)(i), not more than 1 person 
     may be designated by the taxpayer for any taxable year.''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     162(l)(2) of the Internal Revenue Code of 1986 is amended by 
     striking ``or of the spouse of the taxpayer'' and inserting 
     ``, of the spouse of the taxpayer, or of any individual 
     described in paragraph (1)(E)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
  SA 133. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. STATE MINIMUM WAGE.

       Section 6 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206) is amended by adding at the end the following:
       ``(h)(1) An employer in a State that adopts a minimum wage 
     law that conforms to the requirements of paragraph (2) shall 
     not be required to pay the employer's employees at the 
     minimum wage prescribed by subsection (a)(1).
       ``(2) Paragraph (1) shall apply in a State that adopts a 
     minimum wage law that--
       ``(A) sets a rate that is not less than $5.15 an hour; and
       ``(B) applies that rate to not fewer than the employees 
     performing work within the State who would otherwise be 
     covered by the minimum wage rate prescribed by subsection 
     (a)(1).
       ``(3) In the case of a State that does not have a State law 
     that conforms to the requirements of paragraph (2), an 
     increase in the minimum wage rate prescribed by subsection 
     (a)(1) that is enacted on or after the date of enactment of 
     the Fair Minimum Wage Act of 2007 shall go into effect in 
     such State 6 months after the first day of the first 
     legislative session of the State legislature in which a State 
     law described in paragraph (2) may be considered.''.
                                 ______
                                 
  SA 134. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. STATE MINIMUM WAGE.

       Section 6 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206) is amended by adding at the end the following:
       ``(h)(1) An employer in a State that adopts a minimum wage 
     law that conforms to the requirements of paragraph (2) shall 
     not be required to pay the employer's employees at the 
     minimum wage prescribed by subsection (a)(1).
       ``(2) Paragraph (1) shall apply in a State that adopts a 
     minimum wage law that--
       ``(A) sets a rate that is not less than $5.15 an hour; and
       ``(B) applies that rate to not fewer than the employees 
     performing work within the State who would otherwise be 
     covered by the minimum wage rate prescribed by subsection 
     (a)(1).
       ``(3) In the case of a State that does not have a State law 
     that conforms to the requirements of paragraph (2), an 
     increase in the minimum wage rate prescribed by subsection 
     (a)(1) that is enacted on or after the date of enactment of 
     the Fair Minimum Wage Act of 2007 shall go into effect in 
     such State 6 months after the first day of the first 
     legislative session of the State legislature in which a State 
     law described in paragraph (2) may be considered.''.
                                 ______
                                 
  SA 135. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. REPEAL OF FEDERAL UNEMPLOYMENT SURTAX.

       (a) In General.--Section 3301 (relating to rate of Federal 
     unemployment tax) is amended by striking ``or'' at the end of 
     paragraph (1), by redesignating paragraph (2) as paragraph 
     (3), and by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) in the case of wages paid in calendar year 2007--
       ``(A) 6.2 percent in the case of wages for any portion of 
     the year ending before April 1, and
       ``(B) 6.0 percent in the case of wages for any portion of 
     the year beginning after March 31; or''.
       (b) Conforming Amendment.--Section 3301(1) of such Code is 
     amended by striking ``2007'' and inserting ``2006''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to wages paid after December 31, 2006.
                                 ______
                                 
  SA 136. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. REPEAL OF FEDERAL UNEMPLOYMENT SURTAX.

       (a) In General.--Section 3301 (relating to rate of Federal 
     unemployment tax) is amended by striking ``or'' at the end of 
     paragraph (1), by redesignating paragraph (2) as paragraph 
     (3), and by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) in the case of wages paid in calendar year 2007--
       ``(A) 6.2 percent in the case of wages for any portion of 
     the year ending before April 1, and
       ``(B) 6.0 percent in the case of wages for any portion of 
     the year beginning after March 31; or''.
       (b) Conforming Amendment.--Section 3301(1) of such Code is 
     amended by striking ``2007'' and inserting ``2006''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to wages paid after December 31, 2006.
                                 ______
                                 
  SA 137. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the

[[Page S940]]

Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. EMPLOYER-PROVIDED OFF-PREMISES HEALTH CLUB SERVICES.

       (a) Treatment as Fringe Benefit.--Subparagraph (A) of 
     section 132(j)(4) of the Internal Revenue Code of 1986 
     (relating to on-premises gyms and other athletic facilities) 
     is amended to read as follows:
       ``(A) In general.--Gross income shall not include--
       ``(i) the value of any on-premises athletic facility 
     provided by an employer to its employees, and
       ``(ii) in the case of any taxable year beginning in 2007, 
     so much of the fees, dues, or membership expenses paid by an 
     employer to an athletic or fitness facility described in 
     subparagraph (C) on behalf of its employees as does not 
     exceed $900 per employee per year.''.
       (b) Athletic Facilities Described.--Paragraph (4) of 
     section 132(j) of the Internal Revenue Code of 1986 (relating 
     to special rules) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Certain athletic or fitness facilities described.--
     For purposes of subparagraph (A)(ii), an athletic or fitness 
     facility described in this subparagraph is a facility--
       ``(i) which provides instruction in a program of physical 
     exercise, offers facilities for the preservation, 
     maintenance, encouragement, or development of physical 
     fitness, or is the site of such a program of a State or local 
     government,
       ``(ii) which is not a private club owned and operated by 
     its members,
       ``(iii) which does not offer golf, hunting, sailing, or 
     riding facilities,
       ``(iv) whose health or fitness facility is not incidental 
     to its overall function and purpose, and
       ``(v) which is fully compliant with the State of 
     jurisdiction and Federal anti-discrimination laws.''.
       (c) Exclusion Applies to Highly Compensated Employees Only 
     if No Discrimination.--Section 132(j)(1) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``Paragraphs (1) and (2) of subsection 
     (a)'' and inserting ``Subsections (a)(1), (a)(2), and 
     (j)(4)'', and
       (2) by striking the heading thereof through ``(2) apply'' 
     and inserting ``Certain exclusions apply''.
       (d) Employer Deduction for Dues to Certain Athletic 
     Facilities.--
       (1) In general.--Paragraph (3) of section 274(a) of the 
     Internal Revenue Code of 1986 (relating to denial of 
     deduction for club dues) is amended by adding at the end the 
     following new sentence: ``The preceding sentence shall not 
     apply to so much of the fees, dues, or membership expenses 
     paid in any taxable year beginning in 2007 to athletic or 
     fitness facilities (within the meaning of section 
     132(j)(4)(C)) as does not exceed $900 per employee per 
     year.''.
       (2) Conforming amendment.--The last sentence of section 
     274(e)(4) of such Code is amended by inserting ``the first 
     sentence of'' before ``subsection (a)(3)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
  SA 138. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EMPLOYER-PROVIDED OFF-PREMISES HEALTH CLUB SERVICES.

       (a) Treatment as Fringe Benefit.--Subparagraph (A) of 
     section 132(j)(4) of the Internal Revenue Code of 1986 
     (relating to on-premises gyms and other athletic facilities) 
     is amended to read as follows:
       ``(A) In general.--Gross income shall not include--
       ``(i) the value of any on-premises athletic facility 
     provided by an employer to its employees, and
       ``(ii) in the case of any taxable year beginning in 2007, 
     so much of the fees, dues, or membership expenses paid by an 
     employer to an athletic or fitness facility described in 
     subparagraph (C) on behalf of its employees as does not 
     exceed $900 per employee per year.''.
       (b) Athletic Facilities Described.--Paragraph (4) of 
     section 132(j) of the Internal Revenue Code of 1986 (relating 
     to special rules) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Certain athletic or fitness facilities described.--
     For purposes of subparagraph (A)(ii), an athletic or fitness 
     facility described in this subparagraph is a facility--
       ``(i) which provides instruction in a program of physical 
     exercise, offers facilities for the preservation, 
     maintenance, encouragement, or development of physical 
     fitness, or is the site of such a program of a State or local 
     government,
       ``(ii) which is not a private club owned and operated by 
     its members,
       ``(iii) which does not offer golf, hunting, sailing, or 
     riding facilities,
       ``(iv) whose health or fitness facility is not incidental 
     to its overall function and purpose, and
       ``(v) which is fully compliant with the State of 
     jurisdiction and Federal anti-discrimination laws.''.
       (c) Exclusion Applies to Highly Compensated Employees Only 
     if No Discrimination.--Section 132(j)(1) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``Paragraphs (1) and (2) of subsection 
     (a)'' and inserting ``Subsections (a)(1), (a)(2), and 
     (j)(4)'', and
       (2) by striking the heading thereof through ``(2) apply'' 
     and inserting ``Certain exclusions apply''.
       (d) Employer Deduction for Dues to Certain Athletic 
     Facilities.--
       (1) In general.--Paragraph (3) of section 274(a) of the 
     Internal Revenue Code of 1986 (relating to denial of 
     deduction for club dues) is amended by adding at the end the 
     following new sentence: ``The preceding sentence shall not 
     apply to so much of the fees, dues, or membership expenses 
     paid in any taxable year beginning in 2007 to athletic or 
     fitness facilities (within the meaning of section 
     132(j)(4)(C)) as does not exceed $900 per employee per 
     year.''.
       (2) Conforming amendment.--The last sentence of section 
     274(e)(4) of such Code is amended by inserting ``the first 
     sentence of'' before ``subsection (a)(3)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
  SA 139. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REPEAL OF EGTRRA AND JGTRRA SUNSETS.

       (a) EGTRRA.--The Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by striking title IX.
       (b) JGTRRA.--Title III of the Jobs and Growth Tax Relief 
     Reconciliation Act of 2003 is amended by striking section 
     303.
                                 ______
                                 
  SA 140. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REPEAL OF EGTRRA AND JGTRRA SUNSETS.

       (a) EGTRRA.--The Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by striking title IX.
       (b) JGTRRA.--Title III of the Jobs and Growth Tax Relief 
     Reconciliation Act of 2003 is amended by striking section 
     303.
                                 ______
                                 
  SA 141. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

       (a) Penalties for Unlawful Employment of Aliens.--Section 
     274A of the Immigration and Nationality Act (8 U.S.C. 1324a) 
     is amended--
       (1) in subsection (e)(4)--
       (A) in subparagraph (A)(i), by striking ``not less than 
     $250 and not more than $2,000'' and inserting ``not less than 
     $5000 and not more than $7,500'';
       (B) in subparagraph (A)(ii), by striking ``not less than 
     $2,000 and not more than $5,000'' and inserting ``not less 
     than $10,000 and not more than $15,000''; and
       (C) in subparagraph (A)(iii), by striking ``not less than 
     $3,000 and not more than $10,000'' and inserting ``not less 
     than $25,000 and not more than $40,00'';
       (2) in subsection (e)(5)--
       (A) by inserting ``, subject to paragraph (10),'' after 
     ``in an amount'';
       (B) by striking ``$100 and not more than $1,000'' and 
     inserting ``$1,000 and not more than $25,000''; and
       (C) by adding at the end the following sentence: 
     ``Providing information to the basic pilot program described 
     in section 403(a) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
     that the person or entity knows or reasonably believes to be 
     false, shall be treated as a violation of subsection 
     (a)(1)(A) and shall not qualify for the exemption provided by 
     (e)(10).'';
       (3) by adding at the end of subsection (e) the following 
     new paragraph:
       ``(10) Exemption from penalty for employers participating 
     in the basic pilot program.--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 by an employer and in the case of 
     imposition of a civil penalty under paragraph (5) for a 
     violation of subsection (a)(1)(B) for

[[Page S941]]

     hiring or recruitment or referral by a person or entity, the 
     penalty otherwise imposed shall be waived if the violator 
     establishes that it was voluntarily participating in the 
     basic pilot electronic verification program at the time of 
     the offense.'';
       (4) by amending paragraph (1) of subsection (f) to read as 
     follows:
       ``(1) Criminal penalty.--Any person or entity which engages 
     in a pattern or practice of violations of paragraph (1) or 
     (2) of subsection (a) shall be fined not less than $3,000 and 
     more than $50,000 for each unauthorized alien with respect to 
     which such a violation occurs, imprisoned for not less than 
     one year, or both, notwithstanding the provisions of any 
     other Federal law relating to fine levels.''; and
       (5) in subsection (f)(2), by striking ``Attorney General'' 
     each place it appears and inserting ``Secretary of Homeland 
     Security''.
       (b) Retention and Use of Employment Eligibility 
     Verification Documents.--
       (1) Retention.--Section 274A(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1324a(b)) is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Copying and retention of documentation.--
       ``(A) In general.--A person or entity required to examine a 
     document described in subparagraph (B), (C), or (D) of 
     paragraph (1) or receive an attestation described in 
     paragraph (2) shall retain a paper, microfiche, microfilm, or 
     electronic version of each such document and attestation, 
     indicate that each such version is a copied document, and 
     make such versions available for inspection by an officer of 
     the Department of Homeland Security or any other person 
     designated by the Secretary, the Special Counsel for 
     Immigration-Related Unfair Employment Practices of the 
     Department of Justice, or the Secretary of Labor during the 
     period beginning on the date of the hiring, or recruiting or 
     referring for a fee, of the individual and ending--
       ``(i) in the case of the recruiting or referral for a fee 
     (without hiring) of an individual, 5 years after the date of 
     the recruiting or referral; or
       ``(ii) in the case of the hiring of an individual the later 
     of--

       ``(I) 5 years after the date of such hiring; or
       ``(II) 1 year after the date the individual's employment is 
     terminated.

       ``(B) Other records.--Such person or entity shall maintain 
     records of any action taken and copies of any correspondence 
     written or received with respect to the verification of an 
     individual's identity or eligibility for employment in the 
     United States.''.
       (2) Limitation on use of retained documents.--Paragraph (5) 
     of section 274A(b) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(b)) is amended--
       (A) in the heading, by striking ``Limitation on use of 
     attestation form'' and inserting ``Attestation form'';
       (B) by redesignating such paragraph (5) as subparagraph 
     (A);
       (C) by indenting such subparagraph, as so designated, six 
     ems from the left margin;
       (D) by inserting before such subparagraph, as so 
     designated, the following:
       ``(5) Limitation on use.--''; and
       (E) by inserting after such subparagraph, as so designated, 
     the following new subparagraph:
       ``(B) Retained documents.--A person or entity required to 
     retain versions of documents or attestations or maintain 
     records under paragraph (4) shall use any such version, 
     attestation, or record only for the purposes of complying 
     with the requirements of this subsection, except as otherwise 
     permitted under law.''.
       (c) Extension of the Basic Pilot Program.--Section 403(a) 
     of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended 
     by adding at the end the following new paragraph:
       ``(5) Individuals covered.--Notwithstanding any other 
     provision of this title, a person or other entity that elects 
     to participate in the basic pilot program shall follow the 
     procedures described in paragraphs (1) thorough (4) for each 
     individual who the person or entity hires (or recruits or 
     refers) for employment and for each individual who is 
     employed by the person or entity.''.

     SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

       Section 274A(e) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(e)) is amended by adding at the end the 
     following new paragraph:
       ``(10) Prohibition on award of government contracts, 
     grants, and agreements.--
       ``(A) Employers with no contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subparagraph 
     (C), if an employer who does not hold a Federal contract, 
     grant, or cooperative agreement is determined to have 
     violated this section, the employer shall be debarred from 
     the receipt of a Federal contract, grant, or cooperative 
     agreement for a period of 7 years.
       ``(ii) Placement on excluded list.--The Secretary of 
     Homeland Security or the Attorney General shall advise the 
     Administrator of General Services of the debarment of an 
     employer under clause (i) and the Administrator of General 
     Services shall list the employer on the List of Parties 
     Excluded from Federal Procurement and Nonprocurement Programs 
     for a period of 7 years.
       ``(iii) Waiver.--

       ``(I) Authority.--The Administrator of General Services, in 
     consultation with the Secretary of Homeland Security and the 
     Attorney General, may waive operation of clause (i) or may 
     limit the duration or scope of a debarment under clause (i) 
     if such waiver or limitation is necessary to national defense 
     or in the interest of national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House of Representatives immediate notice of 
     such waiver or limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternative action under this clause 
     shall not be judicially reviewed.

       ``(B) Employers with contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subclause 
     (C), an employer who holds a Federal contract, grant, or 
     cooperative agreement and is determined to have violated this 
     section shall be debarred from the receipt of new Federal 
     contracts, grants, or cooperative agreements for a period of 
     10 years.
       ``(ii) Notice to agencies.--Prior to debarring the employer 
     under clause (i), the Secretary of Homeland Security, in 
     cooperation with the Administrator of General Services, shall 
     advise any agency or department holding a contract, grant, or 
     cooperative agreement with the employer of the Government's 
     intention to debar the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 10 years.
       ``(iii) Waiver.--

       ``(I) Authority.--After consideration of the views of any 
     agency or department that holds a contract, grant, or 
     cooperative agreement with the employer, the Administrator of 
     General Services, in consultation with the Secretary of 
     Homeland Security and the Attorney General, may waive 
     operation of clause (i) or may limit the duration or scope of 
     the debarment under clause (i) if such waiver or limitation 
     is necessary to the national defense or in the interest of 
     national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House of Representatives immediate notice of 
     such waiver or limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternate action under this clause 
     shall not be judicially reviewed.

       ``(C) Exemption from penalty for employers participating in 
     the basic pilot program.--In the case of imposition on an 
     employer of a debarment from the receipt of a Federal 
     contract, grant, or cooperative agreement under subparagraph 
     (A) or (B), that penalty shall be waived if the employer 
     establishes that the employer was voluntarily participating 
     in the basic pilot program under section 403(a) of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (8 U.S.C. 1324a note) at the time of the violations 
     of this section that resulted in the debarment.''.
                                 ______
                                 
  SA 142. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

       (a) Penalties for Unlawful Employment of Aliens.--Section 
     274A of the Immigration and Nationality Act (8 U.S.C. 1324a) 
     is amended--
       (1) in subsection (e)(4)--
       (A) in subparagraph (A)(i), by striking ``not less than 
     $250 and not more than $2,000'' and inserting ``not less than 
     $5000 and not more than $7,500'';
       (B) in subparagraph (A)(ii), by striking ``not less than 
     $2,000 and not more than $5,000'' and inserting ``not less 
     than $10,000 and not more than $15,000''; and
       (C) in subparagraph (A)(iii), by striking ``not less than 
     $3,000 and not more than $10,000'' and inserting ``not less 
     than $25,000 and not more than $40,00'';
       (2) in subsection (e)(5)--
       (A) by inserting ``, subject to paragraph (10),'' after 
     ``in an amount'';
       (B) by striking ``$100 and not more than $1,000'' and 
     inserting ``$1,000 and not more than $25,000''; and
       (C) by adding at the end the following sentence: 
     ``Providing information to the basic pilot program described 
     in section 403(a) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
     that the person or entity knows or reasonably believes to be 
     false, shall be treated as a violation of subsection 
     (a)(1)(A) and shall not qualify for the exemption provided by 
     (e)(10).'';
       (3) by adding at the end of subsection (e) the following 
     new paragraph:
       ``(10) Exemption from penalty for employers participating 
     in the basic pilot program.--In the case of imposition of a

[[Page S942]]

     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 by an employer 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 shall be waived if the violator establishes that it 
     was voluntarily participating in the basic pilot electronic 
     verification program at the time of the offense.'';
       (4) by amending paragraph (1) of subsection (f) to read as 
     follows:
       ``(1) Criminal penalty.--Any person or entity which engages 
     in a pattern or practice of violations of paragraph (1) or 
     (2) of subsection (a) shall be fined not less than $3,000 and 
     more than $50,000 for each unauthorized alien with respect to 
     which such a violation occurs, imprisoned for not less than 
     one year, or both, notwithstanding the provisions of any 
     other Federal law relating to fine levels.''; and
       (5) in subsection (f)(2), by striking ``Attorney General'' 
     each place it appears and inserting ``Secretary of Homeland 
     Security''.
       (b) Retention and Use of Employment Eligibility 
     Verification Documents.--
       (1) Retention.--Section 274A(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1324a(b)) is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Copying and retention of documentation.--
       ``(A) In general.--A person or entity required to examine a 
     document described in subparagraph (B), (C), or (D) of 
     paragraph (1) or receive an attestation described in 
     paragraph (2) shall retain a paper, microfiche, microfilm, or 
     electronic version of each such document and attestation, 
     indicate that each such version is a copied document, and 
     make such versions available for inspection by an officer of 
     the Department of Homeland Security or any other person 
     designated by the Secretary, the Special Counsel for 
     Immigration-Related Unfair Employment Practices of the 
     Department of Justice, or the Secretary of Labor during the 
     period beginning on the date of the hiring, or recruiting or 
     referring for a fee, of the individual and ending--
       ``(i) in the case of the recruiting or referral for a fee 
     (without hiring) of an individual, 5 years after the date of 
     the recruiting or referral; or
       ``(ii) in the case of the hiring of an individual the later 
     of--

       ``(I) 5 years after the date of such hiring; or
       ``(II) 1 year after the date the individual's employment is 
     terminated.

       ``(B) Other records.--Such person or entity shall maintain 
     records of any action taken and copies of any correspondence 
     written or received with respect to the verification of an 
     individual's identity or eligibility for employment in the 
     United States.''.
       (2) Limitation on use of retained documents.--Paragraph (5) 
     of section 274A(b) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(b)) is amended--
       (A) in the heading, by striking ``Limitation on use of 
     attestation form'' and inserting ``Attestation form'';
       (B) by redesignating such paragraph (5) as subparagraph 
     (A);
       (C) by indenting such subparagraph, as so designated, six 
     ems from the left margin;
       (D) by inserting before such subparagraph, as so 
     designated, the following:
       ``(5) Limitation on use.--''; and
       (E) by inserting after such subparagraph, as so designated, 
     the following new subparagraph:
       ``(B) Retained documents.--A person or entity required to 
     retain versions of documents or attestations or maintain 
     records under paragraph (4) shall use any such version, 
     attestation, or record only for the purposes of complying 
     with the requirements of this subsection, except as otherwise 
     permitted under law.''.
       (c) Extension of the Basic Pilot Program.--Section 403(a) 
     of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended 
     by adding at the end the following new paragraph:
       ``(5) Individuals covered.--Notwithstanding any other 
     provision of this title, a person or other entity that elects 
     to participate in the basic pilot program shall follow the 
     procedures described in paragraphs (1) thorough (4) for each 
     individual who the person or entity hires (or recruits or 
     refers) for employment and for each individual who is 
     employed by the person or entity.''.

     SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

       Section 274A(e) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(e)) is amended by adding at the end the 
     following new paragraph:
       ``(10) Prohibition on award of government contracts, 
     grants, and agreements.--
       ``(A) Employers with no contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subparagraph 
     (C), if an employer who does not hold a Federal contract, 
     grant, or cooperative agreement is determined to have 
     violated this section, the employer shall be debarred from 
     the receipt of a Federal contract, grant, or cooperative 
     agreement for a period of 7 years.
       ``(ii) Placement on excluded list.--The Secretary of 
     Homeland Security or the Attorney General shall advise the 
     Administrator of General Services of the debarment of an 
     employer under clause (i) and the Administrator of General 
     Services shall list the employer on the List of Parties 
     Excluded from Federal Procurement and Nonprocurement Programs 
     for a period of 7 years.
       ``(iii) Waiver.--

       ``(I) Authority.--The Administrator of General Services, in 
     consultation with the Secretary of Homeland Security and the 
     Attorney General, may waive operation of clause (i) or may 
     limit the duration or scope of a debarment under clause (i) 
     if such waiver or limitation is necessary to national defense 
     or in the interest of national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House of Representatives immediate notice of 
     such waiver or limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternative action under this clause 
     shall not be judicially reviewed.

       ``(B) Employers with contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subclause 
     (C), an employer who holds a Federal contract, grant, or 
     cooperative agreement and is determined to have violated this 
     section shall be debarred from the receipt of new Federal 
     contracts, grants, or cooperative agreements for a period of 
     10 years.
       ``(ii) Notice to agencies.--Prior to debarring the employer 
     under clause (i), the Secretary of Homeland Security, in 
     cooperation with the Administrator of General Services, shall 
     advise any agency or department holding a contract, grant, or 
     cooperative agreement with the employer of the Government's 
     intention to debar the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 10 years.
       ``(iii) Waiver.--

       ``(I) Authority.--After consideration of the views of any 
     agency or department that holds a contract, grant, or 
     cooperative agreement with the employer, the Administrator of 
     General Services, in consultation with the Secretary of 
     Homeland Security and the Attorney General, may waive 
     operation of clause (i) or may limit the duration or scope of 
     the debarment under clause (i) if such waiver or limitation 
     is necessary to the national defense or in the interest of 
     national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House of Representatives immediate notice of 
     such waiver or limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternate action under this clause 
     shall not be judicially reviewed.

       ``(C) Exemption from penalty for employers participating in 
     the basic pilot program.--In the case of imposition on an 
     employer of a debarment from the receipt of a Federal 
     contract, grant, or cooperative agreement under subparagraph 
     (A) or (B), that penalty shall be waived if the employer 
     establishes that the employer was voluntarily participating 
     in the basic pilot program under section 403(a) of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (8 U.S.C. 1324a note) at the time of the violations 
     of this section that resulted in the debarment.''.
                                 ______
                                 
  SA 143. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

                TITLE II--UNLAWFUL EMPLOYMENT OF ALIENS

     SEC. 201. UNLAWFUL EMPLOYMENT OF ALIENS.

       (a) In General.--Section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a) is amended to read as 
     follows:

     ``SEC. 274A. UNLAWFUL EMPLOYMENT OF ALIENS.

       ``(a) Making Employment of Unauthorized Aliens Unlawful.--
       ``(1) In general.--It is unlawful for an employer--
       ``(A) to hire, or to recruit or refer for a fee, an alien 
     for employment in the United States knowing, or with reckless 
     disregard, that the alien is an unauthorized alien with 
     respect to such employment; or
       ``(B) to hire, or to recruit or refer for a fee, for 
     employment in the United States an individual unless such 
     employer meets the requirements of subsections (c) and (d).
       ``(2) Continuing employment.--It is unlawful for an 
     employer, after lawfully hiring an alien for employment, to 
     continue to employ the alien in the United States knowing 
     that the alien is (or has become) an unauthorized alien with 
     respect to such employment.
       ``(3) Use of labor through contract.--
       ``(A) In general.--An employer who uses a contract, 
     subcontract, or exchange to obtain the labor of an alien in 
     the United States knowing, or with reckless disregard--
       ``(i) that the alien is an unauthorized alien with respect 
     to performing such labor, shall be considered to have hired 
     the alien in violation of paragraph (1)(A); or
       ``(ii) that the person hiring such alien failed to comply 
     with the requirements of

[[Page S943]]

     subsections (c) and (d) shall be considered to have hired the 
     alien in violation of paragraph (1)(B).
       ``(B) Information sharing.--The person hiring the alien 
     shall provide to the employer, who obtains the labor of the 
     alien, the employer identification number assigned to such 
     person by the Commissioner of Internal Revenue. Failure to 
     provide such number shall be considered a recordkeeping 
     violation under subsection (e)(4)(B).
       ``(C) Reporting requirement.--The employer shall submit to 
     the Electronic Verification System established under 
     subsection (d), in a manner prescribed by the Secretary, the 
     employer identification number provided by the person hiring 
     the alien. Failure to submit such number shall be considered 
     a recordkeeping violation under subsection (e)(4)(B).
       ``(D) Enforcement.--The Secretary shall implement 
     procedures to utilize the information obtained under 
     subparagraphs (B) and (C) to identify employers who use a 
     contract, subcontract, or exchange to obtain the labor of an 
     alien from another person, where such person hiring such 
     alien fails to comply with the requirements of subsections 
     (c) and (d).
       ``(4) Defense.--
       ``(A) In general.--Subject to subparagraph (B), an employer 
     that establishes that the employer has complied in good faith 
     with the requirements of subsections (c) and (d) has 
     established an affirmative defense that the employer has not 
     violated paragraph (1)(A) with respect to such hiring, 
     recruiting, or referral.
       ``(B) Exception.--Until the date that an employer is 
     required to participate in the Electronic Employment 
     Verification System under subsection (d) or is participating 
     in such System on a voluntary basis, the employer may 
     establish an affirmative defense under subparagraph (A) by 
     complying with the requirements of subsection (c).
       ``(b) Order of Internal Review and Certification of 
     Compliance.--
       ``(1) Authority to require certification.--If the Secretary 
     has reasonable cause to believe that an employer has failed 
     to comply with this section, the Secretary is authorized, at 
     any time, to require that the employer certify that the 
     employer is in compliance with this section, or has 
     instituted a program to come into compliance.
       ``(2) Content of certification.--Not later than 60 days 
     after the date an employer receives a request for a 
     certification under paragraph (1) the employer shall certify 
     under penalty of perjury that--
       ``(A) the employer is in compliance with the requirements 
     of subsections (c) and (d); or
       ``(B) that the employer has instituted a program to come 
     into compliance with such requirements.
       ``(3) Extension.--The 60-day period referred to in 
     paragraph (2), may be extended by the Secretary for good 
     cause, at the request of the employer.
       ``(4) Publication.--The Secretary is authorized to publish 
     in the Federal Register standards or methods for 
     certification under paragraph (1) and for specific 
     recordkeeping practices with respect to such certification, 
     and procedures for the audit of any records related to such 
     certification.
       ``(c) Document Verification Requirements.--An employer 
     hiring, or recruiting or referring for a fee, an individual 
     for employment in the United States shall verify that the 
     individual is eligible for such employment by meeting the 
     following requirements:
       ``(1) Attestation by employer.--
       ``(A) Requirements.--
       ``(i) In general.--The employer shall attest, under penalty 
     of perjury and on a form prescribed by the Secretary, that 
     the employer has verified the identity and eligibility for 
     employment of the individual by examining a document 
     described in subparagraph (B).
       ``(ii) Signature requirements.--An attestation required by 
     clause (i) may be manifested by a handwritten or electronic 
     signature.
       ``(iii) Standards for examination.--The employer has 
     complied with the requirement of this paragraph with respect 
     to examination of documentation if a reasonable person would 
     conclude that the document examined is genuine and relates to 
     the individual whose identity and eligibility for employment 
     in the United States is being verified. If the individual 
     provides a document sufficient to meet the requirements of 
     this paragraph, nothing in this paragraph shall be construed 
     as requiring an employer to solicit any other document or as 
     requiring the individual to produce any other document.
       ``(B) Identification documents.--A document described in 
     this subparagraph is--
       ``(i) in the case of an individual who is a national of the 
     United States--

       ``(I) a United States passport; or
       ``(II) a driver's license or identity card issued by a 
     State, the Commonwealth of the Northern Mariana Islands, or 
     an outlying possession of the United States that satisfies 
     the requirements of division B of Public Law 109-13 (119 
     Stat. 302);

       ``(ii) in the case of an alien lawfully admitted for 
     permanent residence in the United States, a permanent 
     resident card, as specified by the Secretary;
       ``(iii) in the case of an alien who is authorized under 
     this Act or by the Secretary to be employed in the United 
     States, an employment authorization card, as specified by the 
     Secretary that--

       ``(I) contains a photograph of the individual or other 
     identifying information, including name, date of birth, 
     gender, and address; and
       ``(II) contains security features to make the document 
     resistant to tampering, counterfeiting, and fraudulent use;

       ``(iv) in the case of an individual who is unable to obtain 
     a document described in clause (i), (ii), or (iii), a 
     document designated by the Secretary that--

       ``(I) contains a photograph of the individual or other 
     identifying information, including name, date of birth, 
     gender, and address; and
       ``(II) contains security features to make the document 
     resistant to tampering, counterfeiting, and fraudulent use; 
     or

       ``(v) until the date that an employer is required to 
     participate in the Electronic Employment Verification System 
     under subsection (d) or is participating in such System on a 
     voluntary basis, a document, or a combination of documents, 
     of such type that, as of the date of the enactment of the 
     Fair Minimum Wage Act of 2007, the Secretary had established 
     by regulation were sufficient for purposes of this section.
       ``(C) Authority to prohibit use of certain documents.--
       ``(i) Authority.--If the Secretary finds that a document or 
     class of documents described in subparagraph (B) is not 
     reliable to establish identity or is being used fraudulently 
     to an unacceptable degree, the Secretary shall prohibit, or 
     impose conditions, on the use of such document or class of 
     documents for purposes of this subsection.
       ``(ii) Requirement for publication.--The Secretary shall 
     publish notice of any findings under clause (i) in the 
     Federal Register.
       ``(2) Attestation of employee.--
       ``(A) Requirements.--
       ``(i) In general.--The individual shall attest, under 
     penalty of perjury on the form described in paragraph 
     (1)(A)(i), that the individual is a national of the United 
     States, an alien lawfully admitted for permanent residence, 
     or an alien who is authorized under this Act or by the 
     Secretary to be hired, or to be recruited or referred for a 
     fee, in the United States.
       ``(ii) Signature for examination.--An attestation required 
     by clause (i) may be manifested by a handwritten or 
     electronic signature.
       ``(B) Penalties.--An individual who falsely represents that 
     the individual is eligible for employment in the United 
     States in an attestation required by subparagraph (A) shall, 
     for each such violation, be subject to a fine of not more 
     than $5,000, a term of imprisonment not to exceed 3 years, or 
     both.
       ``(3) Retention of attestation.--The employer shall retain 
     a paper, microfiche, microfilm, or electronic version of the 
     attestations made under paragraph (1) and (2) and make such 
     attestations available for inspection by an officer of the 
     Department of Homeland Security, any other person designated 
     by the Secretary, the Special Counsel for Immigration-Related 
     Unfair Employment Practices of the Department of Justice, or 
     the Secretary of Labor during a period beginning on the date 
     of the hiring, or recruiting or referring for a fee, of the 
     individual and ending--
       ``(A) in the case of the recruiting or referral for a fee 
     (without hiring) of an individual, 5 years after the date of 
     the recruiting or referral; or
       ``(B) in the case of the hiring of an individual the later 
     of--
       ``(i) 5 years after the date of such hiring;
       ``(ii) 1 year after the date the individual's employment is 
     terminated; or
       ``(iii) in the case of an employer or class of employers, a 
     period that is less than the applicable period described in 
     clause (i) or (ii) if the Secretary reduces such period for 
     such employer or class of employers.
       ``(4) Document retention and recordkeeping requirements.--
       ``(A) Retention of documents.--Notwithstanding any other 
     provision of law, an employer shall retain, for the 
     applicable period described in paragraph (3), the following 
     documents:
       ``(i) In general.--The employer shall copy all documents 
     presented by an individual described in paragraph (1)(B) and 
     shall retain paper, microfiche, microfilm, or electronic 
     copies of such documents. Such copies shall be designated as 
     copied documents.
       ``(ii) Other documents.--The employer shall maintain 
     records of any action taken and copies of any correspondence 
     written or received with respect to the verification of an 
     individual's identity or eligibility for employment in the 
     United States.
       ``(B) Use of retained documents.--An employer shall use 
     copies retained under clause (i) or (ii) of subparagraph (A) 
     only for the purposes of complying with the requirements of 
     this subsection, except as otherwise permitted under law.
       ``(5) Penalties.--An employer that fails to comply with the 
     recordkeeping requirements of this subsection shall be 
     subject to the penalties described in subsection (e)(4)(B).
       ``(6) No authorization of national identification cards.--
     Nothing in this section may be construed to authorize, 
     directly or indirectly, the issuance, use, or establishment 
     of a national identification card.
       ``(d) Electronic Employment Verification System.--
       ``(1) Requirement for system.--The Secretary, in 
     cooperation with the Commissioner of Social Security, shall 
     implement an Electronic Employment Verification System 
     (referred to in this subsection as the `System') to determine 
     whether--

[[Page S944]]

       ``(A) the identifying information submitted by an 
     individual is consistent with the information maintained by 
     the Secretary or the Commissioner of Social Security; and
       ``(B) such individual is eligible for employment in the 
     United States.
       ``(2) Requirement for participation.--The Secretary shall 
     require all employers in the United States to participate in 
     the System, with respect to all employees hired by the 
     employer on or after the date that is 18 months after the 
     date that not less than $400,000,000 have been appropriated 
     and made available to implement this subsection.
       ``(3) Other participation in system.--Notwithstanding 
     paragraph (2), the Secretary has the authority--
       ``(A) to permit any employer that is not required to 
     participate in the System under paragraph (2) to participate 
     in the System on a voluntary basis; and
       ``(B) to require any employer or class of employers to 
     participate on a priority basis in the System with respect to 
     individuals employed as of, or hired after, the date of 
     enactment of the Fair Minimum Wage Act of 2007--
       ``(i) if the Secretary designates such employer or class of 
     employers as a critical employer based on an assessment of 
     homeland security or national security needs; or
       ``(ii) if the Secretary has reasonable cause to believe 
     that the employer has engaged in material violations of 
     paragraph (1), (2), or (3) of subsection (a).
       ``(4) Requirement to notify.--The Secretary shall notify 
     the employer or class of employers in writing regarding the 
     requirement for participation in the System under paragraph 
     (3)(B) not less than 60 days prior to the effective date of 
     such requirement. Such notice shall include the training 
     materials described in paragraph (8)(E)(v).
       ``(5) Registration of employers.--An employer shall 
     register the employer's participation in the System in the 
     manner prescribed by the Secretary prior to the date the 
     employer is required or permitted to submit information with 
     respect to an employee under this subsection.
       ``(6) Additional guidance.--A registered employer shall be 
     permitted to utilize any technology that is consistent with 
     this section and with any regulation or guidance from the 
     Secretary to streamline the procedures to facilitate 
     compliance with--
       ``(A) the attestation requirement in subsection (c); and
       ``(B) the employment eligibility verification requirements 
     in this subsection.
       ``(7) Consequence of failure to participate.--If an 
     employer is required to participate in the System and fails 
     to comply with the requirements of the System with respect to 
     an employee--
       ``(A) such failure shall be treated as a violation of 
     subsection (a)(1)(B); and
       ``(B) a rebuttable presumption is created that the employer 
     has violated subsection (a)(1)(A), however, such presumption 
     may not apply to a prosecution under subsection (f)(1).
       ``(8) Design and operation of system.--
       ``(A) In general.--The Secretary shall, through the 
     System--
       ``(i) respond to each inquiry made by a registered employer 
     through the Internet or other electronic media, or over a 
     toll-free telephone line regarding an individual's identity 
     and eligibility for employment in the United States; and
       ``(ii) maintain a record of each such inquiry and the 
     information provided in response to such inquiry.
       ``(B) Initial inquiry.--
       ``(i) Information required.--A registered employer shall, 
     with respect to the hiring, or recruiting or referring for a 
     fee, any individual for employment in the United States, 
     obtain from the individual and record on the form described 
     in subsection (c)(1)(A)(i)--

       ``(I) the individual's name and date of birth and, if the 
     individual was born in the United States, the State in which 
     such individual was born;
       ``(II) the individual's social security account number;
       ``(III) the employment identification number of the 
     individual's employer during any one of the 5 most recently 
     completed calendar years; and
       ``(IV) in the case of an individual who does not attest 
     that the individual is a national of the United States under 
     subsection (c)(1)(A)(i), such alien identification or 
     authorization number that the Secretary shall require.

       ``(ii) Submission to system.--A registered employer shall 
     submit an inquiry through the System to seek confirmation of 
     the individual's identity and eligibility for employment in 
     the United States--

       ``(I) not later than 3 days after the date of the hiring, 
     or recruiting or referring for a fee, of the individual (as 
     the case may be); or
       ``(II) in the case of an employee hired by a critical 
     employer designated by the Secretary under paragraph (3)(B) 
     at such time as the Secretary shall specify.

       ``(iii) EIN requirements.--

       ``(I) Requirement to provide.--An employer shall provide 
     the employer identification number issued to such employer to 
     the individual, upon request, for purposes of providing the 
     information under clause (i)(III).
       ``(II) Requirement to affirmatively state a lack of recent 
     employment.--An individual providing information under clause 
     (i)(III) who was not employed in the United States during any 
     of the 5 most recently completed calendar years shall 
     affirmatively state on the form described in subsection 
     (c)(1)(A)(i) that no employer identification number is 
     provided because the individual was not employed in the 
     United States during such period.

       ``(C) Initial response.--Not later than 10 days after an 
     employer submits an inquiry to the System regarding an 
     individual, the Secretary shall provide, through the System, 
     to the employer--
       ``(i) if the System is able to confirm the individual's 
     identity and eligibility for employment in the United States, 
     a confirmation notice, including the appropriate codes on 
     such confirmation notice; or
       ``(ii) if the System is unable to confirm the individual's 
     identity or eligibility for employment in the United States, 
     and after a secondary manual verification has been conducted, 
     a tentative nonconfirmation notice, including the appropriate 
     codes on such tentative nonconfirmation notice.
       ``(D) Confirmation or nonconfirmation.--
       ``(i) Confirmation upon initial inquiry.--If an employer 
     receives a confirmation notice under paragraph (C)(i) for an 
     individual, the employer shall record, on the form described 
     in subsection (c)(1)(A)(i), the appropriate code provided in 
     such notice.
       ``(ii) Tentative nonconfirmation.--If an employer receives 
     a tentative nonconfirmation notice under paragraph (C)(ii) 
     for an individual, the employer shall inform such individual 
     of the issuance of such notice in writing, on a form 
     prescribed by the Secretary not later than 3 days after 
     receiving such notice. Such individual shall acknowledge 
     receipt of such notice in writing on the form described in 
     subsection (c)(1)(A)(i).
       ``(iii) No contest.--If the individual does not contest the 
     tentative nonconfirmation notice within 10 days of receiving 
     notice from the individual's employer, the notice shall 
     become final and the employer shall record on the form 
     described in subsection (1)(A)(i), the appropriate code 
     provided through the System to indicate the individual did 
     not contest the tentative nonconfirmation. An individual's 
     failure to contest a tentative nonconfirmation shall not be 
     considered an admission of guilt with respect to any 
     violation of this Act or any other provision of law.
       ``(iv) Contest.--If the individual contests the tentative 
     nonconfirmation notice, the individual shall submit 
     appropriate information to contest such notice under the 
     procedures established in subparagraph (E)(iii) not later 
     than 10 days after receiving the notice from the individual's 
     employer.
       ``(v) Effective period of tentative nonconfirmation 
     notice.--A tentative nonconfirmation notice shall remain in 
     effect until such notice becomes final under clause (iii), or 
     the earlier of--

       ``(I) a final confirmation notice or final nonconfirmation 
     notice is issued through the System; or
       ``(II) 30 days after the individual contests a tentative 
     nonconfirmation under clause (iv).

       ``(vi) Automatic final notice.--

       ``(I) In general.--If a final notice is not issued within 
     the 30-day period described in clause (v)(II), the Secretary 
     shall automatically provide to the employer, through the 
     System, the appropriate code indicating a final notice.
       ``(II) Period prior to initial certification.--During the 
     period beginning on the date of the enactment of the Fair 
     Minimum Wage Act of 2007 and ending on the date the Secretary 
     submits the initial report described in subparagraph (E)(ii), 
     an automatic notice issued under subclause (I) shall be a 
     final confirmation notice.
       ``(III) Period after initial certification.--After the date 
     that the Secretary submits the initial report described in 
     subparagraph (E)(ii), an automatic notice issued under 
     subclause (I) shall be a final confirmation notice unless the 
     most recent such report includes a certification that the 
     System is able to correctly issue, within the period 
     beginning on the date an employer submits an inquiry to the 
     System and ending on the date an automatic default notice 
     would be issued by the System, a final notice in at least 99 
     percent of the cases in which the notice relates to an 
     individual who is eligible for employment in the United 
     States. If the most recent such report includes such a 
     certification, the automatic notice issued under subclause 
     (I) shall be a final nonconfirmation notice.
       ``(IV) Additional authority.--Notwithstanding the second 
     sentence of subclause (III), the Secretary shall have the 
     authority to issue a final confirmation notice for an 
     individual who would be subject to a final nonconfirmation 
     notice under such sentence. In such a case, the Secretary 
     shall determine the individual's eligibility for employment 
     in the United States and record the results of such 
     determination in the System within 12 months.

       ``(vii) Effective period of final notice.--A final 
     confirmation notice issued under this paragraph for an 
     individual shall remain in effect--

       ``(I) during any continuous period of employment of such 
     individual by such employer, unless the Secretary determines 
     the final confirmation was the result of identity fraud; or
       ``(II) in the case of an alien authorized to be employed in 
     the United States for a temporary period, during such period.

       ``(viii) Prohibition on termination.--An employer may not 
     terminate the employment of an individual based on a 
     tentative

[[Page S945]]

     nonconfirmation notice until such notice becomes final under 
     clause (iii) or a final nonconfirmation notice is issued for 
     the individual by the System. Nothing in this clause shall 
     prohibit the termination of employment for any reason other 
     than such tentative nonconfirmation.
       ``(ix) Recording of contest resolution.--The employer shall 
     record on the form described in subsection (c)(1)(A)(i) the 
     appropriate code that is provided through the System to 
     indicate a final confirmation notice or final nonconfirmation 
     notice.
       ``(x) Consequences of nonconfirmation.--If the employer has 
     received a final nonconfirmation regarding an individual, the 
     employer shall terminate the employment, recruitment, or 
     referral of the individual. Such employer shall provide to 
     the Secretary any information relating to the individual that 
     the Secretary determines would assist the Secretary in 
     enforcing or administering the immigration laws. If the 
     employer continues to employ, recruit, or refer the 
     individual after receiving final nonconfirmation, a 
     rebuttable presumption is created that the employer has 
     violated subsections (a)(1)(A) and (a)(2). Such presumption 
     may not apply to a prosecution under subsection (f)(1).
       ``(E) Responsibilities of the secretary.--
       ``(i) In general.--The Secretary shall establish a 
     reliable, secure method to provide through the System, within 
     the time periods required by this subsection--

       ``(I) a determination of whether the name and alien 
     identification or authorization number provided in an inquiry 
     by an employer is consistent with such information maintained 
     by the Secretary in order to confirm the validity of the 
     information provided; and
       ``(II) a determination of whether the individual is 
     authorized to be employed in the United States.

       ``(ii) Annual report and certification.--Not later than the 
     date that is 24 months after the date that not less than 
     $400,000,000 have been appropriated and made available to the 
     Secretary to implement this subsection, and annually 
     thereafter, the Secretary shall submit to Congress a report 
     that includes--

       ``(I) an assessment of whether the System is able to 
     correctly issue, within the period described in subparagraph 
     (D)(v)(II), a final notice in at least 99 percent of the 
     cases in which the final notice relates to an individual who 
     is eligible for employment in the United States (excluding an 
     individual who fails to contest a tentative nonconfirmation 
     notice); and
       ``(II) if the assessment under subclause (I) is that the 
     System is able to correctly issue within the specified time 
     period a final notice in at least 99 percent of the cases 
     described in such subclause, a certification of such 
     assessment.

       ``(iii) Contest and self-verification.--The Secretary in 
     consultation with the Commissioner of Social Security, shall 
     establish procedures to permit an individual who contests a 
     tentative or final nonconfirmation notice, or seeks to verify 
     the individual's own employment eligibility prior to 
     obtaining or changing employment, to contact the appropriate 
     agency and, in a timely manner, correct or update the 
     information used by the System.
       ``(iv) Information to employee.--The Secretary shall 
     develop a written form for employers to provide to 
     individuals who receive a tentative or final nonconfirmation 
     notice. Such form shall be made available in a language other 
     than English, as necessary and reasonable, and shall 
     include--

       ``(I) information about the reason for such notice;
       ``(II) the right to contest such notice;
       ``(III) contact information for the appropriate agency and 
     instructions for initiating such contest; and
       ``(IV) a 24-hour toll-free telephone number to respond to 
     inquiries related to such notice.

       ``(v) Training materials.--The Secretary shall make 
     available or provide to the employer, upon request, not later 
     than 60 days prior to such employer's participation in the 
     System, appropriate training materials to facilitate 
     compliance with this subsection, and sections 274B(a)(7) and 
     274C(a).
       ``(F) Responsibilities of the commissioner of social 
     security.--The responsibilities of the Commissioner of Social 
     Security with respect to the System are set out in section 
     205(c)(2) of the Social Security Act.
       ``(9) Protection from liability.--No employer that 
     participates in the System shall be liable under any law for 
     any employment-related action taken with respect to an 
     individual in good faith reliance on information provided by 
     the System.
       ``(10) Administrative review.--
       ``(A) In general.--An individual who is terminated from 
     employment as a result of a final nonconfirmation notice may, 
     not later than 60 days after the date of such termination, 
     file an appeal of such notice.
       ``(B) Procedures.--The Secretary and Commissioner of Social 
     Security shall develop procedures to review appeals filed 
     under subparagraph (A) and to make final determinations on 
     such appeals.
       ``(C) Review for errors.--If a final determination on an 
     appeal filed under subparagraph (A) results in a confirmation 
     of an individual's eligibility to work in the United States, 
     the administrative review process shall require the Secretary 
     to determine if the final nonconfirmation notice issued for 
     the individual was the result of--
       ``(i) an error or negligence on the part of an employee or 
     official operating or responsible for the System;
       ``(ii) the decision rules, processes, or procedures 
     utilized by the System; or
       ``(iii) erroneous system information that was not the 
     result of acts or omissions of the individual.
       ``(D) Compensation for error.--
       ``(i) In general.--If the Secretary makes a determination 
     under subparagraph (C) that the final nonconfirmation notice 
     issued for an individual was not caused by an act or omission 
     of the individual, the Secretary shall compensate the 
     individual for lost wages.
       ``(ii) Calculation of lost wages.--Lost wages shall be 
     calculated based on the wage rate and work schedule that 
     prevailed prior to termination. The individual shall be 
     compensated for wages lost beginning on the first scheduled 
     work day after employment was terminated and ending 180 days 
     after completion of the administrative review process 
     described in this paragraph or the day after the individual 
     is reinstated or obtains employment elsewhere, whichever 
     occurs first.
       ``(E) Limitation on compensation.--For purposes of 
     determining an individual's compensation for the loss of 
     employment, such compensation shall not include any period in 
     which the individual was ineligible for employment in the 
     United States.
       ``(F) Source of funds.--Compensation or reimbursement 
     provided under this paragraph shall not be provided from 
     funds appropriated in annual appropriations Acts to the 
     Secretary for the Department of Homeland Security.
       ``(11) Judicial review.--
       ``(A) In general.--After the Secretary makes a final 
     determination on an appeal filed by an individual under the 
     administrative review process described in paragraph (10), 
     the individual may obtain judicial review of such 
     determination by a civil action commenced not later than 60 
     days after the date of such decision, or such further time as 
     the Secretary may allow.
       ``(B) Jurisdiction.--A civil action for such judicial 
     review shall be brought in the district court of the United 
     States for the judicial district in which the plaintiff 
     resides, or has a principal place of business, or, if the 
     plaintiff does not reside or have a principal place of 
     business within any such judicial district, in the District 
     Court of the United States for the District of Columbia.
       ``(C) Answer.--As part of the Secretary's answer to a 
     complaint for such judicial review, the Secretary shall file 
     a certified copy of the administrative record compiled during 
     the administrative review under paragraph (10), including the 
     evidence upon which the findings and decision complained of 
     are based. The court shall have power to enter, upon the 
     pleadings and transcript of the record, a judgment affirming 
     or reversing the result of that administrative review, with 
     or without remanding the cause for a rehearing.
       ``(D) Compensation for error.--
       ``(i) In general.--In cases in which such judicial review 
     reverses the final determination of the Secretary made under 
     paragraph (10), the court shall compensate the individual for 
     lost wages.
       ``(ii) Calculation of lost wages.--Lost wages shall be 
     calculated based on the wage rate and work scheduled that 
     prevailed prior to termination. The individual shall be 
     compensated for wages lost beginning on the first scheduled 
     work day after employment was terminated and ending 180 days 
     after completion of the judicial review described in this 
     paragraph or the day after the individual is reinstated or 
     obtains employment elsewhere, whichever occurs first.
       ``(12) Limitation on collection and use of data.--
       ``(A) Limitation on collection of data.--
       ``(i) In general.--The System shall collect and maintain 
     only the minimum data necessary to facilitate the successful 
     operation of the System, and in no case shall the data be 
     other than--

       ``(I) information necessary to register employers under 
     paragraph (5);
       ``(II) information necessary to initiate and respond to 
     inquiries or contests under paragraph (8);
       ``(III) information necessary to establish and enforce 
     compliance with paragraphs (5) and (8);
       ``(IV) information necessary to detect and prevent 
     employment related identity fraud; and
       ``(V) such other information the Secretary determines is 
     necessary, subject to a 180 day notice and comment period in 
     the Federal Register.

       ``(ii) Penalties.--Any officer, employee, or contractor who 
     willfully and knowingly collects and maintains data in the 
     System other than data described in clause (i) shall be 
     guilty of a misdemeanor and fined not more than $1,000 for 
     each violation.
       ``(B) Limitation on use of data.--Whoever willfully and 
     knowingly accesses, discloses, or uses any information 
     obtained or maintained by the System--
       ``(i) for the purpose of committing identity fraud, or 
     assisting another person in committing identity fraud, as 
     defined in section 1028 of title 18, United States Code;
       ``(ii) for the purpose of unlawfully obtaining employment 
     in the United States or unlawfully obtaining employment in 
     the United States for any other person; or
       ``(iii) for any purpose other than as provided for under 
     any provision of law;

[[Page S946]]

     shall be guilty of a felony and upon conviction shall be 
     fined under title 18, United States Code, or imprisoned for 
     not more than 5 years, or both.
       ``(C) Exceptions.--Nothing in subparagraph (A) or (B) may 
     be construed to limit the collection, maintenance, or use of 
     data by the Commissioner of Internal Revenue or the 
     Commissioner of Social Security as provided by law.
       ``(13) Modification authority.--The Secretary, after notice 
     is submitted to Congress and provided to the public in the 
     Federal Register, is authorized to modify the requirements of 
     this subsection with respect to completion of forms, method 
     of storage, attestations, copying of documents, signatures, 
     methods of transmitting information, and other operational 
     and technical aspects to improve the efficiency, accuracy, 
     and security of the System.
       ``(14) Annual gao study and report.--
       ``(A) Requirement.--The Comptroller General of the United 
     States shall conduct an annual study of the System.
       ``(B) Purpose.--The study shall evaluate the accuracy, 
     efficiency, integrity, and impact of the System.
       ``(C) Report.--Not later than the date that is 24 months 
     after the date that not less than $400,000,000 have been 
     appropriated and made available to the Secretary to implement 
     this subsection, and annually thereafter, the Comptroller 
     General shall submit to Congress a report containing the 
     findings of the study carried out under this paragraph. Each 
     such report shall include, at a minimum, the following:
       ``(i) An assessment of the annual report and certification 
     described in paragraph (8)(E)(ii).
       ``(ii) An assessment of System performance with respect to 
     the rate at which individuals who are eligible for employment 
     in the United States are correctly approved within each of 
     the periods specified in paragraph (8), including a separate 
     assessment of such rate for nationals and aliens.
       ``(iii) An assessment of the privacy and security of the 
     System and its effects on identity fraud or the misuse of 
     personal data.
       ``(iv) An assessment of the effects of the System on the 
     employment of unauthorized aliens.
       ``(v) An assessment of the effects of the System, including 
     the effects of tentative confirmations, on unfair 
     immigration-related employment practices and employment 
     discrimination based on national origin or citizenship 
     status.
       ``(vi) An assessment of whether the Secretary and the 
     Commissioner of Social Security have adequate resources to 
     carry out the duties and responsibilities of this section.
       ``(e) Compliance.--
       ``(1) Complaints and investigations.--The Secretary shall 
     establish procedures--
       ``(A) for individuals and entities to file complaints 
     regarding potential violations of subsection (a);
       ``(B) for the investigation of such complaints that the 
     Secretary determines are appropriate to investigate; and
       ``(C) for the investigation of other violations of 
     subsection (a) that the Secretary determines is appropriate.
       ``(2) Authority in investigations.--
       ``(A) In general.--In conducting investigations and 
     hearings under this subsection, officers and employees of the 
     Department of Homeland Security--
       ``(i) shall have reasonable access to examine evidence 
     regarding any employer being investigated; and
       ``(ii) if designated by the Secretary, may compel by 
     subpoena the attendance of witnesses and the production of 
     evidence at any designated place in an investigation or case 
     under this subsection.
       ``(B) Failure to cooperate.--In case of refusal to obey a 
     subpoena lawfully issued under subparagraph (A)(ii), the 
     Secretary may request that the Attorney General apply in an 
     appropriate district court of the United States for an order 
     requiring compliance with such subpoena, and any failure to 
     obey such order may be punished by such court as contempt.
       ``(C) Department of labor.--The Secretary of Labor shall 
     have the investigative authority provided under section 11(a) 
     of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)) to 
     ensure compliance with the provisions of this section.
       ``(3) Compliance procedures.--
       ``(A) Prepenalty notice.--If the Secretary has reasonable 
     cause to believe that there has been a violation of a 
     requirement of this section and determines that further 
     proceedings related to such violation are warranted, the 
     Secretary shall issue to the employer concerned a written 
     notice of the Secretary's intention to issue a claim for a 
     fine or other penalty. Such notice shall--
       ``(i) describe the violation;
       ``(ii) specify the laws and regulations allegedly violated;
       ``(iii) specify the amount of fines or other penalties to 
     be imposed;
       ``(iv) disclose the material facts which establish the 
     alleged violation; and
       ``(v) inform such employer that the employer shall have a 
     reasonable opportunity to make representations as to why a 
     claim for a monetary or other penalty should not be imposed.
       ``(B) Remission or mitigation of penalties.--
       ``(i) Review by secretary.--If the Secretary determines 
     that such fine or other penalty was incurred erroneously, or 
     determines the existence of such mitigating circumstances as 
     to justify the remission or mitigation of such fine or 
     penalty, the Secretary may remit or mitigate such fine or 
     other penalty on the terms and conditions as the Secretary 
     determines are reasonable and just, or order termination of 
     any proceedings related to the notice.
       ``(ii) Applicability.--This subparagraph may not apply to 
     an employer that has or is engaged in a pattern or practice 
     of violations of paragraph (1), (2), or (3) of subsection (a) 
     or of any other requirements of this section.
       ``(C) Penalty claim.--After considering evidence and 
     representations offered by the employer, the Secretary shall 
     determine whether there was a violation and promptly issue a 
     written final determination setting forth the findings of 
     fact and conclusions of law on which the determination is 
     based and the appropriate penalty.
       ``(4) Civil penalties.--
       ``(A) Hiring or continuing to employ unauthorized aliens.--
     Any employer that violates any provision of paragraph (1), 
     (2), or (3) of subsection (a) shall pay civil penalties as 
     follows:
       ``(i) Pay a civil penalty of not less than $500 and not 
     more than $4,000 for each unauthorized alien with respect to 
     each such violation.
       ``(ii) If the employer has previously been fined 1 time 
     during the 12-month period preceding the violation under this 
     subparagraph, pay a civil penalty of not less than $4,000 and 
     not more than $10,000 for each unauthorized alien with 
     respect to each such violation.
       ``(iii) If the employer has previously been fined more than 
     1 time during the 24-month period preceding the violation 
     under this subparagraph or has failed to comply with a 
     previously issued and final order related to any such 
     provision, pay a civil penalty of not less than $6,000 and 
     not more than $20,000 for each unauthorized alien with 
     respect to each such violation.
       ``(B) Recordkeeping or verification practices.--Any 
     employer that violates or fails to comply with the 
     recordkeeping requirements of subsections (a), (c), and (d), 
     shall pay a civil penalty as follows:
       ``(i) Pay a civil penalty of not less than $200 and not 
     more than $2,000 for each such violation.
       ``(ii) If the employer has previously been fined 1 time 
     during the 12-month period preceding the violation under this 
     subparagraph, pay a civil penalty of not less than $400 and 
     not more than $4,000 for each such violation.
       ``(iii) If the employer has previously been fined more than 
     1 time during the 24-month period preceding the violation 
     under this subparagraph or has failed to comply with a 
     previously issued and final order related to such 
     requirements, pay a civil penalty of not less than $600 and 
     not more than $6,000 for each such violation.
       ``(C) Other penalties.--Notwithstanding subparagraphs (A) 
     and (B), the Secretary may impose additional penalties for 
     violations, including violations of cease and desist orders, 
     specially designed compliance plans to prevent further 
     violations, suspended fines to take effect in the event of a 
     further violation, and in appropriate cases, the criminal 
     penalty described in subsection (f).
       ``(5) Judicial review.--An employer adversely affected by a 
     final determination may, within 45 days after the date the 
     final determination is issued, file a petition in any 
     appropriate district court of the United States. The filing 
     of a petition as provided in this paragraph shall stay the 
     Secretary's determination until entry of judgment by the 
     court. The burden shall be on the employer to show that the 
     final determination was not supported by substantial 
     evidence. The Secretary is authorized to require that the 
     petitioner provide, prior to filing for review, security for 
     payment of fines and penalties through bond or other 
     guarantee of payment acceptable to the Secretary.
       ``(6) Enforcement of orders.--If an employer fails to 
     comply with a final determination issued against that 
     employer under this subsection, and the final determination 
     is not subject to review as provided in paragraph (5), the 
     Attorney General may file suit to enforce compliance with the 
     final determination, not earlier than 46 days and not later 
     than 180 days after the date the final determination is 
     issued, in any appropriate district court of the United 
     States. In any such suit, the validity and appropriateness of 
     the final determination shall not be subject to review.
       ``(7) Recovery of costs and attorney's fees.--In any appeal 
     brought under paragraph (5) or suit brought under paragraph 
     (6) of this section the employer shall be entitled to recover 
     from the Secretary reasonable costs and attorney's fees if 
     such employer substantially prevails on the merits of the 
     case. Such an award of attorney's fees may not exceed 
     $25,000. Any such costs and attorney's fees assessed against 
     the Secretary shall be charged against the operating expenses 
     of the Department for the fiscal year in which the assessment 
     is made, and may not be reimbursed from any other source.
       ``(f) Criminal Penalties and Injunctions for Pattern or 
     Practice Violations.--
       ``(1) Criminal penalty.--An employer that engages in a 
     pattern or practice of knowing violations of subsection 
     (a)(1)(A) or (a)(2) shall be fined not more than $20,000 for 
     each unauthorized alien with respect to whom such a violation 
     occurs, imprisoned for not

[[Page S947]]

     more than 3 years for the entire pattern or practice, or 
     both.
       ``(2) Enjoining of pattern or practice violations.--If the 
     Secretary or the Attorney General has reasonable cause to 
     believe that an employer is engaged in a pattern or practice 
     of employment, recruitment, or referral in violation of 
     paragraph (1)(A) or (2) of subsection (a), the Attorney 
     General may bring a civil action in the appropriate district 
     court of the United States requesting a permanent or 
     temporary injunction, restraining order, or other order 
     against the employer, as the Secretary deems necessary.
       ``(g) Adjustment for Inflation.--All penalties and 
     limitations on the recovery of costs and attorney's fees in 
     this section shall be increased every 4 years beginning 
     January 2010 to reflect the percentage increase in the 
     consumer price index for all urban consumers (all items; U.S. 
     city average) for the 48 month period ending with September 
     of the year preceding the year such adjustment is made. Any 
     adjustment under this subparagraph shall be rounded to the 
     nearest dollar.
       ``(h) Prohibition of Indemnity Bonds.--
       ``(1) Prohibition.--It is unlawful for an employer, in the 
     hiring, recruiting, or referring for a fee, of an individual, 
     to require the individual to post a bond or security, to pay 
     or agree to pay an amount, or otherwise to provide a 
     financial guarantee or indemnity, against any potential 
     liability arising under this section relating to such hiring, 
     recruiting, or referring of the individual.
       ``(2) Civil penalty.--Any employer which is determined, 
     after notice and opportunity for mitigation of the monetary 
     penalty under subsection (e), to have violated paragraph (1) 
     of this subsection shall be subject to a civil penalty of 
     $10,000 for each violation and to an administrative order 
     requiring the return of any amounts received in violation of 
     such paragraph to the employee or, if the employee cannot be 
     located, to the Employer Compliance Fund established under 
     section 286(w).
       ``(i) Prohibition on Award of Government Contracts, Grants, 
     and Agreements.--
       ``(1) Employers with no contracts, grants, or agreements.--
       ``(A) In general.--If an employer who does not hold a 
     Federal contract, grant, or cooperative agreement is 
     determined by the Secretary to be a repeat violator of this 
     section or is convicted of a crime under this section, the 
     employer shall be debarred from the receipt of a Federal 
     contract, grant, or cooperative agreement for a period of 5 
     years. The Secretary or the Attorney General shall advise the 
     Administrator of General Services of such a debarment, and 
     the Administrator of General Services shall list the employer 
     on the List of Parties Excluded from Federal Procurement and 
     Nonprocurement Programs for a period of 5 years.
       ``(B) Waiver.--The Administrator of General Services, in 
     consultation with the Secretary and the Attorney General, may 
     waive operation of this subsection or may limit the duration 
     or scope of the debarment.
       ``(2) Employers with contracts, grants, or agreements.--
       ``(A) In general.--An employer who holds a Federal 
     contract, grant, or cooperative agreement and is determined 
     by the Secretary to be a repeat violator of this section or 
     is convicted of a crime under this section, shall be debarred 
     from the receipt of new Federal contracts, grants, or 
     cooperative agreements for a period of 5 years.
       ``(B) Notice to agencies.--Prior to debarring the employer 
     under subparagraph (A), the Secretary, in cooperation with 
     the Administrator of General Services, shall advise any 
     agency or department holding a contract, grant, or 
     cooperative agreement with the employer of the Government's 
     intention to debar the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 5 years.
       ``(C) Waiver.--After consideration of the views of any 
     agency or department that holds a contract, grant, or 
     cooperative agreement with the employer, the Secretary may, 
     in lieu of debarring the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 5 years, waive operation of this subsection, limit 
     the duration or scope of the debarment, or may refer to an 
     appropriate lead agency the decision of whether to debar the 
     employer, for what duration, and under what scope in 
     accordance with the procedures and standards prescribed by 
     the Federal Acquisition Regulation. However, any proposed 
     debarment predicated on an administrative determination of 
     liability for civil penalty by the Secretary or the Attorney 
     General shall not be reviewable in any debarment proceeding. 
     The decision of whether to debar or take alternate action 
     under this subparagraph shall not be judicially reviewed.
       ``(3) Suspension.--Indictments for violations of this 
     section or adequate evidence of actions that could form the 
     basis for debarment under this subsection shall be considered 
     a cause for suspension under the procedures and standards for 
     suspension prescribed by the Federal Acquisition Regulation.
       ``(j) Miscellaneous Provisions.--
       ``(1) Documentation.--In providing documentation or 
     endorsement of authorization of aliens eligible to be 
     employed in the United States, the Secretary shall provide 
     that any limitations with respect to the period or type of 
     employment or employer shall be conspicuously stated on the 
     documentation or endorsement (other than aliens lawfully 
     admitted for permanent residence).
       ``(2) Preemption.--The provisions of this section preempt 
     any State or local law imposing civil or criminal sanctions 
     (other than through licensing and similar laws) upon those 
     who employ, or recruit or refer for a fee for employment, 
     unauthorized aliens.
       ``(k) Deposit of Amounts Received.--Except as otherwise 
     specified, civil penalties collected under this section shall 
     be deposited by the Secretary into the Employer Compliance 
     Fund established under section 286(w).
       ``(l) Definitions.--In this section:
       ``(1) Employer.--The term `employer' means any person or 
     entity, including any entity of the Government of the United 
     States, hiring, recruiting, or referring an individual for 
     employment in the United States.
       ``(2) Secretary.--Except as otherwise provided, the term 
     `Secretary' means the Secretary of Homeland Security.
       ``(3) Unauthorized alien.--The term `unauthorized alien' 
     means, with respect to the employment of an alien at a 
     particular time, that the alien is not at that time either--
       ``(A) an alien lawfully admitted for permanent residence; 
     or
       ``(B) authorized to be so employed by this Act or by the 
     Secretary.''.
       (b) Conforming Amendments.--
       (1) Amendments.--
       (A) Repeal of basic pilot.--Sections 401, 402, 403, 404, 
     and 405 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (division C of Public Law 104-208; 
     8 U.S.C. 1324a note) are repealed.
       (B) Repeal of reporting requirements.--
       (i) Report on earnings of aliens not authorized to work.--
     Subsection (c) of section 290 of the Immigration and 
     Nationality Act (8 U.S.C. 1360) is repealed.
       (ii) Report on fraudulent use of social security account 
     numbers.--Subsection (b) of section 414 of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (division C of Public Law 104-208; 8 U.S.C. 1360 note) is 
     repealed.
       (2) Construction.--Nothing in this subsection or in 
     subsection (d) of section 274A of the Immigration and 
     Nationality Act, as amended by subsection (a), may be 
     construed to limit the authority of the Secretary of Homeland 
     Security to allow or continue to allow the participation of 
     employers who participated in the basic pilot program under 
     sections 401, 402, 403, 404, and 405 of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (division C of Public Law 104-208; 8 U.S.C. 1324a note) in 
     the Electronic Employment Verification System established 
     pursuant to such subsection (d).
       (c) Technical Amendments.--
       (1) Definition of unauthorized alien.--The Immigration and 
     Nationality Act is amended in sections 218(i)(1) (8 U.S.C. 
     1188(i)(1)), 245(c)(8) (8 U.S.C. 1255(c)(8)), 274(a)(3)(B)(i) 
     (8 U.S.C. 1324(a)(3)(B)(i)), and 274B(a)(1) (8 U.S.C. 
     1324b(a)(1)) are amended by striking ``274A(h)(3)'' and 
     inserting ``274A''.
       (2) Document requirements.--Section 274B of the Immigration 
     and Nationality Act (8 U.S.C. 1324b) is amended--
       (A) in subsections (a)(6) and (g)(2)(B), by striking 
     ``274A(b)'' and inserting ``274A(c) and (d)''; and
       (B) in subsection (g)(2)(B)(ii), by striking ``274A(b)(5)'' 
     and inserting ``274A(c)''.
       (d) Amendments to the Social Security Act.--Section 
     205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is 
     amended by adding at the end the following new subparagraphs:
       ``(I)(i) The Commissioner of Social Security shall, subject 
     to the provisions of section 201(f)(2) of the Fair Minimum 
     Wage Act of 2007, establish a reliable, secure method to 
     provide through the Electronic Employment Verification System 
     established pursuant to subsection (d) of section 274A of the 
     Immigration and Nationality Act (referred to in this 
     subparagraph as the `System'), within the time periods 
     required by paragraph (8) of such subsection--
       ``(I) a determination of whether the name, date of birth, 
     employer identification number, and social security account 
     number of an individual provided in an inquiry made to the 
     System by an employer is consistent with such information 
     maintained by the Commissioner in order to confirm the 
     validity of the information provided;
       ``(II) a determination of the citizenship status associated 
     with such name and social security account number, according 
     to the records maintained by the Commissioner;
       ``(III) a determination of whether the name and number 
     belongs to an individual who is deceased, according to the 
     records maintained by the Commissioner;
       ``(IV) a determination of whether the name and number is 
     blocked in accordance with clause (ii); and
       ``(V) a confirmation notice or a nonconfirmation notice 
     described in such paragraph (8), in a manner that ensures 
     that other information maintained by the Commissioner is not 
     disclosed or released to employers through the System.
       ``(ii) The Commissioner of Social Security shall prevent 
     the fraudulent or other misuse of a social security account 
     number by establishing procedures under which an individual 
     who has been assigned a social security account number may 
     block the use of such number under the System and remove such 
     block.
       ``(J) In assigning social security account numbers to 
     aliens who are authorized to work in the United States under 
     section 218A of the Immigration and Nationality Act, the 
     Commissioner of Social Security shall, to

[[Page S948]]

     the maximum extent practicable, assign such numbers by 
     employing the enumeration procedure administered jointly by 
     the Commissioner, the Secretary of State, and the 
     Secretary.''.
       (e) Disclosure of Certain Taxpayer Identity Information.--
       (1) In general.--Section 6103(l) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(21) Disclosure of certain taxpayer identity information 
     by social security administration to department of homeland 
     security.--
       ``(A) In general.--From taxpayer identity information which 
     has been disclosed to the Social Security Administration and 
     upon written request by the Secretary of Homeland Security, 
     the Commissioner of Social Security shall disclose directly 
     to officers, employees, and contractors of the Department of 
     Homeland Security the following information:
       ``(i) Disclosure of employer no-match notices.--Taxpayer 
     identity information of each person who has filed an 
     information return required by reason of section 6051 during 
     calendar year 2006, 2007, or 2008 which contains--

       ``(I) more than 100 names and taxpayer identifying numbers 
     of employees (within the meaning of such section) that did 
     not match the records maintained by the Commissioner of 
     Social Security, or
       ``(II) more than 10 names of employees (within the meaning 
     of such section) with the same taxpayer identifying number.

       ``(ii) Disclosure of information regarding use of duplicate 
     employee taxpayer identifying information.--Taxpayer identity 
     information of each person who has filed an information 
     return required by reason of section 6051 which the 
     Commissioner of Social Security has reason to believe, based 
     on a comparison with information submitted by the Secretary 
     of Homeland Security, contains evidence of identity fraud due 
     to the multiple use of the same taxpayer identifying number 
     (assigned under section 6109) of an employee (within the 
     meaning of section 6051).
       ``(iii) Disclosure of information regarding 
     nonparticipating employers.--Taxpayer identity information of 
     each person who has filed an information return required by 
     reason of section 6051 which the Commissioner of Social 
     Security has reason to believe, based on a comparison with 
     information submitted by the Secretary of Homeland Security, 
     contains evidence of such person's failure to register and 
     participate in the Electronic Employment Verification System 
     authorized under section 274A(d) of the Immigration and 
     Nationality Act (hereafter in this paragraph referred to as 
     the `System').
       ``(iv) Disclosure of information regarding new employees of 
     nonparticipating employers.--Taxpayer identity information of 
     all employees (within the meaning of section 6051) hired 
     after the date a person identified in clause (iii) is 
     required to participate in the System under section 
     274A(d)(2) or section 274A(d)(3)(B) of the Immigration and 
     Nationality Act.
       ``(v) Disclosure of information regarding employees of 
     certain designated employers.--Taxpayer identity information 
     of all employees (within the meaning of section 6051) of each 
     person who is required to participate in the System under 
     section 274A(d)(3)(B) of the Immigration and Nationality Act.
       ``(vi) Disclosure of new hire taxpayer identity 
     information.--Taxpayer identity information of each person 
     participating in the System and taxpayer identity information 
     of all employees (within the meaning of section 6051) of such 
     person hired during the period beginning with the later of--

       ``(I) the date such person begins to participate in the 
     System, or
       ``(II) the date of the request immediately preceding the 
     most recent request under this clause,

     ending with the date of the most recent request under this 
     clause.
       ``(B) Restriction on disclosure.--The Commissioner of 
     Social Security shall disclose taxpayer identity information 
     under subparagraph (A) only for purposes of, and to the 
     extent necessary in--
       ``(i) establishing and enforcing employer participation in 
     the System,
       ``(ii) carrying out, including through civil administrative 
     and civil judicial proceedings, of sections 212, 217, 235, 
     237, 238, 274A, 274B, and 274C of the Immigration and 
     Nationality Act, and
       ``(iii) the civil operation of the Alien Terrorist Removal 
     Court.
       ``(C) Reimbursement.--The Commissioner of Social Security 
     shall prescribe a reasonable fee schedule for furnishing 
     taxpayer identity information under this paragraph and 
     collect such fees in advance from the Secretary of Homeland 
     Security.
       ``(D) Termination.--This paragraph shall not apply to any 
     request made after the date which is 3 years after the date 
     of the enactment of this paragraph.''.
       (2) Compliance by dhs contractors with confidentiality 
     safeguards.--
       (A) In general.--Section 6103(p) of such Code is amended by 
     adding at the end the following new paragraph:
       ``(9) Disclosure to dhs contractors.--Notwithstanding any 
     other provision of this section, no return or return 
     information shall be disclosed to any contractor of the 
     Department of Homeland Security unless such Department, to 
     the satisfaction of the Secretary--
       ``(A) has requirements in effect which require each such 
     contractor which would have access to returns or return 
     information to provide safeguards (within the meaning of 
     paragraph (4)) to protect the confidentiality of such returns 
     or return information,
       ``(B) agrees to conduct an on-site review every 3 years 
     (mid-point review in the case of contracts or agreements of 
     less than 1 year in duration) of each contractor to determine 
     compliance with such requirements,
       ``(C) submits the findings of the most recent review 
     conducted under subparagraph (B) to the Secretary as part of 
     the report required by paragraph (4)(E), and
       ``(D) certifies to the Secretary for the most recent annual 
     period that such contractor is in compliance with all such 
     requirements.
       ``The certification required by subparagraph (D) shall 
     include the name and address of each contractor, a 
     description of the contract or agreement with such 
     contractor, and the duration of such contract or 
     agreement.''.
       (3) Conforming amendments.--
       (A) Section 6103(a)(3) of such Code is amended by striking 
     ``or (20)'' and inserting ``(20), or (21)''.
       (B) Section 6103(p)(3)(A) of such Code is amended by adding 
     at the end the following new sentence: ``The Commissioner of 
     Social Security shall provide to the Secretary such 
     information as the Secretary may require in carrying out this 
     paragraph with respect to return information inspected or 
     disclosed under the authority of subsection (l)(21).''.
       (C) Section 6103(p)(4) of such Code is amended--
       (i) by striking ``or (17)'' both places it appears and 
     inserting ``(17), or (21)'', and
       (ii) by striking ``or (20)'' each place it appears and 
     inserting ``(20), or (21)''.
       (D) Section 6103(p)(8)(B) of such Code is amended by 
     inserting ``or paragraph (9)'' after ``subparagraph (A)''.
       (E) Section 7213(a)(2) of such Code is amended by striking 
     ``or (20)'' and inserting ``(20), or (21)''.
       (f) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Homeland Security such sums as are necessary 
     to carry out the amendments made by this section.
       (2) Limitation on verification responsibilities of 
     commissioner of social security.--The Commissioner of Social 
     Security is authorized to perform activities with respect to 
     carrying out the Commissioner's responsibilities in this 
     title or the amendments made by this title, but only to the 
     extent the Secretary of Homeland Security has provided, in 
     advance, funds to cover the Commissioner's full costs in 
     carrying out such responsibilities. In no case shall funds 
     from the Federal Old-Age and Survivors Insurance Trust Fund 
     or the Federal Disability Insurance Trust Fund be used to 
     carry out such responsibilities.
       (g) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), (c), and (d) shall take effect on the date that is 180 
     days after the date of the enactment of this Act.
       (2) Subsection (e).--
       (A) In general.--The amendments made by subsection (e) 
     shall apply to disclosures made after the date of the 
     enactment of this Act.
       (B) Certifications.--The first certification under section 
     6103(p)(9)(D) of the Internal Revenue Code of 1986, as added 
     by subsection (e)(2), shall be made with respect to calendar 
     year 2008.

     SEC. 202. EMPLOYER COMPLIANCE FUND.

       Section 286 of the Immigration and Nationality Act (8 
     U.S.C. 1356) is amended by adding at the end the following 
     new subsection:
       ``(w) Employer Compliance Fund.--
       ``(1) In general.--There is established in the general fund 
     of the Treasury, a separate account, which shall be known as 
     the `Employer Compliance Fund' (referred to in this 
     subsection as the `Fund').
       ``(2) Deposits.--There shall be deposited as offsetting 
     receipts into the Fund all civil monetary penalties collected 
     by the Secretary of Homeland Security under section 274A.
       ``(3) Purpose.--Amounts refunded to the Secretary from the 
     Fund shall be used for the purposes of enhancing and 
     enforcing employer compliance with section 274A.
       ``(4) Availability of funds.--Amounts deposited into the 
     Fund shall remain available until expended and shall be 
     refunded out of the Fund by the Secretary of the Treasury, at 
     least on a quarterly basis, to the Secretary of Homeland 
     Security.''.

     SEC. 203. ADDITIONAL WORKSITE ENFORCEMENT AND FRAUD DETECTION 
                   AGENTS.

       (a) Increase in Number of Personnel.--The Secretary of 
     Homeland Security shall, subject to the availability of 
     appropriations for such purpose, annually increase, by not 
     less than 2,200, the number of personnel of the Bureau of 
     Immigration and Customs Enforcement during the 5-year period 
     beginning on the date of the enactment of this Act.
       (b) Use of Personnel.--The Secretary of Homeland Security 
     shall ensure that not less than 25 percent of all the hours 
     expended by personnel of the Bureau of Immigration and 
     Customs Enforcement shall be used to enforce compliance with 
     sections 274A and 274C of the Immigration and Nationality Act 
     (8 U.S.C. 1324a and 1324c).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security for 
     each

[[Page S949]]

     of the fiscal years 2008 through 2012 such sums as may be 
     necessary to carry out this section.

     SEC. 204. CLARIFICATION OF INELIGIBILITY FOR 
                   MISREPRESENTATION.

       Section 212(a)(6)(C)(ii)(I) of the Immigration and 
     Nationality Act (8 U.S.C. 1182(a)(6)(C)(ii)(I)), is amended 
     by striking ``citizen'' and inserting ``national''.

     SEC. 205. ANTIDISCRIMINATION PROTECTIONS.

       (a) Application of Prohibition of Discrimination to 
     Verification System.--Section 274B(a)(1) of the Immigration 
     and Nationality Act (8 U.S.C. 1324b(a)(1)) is amended by 
     inserting ``, the verification of the individual's work 
     authorization through the Electronic Employment Verification 
     System described in section 274A(d),'' after ``the individual 
     for employment''.
       (b) Classes of Aliens as Protected Individuals.--Section 
     274B(a)(3)(B) of the Immigration and Nationality Act (8 
     U.S.C. 1324b(a)(3)(B)) is amended to read as follows:
       ``(B) is an alien who is--
       ``(i) lawfully admitted for permanent residence;
       ``(ii) granted the status of an alien lawfully admitted for 
     temporary residence under section 210(a) or 245(a)(1);
       ``(iii) admitted as a refugee under section 207;
       ``(iv) granted asylum under section 208;
       ``(v) granted the status of a nonimmigrant under section 
     101(a)(15)(H)(ii)(c);
       ``(vi) granted temporary protected status under section 
     244; or
       ``(vii) granted parole under section 212(d)(5).''.
       (c) Requirements for Electronic Employment Verification.--
     Section 274B(a) of the Immigration and Nationality Act (8 
     U.S.C. 1324b(a)) is amended by adding at the end the 
     following:
       ``(7) Antidiscrimination requirements of the electronic 
     employment verification system.--It is an unfair immigration-
     related employment practice for a person or other entity, in 
     the course of the electronic verification process described 
     in section 274A(d)--
       ``(A) to terminate or undertake any adverse employment 
     action due to a tentative nonconfirmation;
       ``(B) to use the verification system for screening of an 
     applicant prior to an offer of employment;
       ``(C) except as described in section 274A(d)(3)(B), to use 
     the verification system for a current employee after the 
     first 3 days of employment, or for the reverification of an 
     employee after the employee has satisfied the process 
     described in section 274A(d); or
       ``(D) to require an individual to make an inquiry under the 
     self-verification procedures established in section 
     274A(d)(8)(E)(iii).''.
       (d) Increase in Civil Money Penalties.--Section 274B(g)(2) 
     of the Immigration and Nationality Act (8 U.S.C. 1324b(g)(2)) 
     is amended--
       (1) in subparagraph (B)(iv)--
       (A) in subclause (I), by striking ``$250 and not more than 
     $2,000'' and inserting ``$1,000 and not more than $4,000'';
       (B) in subclause (II), by striking ``$2,000 and not more 
     than $5,000'' and inserting ``$4,000 and not more than 
     $10,000'';
       (C) in subclause (III), by striking ``$3,000 and not more 
     than $10,000'' and inserting ``$6,000 and not more than 
     $20,000''; and
       (D) in subclause (IV), by striking ``$100 and not more than 
     $1,000'' and inserting ``$500 and not more than $5,000''.
       (e) Increased Funding of Information Campaign.--Section 
     274B(l)(3) of the Immigration and Nationality Act (8 U.S.C. 
     1324b(l)(3)) is amended by inserting ``and an additional 
     $40,000,000 for each of fiscal years 2008 through 2010'' 
     before the period at the end.
       (f) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 180 days after the date 
     of the enactment of this Act and shall apply to violations 
     occurring on or after such date.
                                 ______
                                 
  SA 144. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

                TITLE II--UNLAWFUL EMPLOYMENT OF ALIENS

     SEC. 201. UNLAWFUL EMPLOYMENT OF ALIENS.

       (a) In General.--Section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a) is amended to read as 
     follows:

     ``SEC. 274A. UNLAWFUL EMPLOYMENT OF ALIENS.

       ``(a) Making Employment of Unauthorized Aliens Unlawful.--
       ``(1) In general.--It is unlawful for an employer--
       ``(A) to hire, or to recruit or refer for a fee, an alien 
     for employment in the United States knowing, or with reckless 
     disregard, that the alien is an unauthorized alien with 
     respect to such employment; or
       ``(B) to hire, or to recruit or refer for a fee, for 
     employment in the United States an individual unless such 
     employer meets the requirements of subsections (c) and (d).
       ``(2) Continuing employment.--It is unlawful for an 
     employer, after lawfully hiring an alien for employment, to 
     continue to employ the alien in the United States knowing 
     that the alien is (or has become) an unauthorized alien with 
     respect to such employment.
       ``(3) Use of labor through contract.--
       ``(A) In general.--An employer who uses a contract, 
     subcontract, or exchange to obtain the labor of an alien in 
     the United States knowing, or with reckless disregard--
       ``(i) that the alien is an unauthorized alien with respect 
     to performing such labor, shall be considered to have hired 
     the alien in violation of paragraph (1)(A); or
       ``(ii) that the person hiring such alien failed to comply 
     with the requirements of subsections (c) and (d) shall be 
     considered to have hired the alien in violation of paragraph 
     (1)(B).
       ``(B) Information sharing.--The person hiring the alien 
     shall provide to the employer, who obtains the labor of the 
     alien, the employer identification number assigned to such 
     person by the Commissioner of Internal Revenue. Failure to 
     provide such number shall be considered a recordkeeping 
     violation under subsection (e)(4)(B).
       ``(C) Reporting requirement.--The employer shall submit to 
     the Electronic Verification System established under 
     subsection (d), in a manner prescribed by the Secretary, the 
     employer identification number provided by the person hiring 
     the alien. Failure to submit such number shall be considered 
     a recordkeeping violation under subsection (e)(4)(B).
       ``(D) Enforcement.--The Secretary shall implement 
     procedures to utilize the information obtained under 
     subparagraphs (B) and (C) to identify employers who use a 
     contract, subcontract, or exchange to obtain the labor of an 
     alien from another person, where such person hiring such 
     alien fails to comply with the requirements of subsections 
     (c) and (d).
       ``(4) Defense.--
       ``(A) In general.--Subject to subparagraph (B), an employer 
     that establishes that the employer has complied in good faith 
     with the requirements of subsections (c) and (d) has 
     established an affirmative defense that the employer has not 
     violated paragraph (1)(A) with respect to such hiring, 
     recruiting, or referral.
       ``(B) Exception.--Until the date that an employer is 
     required to participate in the Electronic Employment 
     Verification System under subsection (d) or is participating 
     in such System on a voluntary basis, the employer may 
     establish an affirmative defense under subparagraph (A) by 
     complying with the requirements of subsection (c).
       ``(b) Order of Internal Review and Certification of 
     Compliance.--
       ``(1) Authority to require certification.--If the Secretary 
     has reasonable cause to believe that an employer has failed 
     to comply with this section, the Secretary is authorized, at 
     any time, to require that the employer certify that the 
     employer is in compliance with this section, or has 
     instituted a program to come into compliance.
       ``(2) Content of certification.--Not later than 60 days 
     after the date an employer receives a request for a 
     certification under paragraph (1) the employer shall certify 
     under penalty of perjury that--
       ``(A) the employer is in compliance with the requirements 
     of subsections (c) and (d); or
       ``(B) that the employer has instituted a program to come 
     into compliance with such requirements.
       ``(3) Extension.--The 60-day period referred to in 
     paragraph (2), may be extended by the Secretary for good 
     cause, at the request of the employer.
       ``(4) Publication.--The Secretary is authorized to publish 
     in the Federal Register standards or methods for 
     certification under paragraph (1) and for specific 
     recordkeeping practices with respect to such certification, 
     and procedures for the audit of any records related to such 
     certification.
       ``(c) Document Verification Requirements.--An employer 
     hiring, or recruiting or referring for a fee, an individual 
     for employment in the United States shall verify that the 
     individual is eligible for such employment by meeting the 
     following requirements:
       ``(1) Attestation by employer.--
       ``(A) Requirements.--
       ``(i) In general.--The employer shall attest, under penalty 
     of perjury and on a form prescribed by the Secretary, that 
     the employer has verified the identity and eligibility for 
     employment of the individual by examining a document 
     described in subparagraph (B).
       ``(ii) Signature requirements.--An attestation required by 
     clause (i) may be manifested by a handwritten or electronic 
     signature.
       ``(iii) Standards for examination.--The employer has 
     complied with the requirement of this paragraph with respect 
     to examination of documentation if a reasonable person would 
     conclude that the document examined is genuine and relates to 
     the individual whose identity and eligibility for employment 
     in the United States is being verified. If the individual 
     provides a document sufficient to meet the requirements of 
     this paragraph, nothing in this paragraph shall be construed 
     as requiring an employer to solicit any other document or as 
     requiring the individual to produce any other document.
       ``(B) Identification documents.--A document described in 
     this subparagraph is--
       ``(i) in the case of an individual who is a national of the 
     United States--

       ``(I) a United States passport; or
       ``(II) a driver's license or identity card issued by a 
     State, the Commonwealth of the Northern Mariana Islands, or 
     an outlying

[[Page S950]]

     possession of the United States that satisfies the 
     requirements of division B of Public Law 109-13 (119 Stat. 
     302);

       ``(ii) in the case of an alien lawfully admitted for 
     permanent residence in the United States, a permanent 
     resident card, as specified by the Secretary;
       ``(iii) in the case of an alien who is authorized under 
     this Act or by the Secretary to be employed in the United 
     States, an employment authorization card, as specified by the 
     Secretary that--

       ``(I) contains a photograph of the individual or other 
     identifying information, including name, date of birth, 
     gender, and address; and
       ``(II) contains security features to make the document 
     resistant to tampering, counterfeiting, and fraudulent use;

       ``(iv) in the case of an individual who is unable to obtain 
     a document described in clause (i), (ii), or (iii), a 
     document designated by the Secretary that--

       ``(I) contains a photograph of the individual or other 
     identifying information, including name, date of birth, 
     gender, and address; and
       ``(II) contains security features to make the document 
     resistant to tampering, counterfeiting, and fraudulent use; 
     or

       ``(v) until the date that an employer is required to 
     participate in the Electronic Employment Verification System 
     under subsection (d) or is participating in such System on a 
     voluntary basis, a document, or a combination of documents, 
     of such type that, as of the date of the enactment of the 
     Fair Minimum Wage Act of 2007, the Secretary had established 
     by regulation were sufficient for purposes of this section.
       ``(C) Authority to prohibit use of certain documents.--
       ``(i) Authority.--If the Secretary finds that a document or 
     class of documents described in subparagraph (B) is not 
     reliable to establish identity or is being used fraudulently 
     to an unacceptable degree, the Secretary shall prohibit, or 
     impose conditions, on the use of such document or class of 
     documents for purposes of this subsection.
       ``(ii) Requirement for publication.--The Secretary shall 
     publish notice of any findings under clause (i) in the 
     Federal Register.
       ``(2) Attestation of employee.--
       ``(A) Requirements.--
       ``(i) In general.--The individual shall attest, under 
     penalty of perjury on the form described in paragraph 
     (1)(A)(i), that the individual is a national of the United 
     States, an alien lawfully admitted for permanent residence, 
     or an alien who is authorized under this Act or by the 
     Secretary to be hired, or to be recruited or referred for a 
     fee, in the United States.
       ``(ii) Signature for examination.--An attestation required 
     by clause (i) may be manifested by a handwritten or 
     electronic signature.
       ``(B) Penalties.--An individual who falsely represents that 
     the individual is eligible for employment in the United 
     States in an attestation required by subparagraph (A) shall, 
     for each such violation, be subject to a fine of not more 
     than $5,000, a term of imprisonment not to exceed 3 years, or 
     both.
       ``(3) Retention of attestation.--The employer shall retain 
     a paper, microfiche, microfilm, or electronic version of the 
     attestations made under paragraph (1) and (2) and make such 
     attestations available for inspection by an officer of the 
     Department of Homeland Security, any other person designated 
     by the Secretary, the Special Counsel for Immigration-Related 
     Unfair Employment Practices of the Department of Justice, or 
     the Secretary of Labor during a period beginning on the date 
     of the hiring, or recruiting or referring for a fee, of the 
     individual and ending--
       ``(A) in the case of the recruiting or referral for a fee 
     (without hiring) of an individual, 5 years after the date of 
     the recruiting or referral; or
       ``(B) in the case of the hiring of an individual the later 
     of--
       ``(i) 5 years after the date of such hiring;
       ``(ii) 1 year after the date the individual's employment is 
     terminated; or
       ``(iii) in the case of an employer or class of employers, a 
     period that is less than the applicable period described in 
     clause (i) or (ii) if the Secretary reduces such period for 
     such employer or class of employers.
       ``(4) Document retention and recordkeeping requirements.--
       ``(A) Retention of documents.--Notwithstanding any other 
     provision of law, an employer shall retain, for the 
     applicable period described in paragraph (3), the following 
     documents:
       ``(i) In general.--The employer shall copy all documents 
     presented by an individual described in paragraph (1)(B) and 
     shall retain paper, microfiche, microfilm, or electronic 
     copies of such documents. Such copies shall be designated as 
     copied documents.
       ``(ii) Other documents.--The employer shall maintain 
     records of any action taken and copies of any correspondence 
     written or received with respect to the verification of an 
     individual's identity or eligibility for employment in the 
     United States.
       ``(B) Use of retained documents.--An employer shall use 
     copies retained under clause (i) or (ii) of subparagraph (A) 
     only for the purposes of complying with the requirements of 
     this subsection, except as otherwise permitted under law.
       ``(5) Penalties.--An employer that fails to comply with the 
     recordkeeping requirements of this subsection shall be 
     subject to the penalties described in subsection (e)(4)(B).
       ``(6) No authorization of national identification cards.--
     Nothing in this section may be construed to authorize, 
     directly or indirectly, the issuance, use, or establishment 
     of a national identification card.
       ``(d) Electronic Employment Verification System.--
       ``(1) Requirement for system.--The Secretary, in 
     cooperation with the Commissioner of Social Security, shall 
     implement an Electronic Employment Verification System 
     (referred to in this subsection as the `System') to determine 
     whether--
       ``(A) the identifying information submitted by an 
     individual is consistent with the information maintained by 
     the Secretary or the Commissioner of Social Security; and
       ``(B) such individual is eligible for employment in the 
     United States.
       ``(2) Requirement for participation.--The Secretary shall 
     require all employers in the United States to participate in 
     the System, with respect to all employees hired by the 
     employer on or after the date that is 18 months after the 
     date that not less than $400,000,000 have been appropriated 
     and made available to implement this subsection.
       ``(3) Other participation in system.--Notwithstanding 
     paragraph (2), the Secretary has the authority--
       ``(A) to permit any employer that is not required to 
     participate in the System under paragraph (2) to participate 
     in the System on a voluntary basis; and
       ``(B) to require any employer or class of employers to 
     participate on a priority basis in the System with respect to 
     individuals employed as of, or hired after, the date of 
     enactment of the Fair Minimum Wage Act of 2007--
       ``(i) if the Secretary designates such employer or class of 
     employers as a critical employer based on an assessment of 
     homeland security or national security needs; or
       ``(ii) if the Secretary has reasonable cause to believe 
     that the employer has engaged in material violations of 
     paragraph (1), (2), or (3) of subsection (a).
       ``(4) Requirement to notify.--The Secretary shall notify 
     the employer or class of employers in writing regarding the 
     requirement for participation in the System under paragraph 
     (3)(B) not less than 60 days prior to the effective date of 
     such requirement. Such notice shall include the training 
     materials described in paragraph (8)(E)(v).
       ``(5) Registration of employers.--An employer shall 
     register the employer's participation in the System in the 
     manner prescribed by the Secretary prior to the date the 
     employer is required or permitted to submit information with 
     respect to an employee under this subsection.
       ``(6) Additional guidance.--A registered employer shall be 
     permitted to utilize any technology that is consistent with 
     this section and with any regulation or guidance from the 
     Secretary to streamline the procedures to facilitate 
     compliance with--
       ``(A) the attestation requirement in subsection (c); and
       ``(B) the employment eligibility verification requirements 
     in this subsection.
       ``(7) Consequence of failure to participate.--If an 
     employer is required to participate in the System and fails 
     to comply with the requirements of the System with respect to 
     an employee--
       ``(A) such failure shall be treated as a violation of 
     subsection (a)(1)(B); and
       ``(B) a rebuttable presumption is created that the employer 
     has violated subsection (a)(1)(A), however, such presumption 
     may not apply to a prosecution under subsection (f)(1).
       ``(8) Design and operation of system.--
       ``(A) In general.--The Secretary shall, through the 
     System--
       ``(i) respond to each inquiry made by a registered employer 
     through the Internet or other electronic media, or over a 
     toll-free telephone line regarding an individual's identity 
     and eligibility for employment in the United States; and
       ``(ii) maintain a record of each such inquiry and the 
     information provided in response to such inquiry.
       ``(B) Initial inquiry.--
       ``(i) Information required.--A registered employer shall, 
     with respect to the hiring, or recruiting or referring for a 
     fee, any individual for employment in the United States, 
     obtain from the individual and record on the form described 
     in subsection (c)(1)(A)(i)--

       ``(I) the individual's name and date of birth and, if the 
     individual was born in the United States, the State in which 
     such individual was born;
       ``(II) the individual's social security account number;
       ``(III) the employment identification number of the 
     individual's employer during any one of the 5 most recently 
     completed calendar years; and
       ``(IV) in the case of an individual who does not attest 
     that the individual is a national of the United States under 
     subsection (c)(1)(A)(i), such alien identification or 
     authorization number that the Secretary shall require.

       ``(ii) Submission to system.--A registered employer shall 
     submit an inquiry through the System to seek confirmation of 
     the individual's identity and eligibility for employment in 
     the United States--

       ``(I) not later than 3 days after the date of the hiring, 
     or recruiting or referring for a fee, of the individual (as 
     the case may be); or

[[Page S951]]

       ``(II) in the case of an employee hired by a critical 
     employer designated by the Secretary under paragraph (3)(B) 
     at such time as the Secretary shall specify.

       ``(iii) EIN requirements.--

       ``(I) Requirement to provide.--An employer shall provide 
     the employer identification number issued to such employer to 
     the individual, upon request, for purposes of providing the 
     information under clause (i)(III).
       ``(II) Requirement to affirmatively state a lack of recent 
     employment.--An individual providing information under clause 
     (i)(III) who was not employed in the United States during any 
     of the 5 most recently completed calendar years shall 
     affirmatively state on the form described in subsection 
     (c)(1)(A)(i) that no employer identification number is 
     provided because the individual was not employed in the 
     United States during such period.

       ``(C) Initial response.--Not later than 10 days after an 
     employer submits an inquiry to the System regarding an 
     individual, the Secretary shall provide, through the System, 
     to the employer--
       ``(i) if the System is able to confirm the individual's 
     identity and eligibility for employment in the United States, 
     a confirmation notice, including the appropriate codes on 
     such confirmation notice; or
       ``(ii) if the System is unable to confirm the individual's 
     identity or eligibility for employment in the United States, 
     and after a secondary manual verification has been conducted, 
     a tentative nonconfirmation notice, including the appropriate 
     codes on such tentative nonconfirmation notice.
       ``(D) Confirmation or nonconfirmation.--
       ``(i) Confirmation upon initial inquiry.--If an employer 
     receives a confirmation notice under paragraph (C)(i) for an 
     individual, the employer shall record, on the form described 
     in subsection (c)(1)(A)(i), the appropriate code provided in 
     such notice.
       ``(ii) Tentative nonconfirmation.--If an employer receives 
     a tentative nonconfirmation notice under paragraph (C)(ii) 
     for an individual, the employer shall inform such individual 
     of the issuance of such notice in writing, on a form 
     prescribed by the Secretary not later than 3 days after 
     receiving such notice. Such individual shall acknowledge 
     receipt of such notice in writing on the form described in 
     subsection (c)(1)(A)(i).
       ``(iii) No contest.--If the individual does not contest the 
     tentative nonconfirmation notice within 10 days of receiving 
     notice from the individual's employer, the notice shall 
     become final and the employer shall record on the form 
     described in subsection (1)(A)(i), the appropriate code 
     provided through the System to indicate the individual did 
     not contest the tentative nonconfirmation. An individual's 
     failure to contest a tentative nonconfirmation shall not be 
     considered an admission of guilt with respect to any 
     violation of this Act or any other provision of law.
       ``(iv) Contest.--If the individual contests the tentative 
     nonconfirmation notice, the individual shall submit 
     appropriate information to contest such notice under the 
     procedures established in subparagraph (E)(iii) not later 
     than 10 days after receiving the notice from the individual's 
     employer.
       ``(v) Effective period of tentative nonconfirmation 
     notice.--A tentative nonconfirmation notice shall remain in 
     effect until such notice becomes final under clause (iii), or 
     the earlier of--

       ``(I) a final confirmation notice or final nonconfirmation 
     notice is issued through the System; or
       ``(II) 30 days after the individual contests a tentative 
     nonconfirmation under clause (iv).

       ``(vi) Automatic final notice.--

       ``(I) In general.--If a final notice is not issued within 
     the 30-day period described in clause (v)(II), the Secretary 
     shall automatically provide to the employer, through the 
     System, the appropriate code indicating a final notice.
       ``(II) Period prior to initial certification.--During the 
     period beginning on the date of the enactment of the Fair 
     Minimum Wage Act of 2007 and ending on the date the Secretary 
     submits the initial report described in subparagraph (E)(ii), 
     an automatic notice issued under subclause (I) shall be a 
     final confirmation notice.
       ``(III) Period after initial certification.--After the date 
     that the Secretary submits the initial report described in 
     subparagraph (E)(ii), an automatic notice issued under 
     subclause (I) shall be a final confirmation notice unless the 
     most recent such report includes a certification that the 
     System is able to correctly issue, within the period 
     beginning on the date an employer submits an inquiry to the 
     System and ending on the date an automatic default notice 
     would be issued by the System, a final notice in at least 99 
     percent of the cases in which the notice relates to an 
     individual who is eligible for employment in the United 
     States. If the most recent such report includes such a 
     certification, the automatic notice issued under subclause 
     (I) shall be a final nonconfirmation notice.
       ``(IV) Additional authority.--Notwithstanding the second 
     sentence of subclause (III), the Secretary shall have the 
     authority to issue a final confirmation notice for an 
     individual who would be subject to a final nonconfirmation 
     notice under such sentence. In such a case, the Secretary 
     shall determine the individual's eligibility for employment 
     in the United States and record the results of such 
     determination in the System within 12 months.

       ``(vii) Effective period of final notice.--A final 
     confirmation notice issued under this paragraph for an 
     individual shall remain in effect--

       ``(I) during any continuous period of employment of such 
     individual by such employer, unless the Secretary determines 
     the final confirmation was the result of identity fraud; or
       ``(II) in the case of an alien authorized to be employed in 
     the United States for a temporary period, during such period.

       ``(viii) Prohibition on termination.--An employer may not 
     terminate the employment of an individual based on a 
     tentative nonconfirmation notice until such notice becomes 
     final under clause (iii) or a final nonconfirmation notice is 
     issued for the individual by the System. Nothing in this 
     clause shall prohibit the termination of employment for any 
     reason other than such tentative nonconfirmation.
       ``(ix) Recording of contest resolution.--The employer shall 
     record on the form described in subsection (c)(1)(A)(i) the 
     appropriate code that is provided through the System to 
     indicate a final confirmation notice or final nonconfirmation 
     notice.
       ``(x) Consequences of nonconfirmation.--If the employer has 
     received a final nonconfirmation regarding an individual, the 
     employer shall terminate the employment, recruitment, or 
     referral of the individual. Such employer shall provide to 
     the Secretary any information relating to the individual that 
     the Secretary determines would assist the Secretary in 
     enforcing or administering the immigration laws. If the 
     employer continues to employ, recruit, or refer the 
     individual after receiving final nonconfirmation, a 
     rebuttable presumption is created that the employer has 
     violated subsections (a)(1)(A) and (a)(2). Such presumption 
     may not apply to a prosecution under subsection (f)(1).
       ``(E) Responsibilities of the secretary.--
       ``(i) In general.--The Secretary shall establish a 
     reliable, secure method to provide through the System, within 
     the time periods required by this subsection--

       ``(I) a determination of whether the name and alien 
     identification or authorization number provided in an inquiry 
     by an employer is consistent with such information maintained 
     by the Secretary in order to confirm the validity of the 
     information provided; and
       ``(II) a determination of whether the individual is 
     authorized to be employed in the United States.

       ``(ii) Annual report and certification.--Not later than the 
     date that is 24 months after the date that not less than 
     $400,000,000 have been appropriated and made available to the 
     Secretary to implement this subsection, and annually 
     thereafter, the Secretary shall submit to Congress a report 
     that includes--

       ``(I) an assessment of whether the System is able to 
     correctly issue, within the period described in subparagraph 
     (D)(v)(II), a final notice in at least 99 percent of the 
     cases in which the final notice relates to an individual who 
     is eligible for employment in the United States (excluding an 
     individual who fails to contest a tentative nonconfirmation 
     notice); and
       ``(II) if the assessment under subclause (I) is that the 
     System is able to correctly issue within the specified time 
     period a final notice in at least 99 percent of the cases 
     described in such subclause, a certification of such 
     assessment.

       ``(iii) Contest and self-verification.--The Secretary in 
     consultation with the Commissioner of Social Security, shall 
     establish procedures to permit an individual who contests a 
     tentative or final nonconfirmation notice, or seeks to verify 
     the individual's own employment eligibility prior to 
     obtaining or changing employment, to contact the appropriate 
     agency and, in a timely manner, correct or update the 
     information used by the System.
       ``(iv) Information to employee.--The Secretary shall 
     develop a written form for employers to provide to 
     individuals who receive a tentative or final nonconfirmation 
     notice. Such form shall be made available in a language other 
     than English, as necessary and reasonable, and shall 
     include--

       ``(I) information about the reason for such notice;
       ``(II) the right to contest such notice;
       ``(III) contact information for the appropriate agency and 
     instructions for initiating such contest; and
       ``(IV) a 24-hour toll-free telephone number to respond to 
     inquiries related to such notice.

       ``(v) Training materials.--The Secretary shall make 
     available or provide to the employer, upon request, not later 
     than 60 days prior to such employer's participation in the 
     System, appropriate training materials to facilitate 
     compliance with this subsection, and sections 274B(a)(7) and 
     274C(a).
       ``(F) Responsibilities of the commissioner of social 
     security.--The responsibilities of the Commissioner of Social 
     Security with respect to the System are set out in section 
     205(c)(2) of the Social Security Act.
       ``(9) Protection from liability.--No employer that 
     participates in the System shall be liable under any law for 
     any employment-related action taken with respect to an 
     individual in good faith reliance on information provided by 
     the System.
       ``(10) Administrative review.--
       ``(A) In general.--An individual who is terminated from 
     employment as a result of a final nonconfirmation notice may, 
     not later

[[Page S952]]

     than 60 days after the date of such termination, file an 
     appeal of such notice.
       ``(B) Procedures.--The Secretary and Commissioner of Social 
     Security shall develop procedures to review appeals filed 
     under subparagraph (A) and to make final determinations on 
     such appeals.
       ``(C) Review for errors.--If a final determination on an 
     appeal filed under subparagraph (A) results in a confirmation 
     of an individual's eligibility to work in the United States, 
     the administrative review process shall require the Secretary 
     to determine if the final nonconfirmation notice issued for 
     the individual was the result of--
       ``(i) an error or negligence on the part of an employee or 
     official operating or responsible for the System;
       ``(ii) the decision rules, processes, or procedures 
     utilized by the System; or
       ``(iii) erroneous system information that was not the 
     result of acts or omissions of the individual.
       ``(D) Compensation for error.--
       ``(i) In general.--If the Secretary makes a determination 
     under subparagraph (C) that the final nonconfirmation notice 
     issued for an individual was not caused by an act or omission 
     of the individual, the Secretary shall compensate the 
     individual for lost wages.
       ``(ii) Calculation of lost wages.--Lost wages shall be 
     calculated based on the wage rate and work schedule that 
     prevailed prior to termination. The individual shall be 
     compensated for wages lost beginning on the first scheduled 
     work day after employment was terminated and ending 180 days 
     after completion of the administrative review process 
     described in this paragraph or the day after the individual 
     is reinstated or obtains employment elsewhere, whichever 
     occurs first.
       ``(E) Limitation on compensation.--For purposes of 
     determining an individual's compensation for the loss of 
     employment, such compensation shall not include any period in 
     which the individual was ineligible for employment in the 
     United States.
       ``(F) Source of funds.--Compensation or reimbursement 
     provided under this paragraph shall not be provided from 
     funds appropriated in annual appropriations Acts to the 
     Secretary for the Department of Homeland Security.
       ``(11) Judicial review.--
       ``(A) In general.--After the Secretary makes a final 
     determination on an appeal filed by an individual under the 
     administrative review process described in paragraph (10), 
     the individual may obtain judicial review of such 
     determination by a civil action commenced not later than 60 
     days after the date of such decision, or such further time as 
     the Secretary may allow.
       ``(B) Jurisdiction.--A civil action for such judicial 
     review shall be brought in the district court of the United 
     States for the judicial district in which the plaintiff 
     resides, or has a principal place of business, or, if the 
     plaintiff does not reside or have a principal place of 
     business within any such judicial district, in the District 
     Court of the United States for the District of Columbia.
       ``(C) Answer.--As part of the Secretary's answer to a 
     complaint for such judicial review, the Secretary shall file 
     a certified copy of the administrative record compiled during 
     the administrative review under paragraph (10), including the 
     evidence upon which the findings and decision complained of 
     are based. The court shall have power to enter, upon the 
     pleadings and transcript of the record, a judgment affirming 
     or reversing the result of that administrative review, with 
     or without remanding the cause for a rehearing.
       ``(D) Compensation for error.--
       ``(i) In general.--In cases in which such judicial review 
     reverses the final determination of the Secretary made under 
     paragraph (10), the court shall compensate the individual for 
     lost wages.
       ``(ii) Calculation of lost wages.--Lost wages shall be 
     calculated based on the wage rate and work scheduled that 
     prevailed prior to termination. The individual shall be 
     compensated for wages lost beginning on the first scheduled 
     work day after employment was terminated and ending 180 days 
     after completion of the judicial review described in this 
     paragraph or the day after the individual is reinstated or 
     obtains employment elsewhere, whichever occurs first.
       ``(12) Limitation on collection and use of data.--
       ``(A) Limitation on collection of data.--
       ``(i) In general.--The System shall collect and maintain 
     only the minimum data necessary to facilitate the successful 
     operation of the System, and in no case shall the data be 
     other than--

       ``(I) information necessary to register employers under 
     paragraph (5);
       ``(II) information necessary to initiate and respond to 
     inquiries or contests under paragraph (8);
       ``(III) information necessary to establish and enforce 
     compliance with paragraphs (5) and (8);
       ``(IV) information necessary to detect and prevent 
     employment related identity fraud; and
       ``(V) such other information the Secretary determines is 
     necessary, subject to a 180 day notice and comment period in 
     the Federal Register.

       ``(ii) Penalties.--Any officer, employee, or contractor who 
     willfully and knowingly collects and maintains data in the 
     System other than data described in clause (i) shall be 
     guilty of a misdemeanor and fined not more than $1,000 for 
     each violation.
       ``(B) Limitation on use of data.--Whoever willfully and 
     knowingly accesses, discloses, or uses any information 
     obtained or maintained by the System--
       ``(i) for the purpose of committing identity fraud, or 
     assisting another person in committing identity fraud, as 
     defined in section 1028 of title 18, United States Code;
       ``(ii) for the purpose of unlawfully obtaining employment 
     in the United States or unlawfully obtaining employment in 
     the United States for any other person; or
       ``(iii) for any purpose other than as provided for under 
     any provision of law;
     shall be guilty of a felony and upon conviction shall be 
     fined under title 18, United States Code, or imprisoned for 
     not more than 5 years, or both.
       ``(C) Exceptions.--Nothing in subparagraph (A) or (B) may 
     be construed to limit the collection, maintenance, or use of 
     data by the Commissioner of Internal Revenue or the 
     Commissioner of Social Security as provided by law.
       ``(13) Modification authority.--The Secretary, after notice 
     is submitted to Congress and provided to the public in the 
     Federal Register, is authorized to modify the requirements of 
     this subsection with respect to completion of forms, method 
     of storage, attestations, copying of documents, signatures, 
     methods of transmitting information, and other operational 
     and technical aspects to improve the efficiency, accuracy, 
     and security of the System.
       ``(14) Annual gao study and report.--
       ``(A) Requirement.--The Comptroller General of the United 
     States shall conduct an annual study of the System.
       ``(B) Purpose.--The study shall evaluate the accuracy, 
     efficiency, integrity, and impact of the System.
       ``(C) Report.--Not later than the date that is 24 months 
     after the date that not less than $400,000,000 have been 
     appropriated and made available to the Secretary to implement 
     this subsection, and annually thereafter, the Comptroller 
     General shall submit to Congress a report containing the 
     findings of the study carried out under this paragraph. Each 
     such report shall include, at a minimum, the following:
       ``(i) An assessment of the annual report and certification 
     described in paragraph (8)(E)(ii).
       ``(ii) An assessment of System performance with respect to 
     the rate at which individuals who are eligible for employment 
     in the United States are correctly approved within each of 
     the periods specified in paragraph (8), including a separate 
     assessment of such rate for nationals and aliens.
       ``(iii) An assessment of the privacy and security of the 
     System and its effects on identity fraud or the misuse of 
     personal data.
       ``(iv) An assessment of the effects of the System on the 
     employment of unauthorized aliens.
       ``(v) An assessment of the effects of the System, including 
     the effects of tentative confirmations, on unfair 
     immigration-related employment practices and employment 
     discrimination based on national origin or citizenship 
     status.
       ``(vi) An assessment of whether the Secretary and the 
     Commissioner of Social Security have adequate resources to 
     carry out the duties and responsibilities of this section.
       ``(e) Compliance.--
       ``(1) Complaints and investigations.--The Secretary shall 
     establish procedures--
       ``(A) for individuals and entities to file complaints 
     regarding potential violations of subsection (a);
       ``(B) for the investigation of such complaints that the 
     Secretary determines are appropriate to investigate; and
       ``(C) for the investigation of other violations of 
     subsection (a) that the Secretary determines is appropriate.
       ``(2) Authority in investigations.--
       ``(A) In general.--In conducting investigations and 
     hearings under this subsection, officers and employees of the 
     Department of Homeland Security--
       ``(i) shall have reasonable access to examine evidence 
     regarding any employer being investigated; and
       ``(ii) if designated by the Secretary, may compel by 
     subpoena the attendance of witnesses and the production of 
     evidence at any designated place in an investigation or case 
     under this subsection.
       ``(B) Failure to cooperate.--In case of refusal to obey a 
     subpoena lawfully issued under subparagraph (A)(ii), the 
     Secretary may request that the Attorney General apply in an 
     appropriate district court of the United States for an order 
     requiring compliance with such subpoena, and any failure to 
     obey such order may be punished by such court as contempt.
       ``(C) Department of labor.--The Secretary of Labor shall 
     have the investigative authority provided under section 11(a) 
     of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)) to 
     ensure compliance with the provisions of this section.
       ``(3) Compliance procedures.--
       ``(A) Prepenalty notice.--If the Secretary has reasonable 
     cause to believe that there has been a violation of a 
     requirement of this section and determines that further 
     proceedings related to such violation are warranted, the 
     Secretary shall issue to the employer concerned a written 
     notice of the Secretary's intention to issue a claim for a 
     fine or other penalty. Such notice shall--
       ``(i) describe the violation;

[[Page S953]]

       ``(ii) specify the laws and regulations allegedly violated;
       ``(iii) specify the amount of fines or other penalties to 
     be imposed;
       ``(iv) disclose the material facts which establish the 
     alleged violation; and
       ``(v) inform such employer that the employer shall have a 
     reasonable opportunity to make representations as to why a 
     claim for a monetary or other penalty should not be imposed.
       ``(B) Remission or mitigation of penalties.--
       ``(i) Review by secretary.--If the Secretary determines 
     that such fine or other penalty was incurred erroneously, or 
     determines the existence of such mitigating circumstances as 
     to justify the remission or mitigation of such fine or 
     penalty, the Secretary may remit or mitigate such fine or 
     other penalty on the terms and conditions as the Secretary 
     determines are reasonable and just, or order termination of 
     any proceedings related to the notice.
       ``(ii) Applicability.--This subparagraph may not apply to 
     an employer that has or is engaged in a pattern or practice 
     of violations of paragraph (1), (2), or (3) of subsection (a) 
     or of any other requirements of this section.
       ``(C) Penalty claim.--After considering evidence and 
     representations offered by the employer, the Secretary shall 
     determine whether there was a violation and promptly issue a 
     written final determination setting forth the findings of 
     fact and conclusions of law on which the determination is 
     based and the appropriate penalty.
       ``(4) Civil penalties.--
       ``(A) Hiring or continuing to employ unauthorized aliens.--
     Any employer that violates any provision of paragraph (1), 
     (2), or (3) of subsection (a) shall pay civil penalties as 
     follows:
       ``(i) Pay a civil penalty of not less than $500 and not 
     more than $4,000 for each unauthorized alien with respect to 
     each such violation.
       ``(ii) If the employer has previously been fined 1 time 
     during the 12-month period preceding the violation under this 
     subparagraph, pay a civil penalty of not less than $4,000 and 
     not more than $10,000 for each unauthorized alien with 
     respect to each such violation.
       ``(iii) If the employer has previously been fined more than 
     1 time during the 24-month period preceding the violation 
     under this subparagraph or has failed to comply with a 
     previously issued and final order related to any such 
     provision, pay a civil penalty of not less than $6,000 and 
     not more than $20,000 for each unauthorized alien with 
     respect to each such violation.
       ``(B) Recordkeeping or verification practices.--Any 
     employer that violates or fails to comply with the 
     recordkeeping requirements of subsections (a), (c), and (d), 
     shall pay a civil penalty as follows:
       ``(i) Pay a civil penalty of not less than $200 and not 
     more than $2,000 for each such violation.
       ``(ii) If the employer has previously been fined 1 time 
     during the 12-month period preceding the violation under this 
     subparagraph, pay a civil penalty of not less than $400 and 
     not more than $4,000 for each such violation.
       ``(iii) If the employer has previously been fined more than 
     1 time during the 24-month period preceding the violation 
     under this subparagraph or has failed to comply with a 
     previously issued and final order related to such 
     requirements, pay a civil penalty of not less than $600 and 
     not more than $6,000 for each such violation.
       ``(C) Other penalties.--Notwithstanding subparagraphs (A) 
     and (B), the Secretary may impose additional penalties for 
     violations, including violations of cease and desist orders, 
     specially designed compliance plans to prevent further 
     violations, suspended fines to take effect in the event of a 
     further violation, and in appropriate cases, the criminal 
     penalty described in subsection (f).
       ``(5) Judicial review.--An employer adversely affected by a 
     final determination may, within 45 days after the date the 
     final determination is issued, file a petition in any 
     appropriate district court of the United States. The filing 
     of a petition as provided in this paragraph shall stay the 
     Secretary's determination until entry of judgment by the 
     court. The burden shall be on the employer to show that the 
     final determination was not supported by substantial 
     evidence. The Secretary is authorized to require that the 
     petitioner provide, prior to filing for review, security for 
     payment of fines and penalties through bond or other 
     guarantee of payment acceptable to the Secretary.
       ``(6) Enforcement of orders.--If an employer fails to 
     comply with a final determination issued against that 
     employer under this subsection, and the final determination 
     is not subject to review as provided in paragraph (5), the 
     Attorney General may file suit to enforce compliance with the 
     final determination, not earlier than 46 days and not later 
     than 180 days after the date the final determination is 
     issued, in any appropriate district court of the United 
     States. In any such suit, the validity and appropriateness of 
     the final determination shall not be subject to review.
       ``(7) Recovery of costs and attorney's fees.--In any appeal 
     brought under paragraph (5) or suit brought under paragraph 
     (6) of this section the employer shall be entitled to recover 
     from the Secretary reasonable costs and attorney's fees if 
     such employer substantially prevails on the merits of the 
     case. Such an award of attorney's fees may not exceed 
     $25,000. Any such costs and attorney's fees assessed against 
     the Secretary shall be charged against the operating expenses 
     of the Department for the fiscal year in which the assessment 
     is made, and may not be reimbursed from any other source.
       ``(f) Criminal Penalties and Injunctions for Pattern or 
     Practice Violations.--
       ``(1) Criminal penalty.--An employer that engages in a 
     pattern or practice of knowing violations of subsection 
     (a)(1)(A) or (a)(2) shall be fined not more than $20,000 for 
     each unauthorized alien with respect to whom such a violation 
     occurs, imprisoned for not more than 3 years for the entire 
     pattern or practice, or both.
       ``(2) Enjoining of pattern or practice violations.--If the 
     Secretary or the Attorney General has reasonable cause to 
     believe that an employer is engaged in a pattern or practice 
     of employment, recruitment, or referral in violation of 
     paragraph (1)(A) or (2) of subsection (a), the Attorney 
     General may bring a civil action in the appropriate district 
     court of the United States requesting a permanent or 
     temporary injunction, restraining order, or other order 
     against the employer, as the Secretary deems necessary.
       ``(g) Adjustment for Inflation.--All penalties and 
     limitations on the recovery of costs and attorney's fees in 
     this section shall be increased every 4 years beginning 
     January 2010 to reflect the percentage increase in the 
     consumer price index for all urban consumers (all items; U.S. 
     city average) for the 48 month period ending with September 
     of the year preceding the year such adjustment is made. Any 
     adjustment under this subparagraph shall be rounded to the 
     nearest dollar.
       ``(h) Prohibition of Indemnity Bonds.--
       ``(1) Prohibition.--It is unlawful for an employer, in the 
     hiring, recruiting, or referring for a fee, of an individual, 
     to require the individual to post a bond or security, to pay 
     or agree to pay an amount, or otherwise to provide a 
     financial guarantee or indemnity, against any potential 
     liability arising under this section relating to such hiring, 
     recruiting, or referring of the individual.
       ``(2) Civil penalty.--Any employer which is determined, 
     after notice and opportunity for mitigation of the monetary 
     penalty under subsection (e), to have violated paragraph (1) 
     of this subsection shall be subject to a civil penalty of 
     $10,000 for each violation and to an administrative order 
     requiring the return of any amounts received in violation of 
     such paragraph to the employee or, if the employee cannot be 
     located, to the Employer Compliance Fund established under 
     section 286(w).
       ``(i) Prohibition on Award of Government Contracts, Grants, 
     and Agreements.--
       ``(1) Employers with no contracts, grants, or agreements.--
       ``(A) In general.--If an employer who does not hold a 
     Federal contract, grant, or cooperative agreement is 
     determined by the Secretary to be a repeat violator of this 
     section or is convicted of a crime under this section, the 
     employer shall be debarred from the receipt of a Federal 
     contract, grant, or cooperative agreement for a period of 5 
     years. The Secretary or the Attorney General shall advise the 
     Administrator of General Services of such a debarment, and 
     the Administrator of General Services shall list the employer 
     on the List of Parties Excluded from Federal Procurement and 
     Nonprocurement Programs for a period of 5 years.
       ``(B) Waiver.--The Administrator of General Services, in 
     consultation with the Secretary and the Attorney General, may 
     waive operation of this subsection or may limit the duration 
     or scope of the debarment.
       ``(2) Employers with contracts, grants, or agreements.--
       ``(A) In general.--An employer who holds a Federal 
     contract, grant, or cooperative agreement and is determined 
     by the Secretary to be a repeat violator of this section or 
     is convicted of a crime under this section, shall be debarred 
     from the receipt of new Federal contracts, grants, or 
     cooperative agreements for a period of 5 years.
       ``(B) Notice to agencies.--Prior to debarring the employer 
     under subparagraph (A), the Secretary, in cooperation with 
     the Administrator of General Services, shall advise any 
     agency or department holding a contract, grant, or 
     cooperative agreement with the employer of the Government's 
     intention to debar the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 5 years.
       ``(C) Waiver.--After consideration of the views of any 
     agency or department that holds a contract, grant, or 
     cooperative agreement with the employer, the Secretary may, 
     in lieu of debarring the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 5 years, waive operation of this subsection, limit 
     the duration or scope of the debarment, or may refer to an 
     appropriate lead agency the decision of whether to debar the 
     employer, for what duration, and under what scope in 
     accordance with the procedures and standards prescribed by 
     the Federal Acquisition Regulation. However, any proposed 
     debarment predicated on an administrative determination of 
     liability for civil penalty by the Secretary or the Attorney 
     General shall not be reviewable in any debarment proceeding. 
     The decision of whether to debar or take alternate action 
     under this subparagraph shall not be judicially reviewed.
       ``(3) Suspension.--Indictments for violations of this 
     section or adequate evidence of

[[Page S954]]

     actions that could form the basis for debarment under this 
     subsection shall be considered a cause for suspension under 
     the procedures and standards for suspension prescribed by the 
     Federal Acquisition Regulation.
       ``(j) Miscellaneous Provisions.--
       ``(1) Documentation.--In providing documentation or 
     endorsement of authorization of aliens eligible to be 
     employed in the United States, the Secretary shall provide 
     that any limitations with respect to the period or type of 
     employment or employer shall be conspicuously stated on the 
     documentation or endorsement (other than aliens lawfully 
     admitted for permanent residence).
       ``(2) Preemption.--The provisions of this section preempt 
     any State or local law imposing civil or criminal sanctions 
     (other than through licensing and similar laws) upon those 
     who employ, or recruit or refer for a fee for employment, 
     unauthorized aliens.
       ``(k) Deposit of Amounts Received.--Except as otherwise 
     specified, civil penalties collected under this section shall 
     be deposited by the Secretary into the Employer Compliance 
     Fund established under section 286(w).
       ``(l) Definitions.--In this section:
       ``(1) Employer.--The term `employer' means any person or 
     entity, including any entity of the Government of the United 
     States, hiring, recruiting, or referring an individual for 
     employment in the United States.
       ``(2) Secretary.--Except as otherwise provided, the term 
     `Secretary' means the Secretary of Homeland Security.
       ``(3) Unauthorized alien.--The term `unauthorized alien' 
     means, with respect to the employment of an alien at a 
     particular time, that the alien is not at that time either--
       ``(A) an alien lawfully admitted for permanent residence; 
     or
       ``(B) authorized to be so employed by this Act or by the 
     Secretary.''.
       (b) Conforming Amendments.--
       (1) Amendments.--
       (A) Repeal of basic pilot.--Sections 401, 402, 403, 404, 
     and 405 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (division C of Public Law 104-208; 
     8 U.S.C. 1324a note) are repealed.
       (B) Repeal of reporting requirements.--
       (i) Report on earnings of aliens not authorized to work.--
     Subsection (c) of section 290 of the Immigration and 
     Nationality Act (8 U.S.C. 1360) is repealed.
       (ii) Report on fraudulent use of social security account 
     numbers.--Subsection (b) of section 414 of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (division C of Public Law 104-208; 8 U.S.C. 1360 note) is 
     repealed.
       (2) Construction.--Nothing in this subsection or in 
     subsection (d) of section 274A of the Immigration and 
     Nationality Act, as amended by subsection (a), may be 
     construed to limit the authority of the Secretary of Homeland 
     Security to allow or continue to allow the participation of 
     employers who participated in the basic pilot program under 
     sections 401, 402, 403, 404, and 405 of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (division C of Public Law 104-208; 8 U.S.C. 1324a note) in 
     the Electronic Employment Verification System established 
     pursuant to such subsection (d).
       (c) Technical Amendments.--
       (1) Definition of unauthorized alien.--The Immigration and 
     Nationality Act is amended in sections 218(i)(1) (8 U.S.C. 
     1188(i)(1)), 245(c)(8) (8 U.S.C. 1255(c)(8)), 274(a)(3)(B)(i) 
     (8 U.S.C. 1324(a)(3)(B)(i)), and 274B(a)(1) (8 U.S.C. 
     1324b(a)(1)) are amended by striking ``274A(h)(3)'' and 
     inserting ``274A''.
       (2) Document requirements.--Section 274B of the Immigration 
     and Nationality Act (8 U.S.C. 1324b) is amended--
       (A) in subsections (a)(6) and (g)(2)(B), by striking 
     ``274A(b)'' and inserting ``274A(c) and (d)''; and
       (B) in subsection (g)(2)(B)(ii), by striking ``274A(b)(5)'' 
     and inserting ``274A(c)''.
       (d) Amendments to the Social Security Act.--Section 
     205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is 
     amended by adding at the end the following new subparagraphs:
       ``(I)(i) The Commissioner of Social Security shall, subject 
     to the provisions of section 201(f)(2) of the Fair Minimum 
     Wage Act of 2007, establish a reliable, secure method to 
     provide through the Electronic Employment Verification System 
     established pursuant to subsection (d) of section 274A of the 
     Immigration and Nationality Act (referred to in this 
     subparagraph as the `System'), within the time periods 
     required by paragraph (8) of such subsection--
       ``(I) a determination of whether the name, date of birth, 
     employer identification number, and social security account 
     number of an individual provided in an inquiry made to the 
     System by an employer is consistent with such information 
     maintained by the Commissioner in order to confirm the 
     validity of the information provided;
       ``(II) a determination of the citizenship status associated 
     with such name and social security account number, according 
     to the records maintained by the Commissioner;
       ``(III) a determination of whether the name and number 
     belongs to an individual who is deceased, according to the 
     records maintained by the Commissioner;
       ``(IV) a determination of whether the name and number is 
     blocked in accordance with clause (ii); and
       ``(V) a confirmation notice or a nonconfirmation notice 
     described in such paragraph (8), in a manner that ensures 
     that other information maintained by the Commissioner is not 
     disclosed or released to employers through the System.
       ``(ii) The Commissioner of Social Security shall prevent 
     the fraudulent or other misuse of a social security account 
     number by establishing procedures under which an individual 
     who has been assigned a social security account number may 
     block the use of such number under the System and remove such 
     block.
       ``(J) In assigning social security account numbers to 
     aliens who are authorized to work in the United States under 
     section 218A of the Immigration and Nationality Act, the 
     Commissioner of Social Security shall, to the maximum extent 
     practicable, assign such numbers by employing the enumeration 
     procedure administered jointly by the Commissioner, the 
     Secretary of State, and the Secretary.''.
       (e) Disclosure of Certain Taxpayer Identity Information.--
       (1) In general.--Section 6103(l) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(21) Disclosure of certain taxpayer identity information 
     by social security administration to department of homeland 
     security.--
       ``(A) In general.--From taxpayer identity information which 
     has been disclosed to the Social Security Administration and 
     upon written request by the Secretary of Homeland Security, 
     the Commissioner of Social Security shall disclose directly 
     to officers, employees, and contractors of the Department of 
     Homeland Security the following information:
       ``(i) Disclosure of employer no-match notices.--Taxpayer 
     identity information of each person who has filed an 
     information return required by reason of section 6051 during 
     calendar year 2006, 2007, or 2008 which contains--

       ``(I) more than 100 names and taxpayer identifying numbers 
     of employees (within the meaning of such section) that did 
     not match the records maintained by the Commissioner of 
     Social Security, or
       ``(II) more than 10 names of employees (within the meaning 
     of such section) with the same taxpayer identifying number.

       ``(ii) Disclosure of information regarding use of duplicate 
     employee taxpayer identifying information.--Taxpayer identity 
     information of each person who has filed an information 
     return required by reason of section 6051 which the 
     Commissioner of Social Security has reason to believe, based 
     on a comparison with information submitted by the Secretary 
     of Homeland Security, contains evidence of identity fraud due 
     to the multiple use of the same taxpayer identifying number 
     (assigned under section 6109) of an employee (within the 
     meaning of section 6051).
       ``(iii) Disclosure of information regarding 
     nonparticipating employers.--Taxpayer identity information of 
     each person who has filed an information return required by 
     reason of section 6051 which the Commissioner of Social 
     Security has reason to believe, based on a comparison with 
     information submitted by the Secretary of Homeland Security, 
     contains evidence of such person's failure to register and 
     participate in the Electronic Employment Verification System 
     authorized under section 274A(d) of the Immigration and 
     Nationality Act (hereafter in this paragraph referred to as 
     the `System').
       ``(iv) Disclosure of information regarding new employees of 
     nonparticipating employers.--Taxpayer identity information of 
     all employees (within the meaning of section 6051) hired 
     after the date a person identified in clause (iii) is 
     required to participate in the System under section 
     274A(d)(2) or section 274A(d)(3)(B) of the Immigration and 
     Nationality Act.
       ``(v) Disclosure of information regarding employees of 
     certain designated employers.--Taxpayer identity information 
     of all employees (within the meaning of section 6051) of each 
     person who is required to participate in the System under 
     section 274A(d)(3)(B) of the Immigration and Nationality Act.
       ``(vi) Disclosure of new hire taxpayer identity 
     information.--Taxpayer identity information of each person 
     participating in the System and taxpayer identity information 
     of all employees (within the meaning of section 6051) of such 
     person hired during the period beginning with the later of--

       ``(I) the date such person begins to participate in the 
     System, or
       ``(II) the date of the request immediately preceding the 
     most recent request under this clause,

     ending with the date of the most recent request under this 
     clause.
       ``(B) Restriction on disclosure.--The Commissioner of 
     Social Security shall disclose taxpayer identity information 
     under subparagraph (A) only for purposes of, and to the 
     extent necessary in--
       ``(i) establishing and enforcing employer participation in 
     the System,
       ``(ii) carrying out, including through civil administrative 
     and civil judicial proceedings, of sections 212, 217, 235, 
     237, 238, 274A, 274B, and 274C of the Immigration and 
     Nationality Act, and
       ``(iii) the civil operation of the Alien Terrorist Removal 
     Court.
       ``(C) Reimbursement.--The Commissioner of Social Security 
     shall prescribe a reasonable fee schedule for furnishing 
     taxpayer identity information under this paragraph

[[Page S955]]

     and collect such fees in advance from the Secretary of 
     Homeland Security.
       ``(D) Termination.--This paragraph shall not apply to any 
     request made after the date which is 3 years after the date 
     of the enactment of this paragraph.''.
       (2) Compliance by dhs contractors with confidentiality 
     safeguards.--
       (A) In general.--Section 6103(p) of such Code is amended by 
     adding at the end the following new paragraph:
       ``(9) Disclosure to dhs contractors.--Notwithstanding any 
     other provision of this section, no return or return 
     information shall be disclosed to any contractor of the 
     Department of Homeland Security unless such Department, to 
     the satisfaction of the Secretary--
       ``(A) has requirements in effect which require each such 
     contractor which would have access to returns or return 
     information to provide safeguards (within the meaning of 
     paragraph (4)) to protect the confidentiality of such returns 
     or return information,
       ``(B) agrees to conduct an on-site review every 3 years 
     (mid-point review in the case of contracts or agreements of 
     less than 1 year in duration) of each contractor to determine 
     compliance with such requirements,
       ``(C) submits the findings of the most recent review 
     conducted under subparagraph (B) to the Secretary as part of 
     the report required by paragraph (4)(E), and
       ``(D) certifies to the Secretary for the most recent annual 
     period that such contractor is in compliance with all such 
     requirements.
       ``The certification required by subparagraph (D) shall 
     include the name and address of each contractor, a 
     description of the contract or agreement with such 
     contractor, and the duration of such contract or 
     agreement.''.
       (3) Conforming amendments.--
       (A) Section 6103(a)(3) of such Code is amended by striking 
     ``or (20)'' and inserting ``(20), or (21)''.
       (B) Section 6103(p)(3)(A) of such Code is amended by adding 
     at the end the following new sentence: ``The Commissioner of 
     Social Security shall provide to the Secretary such 
     information as the Secretary may require in carrying out this 
     paragraph with respect to return information inspected or 
     disclosed under the authority of subsection (l)(21).''.
       (C) Section 6103(p)(4) of such Code is amended--
       (i) by striking ``or (17)'' both places it appears and 
     inserting ``(17), or (21)'', and
       (ii) by striking ``or (20)'' each place it appears and 
     inserting ``(20), or (21)''.
       (D) Section 6103(p)(8)(B) of such Code is amended by 
     inserting ``or paragraph (9)'' after ``subparagraph (A)''.
       (E) Section 7213(a)(2) of such Code is amended by striking 
     ``or (20)'' and inserting ``(20), or (21)''.
       (f) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Homeland Security such sums as are necessary 
     to carry out the amendments made by this section.
       (2) Limitation on verification responsibilities of 
     commissioner of social security.--The Commissioner of Social 
     Security is authorized to perform activities with respect to 
     carrying out the Commissioner's responsibilities in this 
     title or the amendments made by this title, but only to the 
     extent the Secretary of Homeland Security has provided, in 
     advance, funds to cover the Commissioner's full costs in 
     carrying out such responsibilities. In no case shall funds 
     from the Federal Old-Age and Survivors Insurance Trust Fund 
     or the Federal Disability Insurance Trust Fund be used to 
     carry out such responsibilities.
       (g) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), (c), and (d) shall take effect on the date that is 180 
     days after the date of the enactment of this Act.
       (2) Subsection (e).--
       (A) In general.--The amendments made by subsection (e) 
     shall apply to disclosures made after the date of the 
     enactment of this Act.
       (B) Certifications.--The first certification under section 
     6103(p)(9)(D) of the Internal Revenue Code of 1986, as added 
     by subsection (e)(2), shall be made with respect to calendar 
     year 2008.

     SEC. 202. EMPLOYER COMPLIANCE FUND.

       Section 286 of the Immigration and Nationality Act (8 
     U.S.C. 1356) is amended by adding at the end the following 
     new subsection:
       ``(w) Employer Compliance Fund.--
       ``(1) In general.--There is established in the general fund 
     of the Treasury, a separate account, which shall be known as 
     the `Employer Compliance Fund' (referred to in this 
     subsection as the `Fund').
       ``(2) Deposits.--There shall be deposited as offsetting 
     receipts into the Fund all civil monetary penalties collected 
     by the Secretary of Homeland Security under section 274A.
       ``(3) Purpose.--Amounts refunded to the Secretary from the 
     Fund shall be used for the purposes of enhancing and 
     enforcing employer compliance with section 274A.
       ``(4) Availability of funds.--Amounts deposited into the 
     Fund shall remain available until expended and shall be 
     refunded out of the Fund by the Secretary of the Treasury, at 
     least on a quarterly basis, to the Secretary of Homeland 
     Security.''.

     SEC. 203. ADDITIONAL WORKSITE ENFORCEMENT AND FRAUD DETECTION 
                   AGENTS.

       (a) Increase in Number of Personnel.--The Secretary of 
     Homeland Security shall, subject to the availability of 
     appropriations for such purpose, annually increase, by not 
     less than 2,200, the number of personnel of the Bureau of 
     Immigration and Customs Enforcement during the 5-year period 
     beginning on the date of the enactment of this Act.
       (b) Use of Personnel.--The Secretary of Homeland Security 
     shall ensure that not less than 25 percent of all the hours 
     expended by personnel of the Bureau of Immigration and 
     Customs Enforcement shall be used to enforce compliance with 
     sections 274A and 274C of the Immigration and Nationality Act 
     (8 U.S.C. 1324a and 1324c).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Homeland Security for 
     each of the fiscal years 2008 through 2012 such sums as may 
     be necessary to carry out this section.

     SEC. 204. CLARIFICATION OF INELIGIBILITY FOR 
                   MISREPRESENTATION.

       Section 212(a)(6)(C)(ii)(I) of the Immigration and 
     Nationality Act (8 U.S.C. 1182(a)(6)(C)(ii)(I)), is amended 
     by striking ``citizen'' and inserting ``national''.

     SEC. 205. ANTIDISCRIMINATION PROTECTIONS.

       (a) Application of Prohibition of Discrimination to 
     Verification System.--Section 274B(a)(1) of the Immigration 
     and Nationality Act (8 U.S.C. 1324b(a)(1)) is amended by 
     inserting ``, the verification of the individual's work 
     authorization through the Electronic Employment Verification 
     System described in section 274A(d),'' after ``the individual 
     for employment''.
       (b) Classes of Aliens as Protected Individuals.--Section 
     274B(a)(3)(B) of the Immigration and Nationality Act (8 
     U.S.C. 1324b(a)(3)(B)) is amended to read as follows:
       ``(B) is an alien who is--
       ``(i) lawfully admitted for permanent residence;
       ``(ii) granted the status of an alien lawfully admitted for 
     temporary residence under section 210(a) or 245(a)(1);
       ``(iii) admitted as a refugee under section 207;
       ``(iv) granted asylum under section 208;
       ``(v) granted the status of a nonimmigrant under section 
     101(a)(15)(H)(ii)(c);
       ``(vi) granted temporary protected status under section 
     244; or
       ``(vii) granted parole under section 212(d)(5).''.
       (c) Requirements for Electronic Employment Verification.--
     Section 274B(a) of the Immigration and Nationality Act (8 
     U.S.C. 1324b(a)) is amended by adding at the end the 
     following:
       ``(7) Antidiscrimination requirements of the electronic 
     employment verification system.--It is an unfair immigration-
     related employment practice for a person or other entity, in 
     the course of the electronic verification process described 
     in section 274A(d)--
       ``(A) to terminate or undertake any adverse employment 
     action due to a tentative nonconfirmation;
       ``(B) to use the verification system for screening of an 
     applicant prior to an offer of employment;
       ``(C) except as described in section 274A(d)(3)(B), to use 
     the verification system for a current employee after the 
     first 3 days of employment, or for the reverification of an 
     employee after the employee has satisfied the process 
     described in section 274A(d); or
       ``(D) to require an individual to make an inquiry under the 
     self-verification procedures established in section 
     274A(d)(8)(E)(iii).''.
       (d) Increase in Civil Money Penalties.--Section 274B(g)(2) 
     of the Immigration and Nationality Act (8 U.S.C. 1324b(g)(2)) 
     is amended--
       (1) in subparagraph (B)(iv)--
       (A) in subclause (I), by striking ``$250 and not more than 
     $2,000'' and inserting ``$1,000 and not more than $4,000'';
       (B) in subclause (II), by striking ``$2,000 and not more 
     than $5,000'' and inserting ``$4,000 and not more than 
     $10,000'';
       (C) in subclause (III), by striking ``$3,000 and not more 
     than $10,000'' and inserting ``$6,000 and not more than 
     $20,000''; and
       (D) in subclause (IV), by striking ``$100 and not more than 
     $1,000'' and inserting ``$500 and not more than $5,000''.
       (e) Increased Funding of Information Campaign.--Section 
     274B(l)(3) of the Immigration and Nationality Act (8 U.S.C. 
     1324b(l)(3)) is amended by inserting ``and an additional 
     $40,000,000 for each of fiscal years 2008 through 2010'' 
     before the period at the end.
       (f) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 180 days after the date 
     of the enactment of this Act and shall apply to violations 
     occurring on or after such date.

                                 ______
                                 
  SA 145. Mr. SESSIONS (for himself, Mr. Inhofe, and Mr. Grassley) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

       Section 274A(e) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(e)) is amended by adding at the end the 
     following new paragraph:
       ``(10) Prohibition on award of government contracts, 
     grants, and agreements.--

[[Page S956]]

       ``(A) Employers with no contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subparagraph 
     (C), if an employer who does not hold a Federal contract, 
     grant, or cooperative agreement is determined to have 
     violated this section, the employer shall be debarred from 
     the receipt of a Federal contract, grant, or cooperative 
     agreement for a period of 7 years.
       ``(ii) Placement on excluded list.--The Secretary of 
     Homeland Security or the Attorney General shall advise the 
     Administrator of General Services of the debarment of an 
     employer under clause (i) and the Administrator of General 
     Services shall list the employer on the List of Parties 
     Excluded from Federal Procurement and Nonprocurement Programs 
     for a period of 7 years.
       ``(iii) Waiver.--

       ``(I) Authority.--The Administrator of General Services, in 
     consultation with the Secretary of Homeland Security and the 
     Attorney General, may waive operation of clause (i) or may 
     limit the duration or scope of a debarment under clause (i) 
     if such waiver or limitation is necessary to national defense 
     or in the interest of national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House of Representatives immediate notice of 
     such waiver or limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternative action under this clause 
     shall not be judicially reviewed.

       ``(B) Employers with contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subclause 
     (C), an employer who holds a Federal contract, grant, or 
     cooperative agreement and is determined to have violated this 
     section shall be debarred from the receipt of new Federal 
     contracts, grants, or cooperative agreements for a period of 
     10 years.
       ``(ii) Notice to agencies.--Prior to debarring the employer 
     under clause (i), the Secretary of Homeland Security, in 
     cooperation with the Administrator of General Services, shall 
     advise any agency or department holding a contract, grant, or 
     cooperative agreement with the employer of the Government's 
     intention to debar the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 10 years.
       ``(iii) Waiver.--

       ``(I) Authority.--After consideration of the views of any 
     agency or department that holds a contract, grant, or 
     cooperative agreement with the employer, the Administrator of 
     General Services, in consultation with the Secretary of 
     Homeland Security and the Attorney General, may waive 
     operation of clause (i) or may limit the duration or scope of 
     the debarment under clause (i) if such waiver or limitation 
     is necessary to the national defense or in the interest of 
     national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House of Representatives immediate notice of 
     such waiver or limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternate action under this clause 
     shall not be judicially reviewed.

       ``(C) Exemption from penalty for employers participating in 
     the basic pilot program.--In the case of imposition on an 
     employer of a debarment from the receipt of a Federal 
     contract, grant, or cooperative agreement under subparagraph 
     (A) or (B), that penalty shall be waived if the employer 
     establishes that the employer was voluntarily participating 
     in the basic pilot program under section 403(a) of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (8 U.S.C. 1324a note) at the time of the violations 
     of this section that resulted in the debarment.''.
                                 ______
                                 
  SA 146. Mr. SESSIONS (for himself and Mr. Inhofe) submitted an 
amendment intended to be proposed by him to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

       (a) Penalties for Unlawful Employment of Aliens.--Section 
     274A of the Immigration and Nationality Act (8 U.S.C. 1324a) 
     is amended--
       (1) in subsection (e)(4)--
       (A) in subparagraph (A)(i), by striking ``not less than 
     $250 and not more than $2,000'' and inserting ``not less than 
     $5000 and not more than $7,500'';
       (B) in subparagraph (A)(ii), by striking ``not less than 
     $2,000 and not more than $5,000'' and inserting ``not less 
     than $10,000 and not more than $15,000''; and
       (C) in subparagraph (A)(iii), by striking ``not less than 
     $3,000 and not more than $10,000'' and inserting ``not less 
     than $25,000 and not more than $40,00'';
       (2) in subsection (e)(5)--
       (A) by inserting ``, subject to paragraph (10),'' after 
     ``in an amount'';
       (B) by striking ``$100 and not more than $1,000'' and 
     inserting ``$1,000 and not more than $25,000''; and
       (C) by adding at the end the following sentence: 
     ``Providing information to the basic pilot program described 
     in section 403(a) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
     that the person or entity knows or reasonably believes to be 
     false, shall be treated as a violation of subsection 
     (a)(1)(A) and shall not qualify for the exemption provided by 
     (e)(10).'';
       (3) by adding at the end of subsection (e) the following 
     new paragraph:
       ``(10) Exemption from penalty for employers participating 
     in the basic pilot program.--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 by an employer 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 shall be waived if the violator establishes that it 
     was voluntarily participating in the basic pilot electronic 
     verification program at the time of the offense.'';
       (4) by amending paragraph (1) of subsection (f) to read as 
     follows:
       ``(1) Criminal penalty.--Any person or entity which engages 
     in a pattern or practice of violations of paragraph (1) or 
     (2) of subsection (a) shall be fined not less than $3,000 and 
     more than $50,000 for each unauthorized alien with respect to 
     which such a violation occurs, imprisoned for not less than 
     one year, or both, notwithstanding the provisions of any 
     other Federal law relating to fine levels.''; and
       (5) in subsection (f)(2), by striking ``Attorney General'' 
     each place it appears and inserting ``Secretary of Homeland 
     Security''.
       (b) Retention and Use of Employment Eligibility 
     Verification Documents.--
       (1) Retention.--Section 274A(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1324a(b)) is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Copying and retention of documentation.--
       ``(A) In general.--A person or entity required to examine a 
     document described in subparagraph (B), (C), or (D) of 
     paragraph (1) or receive an attestation described in 
     paragraph (2) shall retain a paper, microfiche, microfilm, or 
     electronic version of each such document and attestation, 
     indicate that each such version is a copied document, and 
     make such versions available for inspection by an officer of 
     the Department of Homeland Security or any other person 
     designated by the Secretary, the Special Counsel for 
     Immigration-Related Unfair Employment Practices of the 
     Department of Justice, or the Secretary of Labor during the 
     period beginning on the date of the hiring, or recruiting or 
     referring for a fee, of the individual and ending--
       ``(i) in the case of the recruiting or referral for a fee 
     (without hiring) of an individual, 5 years after the date of 
     the recruiting or referral; or
       ``(ii) in the case of the hiring of an individual the later 
     of--

       ``(I) 5 years after the date of such hiring; or
       ``(II) 1 year after the date the individual's employment is 
     terminated.

       ``(B) Other records.--Such person or entity shall maintain 
     records of any action taken and copies of any correspondence 
     written or received with respect to the verification of an 
     individual's identity or eligibility for employment in the 
     United States.''.
       (2) Limitation on use of retained documents.--Paragraph (5) 
     of section 274A(b) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(b)) is amended--
       (A) in the heading, by striking ``Limitation on use of 
     attestation form'' and inserting ``Attestation form'';
       (B) by redesignating such paragraph (5) as subparagraph 
     (A);
       (C) by indenting such subparagraph, as so designated, six 
     ems from the left margin;
       (D) by inserting before such subparagraph, as so 
     designated, the following:
       ``(5) Limitation on use.--''; and
       (E) by inserting after such subparagraph, as so designated, 
     the following new subparagraph:
       ``(B) Retained documents.--A person or entity required to 
     retain versions of documents or attestations or maintain 
     records under paragraph (4) shall use any such version, 
     attestation, or record only for the purposes of complying 
     with the requirements of this subsection, except as otherwise 
     permitted under law.''.
       (c) Extension of the Basic Pilot Program.--Section 403(a) 
     of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended 
     by adding at the end the following new paragraph:
       ``(5) Individuals covered.--Notwithstanding any other 
     provision of this title, a person or other entity that elects 
     to participate in the basic pilot program shall follow the 
     procedures described in paragraphs (1) thorough (4) for each 
     individual who the person or entity hires (or recruits or 
     refers) for employment and for each individual who is 
     employed by the person or entity.''.


[[Page S957]]


                                 ______
                                 
  SA 147. Mr. SESSIONS (for himself and Mr. Inhofe) submitted an 
amendment intended to be proposed to amendment SA 100 proposed by Mr. 
Reid (for Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor 
Standards Act of 1938 to provide for an increase in the Federal minimum 
wage; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

       (a) Penalties for Unlawful Employment of Aliens.--Section 
     274A of the Immigration and Nationality Act (8 U.S.C. 1324a) 
     is amended--
       (1) in subsection (e)(4)--
       (A) in subparagraph (A)(i), by striking ``not less than 
     $250 and not more than $2,000'' and inserting ``not less than 
     $5000 and not more than $7,500'';
       (B) in subparagraph (A)(ii), by striking ``not less than 
     $2,000 and not more than $5,000'' and inserting ``not less 
     than $10,000 and not more than $15,000''; and
       (C) in subparagraph (A)(iii), by striking ``not less than 
     $3,000 and not more than $10,000'' and inserting ``not less 
     than $25,000 and not more than $40,00'';
       (2) in subsection (e)(5)--
       (A) by inserting ``, subject to paragraph (10),'' after 
     ``in an amount'';
       (B) by striking ``$100 and not more than $1,000'' and 
     inserting ``$1,000 and not more than $25,000''; and
       (C) by adding at the end the following sentence: 
     ``Providing information to the basic pilot program described 
     in section 403(a) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
     that the person or entity knows or reasonably believes to be 
     false, shall be treated as a violation of subsection 
     (a)(1)(A) and shall not qualify for the exemption provided by 
     (e)(10).'';
       (3) by adding at the end of subsection (e) the following 
     new paragraph:
       ``(10) Exemption from penalty for employers participating 
     in the basic pilot program.--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 by an employer 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 shall be waived if the violator establishes that it 
     was voluntarily participating in the basic pilot electronic 
     verification program at the time of the offense.'';
       (4) by amending paragraph (1) of subsection (f) to read as 
     follows:
       ``(1) Criminal penalty.--Any person or entity which engages 
     in a pattern or practice of violations of paragraph (1) or 
     (2) of subsection (a) shall be fined not less than $3,000 and 
     more than $50,000 for each unauthorized alien with respect to 
     which such a violation occurs, imprisoned for not less than 
     one year, or both, notwithstanding the provisions of any 
     other Federal law relating to fine levels.''; and
       (5) in subsection (f)(2), by striking ``Attorney General'' 
     each place it appears and inserting ``Secretary of Homeland 
     Security''.
       (b) Retention and Use of Employment Eligibility 
     Verification Documents.--
       (1) Retention.--Section 274A(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1324a(b)) is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Copying and retention of documentation.--
       ``(A) In general.--A person or entity required to examine a 
     document described in subparagraph (B), (C), or (D) of 
     paragraph (1) or receive an attestation described in 
     paragraph (2) shall retain a paper, microfiche, microfilm, or 
     electronic version of each such document and attestation, 
     indicate that each such version is a copied document, and 
     make such versions available for inspection by an officer of 
     the Department of Homeland Security or any other person 
     designated by the Secretary, the Special Counsel for 
     Immigration-Related Unfair Employment Practices of the 
     Department of Justice, or the Secretary of Labor during the 
     period beginning on the date of the hiring, or recruiting or 
     referring for a fee, of the individual and ending--
       ``(i) in the case of the recruiting or referral for a fee 
     (without hiring) of an individual, 5 years after the date of 
     the recruiting or referral; or
       ``(ii) in the case of the hiring of an individual the later 
     of--

       ``(I) 5 years after the date of such hiring; or
       ``(II) 1 year after the date the individual's employment is 
     terminated.

       ``(B) Other records.--Such person or entity shall maintain 
     records of any action taken and copies of any correspondence 
     written or received with respect to the verification of an 
     individual's identity or eligibility for employment in the 
     United States.''.
       (2) Limitation on use of retained documents.--Paragraph (5) 
     of section 274A(b) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(b)) is amended--
       (A) in the heading, by striking ``Limitation on use of 
     attestation form'' and inserting ``Attestation form'';
       (B) by redesignating such paragraph (5) as subparagraph 
     (A);
       (C) by indenting such subparagraph, as so designated, six 
     ems from the left margin;
       (D) by inserting before such subparagraph, as so 
     designated, the following:
       ``(5) Limitation on use.--''; and
       (E) by inserting after such subparagraph, as so designated, 
     the following new subparagraph:
       ``(B) Retained documents.--A person or entity required to 
     retain versions of documents or attestations or maintain 
     records under paragraph (4) shall use any such version, 
     attestation, or record only for the purposes of complying 
     with the requirements of this subsection, except as otherwise 
     permitted under law.''.
       (c) Extension of the Basic Pilot Program.--Section 403(a) 
     of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended 
     by adding at the end the following new paragraph:
       ``(5) Individuals covered.--Notwithstanding any other 
     provision of this title, a person or other entity that elects 
     to participate in the basic pilot program shall follow the 
     procedures described in paragraphs (1) thorough (4) for each 
     individual who the person or entity hires (or recruits or 
     refers) for employment and for each individual who is 
     employed by the person or entity.''.

                                 ______
                                 
  SA 148. Mr. SESSIONS (for himself, Mr. Inhofe, and Mr. Grassley) 
submitted an amendment intended to be proposed to amendment SA 100 
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the 
Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

       Section 274A(e) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(e)) is amended by adding at the end the 
     following new paragraph:
       ``(10) Prohibition on award of government contracts, 
     grants, and agreements.--
       ``(A) Employers with no contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subparagraph 
     (C), if an employer who does not hold a Federal contract, 
     grant, or cooperative agreement is determined to have 
     violated this section, the employer shall be debarred from 
     the receipt of a Federal contract, grant, or cooperative 
     agreement for a period of 7 years.
       ``(ii) Placement on excluded list.--The Secretary of 
     Homeland Security or the Attorney General shall advise the 
     Administrator of General Services of the debarment of an 
     employer under clause (i) and the Administrator of General 
     Services shall list the employer on the List of Parties 
     Excluded from Federal Procurement and Nonprocurement Programs 
     for a period of 7 years.
       ``(iii) Waiver.--

       ``(I) Authority.--The Administrator of General Services, in 
     consultation with the Secretary of Homeland Security and the 
     Attorney General, may waive operation of clause (i) or may 
     limit the duration or scope of a debarment under clause (i) 
     if such waiver or limitation is necessary to national defense 
     or in the interest of national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House of Representatives immediate notice of 
     such waiver or limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternative action under this clause 
     shall not be judicially reviewed.

       ``(B) Employers with contracts, grants, or agreements.--
       ``(i) In general.--Subject to clause (iii) and subclause 
     (C), an employer who holds a Federal contract, grant, or 
     cooperative agreement and is determined to have violated this 
     section shall be debarred from the receipt of new Federal 
     contracts, grants, or cooperative agreements for a period of 
     10 years.
       ``(ii) Notice to agencies.--Prior to debarring the employer 
     under clause (i), the Secretary of Homeland Security, in 
     cooperation with the Administrator of General Services, shall 
     advise any agency or department holding a contract, grant, or 
     cooperative agreement with the employer of the Government's 
     intention to debar the employer from the receipt of new 
     Federal contracts, grants, or cooperative agreements for a 
     period of 10 years.
       ``(iii) Waiver.--

       ``(I) Authority.--After consideration of the views of any 
     agency or department that holds a contract, grant, or 
     cooperative agreement with the employer, the Administrator of 
     General Services, in consultation with the Secretary of 
     Homeland Security and the Attorney General, may waive 
     operation of clause (i) or may limit the duration or scope of 
     the debarment under clause (i) if such waiver or limitation 
     is necessary to the national defense or in the interest of 
     national security.
       ``(II) Notification to congress.--If the Administrator 
     grants a waiver or limitation described in subclause (I), the 
     Administrator shall submit to each member of the Committee on 
     the Judiciary of the Senate and of the Committee on the 
     Judiciary of the House

[[Page S958]]

     of Representatives immediate notice of such waiver or 
     limitation.
       ``(III) Prohibition on judicial review.--The decision of 
     whether to debar or take alternate action under this clause 
     shall not be judicially reviewed.

       ``(C) Exemption from penalty for employers participating in 
     the basic pilot program.--In the case of imposition on an 
     employer of a debarment from the receipt of a Federal 
     contract, grant, or cooperative agreement under subparagraph 
     (A) or (B), that penalty shall be waived if the employer 
     establishes that the employer was voluntarily participating 
     in the basic pilot program under section 403(a) of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (8 U.S.C. 1324a note) at the time of the violations 
     of this section that resulted in the debarment.''.

                                 ______
                                 
  SA 149. Mr. ENSIGN (for himself and Mr. Inhofe) submitted an 
amendment intended to be proposed by him to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. PRECLUSION OF SOCIAL SECURITY CREDITS PRIOR TO 
                   ENUMERATION.

       (a) Insured Status.--Section 214 of the Social Security Act 
     (42 U.S.C. 414) is amended by adding at the end, the 
     following new subsection:
       ``(d)(1) Except as provided in paragraph (2), no quarter of 
     coverage shall be credited for purposes of this section if, 
     with respect to any individual who is assigned a social 
     security account number on or after the date of enactment of 
     the Fair Minimum Wage Act of 2007, such quarter of coverage 
     is earned prior to the year in which such social security 
     account number is assigned.
       ``(2) Paragraph (1) shall not apply with respect to any 
     quarter of coverage earned by an individual who, at such time 
     such quarter of coverage is earned, satisfies the criterion 
     specified in subsection (c)(2).''.
       (b) Benefit Computation.--Section 215(e) of such Act (42 
     U.S.C. 415(e)) is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) in computing the average indexed monthly earnings of 
     an individual who is assigned a social security account 
     number on or after the date of enactment of the Fair Minimum 
     Wage Act of 2007, there shall not be counted any wages or 
     self-employment income for which no quarter of coverage may 
     be credited to such individual as a result of the application 
     of section 214(d).''.

                                 ______
                                 
  SA 150. Mr. ENSIGN (for himself, Mr. Sessions, Mr. Craig, Mrs. Dole, 
Mr. Thomas, Mr. Cornyn, Mr. Inhofe, Mr. Isakson, and Mr. Coleman) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. TRANSMITTAL AND APPROVAL OF TOTALIZATION AGREEMENTS.

       (a) In General.--Section 233(e) of the Social Security Act 
     (42 U.S.C. 433(e)) is amended to read as follows:
       ``(e)(1) Any agreement to establish a totalization 
     arrangement which is entered into with another country under 
     this section shall enter into force with respect to the 
     United States if (and only if)--
       ``(A) the President, at least 90 calendar days before the 
     date on which the President enters into the agreement, 
     notifies each House of Congress of the President's intention 
     to enter into the agreement, and promptly thereafter 
     publishes notice of such intention in the Federal Register,
       ``(B) the President transmits the text of such agreement to 
     each House of Congress as provided in paragraph (2), and
       ``(C) an approval resolution regarding such agreement has 
     passed both Houses of Congress and has been enacted into law.
       ``(2)(A) Whenever an agreement referred to in paragraph (1) 
     is entered into, the President shall transmit to each House 
     of Congress a document setting forth the final legal text of 
     such agreement and including a report by the President in 
     support of such agreement. The President's report shall 
     include the following:
       ``(i) An estimate by the Chief Actuary of the Social 
     Security Administration of the effect of the agreement, in 
     the short term and in the long term, on the receipts and 
     disbursements under the social security system established by 
     this title.
       ``(ii) A statement of any administrative action proposed to 
     implement the agreement and how such action will change or 
     affect existing law.
       ``(iii) A statement describing whether and how the 
     agreement changes provisions of an agreement previously 
     negotiated.
       ``(iv) A statement describing how and to what extent the 
     agreement makes progress in achieving the purposes, policies, 
     and objectives of this title.
       ``(v) An estimate by the Chief Actuary of the Social 
     Security Administration, working in consultation with the 
     Comptroller General of the United States, of the number of 
     individuals who may become eligible for any benefits under 
     this title or who may otherwise be affected by the agreement.
       ``(vi) An assessment of the integrity of the retirement 
     data and records (including birth, death, and marriage 
     records) of the other country that is the subject of the 
     agreement.
       ``(vii) An assessment of the ability of such country to 
     track and monitor recipients of benefits under such 
     agreement.
       ``(B) If any separate agreement or other understanding with 
     another country (whether oral or in writing) relating to an 
     agreement to establish a totalization arrangement under this 
     section is not disclosed to Congress in the transmittal to 
     Congress under this paragraph of the agreement to establish a 
     totalization arrangement, then such separate agreement or 
     understanding shall not be considered to be part of the 
     agreement approved by Congress under this section and shall 
     have no force and effect under United States law.
       ``(3) For purposes of this subsection, the term `approval 
     resolution' means a joint resolution, the matter after the 
     resolving clause of which is as follows: `That the proposed 
     agreement entered into pursuant to section 233 of the Social 
     Security Act between the United States and _______ 
     establishing totalization arrangements between the social 
     security system established by title II of such Act and the 
     social security system of _______, transmitted to Congress by 
     the President on ______, is hereby approved.', the first two 
     blanks therein being filled with the name of the country with 
     which the United States entered into the agreement, and the 
     third blank therein being filled with the date of the 
     transmittal of the agreement to Congress.
       ``(4) Whenever a document setting forth an agreement 
     entered into under this section and the President's report in 
     support of the agreement is transmitted to Congress pursuant 
     to paragraph (2), copies of such document shall be delivered 
     to both Houses of Congress on the same day and shall be 
     delivered to the Clerk of the House of Representatives if the 
     House is not in session and to the Secretary of the Senate if 
     the Senate is not in session.
       ``(5) On the day on which a document setting forth the 
     agreement is transmitted to the House of Representatives and 
     the Senate pursuant to paragraph (1), an approval resolution 
     with respect to such agreement shall be introduced (by 
     request) in the House by the majority leader of the House, 
     for himself or herself and the minority leader of the House, 
     or by Members of the House designated by the majority leader 
     and minority leader of the House; and shall be introduced (by 
     request) in the Senate by the majority leader of the Senate, 
     for himself or herself and the minority leader of the Senate, 
     or by Members of the Senate designated by the majority leader 
     and minority leader of the Senate. If either House is not in 
     session on the day on which such an agreement is transmitted, 
     the approval resolution with respect to such agreement shall 
     be introduced in that House, as provided in the preceding 
     sentence, on the first day thereafter on which that House is 
     in session. The resolution introduced in the House of 
     Representatives shall be referred to the Committee on Ways 
     and Means and the resolution introduced in the Senate shall 
     be referred to the Committee on Finance.''.
       (b) Additional Reports and Evaluations.--Section 233 of the 
     Social Security Act (42 U.S.C. 433) is amended by adding at 
     the end the following new subsections:
       ``(f) Biennial SSA Report on Impact of Totalization 
     Agreements.--
       ``(1) Report.--For any totalization agreement transmitted 
     to Congress on or after January 1, 2007, the Commissioner of 
     Social Security shall submit a report to Congress and the 
     Comptroller General that--
       ``(A) compares the estimates contained in the report 
     submitted to Congress under clauses (i) and (v) of subsection 
     (e)(2)(A) with respect to that agreement with the actual 
     number of individuals affected by the agreement and the 
     actual effect of the agreement on social security system 
     receipts and disbursements; and
       ``(B) contains recommendations for adjusting the methods 
     used to make the estimates.
       ``(2) Dates for submission.--The report required under this 
     subsection shall be provided not later than 2 years after the 
     effective date of the totalization agreement that is the 
     subject of the report and biennially thereafter.
       ``(g) GAO Evaluation and Report.--
       ``(1) Evaluation of initial report on impact of 
     totalization agreements.--With respect to each initial report 
     regarding a totalization agreement submitted under subsection 
     (f), the Comptroller General of the United States shall 
     conduct an evaluation of the report that includes--
       ``(A) an evaluation of the procedures used for making the 
     estimates required by subsection (e)(2)(A);
       ``(B) an evaluation of the procedures used for determining 
     the actual number of individuals affected by the agreement 
     and the effects of the totalization agreement on receipts and 
     disbursements under the social security system; and
       ``(C) such recommendations as the Comptroller General 
     determines appropriate.
       ``(2) Report.--Not later than 1 year after the date of 
     submission of an initial report regarding a totalization 
     agreement under subsection (f), the Comptroller General shall

[[Page S959]]

     submit to Congress a report setting forth the results of the 
     evaluation conducted under paragraph (1).
       ``(3) Data collection.--The Commissioner of Social Security 
     shall collect and maintain the data necessary for the 
     Comptroller General of the United States to conduct the 
     evaluation required by paragraph (1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to agreements establishing 
     totalization arrangements entered into under section 233 of 
     the Social Security Act which are transmitted to Congress on 
     or after January 1, 2007.
                                 ______
                                 
  SA 151. Mr. ENSIGN (for himself, Mr. DeMint, Mr. Graham, Mr. Coburn) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. NON-GROUP HIGH DEDUCTIBLE HEALTH PLAN PREMIUMS 
                   OPTIONS.

       (a) In General.--Section 223(d)(2)(C) of the Internal 
     Revenue Code of 1986 (relating to exceptions) is amended by 
     striking ``or'' at the end of clause (iii), by striking the 
     period at the end of clause (iv) and inserting ``, or'', and 
     by adding at the end the following new clause:
       ``(v) a high deductible health plan, other than a group 
     health plan (as defined in section 5000(b)(1)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
  SA 152. Mr. ENSIGN (for himself and Mr. Inhofe submitted an amendment 
intended to be proposed to amendment SA 100 proposed by Mr. Reid (for 
Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor Standards Act 
of 1938 to provide for an increase in the Federal minimum wage; as 
follows:
       At the appropriate place, insert the following:

     SEC. __. PRECLUSION OF SOCIAL SECURITY CREDITS PRIOR TO 
                   ENUMERATION.

       (a) Insured Status.--Section 214 of the Social Security Act 
     (42 U.S.C. 414) is amended by adding at the end, the 
     following new subsection:
       ``(d)(1) Except as provided in paragraph (2), no quarter of 
     coverage shall be credited for purposes of this section if, 
     with respect to any individual who is assigned a social 
     security account number on or after the date of enactment of 
     the Fair Minimum Wage Act of 2007, such quarter of coverage 
     is earned prior to the year in which such social security 
     account number is assigned.
       ``(2) Paragraph (1) shall not apply with respect to any 
     quarter of coverage earned by an individual who, at such time 
     such quarter of coverage is earned, satisfies the criterion 
     specified in subsection (c)(2).''.
       (b) Benefit Computation.--Section 215(e) of such Act (42 
     U.S.C. 415(e)) is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) in computing the average indexed monthly earnings of 
     an individual who is assigned a social security account 
     number on or after the date of enactment of the Fair Minimum 
     Wage Act of 2007, there shall not be counted any wages or 
     self-employment income for which no quarter of coverage may 
     be credited to such individual as a result of the application 
     of section 214(d).''.
                                 ______
                                 
  SA 153. Mr. ENSIGN (for himself, Mr. Sessions, Mr. Craig, Mrs. Dole, 
Mr. Thomas, Mr. Cornyn, Mr. Inhofe, Mr. Isakson, and Mr. Coleman) 
submitted an amendment intended to be proposed to amendment SA 100 
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the 
Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; as follows:

       At the appropriate place, insert the following:

     SEC. __. TRANSMITTAL AND APPROVAL OF TOTALIZATION AGREEMENTS.

       (a) In General.--Section 233(e) of the Social Security Act 
     (42 U.S.C. 433(e)) is amended to read as follows:
       ``(e)(1) Any agreement to establish a totalization 
     arrangement which is entered into with another country under 
     this section shall enter into force with respect to the 
     United States if (and only if)--
       ``(A) the President, at least 90 calendar days before the 
     date on which the President enters into the agreement, 
     notifies each House of Congress of the President's intention 
     to enter into the agreement, and promptly thereafter 
     publishes notice of such intention in the Federal Register,
       ``(B) the President transmits the text of such agreement to 
     each House of Congress as provided in paragraph (2), and
       ``(C) an approval resolution regarding such agreement has 
     passed both Houses of Congress and has been enacted into law.
       ``(2)(A) Whenever an agreement referred to in paragraph (1) 
     is entered into, the President shall transmit to each House 
     of Congress a document setting forth the final legal text of 
     such agreement and including a report by the President in 
     support of such agreement. The President's report shall 
     include the following:
       ``(i) An estimate by the Chief Actuary of the Social 
     Security Administration of the effect of the agreement, in 
     the short term and in the long term, on the receipts and 
     disbursements under the social security system established by 
     this title.
       ``(ii) A statement of any administrative action proposed to 
     implement the agreement and how such action will change or 
     affect existing law.
       ``(iii) A statement describing whether and how the 
     agreement changes provisions of an agreement previously 
     negotiated.
       ``(iv) A statement describing how and to what extent the 
     agreement makes progress in achieving the purposes, policies, 
     and objectives of this title.
       ``(v) An estimate by the Chief Actuary of the Social 
     Security Administration, working in consultation with the 
     Comptroller General of the United States, of the number of 
     individuals who may become eligible for any benefits under 
     this title or who may otherwise be affected by the agreement.
       ``(vi) An assessment of the integrity of the retirement 
     data and records (including birth, death, and marriage 
     records) of the other country that is the subject of the 
     agreement.
       ``(vii) An assessment of the ability of such country to 
     track and monitor recipients of benefits under such 
     agreement.
       ``(B) If any separate agreement or other understanding with 
     another country (whether oral or in writing) relating to an 
     agreement to establish a totalization arrangement under this 
     section is not disclosed to Congress in the transmittal to 
     Congress under this paragraph of the agreement to establish a 
     totalization arrangement, then such separate agreement or 
     understanding shall not be considered to be part of the 
     agreement approved by Congress under this section and shall 
     have no force and effect under United States law.
       ``(3) For purposes of this subsection, the term `approval 
     resolution' means a joint resolution, the matter after the 
     resolving clause of which is as follows: `That the proposed 
     agreement entered into pursuant to section 233 of the Social 
     Security Act between the United States and _______ 
     establishing totalization arrangements between the social 
     security system established by title II of such Act and the 
     social security system of _______, transmitted to Congress by 
     the President on ______, is hereby approved.', the first two 
     blanks therein being filled with the name of the country with 
     which the United States entered into the agreement, and the 
     third blank therein being filled with the date of the 
     transmittal of the agreement to Congress.
       ``(4) Whenever a document setting forth an agreement 
     entered into under this section and the President's report in 
     support of the agreement is transmitted to Congress pursuant 
     to paragraph (2), copies of such document shall be delivered 
     to both Houses of Congress on the same day and shall be 
     delivered to the Clerk of the House of Representatives if the 
     House is not in session and to the Secretary of the Senate if 
     the Senate is not in session.
       ``(5) On the day on which a document setting forth the 
     agreement is transmitted to the House of Representatives and 
     the Senate pursuant to paragraph (1), an approval resolution 
     with respect to such agreement shall be introduced (by 
     request) in the House by the majority leader of the House, 
     for himself or herself and the minority leader of the House, 
     or by Members of the House designated by the majority leader 
     and minority leader of the House; and shall be introduced (by 
     request) in the Senate by the majority leader of the Senate, 
     for himself or herself and the minority leader of the Senate, 
     or by Members of the Senate designated by the majority leader 
     and minority leader of the Senate. If either House is not in 
     session on the day on which such an agreement is transmitted, 
     the approval resolution with respect to such agreement shall 
     be introduced in that House, as provided in the preceding 
     sentence, on the first day thereafter on which that House is 
     in session. The resolution introduced in the House of 
     Representatives shall be referred to the Committee on Ways 
     and Means and the resolution introduced in the Senate shall 
     be referred to the Committee on Finance.''.
       (b) Additional Reports and Evaluations.--Section 233 of the 
     Social Security Act (42 U.S.C. 433) is amended by adding at 
     the end the following new subsections:
       ``(f) Biennial SSA Report on Impact of Totalization 
     Agreements.--
       ``(1) Report.--For any totalization agreement transmitted 
     to Congress on or after January 1, 2007, the Commissioner of 
     Social Security shall submit a report to Congress and the 
     Comptroller General that--
       ``(A) compares the estimates contained in the report 
     submitted to Congress under clauses (i) and (v) of subsection 
     (e)(2)(A) with respect to that agreement with the actual 
     number of individuals affected by the agreement and the 
     actual effect of the agreement on social security system 
     receipts and disbursements; and
       ``(B) contains recommendations for adjusting the methods 
     used to make the estimates.
       ``(2) Dates for submission.--The report required under this 
     subsection shall be provided not later than 2 years after the 
     effective date of the totalization agreement that

[[Page S960]]

     is the subject of the report and biennially thereafter.
       ``(g) GAO Evaluation and Report.--
       ``(1) Evaluation of initial report on impact of 
     totalization agreements.--With respect to each initial report 
     regarding a totalization agreement submitted under subsection 
     (f), the Comptroller General of the United States shall 
     conduct an evaluation of the report that includes--
       ``(A) an evaluation of the procedures used for making the 
     estimates required by subsection (e)(2)(A);
       ``(B) an evaluation of the procedures used for determining 
     the actual number of individuals affected by the agreement 
     and the effects of the totalization agreement on receipts and 
     disbursements under the social security system; and
       ``(C) such recommendations as the Comptroller General 
     determines appropriate.
       ``(2) Report.--Not later than 1 year after the date of 
     submission of an initial report regarding a totalization 
     agreement under subsection (f), the Comptroller General shall 
     submit to Congress a report setting forth the results of the 
     evaluation conducted under paragraph (1).
       ``(3) Data collection.--The Commissioner of Social Security 
     shall collect and maintain the data necessary for the 
     Comptroller General of the United States to conduct the 
     evaluation required by paragraph (1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to agreements establishing 
     totalization arrangements entered into under section 233 of 
     the Social Security Act which are transmitted to Congress on 
     or after January 1, 2007.
                                 ______
                                 
  SA 154. Mr. ENSIGN (for himself, Mr. DeMint, Mr. Graham, and Mr. 
Coburn) submitted an amendment intended to be proposed to amendment SA 
100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; as follows:

       At the appropriate place, insert the following:

     SEC. __. NON-GROUP HIGH DEDUCTIBLE HEALTH PLAN PREMIUMS 
                   OPTIONS.

       (a) In General.--Section 223(d)(2)(C) of the Internal 
     Revenue Code of 1986 (relating to exceptions) is amended by 
     striking ``or'' at the end of clause (iii), by striking the 
     period at the end of clause (iv) and inserting ``, or'', and 
     by adding at the end the following new clause:
       ``(v) a high deductible health plan, other than a group 
     health plan (as defined in section 5000(b)(1)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
  SA 155. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE 
                   COVERAGE.

       (a) Specification of Constitutional Authority for Enactment 
     of Law.--This section is enacted pursuant to the power 
     granted Congress under article I, section 8, clause 3, of the 
     United States Constitution.
       (b) Cooperative Governing of Individual Health Insurance 
     Coverage.--
       (1) In general.--Title XXVII of the Public Health Service 
     Act (42 U.S.C. 300gg et seq.) is amended by adding at the end 
     the following new part:

``PART D--COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE COVERAGE

     ``SEC. 2795. DEFINITIONS.

       ``In this part:
       ``(1) Primary state.--The term `primary State' means, with 
     respect to individual health insurance coverage offered by a 
     health insurance issuer, the State designated by the issuer 
     as the State whose covered laws shall govern the health 
     insurance issuer in the sale of such coverage under this 
     part. An issuer, with respect to a particular policy, may 
     only designate one such State as its primary State with 
     respect to all such coverage it offers. Such an issuer may 
     not change the designated primary State with respect to 
     individual health insurance coverage once the policy is 
     issued, except that such a change may be made upon renewal of 
     the policy. With respect to such designated State, the issuer 
     is deemed to be doing business in that State.
       ``(2) Secondary state.--The term `secondary State' means, 
     with respect to individual health insurance coverage offered 
     by a health insurance issuer, any State that is not the 
     primary State. In the case of a health insurance issuer that 
     is selling a policy in, or to a resident of, a secondary 
     State, the issuer is deemed to be doing business in that 
     secondary State.
       ``(3) Health insurance issuer.--The term `health insurance 
     issuer' has the meaning given such term in section 
     2791(b)(2), except that such an issuer must be licensed in 
     the primary State and be qualified to sell individual health 
     insurance coverage in that State.
       ``(4) Individual health insurance coverage.--The term 
     `individual health insurance coverage' means health insurance 
     coverage offered in the individual market, as defined in 
     section 2791(e)(1).
       ``(5) Applicable state authority.--The term `applicable 
     State authority' means, with respect to a health insurance 
     issuer in a State, the State insurance commissioner or 
     official or officials designated by the State to enforce the 
     requirements of this title for the State with respect to the 
     issuer.
       ``(6) Hazardous financial condition.--The term `hazardous 
     financial condition' means that, based on its present or 
     reasonably anticipated financial condition, a health 
     insurance issuer is unlikely to be able--
       ``(A) to meet obligations to policyholders with respect to 
     known claims and reasonably anticipated claims; or
       ``(B) to pay other obligations in the normal course of 
     business.
       ``(7) Covered laws.--The term `covered laws' means the 
     laws, rules, regulations, agreements, and orders governing 
     the insurance business pertaining to--
       ``(A) individual health insurance coverage issued by a 
     health insurance issuer;
       ``(B) the offer, sale, and issuance of individual health 
     insurance coverage to an individual; and
       ``(C) the provision to an individual in relation to 
     individual health insurance coverage of--
       ``(i) health care and insurance related services;
       ``(ii) management, operations, and investment activities of 
     a health insurance issuer; and
       ``(iii) loss control and claims administration for a health 
     insurance issuer with respect to liability for which the 
     issuer provides insurance.
       ``(8) State.--The term `State' means only the 50 States and 
     the District of Columbia.
       ``(9) Unfair claims settlement practices.--The term `unfair 
     claims settlement practices' means only the following 
     practices:
       ``(A) Knowingly misrepresenting to claimants and insured 
     individuals relevant facts or policy provisions relating to 
     coverage at issue.
       ``(B) Failing to acknowledge with reasonable promptness 
     pertinent communications with respect to claims arising under 
     policies.
       ``(C) Failing to adopt and implement reasonable standards 
     for the prompt investigation and settlement of claims arising 
     under policies.
       ``(D) Failing to effectuate prompt, fair, and equitable 
     settlement of claims submitted in which liability has become 
     reasonably clear.
       ``(E) Refusing to pay claims without conducting a 
     reasonable investigation.
       ``(F) Failing to affirm or deny coverage of claims within a 
     reasonable period of time after having completed an 
     investigation related to those claims.
       ``(10) Fraud and abuse.--The term `fraud and abuse' means 
     an act or omission committed by a person who, knowingly and 
     with intent to defraud, commits, or conceals any material 
     information concerning, one or more of the following:
       ``(A) Presenting, causing to be presented or preparing with 
     knowledge or belief that it will be presented to or by an 
     insurer, a reinsurer, broker or its agent, false information 
     as part of, in support of or concerning a fact material to 
     one or more of the following:
       ``(i) An application for the issuance or renewal of an 
     insurance policy or reinsurance contract.
       ``(ii) The rating of an insurance policy or reinsurance 
     contract.
       ``(iii) A claim for payment or benefit pursuant to an 
     insurance policy or reinsurance contract.
       ``(iv) Premiums paid on an insurance policy or reinsurance 
     contract.
       ``(v) Payments made in accordance with the terms of an 
     insurance policy or reinsurance contract.
       ``(vi) A document filed with the commissioner or the chief 
     insurance regulatory official of another jurisdiction.
       ``(vii) The financial condition of an insurer or reinsurer.
       ``(viii) The formation, acquisition, merger, 
     reconsolidation, dissolution or withdrawal from one or more 
     lines of insurance or reinsurance in all or part of a State 
     by an insurer or reinsurer.
       ``(ix) The issuance of written evidence of insurance.
       ``(x) The reinstatement of an insurance policy.
       ``(B) Solicitation or acceptance of new or renewal 
     insurance risks on behalf of an insurer, reinsurer, or other 
     person engaged in the business of insurance by a person who 
     knows or should know that the insurer or other person 
     responsible for the risk is insolvent at the time of the 
     transaction.
       ``(C) Transaction of the business of insurance in violation 
     of laws requiring a license, certificate of authority, or 
     other legal authority for the transaction of the business of 
     insurance.
       ``(D) Attempt to commit, aiding or abetting in the 
     commission of, or conspiracy to commit the acts or omissions 
     specified in this paragraph.

     ``SEC. 2796. APPLICATION OF LAW.

       ``(a) In General.--The covered laws of the primary State 
     shall apply to individual health insurance coverage offered 
     by a

[[Page S961]]

     health insurance issuer in the primary State and in any 
     secondary State, but only if the coverage and issuer comply 
     with the conditions of this section with respect to the 
     offering of coverage in any secondary State.
       ``(b) Exemptions From Covered Laws in a Secondary State.--
     Except as provided in this section, a health insurance issuer 
     with respect to its offer, sale, renewal, and issuance of 
     individual health insurance coverage in any secondary State 
     is exempt from any covered laws of the secondary State (and 
     any rules, regulations, agreements, or orders sought or 
     issued by such State under or related to such covered laws) 
     to the extent that such laws would--
       ``(1) make unlawful, or regulate, directly or indirectly, 
     the operation of the health insurance issuer operating in the 
     secondary State, except that any secondary State may require 
     such an issuer--
       ``(A) to pay, on a nondiscriminatory basis, applicable 
     premium and other taxes (including high risk pool 
     assessments) which are levied on insurers and surplus lines 
     insurers, brokers, or policyholders under the laws of the 
     State;
       ``(B) to register with and designate the State insurance 
     commissioner as its agent solely for the purpose of receiving 
     service of legal documents or process;
       ``(C) to submit to an examination of its financial 
     condition by the State insurance commissioner in any State in 
     which the issuer is doing business to determine the issuer's 
     financial condition, if--
       ``(i) the State insurance commissioner of the primary State 
     has not done an examination within the period recommended by 
     the National Association of Insurance Commissioners; and
       ``(ii) any such examination is conducted in accordance with 
     the examiners' handbook of the National Association of 
     Insurance Commissioners and is coordinated to avoid 
     unjustified duplication and unjustified repetition;
       ``(D) to comply with a lawful order issued--
       ``(i) in a delinquency proceeding commenced by the State 
     insurance commissioner if there has been a finding of 
     financial impairment under subparagraph (C); or
       ``(ii) in a voluntary dissolution proceeding;
       ``(E) to comply with an injunction issued by a court of 
     competent jurisdiction, upon a petition by the State 
     insurance commissioner alleging that the issuer is in 
     hazardous financial condition;
       ``(F) to participate, on a nondiscriminatory basis, in any 
     insurance insolvency guaranty association or similar 
     association to which a health insurance issuer in the State 
     is required to belong;
       ``(G) to comply with any State law regarding fraud and 
     abuse (as defined in section 2795(10)), except that if the 
     State seeks an injunction regarding the conduct described in 
     this subparagraph, such injunction must be obtained from a 
     court of competent jurisdiction; or
       ``(H) to comply with any State law regarding unfair claims 
     settlement practices (as defined in section 2795(9));
       ``(2) require any individual health insurance coverage 
     issued by the issuer to be countersigned by an insurance 
     agent or broker residing in that Secondary State; or
       ``(3) otherwise discriminate against the issuer issuing 
     insurance in both the primary State and in any secondary 
     State.
       ``(c) Clear and Conspicuous Disclosure.--A health insurance 
     issuer shall provide the following notice, in 12-point bold 
     type, in any insurance coverage offered in a secondary State 
     under this part by such a health insurance issuer and at 
     renewal of the policy, with the 5 blank spaces therein being 
     appropriately filled with the name of the health insurance 
     issuer, the name of primary State, the name of the secondary 
     State, the name of the secondary State, and the name of the 
     secondary State, respectively, for the coverage concerned:

     `This policy is issued by _____ and is governed by the laws 
     and regulations of the State of _____, and it has met all the 
     laws of that State as determined by that State's Department 
     of Insurance. This policy may be less expensive than others 
     because it is not subject to all of the insurance laws and 
     regulations of the State of _____, including coverage of some 
     services or benefits mandated by the law of the State of 
     _____. Additionally, this policy is not subject to all of the 
     consumer protection laws or restrictions on rate changes of 
     the State of _____. As with all insurance products, before 
     purchasing this policy, you should carefully review the 
     policy and determine what health care services the policy 
     covers and what benefits it provides, including any 
     exclusions, limitations, or conditions for such services or 
     benefits.'.
       ``(d) Prohibition on Certain Reclassifications and Premium 
     Increases.--
       ``(1) In general.--For purposes of this section, a health 
     insurance issuer that provides individual health insurance 
     coverage to an individual under this part in a primary or 
     secondary State may not upon renewal--
       ``(A) move or reclassify the individual insured under the 
     health insurance coverage from the class such individual is 
     in at the time of issue of the contract based on the health-
     status related factors of the individual; or
       ``(B) increase the premiums assessed the individual for 
     such coverage based on a health status-related factor or 
     change of a health status-related factor or the past or 
     prospective claim experience of the insured individual.
       ``(2) Construction.--Nothing in paragraph (1) shall be 
     construed to prohibit a health insurance issuer--
       ``(A) from terminating or discontinuing coverage or a class 
     of coverage in accordance with subsections (b) and (c) of 
     section 2742;
       ``(B) from raising premium rates for all policy holders 
     within a class based on claims experience;
       ``(C) from changing premiums or offering discounted 
     premiums to individuals who engage in wellness activities at 
     intervals prescribed by the issuer, if such premium changes 
     or incentives--
       ``(i) are disclosed to the consumer in the insurance 
     contract;
       ``(ii) are based on specific wellness activities that are 
     not applicable to all individuals; and
       ``(iii) are not obtainable by all individuals to whom 
     coverage is offered;
       ``(D) from reinstating lapsed coverage; or
       ``(E) from retroactively adjusting the rates charged an 
     individual insured individual if the initial rates were set 
     based on material misrepresentation by the individual at the 
     time of issue.
       ``(e) Prior Offering of Policy in Primary State.--A health 
     insurance issuer may not offer for sale individual health 
     insurance coverage in a secondary State unless that coverage 
     is currently offered for sale in the primary State.
       ``(f) Licensing of Agents or Brokers for Health Insurance 
     Issuers.--Any State may require that a person acting, or 
     offering to act, as an agent or broker for a health insurance 
     issuer with respect to the offering of individual health 
     insurance coverage obtain a license from that State, except 
     that a State many not impose any qualification or requirement 
     which discriminates against a nonresident agent or broker.
       ``(g) Documents for Submission to State Insurance 
     Commissioner.--Each health insurance issuer issuing 
     individual health insurance coverage in both primary and 
     secondary States shall submit--
       ``(1) to the insurance commissioner of each State in which 
     it intends to offer such coverage, before it may offer 
     individual health insurance coverage in such State--
       ``(A) a copy of the plan of operation or feasibility study 
     or any similar statement of the policy being offered and its 
     coverage (which shall include the name of its primary State 
     and its principal place of business);
       ``(B) written notice of any change in its designation of 
     its primary State; and
       ``(C) written notice from the issuer of the issuer's 
     compliance with all the laws of the primary State; and
       ``(2) to the insurance commissioner of each secondary State 
     in which it offers individual health insurance coverage, a 
     copy of the issuer's quarterly financial statement submitted 
     to the primary State, which statement shall be certified by 
     an independent public accountant and contain a statement of 
     opinion on loss and loss adjustment expense reserves made 
     by--
       ``(A) a member of the American Academy of Actuaries; or
       ``(B) a qualified loss reserve specialist.
       ``(h) Power of Courts To Enjoin Conduct.--Nothing in this 
     section shall be construed to affect the authority of any 
     Federal or State court to enjoin--
       ``(1) the solicitation or sale of individual health 
     insurance coverage by a health insurance issuer to any person 
     or group who is not eligible for such insurance; or
       ``(2) the solicitation or sale of individual health 
     insurance coverage by, or operation of, a health insurance 
     issuer that is in hazardous financial condition.
       ``(i) State Powers To Enforce State Laws.--
       ``(1) In general.--Subject to the provisions of subsection 
     (b)(1)(G) (relating to injunctions) and paragraph (2), 
     nothing in this section shall be construed to affect the 
     authority of any State to make use of any of its powers to 
     enforce the laws of such State with respect to which a health 
     insurance issuer is not exempt under subsection (b).
       ``(2) Courts of competent jurisdiction.--If a State seeks 
     an injunction regarding the conduct described in paragraphs 
     (1) and (2) of subsection (h), such injunction must be 
     obtained from a Federal or State court of competent 
     jurisdiction.
       ``(j) States' Authority To Sue.--Nothing in this section 
     shall affect the authority of any State to bring action in 
     any Federal or State court.
       ``(k) Generally Applicable Laws.--Nothing in this section 
     shall be construed to affect the applicability of State laws 
     generally applicable to persons or corporations.

     ``SEC. 2797. PRIMARY STATE MUST MEET FEDERAL FLOOR BEFORE 
                   ISSUER MAY SELL INTO SECONDARY STATES.

       ``A health insurance issuer may not offer, sell, or issue 
     individual health insurance coverage in a secondary State if 
     the primary State does not meet the following requirements:
       ``(1) The State insurance commissioner must use a risk-
     based capital formula for the determination of capital and 
     surplus requirements for all health insurance issuers.
       ``(2) The State must have legislation or regulations in 
     place establishing an independent review process for 
     individuals who are covered by individual health insurance 
     coverage unless the issuer provides an independent review 
     mechanism functionally equivalent (as determined by the 
     primary State insurance commissioner or official) to

[[Page S962]]

     that prescribed in the `Health Carrier External Review Model 
     Act' of the National Association of Insurance Commissioners 
     for all individuals who purchase insurance coverage under the 
     terms of this part.

     ``SEC. 2798. ENFORCEMENT.

       ``(a) In General.--Subject to subsection (b), with respect 
     to specific individual health insurance coverage the primary 
     State for such coverage has sole jurisdiction to enforce the 
     primary State's covered laws in the primary State and any 
     secondary State.
       ``(b) Secondary State's Authority.--Nothing in subsection 
     (a) shall be construed to affect the authority of a secondary 
     State to enforce its laws as set forth in the exception 
     specified in section 2796(b)(1).
       ``(c) Court Interpretation.--In reviewing action initiated 
     by the applicable secondary State authority, the court of 
     competent jurisdiction shall apply the covered laws of the 
     primary State.
       ``(d) Notice of Compliance Failure.--In the case of 
     individual health insurance coverage offered in a secondary 
     State that fails to comply with the covered laws of the 
     primary State, the applicable State authority of the 
     secondary State may notify the applicable State authority of 
     the primary State.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to individual health insurance coverage offered, 
     issued, or sold after the date of the enactment of this Act.
       (c) Severability.--If any provision of this section or the 
     application of such provision to any person or circumstance 
     is held to be unconstitutional, the remainder of this section 
     and the application of the provisions of such to any other 
     person or circumstance shall not be affected.

     SEC. __. DISPOSITION OF UNUSED HEALTH BENEFITS IN CAFETERIA 
                   PLANS AND FLEXIBLE SPENDING ARRANGEMENTS.

       (a) In General.--Section 125 of the Internal Revenue Code 
     of 1986 (relating to cafeteria plans) is amended by 
     redesignating subsections (h) and (i) as subsections (i) and 
     (j), respectively, and by inserting after subsection (g) the 
     following:
       ``(h) Contributions of Certain Unused Health Benefits.--
       ``(1) In general.--For purposes of this title, a plan or 
     other arrangement shall not fail to be treated as a cafeteria 
     plan solely because qualified benefits under such plan 
     include a health flexible spending arrangement under which 
     not more than $500 of unused health benefits may be--
       ``(A) carried forward to the succeeding plan year of such 
     health flexible spending arrangement, or
       ``(B) to the extent permitted by section 106(d), 
     contributed by the employer to a health savings account (as 
     defined in section 223(d)) maintained for the benefit of the 
     employee.
       ``(2) Health flexible spending arrangement.--For purposes 
     of this subsection, the term `health flexible spending 
     arrangement' means a flexible spending arrangement (as 
     defined in section 106(c)) that is a qualified benefit and 
     only permits reimbursement for expenses for medical care (as 
     defined in section 213(d)(1), without regard to subparagraphs 
     (C) and (D) thereof).
       ``(3) Unused health benefits.--For purposes of this 
     subsection, with respect to an employee, the term `unused 
     health benefits' means the excess of--
       ``(A) the maximum amount of reimbursement allowable to the 
     employee for a plan year under a health flexible spending 
     arrangement, over
       ``(B) the actual amount of reimbursement for such year 
     under such arrangement.''.
       (b) Repeal of FSA Termination Provision.--
       (1) In general.--Subsection (e) of section 106 of the 
     Internal Revenue Code of 1986, as added by the Tax Relief and 
     Health Care Act of 2006, is amended by striking ``health 
     flexible spending arrangement or'' each place it appears.
       (2) Conforming amendments.--
       (A) The heading of section 106(e) of such Code is amended 
     by striking ``FSA or''.
       (B) Section 223(c)(1)(B)(iii)(II) of such Code, as added by 
     the Tax Relief and Health Care Act of 2006, is amended to 
     read as follows:

       ``(II) the balance of such arrangement is contributed by 
     the employer to a health savings account of the individual 
     under section 125(h)(1)(B), in accordance with rules 
     prescribed by the Secretary.''.

       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. __. EXPANSION OF USE OF HEALTH SAVINGS ACCOUNTS FOR 
                   HEALTH INSURANCE PREMIUM PAYMENTS FOR CERTAIN 
                   HIGH DEDUCTIBLE HEALTH PLANS.

       (a) In General.--Subparagraph (C) of section 223(d)(2) of 
     the Internal Revenue Code of 1986 (relating to qualified 
     medical expenses) is amended by striking ``or'' at the end of 
     clause (iii), by striking the period at the end of clause 
     (iv), and by adding at the end the following new clause:
       ``(v) any high deductible health plan other than a group 
     health plan (as defined in section 5000(b)(1)).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
  SA 156. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DISPOSITION OF UNUSED HEALTH BENEFITS IN CAFETERIA 
                   PLANS AND FLEXIBLE SPENDING ARRANGEMENTS.

       (a) In General.--Section 125 of the Internal Revenue Code 
     of 1986 (relating to cafeteria plans) is amended by 
     redesignating subsections (h) and (i) as subsections (i) and 
     (j), respectively, and by inserting after subsection (g) the 
     following:
       ``(h) Contributions of Certain Unused Health Benefits.--
       ``(1) In general.--For purposes of this title, a plan or 
     other arrangement shall not fail to be treated as a cafeteria 
     plan solely because qualified benefits under such plan 
     include a health flexible spending arrangement under which 
     not more than $500 of unused health benefits may be--
       ``(A) carried forward to the succeeding plan year of such 
     health flexible spending arrangement, or
       ``(B) to the extent permitted by section 106(d), 
     contributed by the employer to a health savings account (as 
     defined in section 223(d)) maintained for the benefit of the 
     employee.
       ``(2) Health flexible spending arrangement.--For purposes 
     of this subsection, the term `health flexible spending 
     arrangement' means a flexible spending arrangement (as 
     defined in section 106(c)) that is a qualified benefit and 
     only permits reimbursement for expenses for medical care (as 
     defined in section 213(d)(1), without regard to subparagraphs 
     (C) and (D) thereof).
       ``(3) Unused health benefits.--For purposes of this 
     subsection, with respect to an employee, the term `unused 
     health benefits' means the excess of--
       ``(A) the maximum amount of reimbursement allowable to the 
     employee for a plan year under a health flexible spending 
     arrangement, over
       ``(B) the actual amount of reimbursement for such year 
     under such arrangement.''.
       (b) Repeal of FSA Termination Provision.--
       (1) In general.--Subsection (e) of section 106 of the 
     Internal Revenue Code of 1986, as added by the Tax Relief and 
     Health Care Act of 2006, is amended by striking ``health 
     flexible spending arrangement or'' each place it appears.
       (2) Conforming amendments.--
       (A) The heading of section 106(e) of such Code is amended 
     by striking ``FSA or''.
       (B) Section 223(c)(1)(B)(iii)(II) of such Code, as added by 
     the Tax Relief and Health Care Act of 2006, is amended to 
     read as follows:

       ``(II) the balance of such arrangement is contributed by 
     the employer to a health savings account of the individual 
     under section 125(h)(1)(B), in accordance with rules 
     prescribed by the Secretary.''.

       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2010.
                                 ______
                                 
  SA 157. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       In section 2 of the bill, strike subsection (a) and insert 
     the following:
       (a) In General.--Section 6(a)(1) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to 
     read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than--
       ``(A) beginning on the 60th day after the date of enactment 
     of the Fair Minimum Wage Act of 2007, an amount equal to the 
     minimum wage in effect on such date in the State in which 
     such employee is employed (whether as a result of the 
     application of Federal or State law) increased by $0.70;
       ``(B) beginning 12 months after that 60th day, the amount 
     that would be determined under subparagraph (A) by 
     substituting `$1.40' for `$0.70'; and
       ``(C) beginning 24 months after that 60th day, the amount 
     that would be determined under subparagraph (A) by 
     substituting `$2.10' for `$0.70';''.
                                 ______
                                 
  SA 158. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       In section 101 of the amendment, strike subsection (a) and 
     insert the following:
       (a) In General.--Section 6(a)(1) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to 
     read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than--
       ``(A) beginning on the 60th day after the date of enactment 
     of the Fair Minimum Wage Act of 2007, an amount equal to the 
     minimum wage in effect on such date in the State in which 
     such employee is employed (whether as a result of the 
     application of Federal or State law) increased by $0.70;
       ``(B) beginning 12 months after that 60th day, the amount 
     that would be determined under subparagraph (A) by 
     substituting `$1.40' for `$0.70'; and

[[Page S963]]

       ``(C) beginning 24 months after that 60th day, the amount 
     that would be determined under subparagraph (A) by 
     substituting `$2.10' for `$0.70';''.
                                 ______
                                 
  SA 159. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROTECTION OF WORKERS' POLITICAL RIGHTS.

       Title III of the Labor Management Relations Act, 1947 (29 
     U.S.C. 185 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 304. PROTECTION OF WORKER'S POLITICAL RIGHTS.

       ``(a) Prohibition.--Except with the separate, prior, 
     written, voluntary authorization of an individual, it shall 
     be unlawful for any labor organization to collect from or 
     assess its members or nonmembers any dues, initiation fee, or 
     other payment if any part of such dues, fee, or payment will 
     be used to lobby members of Congress or Congressional staff 
     for the purpose of influencing legislation.
       ``(b) Authorization.--An authorization described in 
     subsection (a) shall remain in effect until revoked and may 
     be revoked at any time.''.
                                 ______
                                 
  SA 160. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DEFERRED PAYMENT OF TAX BY CERTAIN SMALL BUSINESSES.

       (a) In General.--Subchapter B of chapter 62 (relating to 
     extensions of time for payment of tax) is amended by adding 
     at the end the following new section:

     ``SEC. 6168. EXTENSION OF TIME FOR PAYMENT OF TAX FOR CERTAIN 
                   SMALL BUSINESSES.

       ``(a) In General.--An eligible small business may elect to 
     pay the tax imposed by chapter 1 in 4 equal installments.
       ``(b) Limitation.--The maximum amount of tax which may be 
     paid in installments under this section for any taxable year 
     shall not exceed whichever of the following is the least:
       ``(1) The tax imposed by chapter 1 for the taxable year.
       ``(2) The amount contributed by the taxpayer into a BRIDGE 
     Account during such year.
       ``(3) The excess of $250,000 over the aggregate amount of 
     tax for which an election under this section was made by the 
     taxpayer (or any predecessor) for all prior taxable years.
       ``(c) Eligible Small Business.--For purposes of this 
     section--
       ``(1) In general.--The term `eligible small business' 
     means, with respect to any taxable year, any person if--
       ``(A) such person meets the active business requirements of 
     section 1202(e) throughout such taxable year,
       ``(B) the taxpayer has gross receipts of $10,000,000 or 
     less for the taxable year,
       ``(C) the gross receipts of the taxpayer for such taxable 
     year are at least 10 percent greater than the average annual 
     gross receipts of the taxpayer (or any predecessor) for the 2 
     prior taxable years, and
       ``(D) the taxpayer uses an accrual method of accounting.
       ``(2) Certain rules to apply.--Rules similar to the rules 
     of paragraphs (2) and (3) of section 448(c) shall apply for 
     purposes of this subsection.
       ``(d) Date for Payment of Installments; Time for Payment of 
     Interest.--
       ``(1) Date for payment of installments.--
       ``(A) In general.--If an election is made under this 
     section for any taxable year, the first installment shall be 
     paid on or before the due date for such installment and each 
     succeeding installment shall be paid on or before the date 
     which is 1 year after the date prescribed by this paragraph 
     for payment of the preceding installment.
       ``(B) Due date for first installment.--The due date for the 
     first installment for a taxable year shall be whichever of 
     the following is the earliest:
       ``(i) The date selected by the taxpayer.
       ``(ii) The date which is 2 years after the date prescribed 
     by section 6151(a) for payment of the tax for such taxable 
     year.
       ``(2) Time for payment of interest.--If the time for 
     payment of any amount of tax has been extended under this 
     section--
       ``(A) Interest for period before due date of first 
     installment.--Interest payable under section 6601 on any 
     unpaid portion of such amount attributable to the period 
     before the due date for the first installment shall be paid 
     annually.
       ``(B) Interest during installment period.--Interest payable 
     under section 6601 on any unpaid portion of such amount 
     attributable to any period after such period shall be paid at 
     the same time as, and as a part of, each installment payment 
     of the tax.
       ``(C) Interest in the case of certain deficiencies.--In the 
     case of a deficiency to which subsection (e)(3) applies for a 
     taxable year which is assessed after the due date for the 
     first installment for such year, interest attributable to the 
     period before such due date, and interest assigned under 
     subparagraph (B) to any installment the date for payment of 
     which has arrived on or before the date of the assessment of 
     the deficiency, shall be paid upon notice and demand from the 
     Secretary.
       ``(e) Special Rules.--
       ``(1) Application of limitation to partners and s 
     corporation shareholders.--
       ``(A) In general.--In applying this section to a 
     partnership which is an eligible small business--
       ``(i) the election under subsection (a) shall be made by 
     the partnership,
       ``(ii) the amount referred to in subsection (b)(1) shall be 
     the sum of each partner's tax which is attributable to items 
     of the partnership and assuming the highest marginal rate 
     under section 1, and
       ``(iii) the partnership shall be treated as the taxpayer 
     referred to in paragraphs (2) and (3) of subsection (b).
       ``(B) Overall limitation also applied at partner level.--In 
     the case of a partner in a partnership, the limitation under 
     subsection (b)(3) shall be applied at the partnership and 
     partner levels.
       ``(C) Similar rules for s corporations.--Rules similar to 
     the rules of subparagraphs (A) and (B) shall apply to 
     shareholders in an S corporation.
       ``(2) Acceleration of payment in certain cases.--
       ``(A) In general.--If--
       ``(i) the taxpayer ceases to meet the requirement of 
     subsection (c)(1)(A), or
       ``(ii) there is an ownership change with respect to the 
     taxpayer,
     then the extension of time for payment of tax provided in 
     subsection (a) shall cease to apply, and the unpaid portion 
     of the tax payable in installments shall be paid on or before 
     the due date for filing the return of tax imposed by chapter 
     1 for the first taxable year following such cessation.
       ``(B) Ownership change.--For purposes of subparagraph, in 
     the case of a corporation, the term `ownership change' has 
     the meaning given to such term by section 382. Rules similar 
     to the rules applicable under the preceding sentence shall 
     apply to a partnership.
       ``(3) Proration of deficiency to installments.--Rules 
     similar to the rules of section 6166(e) shall apply for 
     purposes of this section.
       ``(f) BRIDGE Account.--For purposes of this section--
       ``(1) In general.--The term `BRIDGE Account' means a trust 
     created or organized in the United States for the exclusive 
     benefit of an eligible small business, but only if the 
     written governing instrument creating the trust meets the 
     following requirements:
       ``(A) No contribution will be accepted for any taxable year 
     in excess of the amount allowed as a deferral under 
     subsection (b) for such year.
       ``(B) The trustee is a bank (as defined in section 408(n)) 
     or another person who demonstrates to the satisfaction of the 
     Secretary that the manner in which such person will 
     administer the trust will be consistent with the requirements 
     of this section.
       ``(C) The assets of the trust consist entirely of cash or 
     of obligations which have adequate stated interest (as 
     defined in section 1274(c)(2)) and which pay such interest 
     not less often than annually.
       ``(D) The assets of the trust will not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       ``(E) Amounts in the trust may be used only--
       ``(i) as security for a loan to the business or for 
     repayment of such loan, or
       ``(ii) to pay the installments under this section.
       ``(2) Account taxed as grantor trust.--The grantor of a 
     BRIDGE Account shall be treated for purposes of this title as 
     the owner of such Account and shall be subject to tax thereon 
     in accordance with subpart E of part I of subchapter J of 
     this chapter (relating to grantors and others treated as 
     substantial owners).
       ``(3) Time when payments deemed made.--For purposes of this 
     section, a taxpayer shall be deemed to have made a payment to 
     a BRIDGE Account on the last day of a taxable year if such 
     payment is made on account of such taxable year and is made 
     within 3\1/2\ months after the close of such taxable year.
       ``(g) Reports.--The Secretary may require such reporting as 
     the Secretary determines to be appropriate to carry out this 
     section.
       ``(h) Application of Section.--This section shall apply to 
     taxes imposed for taxable years beginning after December 31, 
     2010, and before January 1, 2015.''
       (b) Priority of Lender.--Subsection (b) of section 6323 is 
     amended by adding at the end the following new paragraph:
       ``(11) Loans secured by bridge accounts.--With respect to a 
     BRIDGE account (as defined in section 6168(f)) with any bank 
     (as defined in section 408(n)), to the extent of any loan 
     made by such bank without actual notice or knowledge of the 
     existence of such lien, as against such bank, if such loan is 
     secured by such account.''
       (c) Clerical Amendment.--The table of sections for 
     subchapter B of chapter 62 is amended by adding at the end 
     the following new item:

``Sec. 6168. Extension of time for payment of tax for certain small 
              businesses.''.


[[Page S964]]


       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.
       (e) Study by General Accounting Office.--
       (1) Study.--In consultation with the Secretary of the 
     Treasury, the Comptroller General of the United States shall 
     undertake a study to evaluate the applicability (including 
     administrative aspects) and impact of the BRIDGE Act of 2007 
     including how it affects the capital funding needs of 
     businesses under the Act and number of businesses 
     benefitting.
       (2) Report.--Not later than March 31, 2014, the Comptroller 
     General shall transmit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate a written report presenting the results of the 
     study conducted pursuant to this subsection, together with 
     such recommendations for legislative or administrative 
     changes as the Comptroller General determines are 
     appropriate.
                                 ______
                                 
  SA 161. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. FLEXIBLE SCHEDULE PROGRAMS.

       (a) Prohibition of Use of Flexible Schedules for Federal 
     Employees Until Flexible Schedules Are Available to Private 
     Employees.--
       (1) Prohibition of use of flexible schedules for federal 
     employees.--Notwithstanding any provision of subchapter II of 
     chapter 61 of title 5, United States Code, no agency may 
     establish, administer, or use any flexible schedule program 
     authorized under section 6122 of that title.
       (2) Effective date.--Paragraph (1) shall take effect 1 year 
     after the date of enactment of this Act, unless during such 1 
     year period, the Secretary of Labor submits certification to 
     the Office of Personnel Management that a statute has been 
     enacted that allows employers covered by the Fair Labor 
     Standards Act of 1938 to provide for the use of a flexible 
     schedule similar to the flexible schedule program authorized 
     under section 6122 of title 5, United States Code, for 
     employees engaged in commerce or in the production of goods 
     for commerce.
       (b) Termination of Prohibition.--If the prohibition under 
     subsection (a) takes effect, that subsection shall cease to 
     have any force or effect on the date that the Secretary of 
     Labor submits a certification described in subsection (a)(2) 
     to the Office of Personnel Management.
                                 ______
                                 
  SA 162. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. ENTERPRISE ENGAGED IN COMMERCE.

       (a) Annual Gross Volume of Sales.--Section 3(s)(1)(A)(ii) 
     of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     203(s)(1)(A)(ii)) is amended by striking ``$500,000'' and 
     inserting ``$1,080,000''.
       (b) Applicability of Minimum Wage.--Section 6 of the Fair 
     Labor Standards Act of 1938 (20 U.S.C. 206) is amended--
       (1) in subsection (a), by striking ``is engaged in commerce 
     or in the production of goods for commerce, or''; and
       (2) in subsection (b), by striking ``is engaged in commerce 
     or in the production of goods for commerce, or''.
                                 ______
                                 
  SA 163. Ms. SNOWE (for herself and Mr. Feingold) submitted an 
amendment intended to be proposed by her to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. EQUAL ACCESS FOR SMALL PARTIES IN CIVIL AND 
                   ADMINISTRATIVE PROCEEDINGS.

       (a) Eligibility of Small Businesses for Fee Award.--
       (1) Administrative proceedings.--
       (A) In general.--Section 504(b)(1)(B)(ii) of title 5, 
     United States Code, is amended by striking ``$7,000,000'' and 
     inserting ``$10,000,000''.
       (B) Adjustment in net worth limitation.--Section 504(b) of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``(3) Beginning on January 1 of the 5th year following the 
     date of enactment of this paragraph, and on January 1 every 5 
     years thereafter, the dollar amount under paragraph 
     (1)(B)(ii) shall be adjusted by the Producer Price Index as 
     determined by the Secretary of the Treasury, in collaboration 
     with the Bureau of Labor Statistics.''.
       (2) Judicial proceedings.--
       (A) In general.--Section 2412(d)(2)(B)(ii) of title 28, 
     United States Code, is amended by striking ``$7,000,000'' and 
     inserting ``$10,000,000''.
       (B) Adjustment in net worth limitation.--Section 2412(d) of 
     title 28, United States Code, is amended by adding at the end 
     the following:
       ``(5) Beginning on January 1 of the 5th year following the 
     date of enactment of this paragraph, and on January 1 every 5 
     years thereafter, the dollar amount under paragraph 
     (2)(B)(ii) shall be adjusted by the Producer Price Index as 
     determined by the Secretary of the Treasury, in collaboration 
     with the Bureau of Labor Statistics.''.
       (b) Elimination of Rate Cap.--
       (1) Administrative proceedings.--Section 504(b)(1)(A) of 
     title 5, United States Code, is amended--
       (A) by striking ``(i)''; and
       (B) by striking ``by the agency involved'' and all that 
     follows through ``a higher fee'' and inserting ``by the 
     agency involved''.
       (2) Judicial proceedings.--Section 2412(d)(2)(A) of title 
     28, United States Code, is amended--
       (A) by striking ``(i)''; and
       (B) by striking ``by the United States'' and all that 
     follows through ``a higher fee'' and inserting ``by the 
     United States''.
       (c) Applicability.--The amendments made by this section 
     shall--
       (1) take effect 30 days after the date of the enactment of 
     this Act; and
       (2) apply to any proceeding pending on, or commenced on or 
     after, the effective date of this section.
                                 ______
                                 
  SA 164. Ms. SNOWE submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REGULATORY FLEXIBILITY REFORM FOR SMALL BUSINESSES.

       (a) Requirements Providing for More Detailed Analyses.--
       (1) Initial regulatory flexibility analysis.--Section 603 
     of title 5, United States Code, is amended by adding at the 
     end the following:
       ``(d) An agency shall notify the Chief Counsel for Advocacy 
     of the Small Business Administration of any draft rules that 
     may have a significant economic impact on a substantial 
     number of small entities either--
       ``(1) when the agency submits a draft rule to the Office of 
     Information and Regulatory Affairs at the Office of 
     Management and Budget under Executive Order 12866, if that 
     order requires such submission; or
       ``(2) if no submission to the Office of Information and 
     Regulatory Affairs is so required, at a reasonable time prior 
     to publication of the rule by the agency.''.
       (2) Final regulatory flexibility analysis.--
       (A) Inclusion of response to comments on certification of 
     proposed rule.--Section 604(a)(2) of title 5, United States 
     Code, is amended by inserting ``(or certification of the 
     proposed rule under section 605(b))'' after ``initial 
     regulatory flexibility analysis''.
       (B) Inclusion of response to comments filed by chief 
     counsel for advocacy.--Section 604(a) of title 5, United 
     States Code, is amended by redesignating paragraphs (3), (4), 
     and (5) as paragraphs (4), (5), and (6), respectively, and 
     inserting after paragraph (2) the following:
       ``(3) the response of the agency to any comments filed by 
     the Chief Counsel for Advocacy of the Small Business 
     Administration in response to the proposed rule, and a 
     detailed statement of any changes made to the proposed rule 
     in the final rule as a result of such comments;''.
       (C) Publication of analysis on web site, etc.--Section 
     604(b) of title 5, United States Code, is amended to read as 
     follows:
       ``(b) The agency shall make copies of the final regulatory 
     flexibility analysis available to the public, including 
     placement of the entire analysis on the agency's Web site, 
     and shall publish in the Federal Register the final 
     regulatory flexibility analysis, or a summary thereof that 
     includes the telephone number, mailing address, and link to 
     the Web site where the complete analysis may be obtained.''.
       (3) Cross-references to other analyses.--Section 605(a) of 
     title 5, United States Code, is amended to read as follows:
       ``(a) A Federal agency shall be treated as satisfying any 
     requirement regarding the content of an agenda or regulatory 
     flexibility analysis under section 602, 603, or 604, if such 
     agency provides in such agenda or analysis a cross-reference 
     to the specific portion of another agenda or analysis that is 
     required by any other law and which satisfies such 
     requirement.''.
       (4) Certifications.--The second sentence of section 605(b) 
     of title 5, United States Code, is amended--
       (A) by inserting ``detailed'' before ``statement''; and
       (B) by inserting ``and legal'' after ``factual''.
       (5) Quantification requirements.--Section 607 of title 5, 
     United States Code, is amended to read as follows:

     ``Sec. 607. Quantification requirements

       ``In complying with sections 603 and 604, an agency shall 
     provide--
       ``(1) a quantifiable or numerical description of the 
     effects of the proposed or final rule and alternatives to the 
     proposed or final rule; or

[[Page S965]]

       ``(2) a more general descriptive statement and a detailed 
     statement explaining why quantification is not practicable or 
     reliable.''.
       (b) Technical and Conforming Amendments.--
       (1) Heading.--The heading of section 605 of title 5, United 
     States Code, is amended to read as follows:

     ``Sec. 605. Incorporations by reference and certifications''.

       (2) Table of sections.--The table of sections for chapter 6 
     of title 5, United States Code, is amended--
       (A) by striking the item relating to section 605 and 
     inserting the following:

``605. Incorporations by reference and certifications.''; and

       (B) by striking the item relating to section 607 and 
     inserting the following:

``607. Quantification requirements.''.
                                 ______
                                 
  SA 165. Mr. SMITH (for himself and Mr. Bingaman) submitted an 
amendment intended to be proposed by him to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___. TREATMENT OF CERTAIN PENSION PLANS OF INDIAN TRIBAL 
                   GOVERNMENTS.

       (a) Amendment to Internal Revenue Code of 1986.--The last 
     sentence of section 414(d) of the Internal Revenue Code of 
     1986 (definition of governmental plan) is amended to read as 
     follows: ``The term `governmental plan' includes a plan 
     established or maintained for its employees by an Indian 
     tribal government (as defined in section 7701(a)(40)), a 
     subdivision of an Indian tribal government (determined in 
     accordance with section 7871(d)), an agency instrumentality 
     (or subdivision) of an Indian tribal government, or an entity 
     established under Federal, State, or tribal law which is 
     wholly owned or controlled by any of the foregoing.''.
       (b) Amendments to Employee Retirement Income Security Act 
     of 1974.--
       (1) In general.--The last sentence of section 3(32) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002(32)) is amended to read as follows: ``The term 
     `governmental plan' includes a plan established or maintained 
     for its employees by an Indian tribal government (as defined 
     in section 7701(a)(40) of the Internal Revenue Code of 1986), 
     a subdivision of an Indian tribal government (determined in 
     accordance with section 7871(d) of such Code), an agency 
     instrumentality (or subdivision) of an Indian tribal 
     government, or an entity established under Federal, State, or 
     tribal law that is wholly owned or controlled by any of the 
     foregoing.''.
       (2) Conforming amendments.--
       (A) Paragraph (14) of section 4021(b) of such Act (29 
     U.S.C. 1321(b)(14)) is amended to read as follows:
       ``(14) established or maintained for its employees by an 
     Indian tribal government (as defined in section 7701(a)(40) 
     of the Internal Revenue Code of 1986), a subdivision of an 
     Indian tribal government (determined in accordance with 
     section 7871(d) of such Code), an agency instrumentality (or 
     subdivision) of an Indian tribal government, or an entity 
     established under Federal, State, or tribal law that is 
     wholly owned or controlled by any of the foregoing.''.
       (B) Section 4021(b)(2) of such Act (29 U.S.C. 1321(b)(2) is 
     amended by striking ``or which is described in the last 
     sentence of section 3(32)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 906 of the 
     Pension Protection Act of 2006.
                                 ______
                                 
  SA 166. Mr. SMITH submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EXPANSION OF DEDUCTION FOR HEALTH INSURANCE COSTS OF 
                   SELF-EMPLOYED INDIVIDUALS.

       (a) In General.--Paragraph (1) of section 162(l) of the 
     Internal Revenue Code of 1986 (relating to special rules for 
     health insurance costs of self-employed individuals) is 
     amended to read as follows:
       ``(1) Allowance of deduction.--In the case of a taxpayer 
     who is an employee within the meaning of section 401(c)(1), 
     there shall be allowed as a deduction under this section an 
     amount equal to the amount paid during the taxable year for 
     insurance which constitutes medical care for--
       ``(A) the taxpayer,
       ``(B) the taxpayer's spouse,
       ``(C) the taxpayer's dependents,
       ``(D) any individual--
       ``(i) who was not the spouse, determined without regard to 
     section 7703, of the taxpayer at any time during the taxable 
     year of the taxpayer,
       ``(ii) who--

       ``(I) has not attained the age of 19 as of the close of the 
     calendar year in which the taxable year of the taxpayer 
     begins, or
       ``(II) is a student who has not attained the age of 24 as 
     of the close of such calendar year,

       ``(iii) who, for the taxable year of the taxpayer, has the 
     same principal place of abode as the taxpayer and is a member 
     of the taxpayer's household, and
       ``(iv) with respect to whom the taxpayer provides over one-
     half of the individual's support for the calendar year in 
     which the taxpayer's taxable year begins, and
       ``(E) an individual--
       ``(i) who is designated by the taxpayer for purposes of 
     this paragraph,
       ``(ii) who is not the spouse or qualifying child of such 
     taxpayer or any other taxpayer for any taxable year beginning 
     in the calendar year in which the taxpayer's taxable year 
     begins, and
       ``(iii) who, for the taxable year of the taxpayer, has the 
     same principal place of abode as the taxpayer and is a member 
     of the taxpayer's household.
     For purposes of subparagraph (E)(i), not more than 1 person 
     may be designated by the taxpayer for any taxable year.''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     162(l)(2) of the Internal Revenue Code of 1986 is amended by 
     striking ``or of the spouse of the taxpayer'' and inserting 
     ``, of the spouse of the taxpayer, or of any individual 
     described in paragraph (1)(E)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
  SA 167. Mrs. FEINSTEIN (for herself and Mr. Craig) submitted an 
amendment intended to be proposed to amendment SA 118 submitted by Mr. 
Chambliss (for himself, Mr. Isakson, and Mr. Burr) and intended to be 
proposed to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

                      TITLE II--AGJOBS ACT OF 2007

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Agricultural Job 
     Opportunities, Benefits, and Security Act of 2007'' or the 
     ``AgJOBS Act of 2007''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Agricultural employment.--The term ``agricultural 
     employment'' means any service or activity that is considered 
     to be agricultural under section 3(f) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural 
     labor under section 3121(g) of the Internal Revenue Code of 
     1986 or the performance of agricultural labor or services 
     described in section 101(a)(15)(H)(ii)(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(a)).
       (2) Blue card status.--The term ``blue card status'' means 
     the status of an alien who has been lawfully admitted into 
     the United States for temporary residence under section 
     211(a).
       (3) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (4) Employer.--The term ``employer'' means any person or 
     entity, including any farm labor contractor and any 
     agricultural association, that employs workers in 
     agricultural employment.
       (5) Secretary.--Except as otherwise provided, the term 
     ``Secretary'' means the Secretary of Homeland Security.
       (6) Temporary.--A worker is employed on a ``temporary'' 
     basis when the employment is intended not to exceed 10 
     months.
       (7) Work day.--The term ``work day'' means any day in which 
     the individual is employed 5.75 or more hours in agricultural 
     employment.

Subtitle A--Pilot Program for Earned Status Adjustment of Agricultural 
                                Workers

                        PART I--BLUE CARD STATUS

     SEC. 211. REQUIREMENTS FOR BLUE CARD STATUS.

       (a) Requirement to Grant Blue Card Status.--Notwithstanding 
     any other provision of law, the Secretary shall, pursuant to 
     the requirements of this section, grant blue card status to 
     an alien who qualifies under this section if the Secretary 
     determines that the alien--
       (1) has performed agricultural employment in the United 
     States for at least 863 hours or 150 work days during the 24-
     month period ending on December 31, 2006;
       (2) applied for such status during the 18-month application 
     period beginning on the first day of the seventh month that 
     begins after the date of enactment of this Act;
       (3) is otherwise admissible to the United States under 
     section 212 of the Immigration and Nationality Act (8 U.S.C. 
     1182), except as otherwise provided under section 215(b); and
       (4) has not been convicted of any felony or a misdemeanor, 
     an element of which involves bodily injury, threat of serious 
     bodily injury, or harm to property in excess of $500.
       (b) Authorized Travel.--An alien who is granted blue card 
     status is authorized to travel outside the United States 
     (including commuting to the United States from a residence in 
     a foreign country) in the same manner as an alien lawfully 
     admitted for permanent residence.
       (c) Authorized Employment.--The Secretary shall provide an 
     alien who is granted

[[Page S966]]

     blue card status an employment authorized endorsement or 
     other appropriate work permit, in the same manner as an alien 
     lawfully admitted for permanent residence.
       (d) Termination of Blue Card Status.--
       (1) In general.--The Secretary may terminate blue card 
     status granted to an alien under this section only if the 
     Secretary determines that the alien is deportable.
       (2) Grounds for termination of blue card status.--Before 
     any alien becomes eligible for adjustment of status under 
     section 213, the Secretary may deny adjustment to permanent 
     resident status and provide for termination of the blue card 
     status granted such alien under paragraph (1) if--
       (A) the Secretary finds, by a preponderance of the 
     evidence, that the adjustment to blue card status was the 
     result of fraud or willful misrepresentation (as described in 
     section 212(a)(6)(C)(i) of the Immigration and Nationality 
     Act (8 U.S.C. 1182(a)(6)(C)(i)); or
       (B) the alien--
       (i) commits an act that makes the alien inadmissible to the 
     United States as an immigrant, except as provided under 
     section 215(b);
       (ii) is convicted of a felony or 3 or more misdemeanors 
     committed in the United States;
       (iii) is convicted of an offense, an element of which 
     involves bodily injury, threat of serious bodily injury, or 
     harm to property in excess of $500; or
       (iv) fails to perform the agricultural employment required 
     under section 213(a)(1)(A) unless the alien was unable to 
     work in agricultural employment due to the extraordinary 
     circumstances described in section 213(a)(3).
       (e) Record of Employment.--
       (1) In general.--Each employer of an alien granted blue 
     card status under this section shall annually--
       (A) provide a written record of employment to the alien; 
     and
       (B) provide a copy of such record to the Secretary.
       (2) Sunset.--The obligation under paragraph (1) shall 
     terminate on the date that is 6 years after the date of the 
     enactment of this Act.
       (f) Required Features of Identity Card.--The Secretary 
     shall provide each alien granted blue card status, and the 
     spouse and any child of each such alien residing in the 
     United States, with a card that contains--
       (1) an encrypted, machine-readable, electronic 
     identification strip that is unique to the alien to whom the 
     card is issued;
       (2) biometric identifiers, including fingerprints and a 
     digital photograph; and
       (3) physical security features designed to prevent 
     tampering, counterfeiting, or duplication of the card for 
     fraudulent purposes.
       (g) Fine.--An alien granted blue card status shall pay a 
     fine of $100 to the Secretary.
       (h) Maximum Number.--The Secretary may not issue more than 
     1,500,000 blue cards during the 5-year period beginning on 
     the date of the enactment of this Act.

     SEC. 212. TREATMENT OF ALIENS GRANTED BLUE CARD STATUS.

       (a) In General.--Except as otherwise provided under this 
     section, an alien granted blue card status shall be 
     considered to be an alien lawfully admitted for permanent 
     residence for purposes of any law other than any provision of 
     the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
       (b) Delayed Eligibility for Certain Federal Public 
     Benefits.--An alien granted blue card status shall not be 
     eligible, by reason of such status, for any form of 
     assistance or benefit described in section 403(a) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (8 U.S.C. 1613(a)) until 5 years after the date 
     on which the alien is granted an adjustment of status under 
     section 213.
       (c) Terms of Employment.--
       (1) Prohibition.--No alien granted blue card status may be 
     terminated from employment by any employer during the period 
     of blue card status except for just cause.
       (2) Treatment of complaints.--
       (A) Establishment of process.--The Secretary shall 
     establish a process for the receipt, initial review, and 
     disposition of complaints by aliens granted blue card status 
     who allege that they have been terminated without just cause. 
     No proceeding shall be conducted under this paragraph with 
     respect to a termination unless the Secretary determines that 
     the complaint was filed not later than 6 months after the 
     date of the termination.
       (B) Initiation of arbitration.--If the Secretary finds that 
     an alien has filed a complaint in accordance with 
     subparagraph (A) and there is reasonable cause to believe 
     that the alien was terminated from employment without just 
     cause, the Secretary shall initiate binding arbitration 
     proceedings by requesting the Federal Mediation and 
     Conciliation Service to appoint a mutually agreeable 
     arbitrator from the roster of arbitrators maintained by such 
     Service for the geographical area in which the employer is 
     located. The procedures and rules of such Service shall be 
     applicable to the selection of such arbitrator and to such 
     arbitration proceedings. The Secretary shall pay the fee and 
     expenses of the arbitrator, subject to the availability of 
     appropriations for such purpose.
       (C) Arbitration proceedings.--The arbitrator shall conduct 
     the proceeding under this paragraph in accordance with the 
     policies and procedures promulgated by the American 
     Arbitration Association applicable to private arbitration of 
     employment disputes. The arbitrator shall make findings 
     respecting whether the termination was for just cause. The 
     arbitrator may not find that the termination was for just 
     cause unless the employer so demonstrates by a preponderance 
     of the evidence. If the arbitrator finds that the termination 
     was not for just cause, the arbitrator shall make a specific 
     finding of the number of days or hours of work lost by the 
     employee as a result of the termination. The arbitrator shall 
     have no authority to order any other remedy, including 
     reinstatement, back pay, or front pay to the affected 
     employee. Not later than 30 days after the date of the 
     conclusion of the arbitration proceeding, the arbitrator 
     shall transmit the findings in the form of a written opinion 
     to the parties to the arbitration and the Secretary. Such 
     findings shall be final and conclusive, and no official or 
     court of the United States shall have the power or 
     jurisdiction to review any such findings.
       (D) Effect of arbitration findings.--If the Secretary 
     receives a finding of an arbitrator that an employer has 
     terminated the employment of an alien who is granted blue 
     card status without just cause, the Secretary shall credit 
     the alien for the number of days or hours of work not 
     performed during such period of termination for the purpose 
     of determining if the alien meets the qualifying employment 
     requirement of section 213(a).
       (E) Treatment of attorney's fees.--Each party to an 
     arbitration under this paragraph shall bear the cost of their 
     own attorney's fees for the arbitration.
       (F) Nonexclusive remedy.--The complaint process provided 
     for in this paragraph is in addition to any other rights an 
     employee may have in accordance with applicable law.
       (G) Effect on other actions or proceedings.--Any finding of 
     fact or law, judgment, conclusion, or final order made by an 
     arbitrator in the proceeding before the Secretary shall not 
     be conclusive or binding in any separate or subsequent action 
     or proceeding between the employee and the employee's current 
     or prior employer brought before an arbitrator, 
     administrative agency, court, or judge of any State or the 
     United States, regardless of whether the prior action was 
     between the same or related parties or involved the same 
     facts, except that the arbitrator's specific finding of the 
     number of days or hours of work lost by the employee as a 
     result of the employment termination may be referred to the 
     Secretary pursuant to subparagraph (D).
       (3) Civil penalties.--
       (A) In general.--If the Secretary finds, after notice and 
     opportunity for a hearing, that an employer of an alien 
     granted blue card status has failed to provide the record of 
     employment required under section 211(e) or has provided a 
     false statement of material fact in such a record, the 
     employer shall be subject to a civil money penalty in an 
     amount not to exceed $1,000 per violation.
       (B) Limitation.--The penalty applicable under subparagraph 
     (A) for failure to provide records shall not apply unless the 
     alien has provided the employer with evidence of employment 
     authorization granted under this section.

     SEC. 213. ADJUSTMENT TO PERMANENT RESIDENCE.

       (a) In General.--Except as provided in subsection (b), the 
     Secretary shall adjust the status of an alien granted blue 
     card status to that of an alien lawfully admitted for 
     permanent residence if the Secretary determines that the 
     following requirements are satisfied:
       (1) Qualifying employment.--
       (A) In general.--Subject to subparagraph (B), the alien has 
     performed at least--
       (i) 5 years of agricultural employment in the United States 
     for at least 100 work days per year, during the 5-year period 
     beginning on the date of the enactment of this Act; or
       (ii) 3 years of agricultural employment in the United 
     States for at least 150 work days per year, during the 3-year 
     period beginning on the date of the enactment of this Act.
       (B) 4-year period of employment.--An alien shall be 
     considered to meet the requirements of subparagraph (A) if 
     the alien has performed 4 years of agricultural employment in 
     the United States for at least 150 work days during 3 years 
     of those 4 years and at least 100 work days during the 
     remaining year, during the 4-year period beginning on the 
     date of the enactment of this Act.
       (2) Proof.--An alien may demonstrate compliance with the 
     requirement under paragraph (1) by submitting--
       (A) the record of employment described in section 211(e); 
     or
       (B) such documentation as may be submitted under section 
     214(c).
       (3) Extraordinary circumstances.--In determining whether an 
     alien has met the requirement of paragraph (1)(A), the 
     Secretary may credit the alien with not more than 12 
     additional months to meet the requirement of that 
     subparagraph if the alien was unable to work in agricultural 
     employment due to--
       (A) pregnancy, injury, or disease, if the alien can 
     establish such pregnancy, disabling injury, or disease 
     through medical records;
       (B) illness, disease, or other special needs of a minor 
     child, if the alien can establish such illness, disease, or 
     special needs through medical records; or
       (C) severe weather conditions that prevented the alien from 
     engaging in agricultural employment for a significant period 
     of time.
       (4) Application period.--The alien applies for adjustment 
     of status not later than 7

[[Page S967]]

     years after the date of the enactment of this Act.
       (5) Fine.--The alien pays a fine of $400 to the Secretary.
       (b) Grounds for Denial of Adjustment of Status.--The 
     Secretary may deny an alien granted blue card status an 
     adjustment of status under this section and provide for 
     termination of such blue card status if--
       (1) the Secretary finds by a preponderance of the evidence 
     that the adjustment to blue card status was the result of 
     fraud or willful misrepresentation, as described in section 
     212(a)(6)(C)(i) of the Immigration and Nationality Act (8 
     U.S.C. 1182(a)(6)(C)(i)); or
       (2) the alien--
       (A) commits an act that makes the alien inadmissible to the 
     United States under section 212 of the Immigration and 
     Nationality Act (8 U.S.C. 1182), except as provided under 
     section 215(b);
       (B) is convicted of a felony or 3 or more misdemeanors 
     committed in the United States; or
       (C) is convicted of an offense, an element of which 
     involves bodily injury, threat of serious bodily injury, or 
     harm to property in excess of $500.
       (c) Grounds for Removal.--Any alien granted blue card 
     status who does not apply for adjustment of status under this 
     section before the expiration of the application period 
     described in subsection (a)(4) or who fails to meet the other 
     requirements of subsection (a) by the end of the application 
     period, is deportable and may be removed under section 240 of 
     the Immigration and Nationality Act (8 U.S.C. 1229a).
       (d) Payment of Taxes.--
       (1) In general.--Not later than the date on which an 
     alien's status is adjusted under this section, the alien 
     shall establish that the alien does not owe any applicable 
     Federal tax liability by establishing that--
       (A) no such tax liability exists;
       (B) all such outstanding tax liabilities have been paid; or
       (C) the alien has entered into an agreement for payment of 
     all outstanding liabilities with the Internal Revenue 
     Service.
       (2) Applicable federal tax liability.--In paragraph (1) the 
     term ``applicable Federal tax liability'' means liability for 
     Federal taxes, including penalties and interest, owed for any 
     year during the period of employment required under 
     subsection (a)(1) for which the statutory period for 
     assessment of any deficiency for such taxes has not expired.
       (3) IRS cooperation.--The Secretary of the Treasury shall 
     establish rules and procedures under which the Commissioner 
     of Internal Revenue shall provide documentation to an alien 
     upon request to establish the payment of all taxes required 
     by this subsection.
       (e) Spouses and Minor Children.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Secretary shall confer the status of lawful 
     permanent resident on the spouse and minor child of an alien 
     granted any adjustment of status under subsection (a), 
     including any individual who was a minor child on the date 
     such alien was granted blue card status, if the spouse or 
     minor child applies for such status, or if the principal 
     alien includes the spouse or minor child in an application 
     for adjustment of status to that of a lawful permanent 
     resident.
       (2) Treatment of spouses and minor children.--
       (A) Granting of status and removal.--The Secretary may 
     grant derivative status to the alien spouse and any minor 
     child residing in the United States of an alien granted blue 
     card status and shall not remove such derivative spouse or 
     child during the period that the alien granted blue card 
     status maintains such status, except as provided in paragraph 
     (3). A grant of derivative status to such a spouse or child 
     under this subparagraph shall not decrease the number of 
     aliens who may receive blue card status under subsection (h) 
     of section 211.
       (B) Travel.--The derivative spouse and any minor child of 
     an alien granted blue card status may travel outside the 
     United States in the same manner as an alien lawfully 
     admitted for permanent residence.
       (C) Employment.--The derivative spouse of an alien granted 
     blue card status may apply to the Secretary for a work permit 
     to authorize such spouse to engage in any lawful employment 
     in the United States while such alien maintains blue card 
     status.
       (3) Grounds for denial of adjustment of status and 
     removal.--The Secretary may deny an alien spouse or child 
     adjustment of status under paragraph (1) and may remove such 
     spouse or child under section 240 of the Immigration and 
     Nationality Act (8 U.S.C. 1229a) if the spouse or child--
       (A) commits an act that makes the alien spouse or child 
     inadmissible to the United States under section 212 of such 
     Act (8 U.S.C. 1182), except as provided under section 215(b);
       (B) is convicted of a felony or 3 or more misdemeanors 
     committed in the United States; or
       (C) is convicted of an offense, an element of which 
     involves bodily injury, threat of serious bodily injury, or 
     harm to property in excess of $500.

     SEC. 214. APPLICATIONS.

       (a) Submission.--The Secretary shall provide that--
       (1) applications for blue card status under section 211 may 
     be submitted--
       (A) to the Secretary if the applicant is represented by an 
     attorney or a nonprofit religious, charitable, social 
     service, or similar organization recognized by the Board of 
     Immigration Appeals under section 292.2 of title 8, Code of 
     Federal Regulations; or
       (B) to a qualified designated entity if the applicant 
     consents to the forwarding of the application to the 
     Secretary; and
       (2) applications for adjustment of status under section 213 
     shall be filed directly with the Secretary.
       (b) Qualified Designated Entity Defined.--In this section, 
     the term ``qualified designated entity'' means--
       (1) a qualified farm labor organization or an association 
     of employers designated by the Secretary; or
       (2) any such other person designated by the Secretary if 
     that Secretary determines such person is qualified and has 
     substantial experience, demonstrated competence, and has a 
     history of long-term involvement in the preparation and 
     submission of applications for adjustment of status under 
     section 209, 210, or 245 of the Immigration and Nationality 
     Act (8 U.S.C. 1159, 1160, and 1255), the Act entitled ``An 
     Act to adjust the status of Cuban refugees to that of lawful 
     permanent residents of the United States, and for other 
     purposes'', approved November 2, 1966 (Public Law 89-732; 8 
     U.S.C. 1255 note), Public Law 95-145 (8 U.S.C. 1255 note), or 
     the Immigration Reform and Control Act of 1986 (Public Law 
     99-603; 100 Stat. 3359) or any amendment made by that Act.
       (c) Proof of Eligibility.--
       (1) In general.--An alien may establish that the alien 
     meets the requirement of section 211(a)(1) or 213(a)(1) 
     through government employment records or records supplied by 
     employers or collective bargaining organizations, and other 
     reliable documentation as the alien may provide. The 
     Secretary shall establish special procedures to properly 
     credit work in cases in which an alien was employed under an 
     assumed name.
       (2) Documentation of work history.--
       (A) Burden of proof.--An alien applying for status under 
     section 211(a) or 213(a) has the burden of proving by a 
     preponderance of the evidence that the alien has worked the 
     requisite number of hours or days required under section 
     211(a)(1) or 213(a)(1), as applicable.
       (B) Timely production of records.--If an employer or farm 
     labor contractor employing such an alien has kept proper and 
     adequate records respecting such employment, the alien's 
     burden of proof under subparagraph (A) may be met by securing 
     timely production of those records under regulations to be 
     promulgated by the Secretary.
       (C) Sufficient evidence.--An alien may meet the burden of 
     proof under subparagraph (A) to establish that the alien has 
     performed the days or hours of work required by section 
     211(a)(1) or 213(a)(1) by producing sufficient evidence to 
     show the extent of that employment as a matter of just and 
     reasonable inference.
       (d) Applications Submitted to Qualified Designated 
     Entities.--
       (1) Requirements.--Each qualified designated entity shall 
     agree--
       (A) to forward to the Secretary an application submitted to 
     that entity pursuant to subsection (a)(1)(B) if the applicant 
     has consented to such forwarding;
       (B) not to forward to the Secretary any such application if 
     the applicant has not consented to such forwarding; and
       (C) to assist an alien in obtaining documentation of the 
     alien's work history, if the alien requests such assistance.
       (2) No authority to make determinations.--No qualified 
     designated entity may make a determination required by this 
     subtitle to be made by the Secretary.
       (e) Limitation on Access to Information.--Files and records 
     collected or compiled by a qualified designated entity for 
     the purposes of this section are confidential and the 
     Secretary shall not have access to such a file or record 
     relating to an alien without the consent of the alien, except 
     as allowed by a court order issued pursuant to subsection 
     (f).
       (f) Confidentiality of Information.--
       (1) In general.--Except as otherwise provided in this 
     section, the Secretary or any other official or employee of 
     the Department or a bureau or agency of the Department is 
     prohibited from--
       (A) using information furnished by the applicant pursuant 
     to an application filed under this title, the information 
     provided by an applicant to a qualified designated entity, or 
     any information provided by an employer or former employer 
     for any purpose other than to make a determination on the 
     application or for imposing the penalties described in 
     subsection (g);
       (B) making any publication in which the information 
     furnished by any particular individual can be identified; or
       (C) permitting a person other than a sworn officer or 
     employee of the Department or a bureau or agency of the 
     Department or, with respect to applications filed with a 
     qualified designated entity, that qualified designated 
     entity, to examine individual applications.
       (2) Required disclosures.--The Secretary shall provide the 
     information furnished under this title or any other 
     information derived from such furnished information to--
       (A) a duly recognized law enforcement entity in connection 
     with a criminal investigation or prosecution, if such 
     information is requested in writing by such entity; or
       (B) an official coroner, for purposes of affirmatively 
     identifying a deceased individual, whether or not the death 
     of such individual resulted from a crime.
       (3) Construction.--

[[Page S968]]

       (A) In general.--Nothing in this subsection shall be 
     construed to limit the use, or release, for immigration 
     enforcement purposes or law enforcement purposes, of 
     information contained in files or records of the Department 
     pertaining to an application filed under this section, other 
     than information furnished by an applicant pursuant to the 
     application, or any other information derived from the 
     application, that is not available from any other source.
       (B) Criminal convictions.--Notwithstanding any other 
     provision of this subsection, information concerning whether 
     the alien applying for blue card status under section 211 or 
     an adjustment of status under section 213 has been convicted 
     of a crime at any time may be used or released for 
     immigration enforcement or law enforcement purposes.
       (4) Crime.--Any person who knowingly uses, publishes, or 
     permits information to be examined in violation of this 
     subsection shall be subject to a fine in an amount not to 
     exceed $10,000.
       (g) Penalties for False Statements in Applications.--
       (1) Criminal penalty.--Any person who--
       (A) files an application for blue card status under section 
     211 or an adjustment of status under section 213 and 
     knowingly and willfully falsifies, conceals, or covers up a 
     material fact or makes any false, fictitious, or fraudulent 
     statements or representations, or makes or uses any false 
     writing or document knowing the same to contain any false, 
     fictitious, or fraudulent statement or entry; or
       (B) creates or supplies a false writing or document for use 
     in making such an application,
     shall be fined in accordance with title 18, United States 
     Code, imprisoned not more than 5 years, or both.
       (2) Inadmissibility.--An alien who is convicted of a crime 
     under paragraph (1) shall be considered to be inadmissible to 
     the United States on the ground described in section 
     212(a)(6)(C)(i) of the Immigration and Nationality Act (8 
     U.S.C. 1182(a)(6)(C)(i)).
       (h) Eligibility for Legal Services.--Section 504(a)(11) of 
     Public Law 104-134 (110 Stat. 1321-53 et seq.) shall not be 
     construed to prevent a recipient of funds under the Legal 
     Services Corporation Act (42 U.S.C. 2996 et seq.) from 
     providing legal assistance directly related to an application 
     for blue card status under section 211 or an adjustment of 
     status under section 213.
       (i) Application Fees.--
       (1) Fee schedule.--The Secretary shall provide for a 
     schedule of fees that--
       (A) shall be charged for the filing of an application for 
     blue card status under section 211 or for an adjustment of 
     status under section 213; and
       (B) may be charged by qualified designated entities to help 
     defray the costs of services provided to such applicants.
       (2) Prohibition on excess fees by qualified designated 
     entities.--A qualified designated entity may not charge any 
     fee in excess of, or in addition to, the fees authorized 
     under paragraph (1)(B) for services provided to applicants.
       (3) Disposition of fees.--
       (A) In general.--There is established in the general fund 
     of the Treasury a separate account, which shall be known as 
     the ``Agricultural Worker Immigration Status Adjustment 
     Account''. Notwithstanding any other provision of law, there 
     shall be deposited as offsetting receipts into the account 
     all fees collected under paragraph (1)(A).
       (B) Use of fees for application processing.--Amounts 
     deposited in the ``Agricultural Worker Immigration Status 
     Adjustment Account'' shall remain available to the Secretary 
     until expended for processing applications for blue card 
     status under section 211 or an adjustment of status under 
     section 213.

     SEC. 215. WAIVER OF NUMERICAL LIMITATIONS AND CERTAIN GROUNDS 
                   FOR INADMISSIBILITY.

       (a) Numerical Limitations Do Not Apply.--The numerical 
     limitations of sections 201 and 202 of the Immigration and 
     Nationality Act (8 U.S.C. 1151 and 1152) shall not apply to 
     the adjustment of aliens to lawful permanent resident status 
     under section 213.
       (b) Waiver of Certain Grounds of Inadmissibility.--In the 
     determination of an alien's eligibility for status under 
     section 211(a) or an alien's eligibility for adjustment of 
     status under section 213(b)(2)(A) the following rules shall 
     apply:
       (1) Grounds of exclusion not applicable.--The provisions of 
     paragraphs (5), (6)(A), (7), and (9) of section 212(a) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)) shall not 
     apply.
       (2) Waiver of other grounds.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary may waive any other provision of such section 
     212(a) in the case of individual aliens for humanitarian 
     purposes, to ensure family unity, or if otherwise in the 
     public interest.
       (B) Grounds that may not be waived.--Paragraphs (2)(A), 
     (2)(B), (2)(C), (3), and (4) of such section 212(a) may not 
     be waived by the Secretary under subparagraph (A).
       (C) Construction.--Nothing in this paragraph shall be 
     construed as affecting the authority of the Secretary other 
     than under this subparagraph to waive provisions of such 
     section 212(a).
       (3) Special rule for determination of public charge.--An 
     alien is not ineligible for blue card status under section 
     211 or an adjustment of status under section 213 by reason of 
     a ground of inadmissibility under section 212(a)(4) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)(4)) if the 
     alien demonstrates a history of employment in the United 
     States evidencing self-support without reliance on public 
     cash assistance.
       (c) Temporary Stay of Removal and Work Authorization for 
     Certain Applicants.--
       (1) Before application period.--Effective on the date of 
     enactment of this Act, the Secretary shall provide that, in 
     the case of an alien who is apprehended before the beginning 
     of the application period described in section 211(a)(2) and 
     who can establish a nonfrivolous case of eligibility for blue 
     card status (but for the fact that the alien may not apply 
     for such status until the beginning of such period), until 
     the alien has had the opportunity during the first 30 days of 
     the application period to complete the filing of an 
     application for blue card status, the alien--
       (A) may not be removed; and
       (B) shall be granted authorization to engage in employment 
     in the United States and be provided an employment authorized 
     endorsement or other appropriate work permit for such 
     purpose.
       (2) During application period.--The Secretary shall provide 
     that, in the case of an alien who presents a nonfrivolous 
     application for blue card status during the application 
     period described in section 211(a)(2), including an alien who 
     files such an application within 30 days of the alien's 
     apprehension, and until a final determination on the 
     application has been made in accordance with this section, 
     the alien--
       (A) may not be removed; and
       (B) shall be granted authorization to engage in employment 
     in the United States and be provided an employment authorized 
     endorsement or other appropriate work permit for such 
     purpose.

     SEC. 216. ADMINISTRATIVE AND JUDICIAL REVIEW.

       (a) In General.--There shall be no administrative or 
     judicial review of a determination respecting an application 
     for blue card status under section 211 or adjustment of 
     status under section 213 except in accordance with this 
     section.
       (b) Administrative Review.--
       (1) Single level of administrative appellate review.--The 
     Secretary shall establish an appellate authority to provide 
     for a single level of administrative appellate review of such 
     a determination.
       (2) Standard for review.--Such administrative appellate 
     review shall be based solely upon the administrative record 
     established at the time of the determination on the 
     application and upon such additional or newly discovered 
     evidence as may not have been available at the time of the 
     determination.
       (c) Judicial Review.--
       (1) Limitation to review of removal.--There shall be 
     judicial review of such a determination only in the judicial 
     review of an order of removal under section 242 of the 
     Immigration and Nationality Act (8 U.S.C. 1252).
       (2) Standard for judicial review.--Such judicial review 
     shall be based solely upon the administrative record 
     established at the time of the review by the appellate 
     authority and the findings of fact and determinations 
     contained in such record shall be conclusive unless the 
     applicant can establish abuse of discretion or that the 
     findings are directly contrary to clear and convincing facts 
     contained in the record considered as a whole.

     SEC. 217. USE OF INFORMATION.

       Beginning not later than the first day of the application 
     period described in section 211(a)(2), the Secretary, in 
     cooperation with qualified designated entities (as that term 
     is defined in section 214(b)), shall broadly disseminate 
     information respecting the benefits that aliens may receive 
     under this subtitle and the requirements that an alien is 
     required to meet to receive such benefits.

     SEC. 218. REGULATIONS, EFFECTIVE DATE, AUTHORIZATION OF 
                   APPROPRIATIONS.

       (a) Regulations.--The Secretary shall issue regulations to 
     implement this subtitle not later than the first day of the 
     seventh month that begins after the date of enactment of this 
     Act.
       (b) Effective Date.--This subtitle shall take effect on the 
     date that regulations required by subsection (a) are issued, 
     regardless of whether such regulations are issued on an 
     interim basis or on any other basis.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to implement this subtitle, including any sums 
     needed for costs associated with the initiation of such 
     implementation, for fiscal years 2007 and 2008.

             PART II--CORRECTION OF SOCIAL SECURITY RECORDS

     SEC. 221. CORRECTION OF SOCIAL SECURITY RECORDS.

       (a) In General.--Section 208(e)(1) of the Social Security 
     Act (42 U.S.C. 408(e)(1)) is amended--
       (1) in subparagraph (B)(ii), by striking ``or'' at the end;
       (2) in subparagraph (C), by inserting ``or'' at the end;
       (3) by inserting after subparagraph (C) the following:
       ``(D) who is granted blue card status under the 
     Agricultural Job Opportunity, Benefits, and Security Act of 
     2007,''; and
       (4) by striking ``1990.'' and inserting ``1990, or in the 
     case of an alien described in subparagraph (D), if such 
     conduct is alleged to

[[Page S969]]

     have occurred before the date on which the alien was granted 
     blue card status.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the first day of the seventh month that 
     begins after the date of the enactment of this Act.

               Subtitle B--Reform of H-2A Worker Program

     SEC. 231. AMENDMENT TO THE IMMIGRATION AND NATIONALITY ACT.

       (a) In General.--Title II of the Immigration and 
     Nationality Act (8 U.S.C. 1151 et seq.) is amended by 
     striking section 218 and inserting the following:

     ``SEC. 218. H-2A EMPLOYER APPLICATIONS.

       ``(a) Applications to the Secretary of Labor.--
       ``(1) In general.--No alien may be admitted to the United 
     States as an H-2A worker, or otherwise provided status as an 
     H-2A worker, unless the employer has filed with the Secretary 
     of Labor an application containing--
       ``(A) the assurances described in subsection (b);
       ``(B) a description of the nature and location of the work 
     to be performed;
       ``(C) the anticipated period (expected beginning and ending 
     dates) for which the workers will be needed; and
       ``(D) the number of job opportunities in which the employer 
     seeks to employ the workers.
       ``(2) Accompanied by job offer.--Each application filed 
     under paragraph (1) shall be accompanied by a copy of the job 
     offer describing the wages and other terms and conditions of 
     employment and the bona fide occupational qualifications that 
     shall be possessed by a worker to be employed in the job 
     opportunity in question.
       ``(b) Assurances for Inclusion in Applications.--The 
     assurances referred to in subsection (a)(1) are the 
     following:
       ``(1) Job opportunities covered by collective bargaining 
     agreements.--With respect to a job opportunity that is 
     covered under a collective bargaining agreement:
       ``(A) Union contract described.--The job opportunity is 
     covered by a union contract which was negotiated at arm's 
     length between a bona fide union and the employer.
       ``(B) Strike or lockout.--The specific job opportunity for 
     which the employer is requesting an H-2A worker is not vacant 
     because the former occupant is on strike or being locked out 
     in the course of a labor dispute.
       ``(C) Notification of bargaining representatives.--The 
     employer, at the time of filing the application, has provided 
     notice of the filing under this paragraph to the bargaining 
     representative of the employer's employees in the 
     occupational classification at the place or places of 
     employment for which aliens are sought.
       ``(D) Temporary or seasonal job opportunities.--The job 
     opportunity is temporary or seasonal.
       ``(E) Offers to united states workers.--The employer has 
     offered or will offer the job to any eligible United States 
     worker who applies and is equally or better qualified for the 
     job for which the nonimmigrant is, or the nonimmigrants are, 
     sought and who will be available at the time and place of 
     need.
       ``(F) Provision of insurance.--If the job opportunity is 
     not covered by the State workers' compensation law, the 
     employer will provide, at no cost to the worker, insurance 
     covering injury and disease arising out of, and in the course 
     of, the worker's employment which will provide benefits at 
     least equal to those provided under the State's workers' 
     compensation law for comparable employment.
       ``(2) Job opportunities not covered by collective 
     bargaining agreements.--With respect to a job opportunity 
     that is not covered under a collective bargaining agreement:
       ``(A) Strike or lockout.--The specific job opportunity for 
     which the employer has applied for an H-2A worker is not 
     vacant because the former occupant is on strike or being 
     locked out in the course of a labor dispute.
       ``(B) Temporary or seasonal job opportunities.--The job 
     opportunity is temporary or seasonal.
       ``(C) Benefit, wage, and working conditions.--The employer 
     will provide, at a minimum, the benefits, wages, and working 
     conditions required by section 218A to all workers employed 
     in the job opportunities for which the employer has applied 
     for an H-2A worker under subsection (a) and to all other 
     workers in the same occupation at the place of employment.
       ``(D) Nondisplacement of united states workers.--The 
     employer did not displace and will not displace a United 
     States worker employed by the employer during the period of 
     employment and for a period of 30 days preceding the period 
     of employment in the occupation at the place of employment 
     for which the employer has applied for an H-2A worker.
       ``(E) Requirements for placement of the nonimmigrant with 
     other employers.--The employer will not place the 
     nonimmigrant with another employer unless--
       ``(i) the nonimmigrant performs duties in whole or in part 
     at 1 or more worksites owned, operated, or controlled by such 
     other employer;
       ``(ii) there are indicia of an employment relationship 
     between the nonimmigrant and such other employer; and
       ``(iii) the employer has inquired of the other employer as 
     to whether, and has no actual knowledge or notice that, 
     during the period of employment and for a period of 30 days 
     preceding the period of employment, the other employer has 
     displaced or intends to displace a United States worker 
     employed by the other employer in the occupation at the place 
     of employment for which the employer seeks approval to employ 
     H-2A workers.
       ``(F) Statement of liability.--The application form shall 
     include a clear statement explaining the liability under 
     subparagraph (E) of an employer if the other employer 
     described in such subparagraph displaces a United States 
     worker as described in such subparagraph.
       ``(G) Provision of insurance.--If the job opportunity is 
     not covered by the State workers' compensation law, the 
     employer will provide, at no cost to the worker, insurance 
     covering injury and disease arising out of and in the course 
     of the worker's employment which will provide benefits at 
     least equal to those provided under the State's workers' 
     compensation law for comparable employment.
       ``(H) Employment of united states workers.--
       ``(i) Recruitment.--The employer has taken or will take the 
     following steps to recruit United States workers for the job 
     opportunities for which the H-2A nonimmigrant is, or H-2A 
     nonimmigrants are, sought:

       ``(I) Contacting former workers.--The employer shall make 
     reasonable efforts through the sending of a letter by United 
     States Postal Service mail, or otherwise, to contact any 
     United States worker the employer employed during the 
     previous season in the occupation at the place of intended 
     employment for which the employer is applying for workers and 
     has made the availability of the employer's job opportunities 
     in the occupation at the place of intended employment known 
     to such previous workers, unless the worker was terminated 
     from employment by the employer for a lawful job-related 
     reason or abandoned the job before the worker completed the 
     period of employment of the job opportunity for which the 
     worker was hired.
       ``(II) Filing a job offer with the local office of the 
     state employment security agency.--Not later than 28 days 
     before the date on which the employer desires to employ an H-
     2A worker in a temporary or seasonal agricultural job 
     opportunity, the employer shall submit a copy of the job 
     offer described in subsection (a)(2) to the local office of 
     the State employment security agency which serves the area of 
     intended employment and authorize the posting of the job 
     opportunity on `America's Job Bank' or other electronic job 
     registry, except that nothing in this subclause shall require 
     the employer to file an interstate job order under section 
     653 of title 20, Code of Federal Regulations.
       ``(III) Advertising of job opportunities.--Not later than 
     14 days before the date on which the employer desires to 
     employ an H-2A worker in a temporary or seasonal agricultural 
     job opportunity, the employer shall advertise the 
     availability of the job opportunities for which the employer 
     is seeking workers in a publication in the local labor market 
     that is likely to be patronized by potential farm workers.
       ``(IV) Emergency procedures.--The Secretary of Labor shall, 
     by regulation, provide a procedure for acceptance and 
     approval of applications in which the employer has not 
     complied with the provisions of this subparagraph because the 
     employer's need for H-2A workers could not reasonably have 
     been foreseen.

       ``(ii) Job offers.--The employer has offered or will offer 
     the job to any eligible United States worker who applies and 
     is equally or better qualified for the job for which the 
     nonimmigrant is, or nonimmigrants are, sought and who will be 
     available at the time and place of need.
       ``(iii) Period of employment.--The employer will provide 
     employment to any qualified United States worker who applies 
     to the employer during the period beginning on the date on 
     which the H-2A worker departs for the employer's place of 
     employment and ending on the date on which 50 percent of the 
     period of employment for which the H-2A worker who is in the 
     job was hired has elapsed, subject to the following 
     requirements:

       ``(I) Prohibition.--No person or entity shall willfully and 
     knowingly withhold United States workers before the arrival 
     of H-2A workers in order to force the hiring of United States 
     workers under this clause.
       ``(II) Complaints.--Upon receipt of a complaint by an 
     employer that a violation of subclause (I) has occurred, the 
     Secretary of Labor shall immediately investigate. The 
     Secretary of Labor shall, within 36 hours of the receipt of 
     the complaint, issue findings concerning the alleged 
     violation. If the Secretary of Labor finds that a violation 
     has occurred, the Secretary of Labor shall immediately 
     suspend the application of this clause with respect to that 
     certification for that date of need.
       ``(III) Placement of united states workers.--Before 
     referring a United States worker to an employer during the 
     period described in the matter preceding subclause (I), the 
     Secretary of Labor shall make all reasonable efforts to place 
     the United States worker in an open job acceptable to the 
     worker, if there are other job offers pending with the job 
     service that offer similar job opportunities in the area of 
     intended employment.

[[Page S970]]

       ``(iv) Statutory construction.--Nothing in this 
     subparagraph shall be construed to prohibit an employer from 
     using such legitimate selection criteria relevant to the type 
     of job that are normal or customary to the type of job 
     involved so long as such criteria are not applied in a 
     discriminatory manner.
       ``(c) Applications by Associations on Behalf of Employer 
     Members.--
       ``(1) In general.--An agricultural association may file an 
     application under subsection (a) on behalf of 1 or more of 
     its employer members that the association certifies in its 
     application has or have agreed in writing to comply with the 
     requirements of this section and sections 218A, 218B, and 
     218C.
       ``(2) Treatment of associations acting as employers.--If an 
     association filing an application under paragraph (1) is a 
     joint or sole employer of the temporary or seasonal 
     agricultural workers requested on the application, the 
     certifications granted under subsection (e)(2)(B) to the 
     association may be used for the certified job opportunities 
     of any of its producer members named on the application, and 
     such workers may be transferred among such producer members 
     to perform the agricultural services of a temporary or 
     seasonal nature for which the certifications were granted.
       ``(d) Withdrawal of Applications.--
       ``(1) In general.--An employer may withdraw an application 
     filed pursuant to subsection (a), except that if the employer 
     is an agricultural association, the association may withdraw 
     an application filed pursuant to subsection (a) with respect 
     to 1 or more of its members. To withdraw an application, the 
     employer or association shall notify the Secretary of Labor 
     in writing, and the Secretary of Labor shall acknowledge in 
     writing the receipt of such withdrawal notice. An employer 
     who withdraws an application under subsection (a), or on 
     whose behalf an application is withdrawn, is relieved of the 
     obligations undertaken in the application.
       ``(2) Limitation.--An application may not be withdrawn 
     while any alien provided status under section 
     101(a)(15)(H)(ii)(a) pursuant to such application is employed 
     by the employer.
       ``(3) Obligations under other statutes.--Any obligation 
     incurred by an employer under any other law or regulation as 
     a result of the recruitment of United States workers or H-2A 
     workers under an offer of terms and conditions of employment 
     required as a result of making an application under 
     subsection (a) is unaffected by withdrawal of such 
     application.
       ``(e) Review and Approval of Applications.--
       ``(1) Responsibility of employers.--The employer shall make 
     available for public examination, within 1 working day after 
     the date on which an application under subsection (a) is 
     filed, at the employer's principal place of business or 
     worksite, a copy of each such application (and such 
     accompanying documents as are necessary).
       ``(2) Responsibility of the secretary of labor.--
       ``(A) Compilation of list.--The Secretary of Labor shall 
     compile, on a current basis, a list (by employer and by 
     occupational classification) of the applications filed under 
     subsection (a). Such list shall include the wage rate, number 
     of workers sought, period of intended employment, and date of 
     need. The Secretary of Labor shall make such list available 
     for examination in the District of Columbia.
       ``(B) Review of applications.--The Secretary of Labor shall 
     review such an application only for completeness and obvious 
     inaccuracies. Unless the Secretary of Labor finds that the 
     application is incomplete or obviously inaccurate, the 
     Secretary of Labor shall certify that the intending employer 
     has filed with the Secretary of Labor an application as 
     described in subsection (a). Such certification shall be 
     provided within 7 days of the filing of the application.''

     ``SEC. 218A. H-2A EMPLOYMENT REQUIREMENTS.

       ``(a) Preferential Treatment of Aliens Prohibited.--
     Employers seeking to hire United States workers shall offer 
     the United States workers no less than the same benefits, 
     wages, and working conditions that the employer is offering, 
     intends to offer, or will provide to H-2A workers. 
     Conversely, no job offer may impose on United States workers 
     any restrictions or obligations which will not be imposed on 
     the employer's H-2A workers.
       ``(b) Minimum Benefits, Wages, and Working Conditions.--
     Except in cases where higher benefits, wages, or working 
     conditions are required by the provisions of subsection (a), 
     in order to protect similarly employed United States workers 
     from adverse effects with respect to benefits, wages, and 
     working conditions, every job offer which shall accompany an 
     application under section 218(b)(2) shall include each of the 
     following benefit, wage, and working condition provisions:
       ``(1) Requirement to provide housing or a housing 
     allowance.--
       ``(A) In general.--An employer applying under section 
     218(a) for H-2A workers shall offer to provide housing at no 
     cost to all workers in job opportunities for which the 
     employer has applied under that section and to all other 
     workers in the same occupation at the place of employment, 
     whose place of residence is beyond normal commuting distance.
       ``(B) Type of housing.--In complying with subparagraph (A), 
     an employer may, at the employer's election, provide housing 
     that meets applicable Federal standards for temporary labor 
     camps or secure housing that meets applicable local standards 
     for rental or public accommodation housing or other 
     substantially similar class of habitation, or in the absence 
     of applicable local standards, State standards for rental or 
     public accommodation housing or other substantially similar 
     class of habitation. In the absence of applicable local or 
     State standards, Federal temporary labor camp standards shall 
     apply.
       ``(C) Family housing.--If it is the prevailing practice in 
     the occupation and area of intended employment to provide 
     family housing, family housing shall be provided to workers 
     with families who request it.
       ``(D) Workers engaged in the range production of 
     livestock.--The Secretary of Labor shall issue regulations 
     that address the specific requirements for the provision of 
     housing to workers engaged in the range production of 
     livestock.
       ``(E) Limitation.--Nothing in this paragraph shall be 
     construed to require an employer to provide or secure housing 
     for persons who were not entitled to such housing under the 
     temporary labor certification regulations in effect on June 
     1, 1986.
       ``(F) Charges for housing.--
       ``(i) Charges for public housing.--If public housing 
     provided for migrant agricultural workers under the auspices 
     of a local, county, or State government is secured by an 
     employer, and use of the public housing unit normally 
     requires charges from migrant workers, such charges shall be 
     paid by the employer directly to the appropriate individual 
     or entity affiliated with the housing's management.
       ``(ii) Deposit charges.--Charges in the form of deposits 
     for bedding or other similar incidentals related to housing 
     shall not be levied upon workers by employers who provide 
     housing for their workers. An employer may require a worker 
     found to have been responsible for damage to such housing 
     which is not the result of normal wear and tear related to 
     habitation to reimburse the employer for the reasonable cost 
     of repair of such damage.
       ``(G) Housing allowance as alternative.--
       ``(i) In general.--If the requirement set out in clause 
     (ii) is satisfied, the employer may provide a reasonable 
     housing allowance instead of offering housing under 
     subparagraph (A). Upon the request of a worker seeking 
     assistance in locating housing, the employer shall make a 
     good faith effort to assist the worker in identifying and 
     locating housing in the area of intended employment. An 
     employer who offers a housing allowance to a worker, or 
     assists a worker in locating housing which the worker 
     occupies, pursuant to this clause shall not be deemed a 
     housing provider under section 203 of the Migrant and 
     Seasonal Agricultural Worker Protection Act (29 U.S.C. 1823) 
     solely by virtue of providing such housing allowance. No 
     housing allowance may be used for housing which is owned or 
     controlled by the employer.
       ``(ii) Certification.--The requirement of this clause is 
     satisfied if the Governor of the State certifies to the 
     Secretary of Labor that there is adequate housing available 
     in the area of intended employment for migrant farm workers 
     and H-2A workers who are seeking temporary housing while 
     employed in agricultural work. Such certification shall 
     expire after 3 years unless renewed by the Governor of the 
     State.
       ``(iii) Amount of allowance.--

       ``(I) Nonmetropolitan counties.--If the place of employment 
     of the workers provided an allowance under this subparagraph 
     is a nonmetropolitan county, the amount of the housing 
     allowance under this subparagraph shall be equal to the 
     statewide average fair market rental for existing housing for 
     nonmetropolitan counties for the State, as established by the 
     Secretary of Housing and Urban Development pursuant to 
     section 8(c) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an 
     assumption of 2 persons per bedroom.
       ``(II) Metropolitan counties.--If the place of employment 
     of the workers provided an allowance under this paragraph is 
     in a metropolitan county, the amount of the housing allowance 
     under this subparagraph shall be equal to the statewide 
     average fair market rental for existing housing for 
     metropolitan counties for the State, as established by the 
     Secretary of Housing and Urban Development pursuant to 
     section 8(c) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an 
     assumption of 2 persons per bedroom.

       ``(2) Reimbursement of transportation.--
       ``(A) To place of employment.--A worker who completes 50 
     percent of the period of employment of the job opportunity 
     for which the worker was hired shall be reimbursed by the 
     employer for the cost of the worker's transportation and 
     subsistence from the place from which the worker came to work 
     for the employer (or place of last employment, if the worker 
     traveled from such place) to the place of employment.
       ``(B) From place of employment.--A worker who completes the 
     period of employment for the job opportunity involved shall 
     be reimbursed by the employer for the cost of the worker's 
     transportation and subsistence from the place of employment 
     to the place from which the worker, disregarding intervening 
     employment, came to work for the employer, or to the place of 
     next employment, if the worker has contracted with a 
     subsequent employer who has not agreed to

[[Page S971]]

     provide or pay for the worker's transportation and 
     subsistence to such subsequent employer's place of 
     employment.
       ``(C) Limitation.--
       ``(i) Amount of reimbursement.--Except as provided in 
     clause (ii), the amount of reimbursement provided under 
     subparagraph (A) or (B) to a worker or alien shall not exceed 
     the lesser of--

       ``(I) the actual cost to the worker or alien of the 
     transportation and subsistence involved; or
       ``(II) the most economical and reasonable common carrier 
     transportation charges and subsistence costs for the distance 
     involved.

       ``(ii) Distance traveled.--No reimbursement under 
     subparagraph (A) or (B) shall be required if the distance 
     traveled is 100 miles or less, or the worker is not residing 
     in employer-provided housing or housing secured through an 
     allowance as provided in paragraph (1)(G).
       ``(D) Early termination.--If the worker is laid off or 
     employment is terminated for contract impossibility (as 
     described in paragraph (4)(D)) before the anticipated ending 
     date of employment, the employer shall provide the 
     transportation and subsistence required by subparagraph (B) 
     and, notwithstanding whether the worker has completed 50 
     percent of the period of employment, shall provide the 
     transportation reimbursement required by subparagraph (A).
       ``(E) Transportation between living quarters and 
     worksite.--The employer shall provide transportation between 
     the worker's living quarters and the employer's worksite 
     without cost to the worker, and such transportation will be 
     in accordance with applicable laws and regulations.
       ``(3) Required wages.--
       ``(A) In general.--An employer applying for workers under 
     section 218(a) shall offer to pay, and shall pay, all workers 
     in the occupation for which the employer has applied for 
     workers, not less (and is not required to pay more) than the 
     greater of the prevailing wage in the occupation in the area 
     of intended employment or the adverse effect wage rate. No 
     worker shall be paid less than the greater of the hourly wage 
     prescribed under section 6(a)(1) of the Fair Labor Standards 
     Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable State 
     minimum wage.
       ``(B) Limitation.--Effective on the date of the enactment 
     of the Agricultural Job Opportunities, Benefits, and Security 
     Act of 2007 and continuing for 3 years thereafter, no adverse 
     effect wage rate for a State may be more than the adverse 
     effect wage rate for that State in effect on January 1, 2003, 
     as established by section 655.107 of title 20, Code of 
     Federal Regulations.
       ``(C) Required wages after 3-year freeze.--
       ``(i) First adjustment.--If Congress does not set a new 
     wage standard applicable to this section before the first 
     March 1 that is not less than 3 years after the date of 
     enactment of this section, the adverse effect wage rate for 
     each State beginning on such March 1 shall be the wage rate 
     that would have resulted if the adverse effect wage rate in 
     effect on January 1, 2003, had been annually adjusted, 
     beginning on March 1, 2006, by the lesser of--

       ``(I) the 12-month percentage change in the Consumer Price 
     Index for All Urban Consumers between December of the second 
     preceding year and December of the preceding year; and
       ``(II) 4 percent.

       ``(ii) Subsequent annual adjustments.--Beginning on the 
     first March 1 that is not less than 4 years after the date of 
     enactment of this section, and each March 1 thereafter, the 
     adverse effect wage rate then in effect for each State shall 
     be adjusted by the lesser of--

       ``(I) the 12-month percentage change in the Consumer Price 
     Index for All Urban Consumers between December of the second 
     preceding year and December of the preceding year; and
       ``(II) 4 percent.

       ``(D) Deductions.--The employer shall make only those 
     deductions from the worker's wages that are authorized by law 
     or are reasonable and customary in the occupation and area of 
     employment. The job offer shall specify all deductions not 
     required by law which the employer will make from the 
     worker's wages.
       ``(E) Frequency of pay.--The employer shall pay the worker 
     not less frequently than twice monthly, or in accordance with 
     the prevailing practice in the area of employment, whichever 
     is more frequent.
       ``(F) Hours and earnings statements.--The employer shall 
     furnish to the worker, on or before each payday, in 1 or more 
     written statements--
       ``(i) the worker's total earnings for the pay period;
       ``(ii) the worker's hourly rate of pay, piece rate of pay, 
     or both;
       ``(iii) the hours of employment which have been offered to 
     the worker (broken out by hours offered in accordance with 
     and over and above the \3/4\ guarantee described in paragraph 
     (4);
       ``(iv) the hours actually worked by the worker;
       ``(v) an itemization of the deductions made from the 
     worker's wages; and
       ``(vi) if piece rates of pay are used, the units produced 
     daily.
       ``(G) Report on wage protections.--Not later than December 
     31, 2009, the Comptroller General of the United States shall 
     prepare and transmit to the Secretary of Labor, the Committee 
     on the Judiciary of the Senate, and Committee on the 
     Judiciary of the House of Representatives, a report that 
     addresses--
       ``(i) whether the employment of H-2A or unauthorized aliens 
     in the United States agricultural workforce has depressed 
     United States farm worker wages below the levels that would 
     otherwise have prevailed if alien farm workers had not been 
     employed in the United States;
       ``(ii) whether an adverse effect wage rate is necessary to 
     prevent wages of United States farm workers in occupations in 
     which H-2A workers are employed from falling below the wage 
     levels that would have prevailed in the absence of the 
     employment of H-2A workers in those occupations;
       ``(iii) whether alternative wage standards, such as a 
     prevailing wage standard, would be sufficient to prevent 
     wages in occupations in which H-2A workers are employed from 
     falling below the wage level that would have prevailed in the 
     absence of H-2A employment;
       ``(iv) whether any changes are warranted in the current 
     methodologies for calculating the adverse effect wage rate 
     and the prevailing wage; and
       ``(v) recommendations for future wage protection under this 
     section.
       ``(H) Commission on wage standards.--
       ``(i) Establishment.--There is established the Commission 
     on Agricultural Wage Standards under the H-2A program (in 
     this subparagraph referred to as the `Commission').
       ``(ii) Composition.--The Commission shall consist of 10 
     members as follows:

       ``(I) Four representatives of agricultural employers and 1 
     representative of the Department of Agriculture, each 
     appointed by the Secretary of Agriculture.
       ``(II) Four representatives of agricultural workers and 1 
     representative of the Department of Labor, each appointed by 
     the Secretary of Labor.

       ``(iii) Functions.--The Commission shall conduct a study 
     that shall address--

       ``(I) whether the employment of H-2A or unauthorized aliens 
     in the United States agricultural workforce has depressed 
     United States farm worker wages below the levels that would 
     otherwise have prevailed if alien farm workers had not been 
     employed in the United States;
       ``(II) whether an adverse effect wage rate is necessary to 
     prevent wages of United States farm workers in occupations in 
     which H-2A workers are employed from falling below the wage 
     levels that would have prevailed in the absence of the 
     employment of H-2A workers in those occupations;
       ``(III) whether alternative wage standards, such as a 
     prevailing wage standard, would be sufficient to prevent 
     wages in occupations in which H-2A workers are employed from 
     falling below the wage level that would have prevailed in the 
     absence of H-2A employment;
       ``(IV) whether any changes are warranted in the current 
     methodologies for calculating the adverse effect wage rate 
     and the prevailing wage rate; and
       ``(V) recommendations for future wage protection under this 
     section.

       ``(iv) Final report.--Not later than December 31, 2009, the 
     Commission shall submit a report to the Congress setting 
     forth the findings of the study conducted under clause (iii).
       ``(v) Termination date.--The Commission shall terminate 
     upon submitting its final report.
       ``(4) Guarantee of employment.--
       ``(A) Offer to worker.--The employer shall guarantee to 
     offer the worker employment for the hourly equivalent of at 
     least \3/4\ of the work days of the total period of 
     employment, beginning with the first work day after the 
     arrival of the worker at the place of employment and ending 
     on the expiration date specified in the job offer. For 
     purposes of this subparagraph, the hourly equivalent means 
     the number of hours in the work days as stated in the job 
     offer and shall exclude the worker's Sabbath and Federal 
     holidays. If the employer affords the United States or H-2A 
     worker less employment than that required under this 
     paragraph, the employer shall pay such worker the amount 
     which the worker would have earned had the worker, in fact, 
     worked for the guaranteed number of hours.
       ``(B) Failure to work.--Any hours which the worker fails to 
     work, up to a maximum of the number of hours specified in the 
     job offer for a work day, when the worker has 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 job offer in a work day, on the 
     worker's Sabbath, or on Federal holidays) may be counted by 
     the employer in calculating whether the period of guaranteed 
     employment has been met.
       ``(C) Abandonment of employment, termination for cause.--If 
     the worker voluntarily abandons employment before the end of 
     the contract period, or is terminated for cause, the worker 
     is not entitled to the `\3/4\ guarantee' described in 
     subparagraph (A).
       ``(D) Contract impossibility.--If, before the expiration of 
     the period of employment specified in the job offer, the 
     services of the worker are no longer required for reasons 
     beyond the control of the employer due to any form of natural 
     disaster, including a flood, hurricane, freeze, earthquake, 
     fire, drought, plant or animal disease or pest infestation, 
     or regulatory drought, before the guarantee

[[Page S972]]

     in subparagraph (A) is fulfilled, the employer may terminate 
     the worker's employment. In the event of such termination, 
     the employer shall fulfill the employment guarantee in 
     subparagraph (A) for the work days that have elapsed from the 
     first work day after the arrival of the worker to the 
     termination of employment. In such cases, the employer will 
     make efforts to transfer the United States worker to other 
     comparable employment acceptable to the worker. If such 
     transfer is not effected, the employer shall provide the 
     return transportation required in paragraph (2)(D).
       ``(5) Motor vehicle safety.--
       ``(A) Mode of transportation subject to coverage.--
       ``(i) In general.--Except as provided in clauses (iii) and 
     (iv), this subsection applies to any H-2A employer that uses 
     or causes to be used any vehicle to transport an H-2A worker 
     within the United States.
       ``(ii) Defined term.--In this paragraph, the term `uses or 
     causes to be used'--

       ``(I) applies only to transportation provided by an H-2A 
     employer to an H-2A worker, or by a farm labor contractor to 
     an H-2A worker at the request or direction of an H-2A 
     employer; and
       ``(II) does not apply to--

       ``(aa) transportation provided, or transportation 
     arrangements made, by an H-2A worker, unless the employer 
     specifically requested or arranged such transportation; or
       ``(bb) car pooling arrangements made by H-2A workers 
     themselves, using 1 of the workers' own vehicles, unless 
     specifically requested by the employer directly or through a 
     farm labor contractor.
       ``(iii) Clarification.--Providing a job offer to an H-2A 
     worker that causes the worker to travel to or from the place 
     of employment, or the payment or reimbursement of the 
     transportation costs of an H-2A worker by an H-2A employer, 
     shall not constitute an arrangement of, or participation in, 
     such transportation.
       ``(iv) Agricultural machinery and equipment excluded.--This 
     subsection does not apply to the transportation of an H-2A 
     worker on a tractor, combine, harvester, picker, or other 
     similar machinery or equipment while such worker is actually 
     engaged in the planting, cultivating, or harvesting of 
     agricultural commodities or the care of livestock or poultry 
     or engaged in transportation incidental thereto.
       ``(v) Common carriers excluded.--This subsection does not 
     apply to common carrier motor vehicle transportation in which 
     the provider holds itself out to the general public as 
     engaging in the transportation of passengers for hire and 
     holds a valid certification of authorization for such 
     purposes from an appropriate Federal, State, or local agency.
       ``(B) Applicability of standards, licensing, and insurance 
     requirements.--
       ``(i) In general.--When using, or causing to be used, any 
     vehicle for the purpose of providing transportation to which 
     this subparagraph applies, each employer shall--

       ``(I) ensure that each such vehicle conforms to the 
     standards prescribed by the Secretary of Labor under section 
     401(b) of the Migrant and Seasonal Agricultural Worker 
     Protection Act (29 U.S.C. 1841(b)) and other applicable 
     Federal and State safety standards;
       ``(II) ensure that each driver has a valid and appropriate 
     license, as provided by State law, to operate the vehicle; 
     and
       ``(III) have an insurance policy or a liability bond that 
     is in effect which insures the employer against liability for 
     damage to persons or property arising from the ownership, 
     operation, or causing to be operated, of any vehicle used to 
     transport any H-2A worker.

       ``(ii) Amount of insurance required.--The level of 
     insurance required shall be determined by the Secretary of 
     Labor pursuant to regulations to be issued under this 
     subsection.
       ``(iii) Effect of workers' compensation coverage.--If the 
     employer of any H-2A worker provides workers' compensation 
     coverage for such worker in the case of bodily injury or 
     death as provided by State law, the following adjustments in 
     the requirements of subparagraph (B)(i)(III) relating to 
     having an insurance policy or liability bond apply:

       ``(I) No insurance policy or liability bond shall be 
     required of the employer, if such workers are transported 
     only under circumstances for which there is coverage under 
     such State law.
       ``(II) An insurance policy or liability bond shall be 
     required of the employer for circumstances under which 
     coverage for the transportation of such workers is not 
     provided under such State law.

       ``(c) Compliance With Labor Laws.--An employer shall assure 
     that, except as otherwise provided in this section, the 
     employer will comply with all applicable Federal, State, and 
     local labor laws, including laws affecting migrant and 
     seasonal agricultural workers, with respect to all United 
     States workers and alien workers employed by the employer, 
     except that a violation of this assurance shall not 
     constitute a violation of the Migrant and Seasonal 
     Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.).
       ``(d) Copy of Job Offer.--The employer shall provide to the 
     worker, not later than the day the work commences, a copy of 
     the employer's application and job offer described in section 
     218(a), or, if the employer will require the worker to enter 
     into a separate employment contract covering the employment 
     in question, such separate employment contract.
       ``(e) Range Production of Livestock.--Nothing in this 
     section, section 218, or section 218B shall preclude the 
     Secretary of Labor and the Secretary from continuing to apply 
     special procedures and requirements to the admission and 
     employment of aliens in occupations involving the range 
     production of livestock.

     ``SEC. 218B. PROCEDURE FOR ADMISSION AND EXTENSION OF STAY OF 
                   H-2A WORKERS.

       ``(a) Petitioning for Admission.--An employer, or an 
     association acting as an agent or joint employer for its 
     members, that seeks the admission into the United States of 
     an H-2A worker may file a petition with the Secretary. The 
     petition shall be accompanied by an accepted and currently 
     valid certification provided by the Secretary of Labor under 
     section 218(e)(2)(B) covering the petitioner.
       ``(b) Expedited Adjudication by the Secretary.--The 
     Secretary shall establish a procedure for expedited 
     adjudication of petitions filed under subsection (a) and 
     within 7 working days shall, by fax, cable, or other means 
     assuring expedited delivery, transmit a copy of notice of 
     action on the petition to the petitioner and, in the case of 
     approved petitions, to the appropriate immigration officer at 
     the port of entry or United States consulate (as the case may 
     be) where the petitioner has indicated that the alien 
     beneficiary (or beneficiaries) will apply for a visa or 
     admission to the United States.
       ``(c) Criteria for Admissibility.--
       ``(1) In general.--An H-2A worker shall be considered 
     admissible to the United States if the alien is otherwise 
     admissible under this section, section 218, and section 218A, 
     and the alien is not ineligible under paragraph (2).
       ``(2) Disqualification.--An alien shall be considered 
     inadmissible to the United States and ineligible for 
     nonimmigrant status under section 101(a)(15)(H)(ii)(a) if the 
     alien has, at any time during the past 5 years--
       ``(A) violated a material provision of this section, 
     including the requirement to promptly depart the United 
     States when the alien's authorized period of admission under 
     this section has expired; or
       ``(B) otherwise violated a term or condition of admission 
     into the United States as a nonimmigrant, including 
     overstaying the period of authorized admission as such a 
     nonimmigrant.
       ``(3) Waiver of ineligibility for unlawful presence.--
       ``(A) In general.--An alien who has not previously been 
     admitted into the United States pursuant to this section, and 
     who is otherwise eligible for admission in accordance with 
     paragraphs (1) and (2), shall not be deemed inadmissible by 
     virtue of section 212(a)(9)(B). If an alien described in the 
     preceding sentence is present in the United States, the alien 
     may apply from abroad for H-2A status, but may not be granted 
     that status in the United States.
       ``(B) Maintenance of waiver.--An alien provided an initial 
     waiver of ineligibility pursuant to subparagraph (A) shall 
     remain eligible for such waiver unless the alien violates the 
     terms of this section or again becomes ineligible under 
     section 212(a)(9)(B) by virtue of unlawful presence in the 
     United States after the date of the initial waiver of 
     ineligibility pursuant to subparagraph (A).
       ``(d) Period of Admission.--
       ``(1) In general.--The alien shall be admitted for the 
     period of employment in the application certified by the 
     Secretary of Labor pursuant to section 218(e)(2)(B), not to 
     exceed 10 months, supplemented by a period of not more than 1 
     week before the beginning of the period of employment for the 
     purpose of travel to the worksite and a period of 14 days 
     following the period of employment for the purpose of 
     departure or extension based on a subsequent offer of 
     employment, except that--
       ``(A) the alien is not authorized to be employed during 
     such 14-day period except in the employment for which the 
     alien was previously authorized; and
       ``(B) the total period of employment, including such 14-day 
     period, may not exceed 10 months.
       ``(2) Construction.--Nothing in this subsection shall limit 
     the authority of the Secretary to extend the stay of the 
     alien under any other provision of this Act.
       ``(e) Abandonment of Employment.--
       ``(1) In general.--An alien admitted or provided status 
     under section 101(a)(15)(H)(ii)(a) who abandons the 
     employment which was the basis for such admission or status 
     shall be considered to have failed to maintain nonimmigrant 
     status as an H-2A worker and shall depart the United States 
     or be subject to removal under section 237(a)(1)(C)(i).
       ``(2) Report by employer.--The employer, or association 
     acting as agent for the employer, shall notify the Secretary 
     not later than 7 days after an H-2A worker prematurely 
     abandons employment.
       ``(3) Removal by the secretary.--The Secretary shall 
     promptly remove from the United States any H-2A worker who 
     violates any term or condition of the worker's nonimmigrant 
     status.
       ``(4) Voluntary termination.--Notwithstanding paragraph 
     (1), an alien may voluntarily terminate his or her employment 
     if the alien promptly departs the United States upon 
     termination of such employment.
       ``(f) Replacement of Alien.--
       ``(1) In general.--Upon presentation of the notice to the 
     Secretary required by subsection (e)(2), the Secretary of 
     State shall

[[Page S973]]

     promptly issue a visa to, and the Secretary shall admit into 
     the United States, an eligible alien designated by the 
     employer to replace an H-2A worker--
       ``(A) who abandons or prematurely terminates employment; or
       ``(B) whose employment is terminated after a United States 
     worker is employed pursuant to section 218(b)(2)(H)(iii), if 
     the United States worker voluntarily departs before the end 
     of the period of intended employment or if the employment 
     termination is for a lawful job-related reason.
       ``(2) Construction.--Nothing in this subsection is intended 
     to limit any preference required to be accorded United States 
     workers under any other provision of this Act.
       ``(g) Identification Document.--
       ``(1) In general.--Each alien authorized to be admitted 
     under section 101(a)(15)(H)(ii)(a) shall be provided an 
     identification and employment eligibility document to verify 
     eligibility for employment in the United States and verify 
     the alien's identity.
       ``(2) Requirements.--No identification and employment 
     eligibility document may be issued which does not meet the 
     following requirements:
       ``(A) The document shall be capable of reliably determining 
     whether--
       ``(i) the individual with the identification and employment 
     eligibility document whose eligibility is being verified is 
     in fact eligible for employment;
       ``(ii) the individual whose eligibility is being verified 
     is claiming the identity of another person; and
       ``(iii) the individual whose eligibility is being verified 
     is authorized to be admitted into, and employed in, the 
     United States as an H-2A worker.
       ``(B) The document shall be in a form that is resistant to 
     counterfeiting and to tampering.
       ``(C) The document shall--
       ``(i) be compatible with other databases of the Secretary 
     for the purpose of excluding aliens from benefits for which 
     they are not eligible and determining whether the alien is 
     unlawfully present in the United States; and
       ``(ii) be compatible with law enforcement databases to 
     determine if the alien has been convicted of criminal 
     offenses.
       ``(h) Extension of Stay of H-2A Aliens in the United 
     States.--
       ``(1) Extension of stay.--If an employer seeks approval to 
     employ an H-2A alien who is lawfully present in the United 
     States, the petition filed by the employer or an association 
     pursuant to subsection (a), shall request an extension of the 
     alien's stay and a change in the alien's employment.
       ``(2) Limitation on filing a petition for extension of 
     stay.--A petition may not be filed for an extension of an 
     alien's stay--
       ``(A) for a period of more than 10 months; or
       ``(B) to a date that is more than 3 years after the date of 
     the alien's last admission to the United States under this 
     section.
       ``(3) Work authorization upon filing a petition for 
     extension of stay.--
       ``(A) In general.--An alien who is lawfully present in the 
     United States may commence the employment described in a 
     petition under paragraph (1) on the date on which the 
     petition is filed.
       ``(B) Definition.--For purposes of subparagraph (A), the 
     term `file' means sending the petition by certified mail via 
     the United States Postal Service, return receipt requested, 
     or delivered by guaranteed commercial delivery which will 
     provide the employer with a documented acknowledgment of the 
     date of receipt of the petition.
       ``(C) Handling of petition.--The employer shall provide a 
     copy of the employer's petition to the alien, who shall keep 
     the petition with the alien's identification and employment 
     eligibility document as evidence that the petition has been 
     filed and that the alien is authorized to work in the United 
     States.
       ``(D) Approval of petition.--Upon approval of a petition 
     for an extension of stay or change in the alien's authorized 
     employment, the Secretary shall provide a new or updated 
     employment eligibility document to the alien indicating the 
     new validity date, after which the alien is not required to 
     retain a copy of the petition.
       ``(4) Limitation on employment authorization of aliens 
     without valid identification and employment eligibility 
     document.--An expired identification and employment 
     eligibility document, together with a copy of a petition for 
     extension of stay or change in the alien's authorized 
     employment that complies with the requirements of paragraph 
     (1), shall constitute a valid work authorization document for 
     a period of not more than 60 days beginning on the date on 
     which such petition is filed, after which time only a 
     currently valid identification and employment eligibility 
     document shall be acceptable.
       ``(5) Limitation on an individual's stay in status.--
       ``(A) Maximum period.--The maximum continuous period of 
     authorized status as an H-2A worker (including any 
     extensions) is 3 years.
       ``(B) Requirement to remain outside the united states.--
       ``(i) In general.--Subject to clause (ii), in the case of 
     an alien outside the United States whose period of authorized 
     status as an H-2A worker (including any extensions) has 
     expired, the alien may not again apply for admission to the 
     United States as an H-2A worker unless the alien has remained 
     outside the United States for a continuous period equal to at 
     least \1/5\ the duration of the alien's previous period of 
     authorized status as an H-2A worker (including any 
     extensions).
       ``(ii) Exception.--Clause (i) shall not apply in the case 
     of an alien if the alien's period of authorized status as an 
     H-2A worker (including any extensions) was for a period of 
     not more than 10 months and such alien has been outside the 
     United States for at least 2 months during the 12 months 
     preceding the date the alien again is applying for admission 
     to the United States as an H-2A worker.
       ``(i) Special Rules for Aliens Employed as Sheepherders, 
     Goat Herders, or Dairy Workers.--Notwithstanding any 
     provision of the Agricultural Job Opportunities, Benefits, 
     and Security Act of 2007, an alien admitted under section 
     101(a)(15)(H)(ii)(a) for employment as a sheepherder, goat 
     herder, or dairy worker--
       ``(1) may be admitted for an initial period of 12 months;
       ``(2) subject to subsection (j)(5), may have such initial 
     period of admission extended for a period of up to 3 years; 
     and
       ``(3) shall not be subject to the requirements of 
     subsection (h)(5) (relating to periods of absence from the 
     United States).
       ``(j) Adjustment to Lawful Permanent Resident Status for 
     Aliens Employed as Sheepherders, Goat Herders, or Dairy 
     Workers.--
       ``(1) Eligible alien.--For purposes of this subsection, the 
     term `eligible alien' means an alien--
       ``(A) having nonimmigrant status under section 
     101(a)(15)(H)(ii)(a) based on employment as a sheepherder, 
     goat herder, or dairy worker;
       ``(B) who has maintained such nonimmigrant status in the 
     United States for a cumulative total of 36 months (excluding 
     any period of absence from the United States); and
       ``(C) who is seeking to receive an immigrant visa under 
     section 203(b)(3)(A)(iii).
       ``(2) Classification petition.--In the case of an eligible 
     alien, the petition under section 204 for classification 
     under section 203(b)(3)(A)(iii) may be filed by--
       ``(A) the alien's employer on behalf of the eligible alien; 
     or
       ``(B) the eligible alien.
       ``(3) No labor certification required.--Notwithstanding 
     section 203(b)(3)(C), no determination under section 
     212(a)(5)(A) is required with respect to an immigrant visa 
     described in paragraph (1)(C) for an eligible alien.
       ``(4) Effect of petition.--The filing of a petition 
     described in paragraph (2) or an application for adjustment 
     of status based on the approval of such a petition shall not 
     constitute evidence of an alien's ineligibility for 
     nonimmigrant status under section 101(a)(15)(H)(ii)(a).
       ``(5) Extension of stay.--The Secretary shall extend the 
     stay of an eligible alien having a pending or approved 
     classification petition described in paragraph (2) in 1-year 
     increments until a final determination is made on the alien's 
     eligibility for adjustment of status to that of an alien 
     lawfully admitted for permanent residence.
       ``(6) Construction.--Nothing in this subsection shall be 
     construed to prevent an eligible alien from seeking 
     adjustment of status in accordance with any other provision 
     of law.

     ``SEC. 218C. WORKER PROTECTIONS AND LABOR STANDARDS 
                   ENFORCEMENT.

       ``(a) Enforcement Authority.--
       ``(1) Investigation of complaints.--
       ``(A) Aggrieved person or third-party complaints.--The 
     Secretary of Labor shall establish a process for the receipt, 
     investigation, and disposition of complaints respecting a 
     petitioner's failure to meet a condition specified in section 
     218(b), or an employer's misrepresentation of material facts 
     in an application under section 218(a). Complaints may be 
     filed by any aggrieved person or organization (including 
     bargaining representatives). No investigation or hearing 
     shall be conducted on a complaint concerning such a failure 
     or misrepresentation unless the complaint was filed not later 
     than 12 months after the date of the failure, or 
     misrepresentation, respectively. The Secretary of Labor shall 
     conduct an investigation under this subparagraph if there is 
     reasonable cause to believe that such a failure or 
     misrepresentation has occurred.
       ``(B) Determination on complaint.--Under such process, the 
     Secretary of Labor shall provide, within 30 days after the 
     date such a complaint is filed, for a determination as to 
     whether or not a reasonable basis exists to make a finding 
     described in subparagraph (C), (D), (E), or (G). If the 
     Secretary of Labor determines that such a reasonable basis 
     exists, the Secretary of Labor shall provide for notice of 
     such determination to the interested parties and an 
     opportunity for a hearing on the complaint, in accordance 
     with section 556 of title 5, United States Code, within 60 
     days after the date of the determination. If such a hearing 
     is requested, the Secretary of Labor shall make a finding 
     concerning the matter not later than 60 days after the date 
     of the hearing. In the case of similar complaints respecting 
     the same applicant, the Secretary of Labor may consolidate 
     the hearings under this subparagraph on such complaints.
       ``(C) Failures to meet conditions.--If the Secretary of 
     Labor finds, after notice and opportunity for a hearing, a 
     failure to meet a condition of paragraph (1)(A), (1)(B), 
     (1)(D), (1)(F), (2)(A), (2)(B), or (2)(G) of section 218(b), 
     a substantial failure to meet a condition of paragraph 
     (1)(C), (1)(E), (2)(C), (2)(D),

[[Page S974]]

     (2)(E), or (2)(H) of section 218(b), or a material 
     misrepresentation of fact in an application under section 
     218(a)--
       ``(i) the Secretary of Labor shall notify the Secretary of 
     such finding and may, in addition, impose such other 
     administrative remedies (including civil money penalties in 
     an amount not to exceed $1,000 per violation) as the 
     Secretary of Labor determines to be appropriate; and
       ``(ii) the Secretary may disqualify the employer from the 
     employment of aliens described in section 
     101(a)(15)(H)(ii)(a) for a period of 1 year.
       ``(D) Willful failures and willful misrepresentations.--If 
     the Secretary of Labor finds, after notice and opportunity 
     for hearing, a willful failure to meet a condition of section 
     218(b), a willful misrepresentation of a material fact in an 
     application under section 218(a), or a violation of 
     subsection (d)(1)--
       ``(i) the Secretary of Labor shall notify the Secretary of 
     such finding and may, in addition, impose such other 
     administrative remedies (including civil money penalties in 
     an amount not to exceed $5,000 per violation) as the 
     Secretary of Labor determines to be appropriate;
       ``(ii) the Secretary of Labor may seek appropriate legal or 
     equitable relief to effectuate the purposes of subsection 
     (d)(1); and
       ``(iii) the Secretary may disqualify the employer from the 
     employment of H-2A workers for a period of 2 years.
       ``(E) Displacement of united states workers.--If the 
     Secretary of Labor finds, after notice and opportunity for 
     hearing, a willful failure to meet a condition of section 
     218(b) or a willful misrepresentation of a material fact in 
     an application under section 218(a), in the course of which 
     failure or misrepresentation the employer displaced a United 
     States worker employed by the employer during the period of 
     employment on the employer's application under section 218(a) 
     or during the period of 30 days preceding such period of 
     employment--
       ``(i) the Secretary of Labor shall notify the Secretary of 
     such finding and may, in addition, impose such other 
     administrative remedies (including civil money penalties in 
     an amount not to exceed $15,000 per violation) as the 
     Secretary of Labor determines to be appropriate; and
       ``(ii) the Secretary may disqualify the employer from the 
     employment of H-2A workers for a period of 3 years.
       ``(F) Limitations on civil money penalties.--The Secretary 
     of Labor shall not impose total civil money penalties with 
     respect to an application under section 218(a) in excess of 
     $90,000.
       ``(G) Failures to pay wages or required benefits.--If the 
     Secretary of Labor finds, after notice and opportunity for a 
     hearing, that the employer has failed to pay the wages, or 
     provide the housing allowance, transportation, subsistence 
     reimbursement, or guarantee of employment, required under 
     section 218A(b), the Secretary of Labor shall assess payment 
     of back wages, or other required benefits, due any United 
     States worker or H-2A worker employed by the employer in the 
     specific employment in question. The back wages or other 
     required benefits under section 218A(b) shall be equal to the 
     difference between the amount that should have been paid and 
     the amount that actually was paid to such worker.
       ``(2) Statutory construction.--Nothing in this section 
     shall be construed as limiting the authority of the Secretary 
     of Labor to conduct any compliance investigation under any 
     other labor law, including any law affecting migrant and 
     seasonal agricultural workers, or, in the absence of a 
     complaint under this section, under section 218 or 218A.
       ``(b) Rights Enforceable by Private Right of Action.--H-2A 
     workers may enforce the following rights through the private 
     right of action provided in subsection (c), and no other 
     right of action shall exist under Federal or State law to 
     enforce such rights:
       ``(1) The providing of housing or a housing allowance as 
     required under section 218A(b)(1).
       ``(2) The reimbursement of transportation as required under 
     section 218A(b)(2).
       ``(3) The payment of wages required under section 
     218A(b)(3) when due.
       ``(4) The benefits and material terms and conditions of 
     employment expressly provided in the job offer described in 
     section 218(a)(2), not including the assurance to comply with 
     other Federal, State, and local labor laws described in 
     section 218A(c), compliance with which shall be governed by 
     the provisions of such laws.
       ``(5) The guarantee of employment required under section 
     218A(b)(4).
       ``(6) The motor vehicle safety requirements under section 
     218A(b)(5).
       ``(7) The prohibition of discrimination under subsection 
     (d)(2).
       ``(c) Private Right of Action.--
       ``(1) Mediation.--Upon the filing of a complaint by an H-2A 
     worker aggrieved by a violation of rights enforceable under 
     subsection (b), and within 60 days of the filing of proof of 
     service of the complaint, a party to the action may file a 
     request with the Federal Mediation and Conciliation Service 
     to assist the parties in reaching a satisfactory resolution 
     of all issues involving all parties to the dispute. Upon a 
     filing of such request and giving of notice to the parties, 
     the parties shall attempt mediation within the period 
     specified in subparagraph (B).
       ``(A) Mediation services.--The Federal Mediation and 
     Conciliation Service shall be available to assist in 
     resolving disputes arising under subsection (b) between H-2A 
     workers and agricultural employers without charge to the 
     parties.
       ``(B) 90-day limit.--The Federal Mediation and Conciliation 
     Service may conduct mediation or other nonbinding dispute 
     resolution activities for a period not to exceed 90 days 
     beginning on the date on which the Federal Mediation and 
     Conciliation Service receives the request for assistance 
     unless the parties agree to an extension of this period of 
     time.
       ``(C) Authorization.--
       ``(i) In general.--Subject to clause (ii), there are 
     authorized to be appropriated to the Federal Mediation and 
     Conciliation Service $500,000 for each fiscal year to carry 
     out this section.
       ``(ii) Mediation.--Notwithstanding any other provision of 
     law, the Director of the Federal Mediation and Conciliation 
     Service is authorized to conduct the mediation or other 
     dispute resolution activities from any other appropriated 
     funds available to the Director and to reimburse such 
     appropriated funds when the funds are appropriated pursuant 
     to this authorization, such reimbursement to be credited to 
     appropriations currently available at the time of receipt.
       ``(2) Maintenance of civil action in district court by 
     aggrieved person.--An H-2A worker aggrieved by a violation of 
     rights enforceable under subsection (b) by an agricultural 
     employer or other person may file suit in any district court 
     of the United States having jurisdiction over the parties, 
     without regard to the amount in controversy, without regard 
     to the citizenship of the parties, and without regard to the 
     exhaustion of any alternative administrative remedies under 
     this Act, not later than 3 years after the date the violation 
     occurs.
       ``(3) Election.--An H-2A worker who has filed an 
     administrative complaint with the Secretary of Labor may not 
     maintain a civil action under paragraph (2) unless a 
     complaint based on the same violation filed with the 
     Secretary of Labor under subsection (a)(1) is withdrawn 
     before the filing of such action, in which case the rights 
     and remedies available under this subsection shall be 
     exclusive.
       ``(4) Preemption of state contract rights.--Nothing in this 
     Act shall be construed to diminish the rights and remedies of 
     an H-2A worker under any other Federal or State law or 
     regulation or under any collective bargaining agreement, 
     except that no court or administrative action shall be 
     available under any State contract law to enforce the rights 
     created by this Act.
       ``(5) Waiver of rights prohibited.--Agreements by employees 
     purporting to waive or modify their rights under this Act 
     shall be void as contrary to public policy, except that a 
     waiver or modification of the rights or obligations in favor 
     of the Secretary of Labor shall be valid for purposes of the 
     enforcement of this Act. The preceding sentence may not be 
     construed to prohibit agreements to settle private disputes 
     or litigation.
       ``(6) Award of damages or other equitable relief.--
       ``(A) If the court finds that the respondent has 
     intentionally violated any of the rights enforceable under 
     subsection (b), it shall award actual damages, if any, or 
     equitable relief.
       ``(B) Any civil action brought under this section shall be 
     subject to appeal as provided in chapter 83 of title 28, 
     United States Code.
       ``(7) Workers' compensation benefits; exclusive remedy.--
       ``(A) Notwithstanding any other provision of this section, 
     where a State's workers' compensation law is applicable and 
     coverage is provided for an H-2A worker, the workers' 
     compensation benefits shall be the exclusive remedy for the 
     loss of such worker under this section in the case of bodily 
     injury or death in accordance with such State's workers' 
     compensation law.
       ``(B) The exclusive remedy prescribed in subparagraph (A) 
     precludes the recovery under paragraph (6) of actual damages 
     for loss from an injury or death but does not preclude other 
     equitable relief, except that such relief shall not include 
     back or front pay or in any manner, directly or indirectly, 
     expand or otherwise alter or affect--
       ``(i) a recovery under a State workers' compensation law; 
     or
       ``(ii) rights conferred under a State workers' compensation 
     law.
       ``(8) Tolling of statute of limitations.--If it is 
     determined under a State workers' compensation law that the 
     workers' compensation law is not applicable to a claim for 
     bodily injury or death of an H-2A worker, the statute of 
     limitations for bringing an action for actual damages for 
     such injury or death under subsection (c) shall be tolled for 
     the period during which the claim for such injury or death 
     under such State workers' compensation law was pending. The 
     statute of limitations for an action for actual damages or 
     other equitable relief arising out of the same transaction or 
     occurrence as the injury or death of the H-2A worker shall be 
     tolled for the period during which the claim for such injury 
     or death was pending under the State workers' compensation 
     law.
       ``(9) Preclusive effect.--Any settlement by an H-2A worker 
     and an H-2A employer or any person reached through the 
     mediation process required under subsection (c)(1) shall 
     preclude any right of action arising out of the same facts 
     between the parties in any Federal or State court or 
     administrative proceeding, unless specifically provided 
     otherwise in the settlement agreement.

[[Page S975]]

       ``(10) Settlements.--Any settlement by the Secretary of 
     Labor with an H-2A employer on behalf of an H-2A worker of a 
     complaint filed with the Secretary of Labor under this 
     section or any finding by the Secretary of Labor under 
     subsection (a)(1)(B) shall preclude any right of action 
     arising out of the same facts between the parties under any 
     Federal or State court or administrative proceeding, unless 
     specifically provided otherwise in the settlement agreement.
       ``(d) Discrimination Prohibited.--
       ``(1) In general.--It is a violation of this subsection for 
     any person who has filed an application under section 218(a), 
     to intimidate, threaten, restrain, coerce, blacklist, 
     discharge, or in any other manner discriminate against an 
     employee (which term, for purposes of this subsection, 
     includes a former employee and an applicant for employment) 
     because the employee has disclosed information to the 
     employer, or to any other person, that the employee 
     reasonably believes evidences a violation of section 218 or 
     218A or any rule or regulation pertaining to section 218 or 
     218A, or because the employee cooperates or seeks to 
     cooperate in an investigation or other proceeding concerning 
     the employer's compliance with the requirements of section 
     218 or 218A or any rule or regulation pertaining to either of 
     such sections.
       ``(2) Discrimination against h-2a workers.--It is a 
     violation of this subsection for any person who has filed an 
     application under section 218(a), to intimidate, threaten, 
     restrain, coerce, blacklist, discharge, or in any manner 
     discriminate against an H-2A employee because such worker 
     has, with just cause, filed a complaint with the Secretary of 
     Labor regarding a denial of the rights enumerated and 
     enforceable under subsection (b) or instituted, or caused to 
     be instituted, a private right of action under subsection (c) 
     regarding the denial of the rights enumerated under 
     subsection (b), or has testified or is about to testify in 
     any court proceeding brought under subsection (c).
       ``(e) Authorization To Seek Other Appropriate Employment.--
     The Secretary of Labor and the Secretary shall establish a 
     process under which an H-2A worker who files a complaint 
     regarding a violation of subsection (d) and is otherwise 
     eligible to remain and work in the United States may be 
     allowed to seek other appropriate employment in the United 
     States for a period not to exceed the maximum period of stay 
     authorized for such nonimmigrant classification.
       ``(f) Role of Associations.--
       ``(1) Violation by a member of an association.--An employer 
     on whose behalf an application is filed by an association 
     acting as its agent is fully responsible for such 
     application, and for complying with the terms and conditions 
     of sections 218 and 218A, as though the employer had filed 
     the application itself. If such an employer is determined, 
     under this section, to have committed a violation, the 
     penalty for such violation shall apply only to that member of 
     the association unless the Secretary of Labor determines that 
     the association or other member participated in, had 
     knowledge, or reason to know, of the violation, in which case 
     the penalty shall be invoked against the association or other 
     association member as well.
       ``(2) Violations by an association acting as an employer.--
     If an association filing an application as a sole or joint 
     employer is determined to have committed a violation under 
     this section, the penalty for such violation shall apply only 
     to the association unless the Secretary of Labor determines 
     that an association member or members participated in or had 
     knowledge, or reason to know of the violation, in which case 
     the penalty shall be invoked against the association member 
     or members as well.

     ``SEC. 218D. DEFINITIONS.

       ``For purposes of this section and section 218, 218A, 218B, 
     and 218C:
       ``(1) Agricultural employment.--The term `agricultural 
     employment' means any service or activity that is considered 
     to be agricultural under section 3(f) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural 
     labor under section 3121(g) of the Internal Revenue Code of 
     1986 or the performance of agricultural labor or services 
     described in section 101(a)(15)(H)(ii)(a).
       ``(2) Bona fide union.--The term `bona fide union' means 
     any organization in which employees participate and which 
     exists for the purpose of dealing with employers concerning 
     grievances, labor disputes, wages, rates of pay, hours of 
     employment, or other terms and conditions of work for 
     agricultural employees. Such term does not include an 
     organization formed, created, administered, supported, 
     dominated, financed, or controlled by an employer or employer 
     association or its agents or representatives.
       ``(3) Displace.--The term `displace', in the case of an 
     application with respect to 1 or more H-2A workers by an 
     employer, means laying off a United States worker from a job 
     for which the H-2A worker or workers is or are sought.
       ``(4) Eligible.--The term `eligible', when used with 
     respect to an individual, means an individual who is not an 
     unauthorized alien (as defined in section 274A).
       ``(5) Employer.--The term `employer' means any person or 
     entity, including any farm labor contractor and any 
     agricultural association, that employs workers in 
     agricultural employment.
       ``(6) H-2A employer.--The term `H-2A employer' means an 
     employer who seeks to hire 1 or more nonimmigrant aliens 
     described in section 101(a)(15)(H)(ii)(a).
       ``(7) H-2A worker.--The term `H-2A worker' means a 
     nonimmigrant described in section 101(a)(15)(H)(ii)(a).
       ``(8) Job opportunity.--The term `job opportunity' means a 
     job opening for temporary or seasonal full-time employment at 
     a place in the United States to which United States workers 
     can be referred.
       ``(9) Laying off.--
       ``(A) In general.--The term `laying off', with respect to a 
     worker--
       ``(i) means to cause the worker's loss of employment, other 
     than through a discharge for inadequate performance, 
     violation of workplace rules, cause, voluntary departure, 
     voluntary retirement, contract impossibility (as described in 
     section 218A(b)(4)(D)), or temporary suspension of employment 
     due to weather, markets, or other temporary conditions; but
       ``(ii) does not include any situation in which the worker 
     is offered, as an alternative to such loss of employment, a 
     similar employment opportunity with the same employer (or, in 
     the case of a placement of a worker with another employer 
     under section 218(b)(2)(E), with either employer described in 
     such section) at equivalent or higher compensation and 
     benefits than the position from which the employee was 
     discharged, regardless of whether or not the employee accepts 
     the offer.
       ``(B) Statutory construction.--Nothing in this paragraph is 
     intended to limit an employee's rights under a collective 
     bargaining agreement or other employment contract.
       ``(10) Regulatory drought.--The term `regulatory drought' 
     means a decision subsequent to the filing of the application 
     under section 218 by an entity not under the control of the 
     employer making such filing which restricts the employer's 
     access to water for irrigation purposes and reduces or limits 
     the employer's ability to produce an agricultural commodity, 
     thereby reducing the need for labor.
       ``(11) Seasonal.--Labor is performed on a `seasonal' basis 
     if--
       ``(A) ordinarily, it pertains to or is of the kind 
     exclusively performed at certain seasons or periods of the 
     year; and
       ``(B) from its nature, it may not be continuous or carried 
     on throughout the year.
       ``(12) Secretary.--Except as otherwise provided, the term 
     `Secretary' means the Secretary of Homeland Security.
       ``(13) Temporary.--A worker is employed on a `temporary' 
     basis where the employment is intended not to exceed 10 
     months.
       ``(14) United states worker.--The term `United States 
     worker' means any worker, whether a national of the United 
     States, an alien lawfully admitted for permanent residence, 
     or any other alien, who is authorized to work in the job 
     opportunity within the United States, except an alien 
     admitted or otherwise provided status under section 
     101(a)(15)(H)(ii)(a).''.
       (b) Table of Contents.--The table of contents of the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by striking the item relating to section 218 and 
     inserting the following:

``Sec. 218. H-2A employer applications.
``Sec. 218A. H-2A employment requirements.
``Sec. 218B. Procedure for admission and extension of stay of H-2A 
              workers.
``Sec. 218C. Worker protections and labor standards enforcement.
``Sec. 218D. Definitions.''.

                  Subtitle C--Miscellaneous Provisions

     SEC. 241. DETERMINATION AND USE OF USER FEES.

       (a) Schedule of Fees.--The Secretary shall establish and 
     periodically adjust a schedule of fees for the employment of 
     aliens pursuant to the amendment made by section 231(a) of 
     this Act and a collection process for such fees from 
     employers. Such fees shall be the only fees chargeable to 
     employers for services provided under such amendment.
       (b) Determination of Schedule.--
       (1) In general.--The schedule under subsection (a) shall 
     reflect a fee rate based on the number of job opportunities 
     indicated in the employer's application under section 218 of 
     the Immigration and Nationality Act, as amended by section 
     231 of this Act, and sufficient to provide for the direct 
     costs of providing services related to an employer's 
     authorization to employ aliens pursuant to the amendment made 
     by section 231(a) of this Act, to include the certification 
     of eligible employers, the issuance of documentation, and the 
     admission of eligible aliens.
       (2) Procedure.--
       (A) In general.--In establishing and adjusting such a 
     schedule, the Secretary shall comply with Federal cost 
     accounting and fee setting standards.
       (B) Publication and comment.--The Secretary shall publish 
     in the Federal Register an initial fee schedule and 
     associated collection process and the cost data or estimates 
     upon which such fee schedule is based, and any subsequent 
     amendments thereto, pursuant to which public comment shall be 
     sought and a final rule issued.
       (c) Use of Proceeds.--Notwithstanding any other provision 
     of law, all proceeds resulting from the payment of the fees 
     pursuant to the amendment made by section 231(a) of this Act 
     shall be available without further appropriation and shall 
     remain available without fiscal year limitation to reimburse 
     the Secretary, the Secretary of State, and the Secretary of 
     Labor for the costs of carrying out sections 218 and 218B of 
     the Immigration and Nationality Act, as amended and

[[Page S976]]

     added, respectively, by section 231 of this Act, and the 
     provisions of this title.

     SEC. 242. REGULATIONS.

       (a) Requirement for the Secretary to Consult.--The 
     Secretary shall consult with the Secretary of Labor and the 
     Secretary of Agriculture during the promulgation of all 
     regulations to implement the duties of the Secretary under 
     this title and the amendments made by this title.
       (b) Requirement for the Secretary of State to Consult.--The 
     Secretary of State shall consult with the Secretary, the 
     Secretary of Labor, and the Secretary of Agriculture on all 
     regulations to implement the duties of the Secretary of State 
     under this title and the amendments made by this title.
       (c) Requirement for the Secretary of Labor to Consult.--The 
     Secretary of Labor shall consult with the Secretary of 
     Agriculture and the Secretary on all regulations to implement 
     the duties of the Secretary of Labor under this title and the 
     amendments made by this title.
       (d) Deadline for Issuance of Regulations.--All regulations 
     to implement the duties of the Secretary, the Secretary of 
     State, and the Secretary of Labor created under sections 218, 
     218A, 218B, 218C, and 218D of the Immigration and Nationality 
     Act, as amended or added by section 231 of this Act, shall 
     take effect on the effective date of section 231 and shall be 
     issued not later than 1 year after the date of enactment of 
     this Act.

     SEC. 243. REPORTS TO CONGRESS.

       (a) Annual Report.--Not later than September 30 of each 
     year, the Secretary shall submit a report to Congress that 
     identifies, for the previous year--
       (1) the number of job opportunities approved for employment 
     of aliens admitted under section 101(a)(15)(H)(ii)(a) of the 
     Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(ii)(a)), and the number of workers actually 
     admitted, disaggregated by State and by occupation;
       (2) the number of such aliens reported to have abandoned 
     employment pursuant to subsection 218B(e)(2) of such Act;
       (3) the number of such aliens who departed the United 
     States within the period specified in subsection 218B(d) of 
     such Act;
       (4) the number of aliens who applied for adjustment of 
     status pursuant to section 211(a);
       (5) the number of such aliens whose status was adjusted 
     under section 211(a);
       (6) the number of aliens who applied for permanent 
     residence pursuant to section 213(c); and
       (7) the number of such aliens who were approved for 
     permanent residence pursuant section 213(c).
       (b) Implementation Report.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary shall 
     prepare and submit to Congress a report that describes the 
     measures being taken and the progress made in implementing 
     this Act.

     SEC. 244. EFFECTIVE DATE.

       Except as otherwise provided, sections 231 and 241 shall 
     take effect 1 year after the date of the enactment of this 
     Act.
                                 ______
                                 
  SA 168. Mrs. FEINSTEIN (for herself and Mr. Craig) submitted an 
amendment intended to be proposed to amendment SA 117 submitted by Mr. 
Chambliss (for himself, Mr. Burr, and Mr. Isakson) and intended to be 
proposed to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

                      TITLE II--AGJOBS ACT OF 2007

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Agricultural Job 
     Opportunities, Benefits, and Security Act of 2007'' or the 
     ``AgJOBS Act of 2007''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Agricultural employment.--The term ``agricultural 
     employment'' means any service or activity that is considered 
     to be agricultural under section 3(f) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural 
     labor under section 3121(g) of the Internal Revenue Code of 
     1986 or the performance of agricultural labor or services 
     described in section 101(a)(15)(H)(ii)(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(a)).
       (2) Blue card status.--The term ``blue card status'' means 
     the status of an alien who has been lawfully admitted into 
     the United States for temporary residence under section 
     211(a).
       (3) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (4) Employer.--The term ``employer'' means any person or 
     entity, including any farm labor contractor and any 
     agricultural association, that employs workers in 
     agricultural employment.
       (5) Secretary.--Except as otherwise provided, the term 
     ``Secretary'' means the Secretary of Homeland Security.
       (6) Temporary.--A worker is employed on a ``temporary'' 
     basis when the employment is intended not to exceed 10 
     months.
       (7) Work day.--The term ``work day'' means any day in which 
     the individual is employed 5.75 or more hours in agricultural 
     employment.

Subtitle A--Pilot Program for Earned Status Adjustment of Agricultural 
                                Workers

                        PART I--BLUE CARD STATUS

     SEC. 211. REQUIREMENTS FOR BLUE CARD STATUS.

       (a) Requirement to Grant Blue Card Status.--Notwithstanding 
     any other provision of law, the Secretary shall, pursuant to 
     the requirements of this section, grant blue card status to 
     an alien who qualifies under this section if the Secretary 
     determines that the alien--
       (1) has performed agricultural employment in the United 
     States for at least 863 hours or 150 work days during the 24-
     month period ending on December 31, 2006;
       (2) applied for such status during the 18-month application 
     period beginning on the first day of the seventh month that 
     begins after the date of enactment of this Act;
       (3) is otherwise admissible to the United States under 
     section 212 of the Immigration and Nationality Act (8 U.S.C. 
     1182), except as otherwise provided under section 215(b); and
       (4) has not been convicted of any felony or a misdemeanor, 
     an element of which involves bodily injury, threat of serious 
     bodily injury, or harm to property in excess of $500.
       (b) Authorized Travel.--An alien who is granted blue card 
     status is authorized to travel outside the United States 
     (including commuting to the United States from a residence in 
     a foreign country) in the same manner as an alien lawfully 
     admitted for permanent residence.
       (c) Authorized Employment.--The Secretary shall provide an 
     alien who is granted blue card status an employment 
     authorized endorsement or other appropriate work permit, in 
     the same manner as an alien lawfully admitted for permanent 
     residence.
       (d) Termination of Blue Card Status.--
       (1) In general.--The Secretary may terminate blue card 
     status granted to an alien under this section only if the 
     Secretary determines that the alien is deportable.
       (2) Grounds for termination of blue card status.--Before 
     any alien becomes eligible for adjustment of status under 
     section 213, the Secretary may deny adjustment to permanent 
     resident status and provide for termination of the blue card 
     status granted such alien under paragraph (1) if--
       (A) the Secretary finds, by a preponderance of the 
     evidence, that the adjustment to blue card status was the 
     result of fraud or willful misrepresentation (as described in 
     section 212(a)(6)(C)(i) of the Immigration and Nationality 
     Act (8 U.S.C. 1182(a)(6)(C)(i)); or
       (B) the alien--
       (i) commits an act that makes the alien inadmissible to the 
     United States as an immigrant, except as provided under 
     section 215(b);
       (ii) is convicted of a felony or 3 or more misdemeanors 
     committed in the United States;
       (iii) is convicted of an offense, an element of which 
     involves bodily injury, threat of serious bodily injury, or 
     harm to property in excess of $500; or
       (iv) fails to perform the agricultural employment required 
     under section 213(a)(1)(A) unless the alien was unable to 
     work in agricultural employment due to the extraordinary 
     circumstances described in section 213(a)(3).
       (e) Record of Employment.--
       (1) In general.--Each employer of an alien granted blue 
     card status under this section shall annually--
       (A) provide a written record of employment to the alien; 
     and
       (B) provide a copy of such record to the Secretary.
       (2) Sunset.--The obligation under paragraph (1) shall 
     terminate on the date that is 6 years after the date of the 
     enactment of this Act.
       (f) Required Features of Identity Card.--The Secretary 
     shall provide each alien granted blue card status, and the 
     spouse and any child of each such alien residing in the 
     United States, with a card that contains--
       (1) an encrypted, machine-readable, electronic 
     identification strip that is unique to the alien to whom the 
     card is issued;
       (2) biometric identifiers, including fingerprints and a 
     digital photograph; and
       (3) physical security features designed to prevent 
     tampering, counterfeiting, or duplication of the card for 
     fraudulent purposes.
       (g) Fine.--An alien granted blue card status shall pay a 
     fine of $100 to the Secretary.
       (h) Maximum Number.--The Secretary may not issue more than 
     1,500,000 blue cards during the 5-year period beginning on 
     the date of the enactment of this Act.

     SEC. 212. TREATMENT OF ALIENS GRANTED BLUE CARD STATUS.

       (a) In General.--Except as otherwise provided under this 
     section, an alien granted blue card status shall be 
     considered to be an alien lawfully admitted for permanent 
     residence for purposes of any law other than any provision of 
     the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
       (b) Delayed Eligibility for Certain Federal Public 
     Benefits.--An alien granted blue card status shall not be 
     eligible, by reason of such status, for any form of 
     assistance or benefit described in section 403(a) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (8 U.S.C. 1613(a)) until 5 years after the date 
     on which the alien is granted an adjustment of status under 
     section 213.
       (c) Terms of Employment.--
       (1) Prohibition.--No alien granted blue card status may be 
     terminated from employment by any employer during the period 
     of blue card status except for just cause.

[[Page S977]]

       (2) Treatment of complaints.--
       (A) Establishment of process.--The Secretary shall 
     establish a process for the receipt, initial review, and 
     disposition of complaints by aliens granted blue card status 
     who allege that they have been terminated without just cause. 
     No proceeding shall be conducted under this paragraph with 
     respect to a termination unless the Secretary determines that 
     the complaint was filed not later than 6 months after the 
     date of the termination.
       (B) Initiation of arbitration.--If the Secretary finds that 
     an alien has filed a complaint in accordance with 
     subparagraph (A) and there is reasonable cause to believe 
     that the alien was terminated from employment without just 
     cause, the Secretary shall initiate binding arbitration 
     proceedings by requesting the Federal Mediation and 
     Conciliation Service to appoint a mutually agreeable 
     arbitrator from the roster of arbitrators maintained by such 
     Service for the geographical area in which the employer is 
     located. The procedures and rules of such Service shall be 
     applicable to the selection of such arbitrator and to such 
     arbitration proceedings. The Secretary shall pay the fee and 
     expenses of the arbitrator, subject to the availability of 
     appropriations for such purpose.
       (C) Arbitration proceedings.--The arbitrator shall conduct 
     the proceeding under this paragraph in accordance with the 
     policies and procedures promulgated by the American 
     Arbitration Association applicable to private arbitration of 
     employment disputes. The arbitrator shall make findings 
     respecting whether the termination was for just cause. The 
     arbitrator may not find that the termination was for just 
     cause unless the employer so demonstrates by a preponderance 
     of the evidence. If the arbitrator finds that the termination 
     was not for just cause, the arbitrator shall make a specific 
     finding of the number of days or hours of work lost by the 
     employee as a result of the termination. The arbitrator shall 
     have no authority to order any other remedy, including 
     reinstatement, back pay, or front pay to the affected 
     employee. Not later than 30 days after the date of the 
     conclusion of the arbitration proceeding, the arbitrator 
     shall transmit the findings in the form of a written opinion 
     to the parties to the arbitration and the Secretary. Such 
     findings shall be final and conclusive, and no official or 
     court of the United States shall have the power or 
     jurisdiction to review any such findings.
       (D) Effect of arbitration findings.--If the Secretary 
     receives a finding of an arbitrator that an employer has 
     terminated the employment of an alien who is granted blue 
     card status without just cause, the Secretary shall credit 
     the alien for the number of days or hours of work not 
     performed during such period of termination for the purpose 
     of determining if the alien meets the qualifying employment 
     requirement of section 213(a).
       (E) Treatment of attorney's fees.--Each party to an 
     arbitration under this paragraph shall bear the cost of their 
     own attorney's fees for the arbitration.
       (F) Nonexclusive remedy.--The complaint process provided 
     for in this paragraph is in addition to any other rights an 
     employee may have in accordance with applicable law.
       (G) Effect on other actions or proceedings.--Any finding of 
     fact or law, judgment, conclusion, or final order made by an 
     arbitrator in the proceeding before the Secretary shall not 
     be conclusive or binding in any separate or subsequent action 
     or proceeding between the employee and the employee's current 
     or prior employer brought before an arbitrator, 
     administrative agency, court, or judge of any State or the 
     United States, regardless of whether the prior action was 
     between the same or related parties or involved the same 
     facts, except that the arbitrator's specific finding of the 
     number of days or hours of work lost by the employee as a 
     result of the employment termination may be referred to the 
     Secretary pursuant to subparagraph (D).
       (3) Civil penalties.--
       (A) In general.--If the Secretary finds, after notice and 
     opportunity for a hearing, that an employer of an alien 
     granted blue card status has failed to provide the record of 
     employment required under section 211(e) or has provided a 
     false statement of material fact in such a record, the 
     employer shall be subject to a civil money penalty in an 
     amount not to exceed $1,000 per violation.
       (B) Limitation.--The penalty applicable under subparagraph 
     (A) for failure to provide records shall not apply unless the 
     alien has provided the employer with evidence of employment 
     authorization granted under this section.

     SEC. 213. ADJUSTMENT TO PERMANENT RESIDENCE.

       (a) In General.--Except as provided in subsection (b), the 
     Secretary shall adjust the status of an alien granted blue 
     card status to that of an alien lawfully admitted for 
     permanent residence if the Secretary determines that the 
     following requirements are satisfied:
       (1) Qualifying employment.--
       (A) In general.--Subject to subparagraph (B), the alien has 
     performed at least--
       (i) 5 years of agricultural employment in the United States 
     for at least 100 work days per year, during the 5-year period 
     beginning on the date of the enactment of this Act; or
       (ii) 3 years of agricultural employment in the United 
     States for at least 150 work days per year, during the 3-year 
     period beginning on the date of the enactment of this Act.
       (B) 4-year period of employment.--An alien shall be 
     considered to meet the requirements of subparagraph (A) if 
     the alien has performed 4 years of agricultural employment in 
     the United States for at least 150 work days during 3 years 
     of those 4 years and at least 100 work days during the 
     remaining year, during the 4-year period beginning on the 
     date of the enactment of this Act.
       (2) Proof.--An alien may demonstrate compliance with the 
     requirement under paragraph (1) by submitting--
       (A) the record of employment described in section 211(e); 
     or
       (B) such documentation as may be submitted under section 
     214(c).
       (3) Extraordinary circumstances.--In determining whether an 
     alien has met the requirement of paragraph (1)(A), the 
     Secretary may credit the alien with not more than 12 
     additional months to meet the requirement of that 
     subparagraph if the alien was unable to work in agricultural 
     employment due to--
       (A) pregnancy, injury, or disease, if the alien can 
     establish such pregnancy, disabling injury, or disease 
     through medical records;
       (B) illness, disease, or other special needs of a minor 
     child, if the alien can establish such illness, disease, or 
     special needs through medical records; or
       (C) severe weather conditions that prevented the alien from 
     engaging in agricultural employment for a significant period 
     of time.
       (4) Application period.--The alien applies for adjustment 
     of status not later than 7 years after the date of the 
     enactment of this Act.
       (5) Fine.--The alien pays a fine of $400 to the Secretary.
       (b) Grounds for Denial of Adjustment of Status.--The 
     Secretary may deny an alien granted blue card status an 
     adjustment of status under this section and provide for 
     termination of such blue card status if--
       (1) the Secretary finds by a preponderance of the evidence 
     that the adjustment to blue card status was the result of 
     fraud or willful misrepresentation, as described in section 
     212(a)(6)(C)(i) of the Immigration and Nationality Act (8 
     U.S.C. 1182(a)(6)(C)(i)); or
       (2) the alien--
       (A) commits an act that makes the alien inadmissible to the 
     United States under section 212 of the Immigration and 
     Nationality Act (8 U.S.C. 1182), except as provided under 
     section 215(b);
       (B) is convicted of a felony or 3 or more misdemeanors 
     committed in the United States; or
       (C) is convicted of an offense, an element of which 
     involves bodily injury, threat of serious bodily injury, or 
     harm to property in excess of $500.
       (c) Grounds for Removal.--Any alien granted blue card 
     status who does not apply for adjustment of status under this 
     section before the expiration of the application period 
     described in subsection (a)(4) or who fails to meet the other 
     requirements of subsection (a) by the end of the application 
     period, is deportable and may be removed under section 240 of 
     the Immigration and Nationality Act (8 U.S.C. 1229a).
       (d) Payment of Taxes.--
       (1) In general.--Not later than the date on which an 
     alien's status is adjusted under this section, the alien 
     shall establish that the alien does not owe any applicable 
     Federal tax liability by establishing that--
       (A) no such tax liability exists;
       (B) all such outstanding tax liabilities have been paid; or
       (C) the alien has entered into an agreement for payment of 
     all outstanding liabilities with the Internal Revenue 
     Service.
       (2) Applicable federal tax liability.--In paragraph (1) the 
     term ``applicable Federal tax liability'' means liability for 
     Federal taxes, including penalties and interest, owed for any 
     year during the period of employment required under 
     subsection (a)(1) for which the statutory period for 
     assessment of any deficiency for such taxes has not expired.
       (3) IRS cooperation.--The Secretary of the Treasury shall 
     establish rules and procedures under which the Commissioner 
     of Internal Revenue shall provide documentation to an alien 
     upon request to establish the payment of all taxes required 
     by this subsection.
       (e) Spouses and Minor Children.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Secretary shall confer the status of lawful 
     permanent resident on the spouse and minor child of an alien 
     granted any adjustment of status under subsection (a), 
     including any individual who was a minor child on the date 
     such alien was granted blue card status, if the spouse or 
     minor child applies for such status, or if the principal 
     alien includes the spouse or minor child in an application 
     for adjustment of status to that of a lawful permanent 
     resident.
       (2) Treatment of spouses and minor children.--
       (A) Granting of status and removal.--The Secretary may 
     grant derivative status to the alien spouse and any minor 
     child residing in the United States of an alien granted blue 
     card status and shall not remove such derivative spouse or 
     child during the period that the alien granted blue card 
     status maintains such status, except as provided in paragraph 
     (3). A grant of derivative status to such a spouse or child 
     under this subparagraph shall not decrease the number of 
     aliens who may receive blue card status under subsection (h) 
     of section 211.
       (B) Travel.--The derivative spouse and any minor child of 
     an alien granted blue card status may travel outside the 
     United States

[[Page S978]]

     in the same manner as an alien lawfully admitted for 
     permanent residence.
       (C) Employment.--The derivative spouse of an alien granted 
     blue card status may apply to the Secretary for a work permit 
     to authorize such spouse to engage in any lawful employment 
     in the United States while such alien maintains blue card 
     status.
       (3) Grounds for denial of adjustment of status and 
     removal.--The Secretary may deny an alien spouse or child 
     adjustment of status under paragraph (1) and may remove such 
     spouse or child under section 240 of the Immigration and 
     Nationality Act (8 U.S.C. 1229a) if the spouse or child--
       (A) commits an act that makes the alien spouse or child 
     inadmissible to the United States under section 212 of such 
     Act (8 U.S.C. 1182), except as provided under section 215(b);
       (B) is convicted of a felony or 3 or more misdemeanors 
     committed in the United States; or
       (C) is convicted of an offense, an element of which 
     involves bodily injury, threat of serious bodily injury, or 
     harm to property in excess of $500.

     SEC. 214. APPLICATIONS.

       (a) Submission.--The Secretary shall provide that--
       (1) applications for blue card status under section 211 may 
     be submitted--
       (A) to the Secretary if the applicant is represented by an 
     attorney or a nonprofit religious, charitable, social 
     service, or similar organization recognized by the Board of 
     Immigration Appeals under section 292.2 of title 8, Code of 
     Federal Regulations; or
       (B) to a qualified designated entity if the applicant 
     consents to the forwarding of the application to the 
     Secretary; and
       (2) applications for adjustment of status under section 213 
     shall be filed directly with the Secretary.
       (b) Qualified Designated Entity Defined.--In this section, 
     the term ``qualified designated entity'' means--
       (1) a qualified farm labor organization or an association 
     of employers designated by the Secretary; or
       (2) any such other person designated by the Secretary if 
     that Secretary determines such person is qualified and has 
     substantial experience, demonstrated competence, and has a 
     history of long-term involvement in the preparation and 
     submission of applications for adjustment of status under 
     section 209, 210, or 245 of the Immigration and Nationality 
     Act (8 U.S.C. 1159, 1160, and 1255), the Act entitled ``An 
     Act to adjust the status of Cuban refugees to that of lawful 
     permanent residents of the United States, and for other 
     purposes'', approved November 2, 1966 (Public Law 89-732; 8 
     U.S.C. 1255 note), Public Law 95-145 (8 U.S.C. 1255 note), or 
     the Immigration Reform and Control Act of 1986 (Public Law 
     99-603; 100 Stat. 3359) or any amendment made by that Act.
       (c) Proof of Eligibility.--
       (1) In general.--An alien may establish that the alien 
     meets the requirement of section 211(a)(1) or 213(a)(1) 
     through government employment records or records supplied by 
     employers or collective bargaining organizations, and other 
     reliable documentation as the alien may provide. The 
     Secretary shall establish special procedures to properly 
     credit work in cases in which an alien was employed under an 
     assumed name.
       (2) Documentation of work history.--
       (A) Burden of proof.--An alien applying for status under 
     section 211(a) or 213(a) has the burden of proving by a 
     preponderance of the evidence that the alien has worked the 
     requisite number of hours or days required under section 
     211(a)(1) or 213(a)(1), as applicable.
       (B) Timely production of records.--If an employer or farm 
     labor contractor employing such an alien has kept proper and 
     adequate records respecting such employment, the alien's 
     burden of proof under subparagraph (A) may be met by securing 
     timely production of those records under regulations to be 
     promulgated by the Secretary.
       (C) Sufficient evidence.--An alien may meet the burden of 
     proof under subparagraph (A) to establish that the alien has 
     performed the days or hours of work required by section 
     211(a)(1) or 213(a)(1) by producing sufficient evidence to 
     show the extent of that employment as a matter of just and 
     reasonable inference.
       (d) Applications Submitted to Qualified Designated 
     Entities.--
       (1) Requirements.--Each qualified designated entity shall 
     agree--
       (A) to forward to the Secretary an application submitted to 
     that entity pursuant to subsection (a)(1)(B) if the applicant 
     has consented to such forwarding;
       (B) not to forward to the Secretary any such application if 
     the applicant has not consented to such forwarding; and
       (C) to assist an alien in obtaining documentation of the 
     alien's work history, if the alien requests such assistance.
       (2) No authority to make determinations.--No qualified 
     designated entity may make a determination required by this 
     subtitle to be made by the Secretary.
       (e) Limitation on Access to Information.--Files and records 
     collected or compiled by a qualified designated entity for 
     the purposes of this section are confidential and the 
     Secretary shall not have access to such a file or record 
     relating to an alien without the consent of the alien, except 
     as allowed by a court order issued pursuant to subsection 
     (f).
       (f) Confidentiality of Information.--
       (1) In general.--Except as otherwise provided in this 
     section, the Secretary or any other official or employee of 
     the Department or a bureau or agency of the Department is 
     prohibited from--
       (A) using information furnished by the applicant pursuant 
     to an application filed under this title, the information 
     provided by an applicant to a qualified designated entity, or 
     any information provided by an employer or former employer 
     for any purpose other than to make a determination on the 
     application or for imposing the penalties described in 
     subsection (g);
       (B) making any publication in which the information 
     furnished by any particular individual can be identified; or
       (C) permitting a person other than a sworn officer or 
     employee of the Department or a bureau or agency of the 
     Department or, with respect to applications filed with a 
     qualified designated entity, that qualified designated 
     entity, to examine individual applications.
       (2) Required disclosures.--The Secretary shall provide the 
     information furnished under this title or any other 
     information derived from such furnished information to--
       (A) a duly recognized law enforcement entity in connection 
     with a criminal investigation or prosecution, if such 
     information is requested in writing by such entity; or
       (B) an official coroner, for purposes of affirmatively 
     identifying a deceased individual, whether or not the death 
     of such individual resulted from a crime.
       (3) Construction.--
       (A) In general.--Nothing in this subsection shall be 
     construed to limit the use, or release, for immigration 
     enforcement purposes or law enforcement purposes, of 
     information contained in files or records of the Department 
     pertaining to an application filed under this section, other 
     than information furnished by an applicant pursuant to the 
     application, or any other information derived from the 
     application, that is not available from any other source.
       (B) Criminal convictions.--Notwithstanding any other 
     provision of this subsection, information concerning whether 
     the alien applying for blue card status under section 211 or 
     an adjustment of status under section 213 has been convicted 
     of a crime at any time may be used or released for 
     immigration enforcement or law enforcement purposes.
       (4) Crime.--Any person who knowingly uses, publishes, or 
     permits information to be examined in violation of this 
     subsection shall be subject to a fine in an amount not to 
     exceed $10,000.
       (g) Penalties for False Statements in Applications.--
       (1) Criminal penalty.--Any person who--
       (A) files an application for blue card status under section 
     211 or an adjustment of status under section 213 and 
     knowingly and willfully falsifies, conceals, or covers up a 
     material fact or makes any false, fictitious, or fraudulent 
     statements or representations, or makes or uses any false 
     writing or document knowing the same to contain any false, 
     fictitious, or fraudulent statement or entry; or
       (B) creates or supplies a false writing or document for use 
     in making such an application,

     shall be fined in accordance with title 18, United States 
     Code, imprisoned not more than 5 years, or both.
       (2) Inadmissibility.--An alien who is convicted of a crime 
     under paragraph (1) shall be considered to be inadmissible to 
     the United States on the ground described in section 
     212(a)(6)(C)(i) of the Immigration and Nationality Act (8 
     U.S.C. 1182(a)(6)(C)(i)).
       (h) Eligibility for Legal Services.--Section 504(a)(11) of 
     Public Law 104-134 (110 Stat. 1321-53 et seq.) shall not be 
     construed to prevent a recipient of funds under the Legal 
     Services Corporation Act (42 U.S.C. 2996 et seq.) from 
     providing legal assistance directly related to an application 
     for blue card status under section 211 or an adjustment of 
     status under section 213.
       (i) Application Fees.--
       (1) Fee schedule.--The Secretary shall provide for a 
     schedule of fees that--
       (A) shall be charged for the filing of an application for 
     blue card status under section 211 or for an adjustment of 
     status under section 213; and
       (B) may be charged by qualified designated entities to help 
     defray the costs of services provided to such applicants.
       (2) Prohibition on excess fees by qualified designated 
     entities.--A qualified designated entity may not charge any 
     fee in excess of, or in addition to, the fees authorized 
     under paragraph (1)(B) for services provided to applicants.
       (3) Disposition of fees.--
       (A) In general.--There is established in the general fund 
     of the Treasury a separate account, which shall be known as 
     the ``Agricultural Worker Immigration Status Adjustment 
     Account''. Notwithstanding any other provision of law, there 
     shall be deposited as offsetting receipts into the account 
     all fees collected under paragraph (1)(A).
       (B) Use of fees for application processing.--Amounts 
     deposited in the ``Agricultural Worker Immigration Status 
     Adjustment Account'' shall remain available to the Secretary 
     until expended for processing applications for blue card 
     status under section 211 or an adjustment of status under 
     section 213.

[[Page S979]]

     SEC. 215. WAIVER OF NUMERICAL LIMITATIONS AND CERTAIN GROUNDS 
                   FOR INADMISSIBILITY.

       (a) Numerical Limitations Do Not Apply.--The numerical 
     limitations of sections 201 and 202 of the Immigration and 
     Nationality Act (8 U.S.C. 1151 and 1152) shall not apply to 
     the adjustment of aliens to lawful permanent resident status 
     under section 213.
       (b) Waiver of Certain Grounds of Inadmissibility.--In the 
     determination of an alien's eligibility for status under 
     section 211(a) or an alien's eligibility for adjustment of 
     status under section 213(b)(2)(A) the following rules shall 
     apply:
       (1) Grounds of exclusion not applicable.--The provisions of 
     paragraphs (5), (6)(A), (7), and (9) of section 212(a) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)) shall not 
     apply.
       (2) Waiver of other grounds.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary may waive any other provision of such section 
     212(a) in the case of individual aliens for humanitarian 
     purposes, to ensure family unity, or if otherwise in the 
     public interest.
       (B) Grounds that may not be waived.--Paragraphs (2)(A), 
     (2)(B), (2)(C), (3), and (4) of such section 212(a) may not 
     be waived by the Secretary under subparagraph (A).
       (C) Construction.--Nothing in this paragraph shall be 
     construed as affecting the authority of the Secretary other 
     than under this subparagraph to waive provisions of such 
     section 212(a).
       (3) Special rule for determination of public charge.--An 
     alien is not ineligible for blue card status under section 
     211 or an adjustment of status under section 213 by reason of 
     a ground of inadmissibility under section 212(a)(4) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)(4)) if the 
     alien demonstrates a history of employment in the United 
     States evidencing self-support without reliance on public 
     cash assistance.
       (c) Temporary Stay of Removal and Work Authorization for 
     Certain Applicants.--
       (1) Before application period.--Effective on the date of 
     enactment of this Act, the Secretary shall provide that, in 
     the case of an alien who is apprehended before the beginning 
     of the application period described in section 211(a)(2) and 
     who can establish a nonfrivolous case of eligibility for blue 
     card status (but for the fact that the alien may not apply 
     for such status until the beginning of such period), until 
     the alien has had the opportunity during the first 30 days of 
     the application period to complete the filing of an 
     application for blue card status, the alien--
       (A) may not be removed; and
       (B) shall be granted authorization to engage in employment 
     in the United States and be provided an employment authorized 
     endorsement or other appropriate work permit for such 
     purpose.
       (2) During application period.--The Secretary shall provide 
     that, in the case of an alien who presents a nonfrivolous 
     application for blue card status during the application 
     period described in section 211(a)(2), including an alien who 
     files such an application within 30 days of the alien's 
     apprehension, and until a final determination on the 
     application has been made in accordance with this section, 
     the alien--
       (A) may not be removed; and
       (B) shall be granted authorization to engage in employment 
     in the United States and be provided an employment authorized 
     endorsement or other appropriate work permit for such 
     purpose.

     SEC. 216. ADMINISTRATIVE AND JUDICIAL REVIEW.

       (a) In General.--There shall be no administrative or 
     judicial review of a determination respecting an application 
     for blue card status under section 211 or adjustment of 
     status under section 213 except in accordance with this 
     section.
       (b) Administrative Review.--
       (1) Single level of administrative appellate review.--The 
     Secretary shall establish an appellate authority to provide 
     for a single level of administrative appellate review of such 
     a determination.
       (2) Standard for review.--Such administrative appellate 
     review shall be based solely upon the administrative record 
     established at the time of the determination on the 
     application and upon such additional or newly discovered 
     evidence as may not have been available at the time of the 
     determination.
       (c) Judicial Review.--
       (1) Limitation to review of removal.--There shall be 
     judicial review of such a determination only in the judicial 
     review of an order of removal under section 242 of the 
     Immigration and Nationality Act (8 U.S.C. 1252).
       (2) Standard for judicial review.--Such judicial review 
     shall be based solely upon the administrative record 
     established at the time of the review by the appellate 
     authority and the findings of fact and determinations 
     contained in such record shall be conclusive unless the 
     applicant can establish abuse of discretion or that the 
     findings are directly contrary to clear and convincing facts 
     contained in the record considered as a whole.

     SEC. 217. USE OF INFORMATION.

       Beginning not later than the first day of the application 
     period described in section 211(a)(2), the Secretary, in 
     cooperation with qualified designated entities (as that term 
     is defined in section 214(b)), shall broadly disseminate 
     information respecting the benefits that aliens may receive 
     under this subtitle and the requirements that an alien is 
     required to meet to receive such benefits.

     SEC. 218. REGULATIONS, EFFECTIVE DATE, AUTHORIZATION OF 
                   APPROPRIATIONS.

       (a) Regulations.--The Secretary shall issue regulations to 
     implement this subtitle not later than the first day of the 
     seventh month that begins after the date of enactment of this 
     Act.
       (b) Effective Date.--This subtitle shall take effect on the 
     date that regulations required by subsection (a) are issued, 
     regardless of whether such regulations are issued on an 
     interim basis or on any other basis.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to implement this subtitle, including any sums 
     needed for costs associated with the initiation of such 
     implementation, for fiscal years 2007 and 2008.

             PART II--CORRECTION OF SOCIAL SECURITY RECORDS

     SEC. 221. CORRECTION OF SOCIAL SECURITY RECORDS.

       (a) In General.--Section 208(e)(1) of the Social Security 
     Act (42 U.S.C. 408(e)(1)) is amended--
       (1) in subparagraph (B)(ii), by striking ``or'' at the end;
       (2) in subparagraph (C), by inserting ``or'' at the end;
       (3) by inserting after subparagraph (C) the following:
       ``(D) who is granted blue card status under the 
     Agricultural Job Opportunity, Benefits, and Security Act of 
     2007,''; and
       (4) by striking ``1990.'' and inserting ``1990, or in the 
     case of an alien described in subparagraph (D), if such 
     conduct is alleged to have occurred before the date on which 
     the alien was granted blue card status.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the first day of the seventh month that 
     begins after the date of the enactment of this Act.

               Subtitle B--Reform of H-2A Worker Program

     SEC. 231. AMENDMENT TO THE IMMIGRATION AND NATIONALITY ACT.

       (a) In General.--Title II of the Immigration and 
     Nationality Act (8 U.S.C. 1151 et seq.) is amended by 
     striking section 218 and inserting the following:

     ``SEC. 218. H-2A EMPLOYER APPLICATIONS.

       ``(a) Applications to the Secretary of Labor.--
       ``(1) In general.--No alien may be admitted to the United 
     States as an H-2A worker, or otherwise provided status as an 
     H-2A worker, unless the employer has filed with the Secretary 
     of Labor an application containing--
       ``(A) the assurances described in subsection (b);
       ``(B) a description of the nature and location of the work 
     to be performed;
       ``(C) the anticipated period (expected beginning and ending 
     dates) for which the workers will be needed; and
       ``(D) the number of job opportunities in which the employer 
     seeks to employ the workers.
       ``(2) Accompanied by job offer.--Each application filed 
     under paragraph (1) shall be accompanied by a copy of the job 
     offer describing the wages and other terms and conditions of 
     employment and the bona fide occupational qualifications that 
     shall be possessed by a worker to be employed in the job 
     opportunity in question.
       ``(b) Assurances for Inclusion in Applications.--The 
     assurances referred to in subsection (a)(1) are the 
     following:
       ``(1) Job opportunities covered by collective bargaining 
     agreements.--With respect to a job opportunity that is 
     covered under a collective bargaining agreement:
       ``(A) Union contract described.--The job opportunity is 
     covered by a union contract which was negotiated at arm's 
     length between a bona fide union and the employer.
       ``(B) Strike or lockout.--The specific job opportunity for 
     which the employer is requesting an H-2A worker is not vacant 
     because the former occupant is on strike or being locked out 
     in the course of a labor dispute.
       ``(C) Notification of bargaining representatives.--The 
     employer, at the time of filing the application, has provided 
     notice of the filing under this paragraph to the bargaining 
     representative of the employer's employees in the 
     occupational classification at the place or places of 
     employment for which aliens are sought.
       ``(D) Temporary or seasonal job opportunities.--The job 
     opportunity is temporary or seasonal.
       ``(E) Offers to united states workers.--The employer has 
     offered or will offer the job to any eligible United States 
     worker who applies and is equally or better qualified for the 
     job for which the nonimmigrant is, or the nonimmigrants are, 
     sought and who will be available at the time and place of 
     need.
       ``(F) Provision of insurance.--If the job opportunity is 
     not covered by the State workers' compensation law, the 
     employer will provide, at no cost to the worker, insurance 
     covering injury and disease arising out of, and in the course 
     of, the worker's employment which will provide benefits at 
     least equal to those provided under the State's workers' 
     compensation law for comparable employment.
       ``(2) Job opportunities not covered by collective 
     bargaining agreements.--With

[[Page S980]]

     respect to a job opportunity that is not covered under a 
     collective bargaining agreement:
       ``(A) Strike or lockout.--The specific job opportunity for 
     which the employer has applied for an H-2A worker is not 
     vacant because the former occupant is on strike or being 
     locked out in the course of a labor dispute.
       ``(B) Temporary or seasonal job opportunities.--The job 
     opportunity is temporary or seasonal.
       ``(C) Benefit, wage, and working conditions.--The employer 
     will provide, at a minimum, the benefits, wages, and working 
     conditions required by section 218A to all workers employed 
     in the job opportunities for which the employer has applied 
     for an H-2A worker under subsection (a) and to all other 
     workers in the same occupation at the place of employment.
       ``(D) Nondisplacement of united states workers.--The 
     employer did not displace and will not displace a United 
     States worker employed by the employer during the period of 
     employment and for a period of 30 days preceding the period 
     of employment in the occupation at the place of employment 
     for which the employer has applied for an H-2A worker.
       ``(E) Requirements for placement of the nonimmigrant with 
     other employers.--The employer will not place the 
     nonimmigrant with another employer unless--
       ``(i) the nonimmigrant performs duties in whole or in part 
     at 1 or more worksites owned, operated, or controlled by such 
     other employer;
       ``(ii) there are indicia of an employment relationship 
     between the nonimmigrant and such other employer; and
       ``(iii) the employer has inquired of the other employer as 
     to whether, and has no actual knowledge or notice that, 
     during the period of employment and for a period of 30 days 
     preceding the period of employment, the other employer has 
     displaced or intends to displace a United States worker 
     employed by the other employer in the occupation at the place 
     of employment for which the employer seeks approval to employ 
     H-2A workers.
       ``(F) Statement of liability.--The application form shall 
     include a clear statement explaining the liability under 
     subparagraph (E) of an employer if the other employer 
     described in such subparagraph displaces a United States 
     worker as described in such subparagraph.
       ``(G) Provision of insurance.--If the job opportunity is 
     not covered by the State workers' compensation law, the 
     employer will provide, at no cost to the worker, insurance 
     covering injury and disease arising out of and in the course 
     of the worker's employment which will provide benefits at 
     least equal to those provided under the State's workers' 
     compensation law for comparable employment.
       ``(H) Employment of united states workers.--
       ``(i) Recruitment.--The employer has taken or will take the 
     following steps to recruit United States workers for the job 
     opportunities for which the H-2A nonimmigrant is, or H-2A 
     nonimmigrants are, sought:

       ``(I) Contacting former workers.--The employer shall make 
     reasonable efforts through the sending of a letter by United 
     States Postal Service mail, or otherwise, to contact any 
     United States worker the employer employed during the 
     previous season in the occupation at the place of intended 
     employment for which the employer is applying for workers and 
     has made the availability of the employer's job opportunities 
     in the occupation at the place of intended employment known 
     to such previous workers, unless the worker was terminated 
     from employment by the employer for a lawful job-related 
     reason or abandoned the job before the worker completed the 
     period of employment of the job opportunity for which the 
     worker was hired.
       ``(II) Filing a job offer with the local office of the 
     state employment security agency.--Not later than 28 days 
     before the date on which the employer desires to employ an H-
     2A worker in a temporary or seasonal agricultural job 
     opportunity, the employer shall submit a copy of the job 
     offer described in subsection (a)(2) to the local office of 
     the State employment security agency which serves the area of 
     intended employment and authorize the posting of the job 
     opportunity on `America's Job Bank' or other electronic job 
     registry, except that nothing in this subclause shall require 
     the employer to file an interstate job order under section 
     653 of title 20, Code of Federal Regulations.
       ``(III) Advertising of job opportunities.--Not later than 
     14 days before the date on which the employer desires to 
     employ an H-2A worker in a temporary or seasonal agricultural 
     job opportunity, the employer shall advertise the 
     availability of the job opportunities for which the employer 
     is seeking workers in a publication in the local labor market 
     that is likely to be patronized by potential farm workers.
       ``(IV) Emergency procedures.--The Secretary of Labor shall, 
     by regulation, provide a procedure for acceptance and 
     approval of applications in which the employer has not 
     complied with the provisions of this subparagraph because the 
     employer's need for H-2A workers could not reasonably have 
     been foreseen.

       ``(ii) Job offers.--The employer has offered or will offer 
     the job to any eligible United States worker who applies and 
     is equally or better qualified for the job for which the 
     nonimmigrant is, or nonimmigrants are, sought and who will be 
     available at the time and place of need.
       ``(iii) Period of employment.--The employer will provide 
     employment to any qualified United States worker who applies 
     to the employer during the period beginning on the date on 
     which the H-2A worker departs for the employer's place of 
     employment and ending on the date on which 50 percent of the 
     period of employment for which the H-2A worker who is in the 
     job was hired has elapsed, subject to the following 
     requirements:

       ``(I) Prohibition.--No person or entity shall willfully and 
     knowingly withhold United States workers before the arrival 
     of H-2A workers in order to force the hiring of United States 
     workers under this clause.
       ``(II) Complaints.--Upon receipt of a complaint by an 
     employer that a violation of subclause (I) has occurred, the 
     Secretary of Labor shall immediately investigate. The 
     Secretary of Labor shall, within 36 hours of the receipt of 
     the complaint, issue findings concerning the alleged 
     violation. If the Secretary of Labor finds that a violation 
     has occurred, the Secretary of Labor shall immediately 
     suspend the application of this clause with respect to that 
     certification for that date of need.
       ``(III) Placement of united states workers.--Before 
     referring a United States worker to an employer during the 
     period described in the matter preceding subclause (I), the 
     Secretary of Labor shall make all reasonable efforts to place 
     the United States worker in an open job acceptable to the 
     worker, if there are other job offers pending with the job 
     service that offer similar job opportunities in the area of 
     intended employment.

       ``(iv) Statutory construction.--Nothing in this 
     subparagraph shall be construed to prohibit an employer from 
     using such legitimate selection criteria relevant to the type 
     of job that are normal or customary to the type of job 
     involved so long as such criteria are not applied in a 
     discriminatory manner.
       ``(c) Applications by Associations on Behalf of Employer 
     Members.--
       ``(1) In general.--An agricultural association may file an 
     application under subsection (a) on behalf of 1 or more of 
     its employer members that the association certifies in its 
     application has or have agreed in writing to comply with the 
     requirements of this section and sections 218A, 218B, and 
     218C.
       ``(2) Treatment of associations acting as employers.--If an 
     association filing an application under paragraph (1) is a 
     joint or sole employer of the temporary or seasonal 
     agricultural workers requested on the application, the 
     certifications granted under subsection (e)(2)(B) to the 
     association may be used for the certified job opportunities 
     of any of its producer members named on the application, and 
     such workers may be transferred among such producer members 
     to perform the agricultural services of a temporary or 
     seasonal nature for which the certifications were granted.
       ``(d) Withdrawal of Applications.--
       ``(1) In general.--An employer may withdraw an application 
     filed pursuant to subsection (a), except that if the employer 
     is an agricultural association, the association may withdraw 
     an application filed pursuant to subsection (a) with respect 
     to 1 or more of its members. To withdraw an application, the 
     employer or association shall notify the Secretary of Labor 
     in writing, and the Secretary of Labor shall acknowledge in 
     writing the receipt of such withdrawal notice. An employer 
     who withdraws an application under subsection (a), or on 
     whose behalf an application is withdrawn, is relieved of the 
     obligations undertaken in the application.
       ``(2) Limitation.--An application may not be withdrawn 
     while any alien provided status under section 
     101(a)(15)(H)(ii)(a) pursuant to such application is employed 
     by the employer.
       ``(3) Obligations under other statutes.--Any obligation 
     incurred by an employer under any other law or regulation as 
     a result of the recruitment of United States workers or H-2A 
     workers under an offer of terms and conditions of employment 
     required as a result of making an application under 
     subsection (a) is unaffected by withdrawal of such 
     application.
       ``(e) Review and Approval of Applications.--
       ``(1) Responsibility of employers.--The employer shall make 
     available for public examination, within 1 working day after 
     the date on which an application under subsection (a) is 
     filed, at the employer's principal place of business or 
     worksite, a copy of each such application (and such 
     accompanying documents as are necessary).
       ``(2) Responsibility of the secretary of labor.--
       ``(A) Compilation of list.--The Secretary of Labor shall 
     compile, on a current basis, a list (by employer and by 
     occupational classification) of the applications filed under 
     subsection (a). Such list shall include the wage rate, number 
     of workers sought, period of intended employment, and date of 
     need. The Secretary of Labor shall make such list available 
     for examination in the District of Columbia.
       ``(B) Review of applications.--The Secretary of Labor shall 
     review such an application only for completeness and obvious 
     inaccuracies. Unless the Secretary of Labor finds

[[Page S981]]

     that the application is incomplete or obviously inaccurate, 
     the Secretary of Labor shall certify that the intending 
     employer has filed with the Secretary of Labor an application 
     as described in subsection (a). Such certification shall be 
     provided within 7 days of the filing of the application.''

     ``SEC. 218A. H-2A EMPLOYMENT REQUIREMENTS.

       ``(a) Preferential Treatment of Aliens Prohibited.--
     Employers seeking to hire United States workers shall offer 
     the United States workers no less than the same benefits, 
     wages, and working conditions that the employer is offering, 
     intends to offer, or will provide to H-2A workers. 
     Conversely, no job offer may impose on United States workers 
     any restrictions or obligations which will not be imposed on 
     the employer's H-2A workers.
       ``(b) Minimum Benefits, Wages, and Working Conditions.--
     Except in cases where higher benefits, wages, or working 
     conditions are required by the provisions of subsection (a), 
     in order to protect similarly employed United States workers 
     from adverse effects with respect to benefits, wages, and 
     working conditions, every job offer which shall accompany an 
     application under section 218(b)(2) shall include each of the 
     following benefit, wage, and working condition provisions:
       ``(1) Requirement to provide housing or a housing 
     allowance.--
       ``(A) In general.--An employer applying under section 
     218(a) for H-2A workers shall offer to provide housing at no 
     cost to all workers in job opportunities for which the 
     employer has applied under that section and to all other 
     workers in the same occupation at the place of employment, 
     whose place of residence is beyond normal commuting distance.
       ``(B) Type of housing.--In complying with subparagraph (A), 
     an employer may, at the employer's election, provide housing 
     that meets applicable Federal standards for temporary labor 
     camps or secure housing that meets applicable local standards 
     for rental or public accommodation housing or other 
     substantially similar class of habitation, or in the absence 
     of applicable local standards, State standards for rental or 
     public accommodation housing or other substantially similar 
     class of habitation. In the absence of applicable local or 
     State standards, Federal temporary labor camp standards shall 
     apply.
       ``(C) Family housing.--If it is the prevailing practice in 
     the occupation and area of intended employment to provide 
     family housing, family housing shall be provided to workers 
     with families who request it.
       ``(D) Workers engaged in the range production of 
     livestock.--The Secretary of Labor shall issue regulations 
     that address the specific requirements for the provision of 
     housing to workers engaged in the range production of 
     livestock.
       ``(E) Limitation.--Nothing in this paragraph shall be 
     construed to require an employer to provide or secure housing 
     for persons who were not entitled to such housing under the 
     temporary labor certification regulations in effect on June 
     1, 1986.
       ``(F) Charges for housing.--
       ``(i) Charges for public housing.--If public housing 
     provided for migrant agricultural workers under the auspices 
     of a local, county, or State government is secured by an 
     employer, and use of the public housing unit normally 
     requires charges from migrant workers, such charges shall be 
     paid by the employer directly to the appropriate individual 
     or entity affiliated with the housing's management.
       ``(ii) Deposit charges.--Charges in the form of deposits 
     for bedding or other similar incidentals related to housing 
     shall not be levied upon workers by employers who provide 
     housing for their workers. An employer may require a worker 
     found to have been responsible for damage to such housing 
     which is not the result of normal wear and tear related to 
     habitation to reimburse the employer for the reasonable cost 
     of repair of such damage.
       ``(G) Housing allowance as alternative.--
       ``(i) In general.--If the requirement set out in clause 
     (ii) is satisfied, the employer may provide a reasonable 
     housing allowance instead of offering housing under 
     subparagraph (A). Upon the request of a worker seeking 
     assistance in locating housing, the employer shall make a 
     good faith effort to assist the worker in identifying and 
     locating housing in the area of intended employment. An 
     employer who offers a housing allowance to a worker, or 
     assists a worker in locating housing which the worker 
     occupies, pursuant to this clause shall not be deemed a 
     housing provider under section 203 of the Migrant and 
     Seasonal Agricultural Worker Protection Act (29 U.S.C. 1823) 
     solely by virtue of providing such housing allowance. No 
     housing allowance may be used for housing which is owned or 
     controlled by the employer.
       ``(ii) Certification.--The requirement of this clause is 
     satisfied if the Governor of the State certifies to the 
     Secretary of Labor that there is adequate housing available 
     in the area of intended employment for migrant farm workers 
     and H-2A workers who are seeking temporary housing while 
     employed in agricultural work. Such certification shall 
     expire after 3 years unless renewed by the Governor of the 
     State.
       ``(iii) Amount of allowance.--

       ``(I) Nonmetropolitan counties.--If the place of employment 
     of the workers provided an allowance under this subparagraph 
     is a nonmetropolitan county, the amount of the housing 
     allowance under this subparagraph shall be equal to the 
     statewide average fair market rental for existing housing for 
     nonmetropolitan counties for the State, as established by the 
     Secretary of Housing and Urban Development pursuant to 
     section 8(c) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an 
     assumption of 2 persons per bedroom.
       ``(II) Metropolitan counties.--If the place of employment 
     of the workers provided an allowance under this paragraph is 
     in a metropolitan county, the amount of the housing allowance 
     under this subparagraph shall be equal to the statewide 
     average fair market rental for existing housing for 
     metropolitan counties for the State, as established by the 
     Secretary of Housing and Urban Development pursuant to 
     section 8(c) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an 
     assumption of 2 persons per bedroom.

       ``(2) Reimbursement of transportation.--
       ``(A) To place of employment.--A worker who completes 50 
     percent of the period of employment of the job opportunity 
     for which the worker was hired shall be reimbursed by the 
     employer for the cost of the worker's transportation and 
     subsistence from the place from which the worker came to work 
     for the employer (or place of last employment, if the worker 
     traveled from such place) to the place of employment.
       ``(B) From place of employment.--A worker who completes the 
     period of employment for the job opportunity involved shall 
     be reimbursed by the employer for the cost of the worker's 
     transportation and subsistence from the place of employment 
     to the place from which the worker, disregarding intervening 
     employment, came to work for the employer, or to the place of 
     next employment, if the worker has contracted with a 
     subsequent employer who has not agreed to provide or pay for 
     the worker's transportation and subsistence to such 
     subsequent employer's place of employment.
       ``(C) Limitation.--
       ``(i) Amount of reimbursement.--Except as provided in 
     clause (ii), the amount of reimbursement provided under 
     subparagraph (A) or (B) to a worker or alien shall not exceed 
     the lesser of--

       ``(I) the actual cost to the worker or alien of the 
     transportation and subsistence involved; or
       ``(II) the most economical and reasonable common carrier 
     transportation charges and subsistence costs for the distance 
     involved.

       ``(ii) Distance traveled.--No reimbursement under 
     subparagraph (A) or (B) shall be required if the distance 
     traveled is 100 miles or less, or the worker is not residing 
     in employer-provided housing or housing secured through an 
     allowance as provided in paragraph (1)(G).
       ``(D) Early termination.--If the worker is laid off or 
     employment is terminated for contract impossibility (as 
     described in paragraph (4)(D)) before the anticipated ending 
     date of employment, the employer shall provide the 
     transportation and subsistence required by subparagraph (B) 
     and, notwithstanding whether the worker has completed 50 
     percent of the period of employment, shall provide the 
     transportation reimbursement required by subparagraph (A).
       ``(E) Transportation between living quarters and 
     worksite.--The employer shall provide transportation between 
     the worker's living quarters and the employer's worksite 
     without cost to the worker, and such transportation will be 
     in accordance with applicable laws and regulations.
       ``(3) Required wages.--
       ``(A) In general.--An employer applying for workers under 
     section 218(a) shall offer to pay, and shall pay, all workers 
     in the occupation for which the employer has applied for 
     workers, not less (and is not required to pay more) than the 
     greater of the prevailing wage in the occupation in the area 
     of intended employment or the adverse effect wage rate. No 
     worker shall be paid less than the greater of the hourly wage 
     prescribed under section 6(a)(1) of the Fair Labor Standards 
     Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable State 
     minimum wage.
       ``(B) Limitation.--Effective on the date of the enactment 
     of the Agricultural Job Opportunities, Benefits, and Security 
     Act of 2007 and continuing for 3 years thereafter, no adverse 
     effect wage rate for a State may be more than the adverse 
     effect wage rate for that State in effect on January 1, 2003, 
     as established by section 655.107 of title 20, Code of 
     Federal Regulations.
       ``(C) Required wages after 3-year freeze.--
       ``(i) First adjustment.--If Congress does not set a new 
     wage standard applicable to this section before the first 
     March 1 that is not less than 3 years after the date of 
     enactment of this section, the adverse effect wage rate for 
     each State beginning on such March 1 shall be the wage rate 
     that would have resulted if the adverse effect wage rate in 
     effect on January 1, 2003, had been annually adjusted, 
     beginning on March 1, 2006, by the lesser of--

       ``(I) the 12-month percentage change in the Consumer Price 
     Index for All Urban Consumers between December of the second 
     preceding year and December of the preceding year; and
       ``(II) 4 percent.

       ``(ii) Subsequent annual adjustments.--Beginning on the 
     first March 1 that is not less than 4 years after the date of 
     enactment of this section, and each March 1 thereafter, the 
     adverse effect wage rate then in effect

[[Page S982]]

     for each State shall be adjusted by the lesser of--

       ``(I) the 12-month percentage change in the Consumer Price 
     Index for All Urban Consumers between December of the second 
     preceding year and December of the preceding year; and
       ``(II) 4 percent.

       ``(D) Deductions.--The employer shall make only those 
     deductions from the worker's wages that are authorized by law 
     or are reasonable and customary in the occupation and area of 
     employment. The job offer shall specify all deductions not 
     required by law which the employer will make from the 
     worker's wages.
       ``(E) Frequency of pay.--The employer shall pay the worker 
     not less frequently than twice monthly, or in accordance with 
     the prevailing practice in the area of employment, whichever 
     is more frequent.
       ``(F) Hours and earnings statements.--The employer shall 
     furnish to the worker, on or before each payday, in 1 or more 
     written statements--
       ``(i) the worker's total earnings for the pay period;
       ``(ii) the worker's hourly rate of pay, piece rate of pay, 
     or both;
       ``(iii) the hours of employment which have been offered to 
     the worker (broken out by hours offered in accordance with 
     and over and above the \3/4\ guarantee described in paragraph 
     (4);
       ``(iv) the hours actually worked by the worker;
       ``(v) an itemization of the deductions made from the 
     worker's wages; and
       ``(vi) if piece rates of pay are used, the units produced 
     daily.
       ``(G) Report on wage protections.--Not later than December 
     31, 2009, the Comptroller General of the United States shall 
     prepare and transmit to the Secretary of Labor, the Committee 
     on the Judiciary of the Senate, and Committee on the 
     Judiciary of the House of Representatives, a report that 
     addresses--
       ``(i) whether the employment of H-2A or unauthorized aliens 
     in the United States agricultural workforce has depressed 
     United States farm worker wages below the levels that would 
     otherwise have prevailed if alien farm workers had not been 
     employed in the United States;
       ``(ii) whether an adverse effect wage rate is necessary to 
     prevent wages of United States farm workers in occupations in 
     which H-2A workers are employed from falling below the wage 
     levels that would have prevailed in the absence of the 
     employment of H-2A workers in those occupations;
       ``(iii) whether alternative wage standards, such as a 
     prevailing wage standard, would be sufficient to prevent 
     wages in occupations in which H-2A workers are employed from 
     falling below the wage level that would have prevailed in the 
     absence of H-2A employment;
       ``(iv) whether any changes are warranted in the current 
     methodologies for calculating the adverse effect wage rate 
     and the prevailing wage; and
       ``(v) recommendations for future wage protection under this 
     section.
       ``(H) Commission on wage standards.--
       ``(i) Establishment.--There is established the Commission 
     on Agricultural Wage Standards under the H-2A program (in 
     this subparagraph referred to as the `Commission').
       ``(ii) Composition.--The Commission shall consist of 10 
     members as follows:

       ``(I) Four representatives of agricultural employers and 1 
     representative of the Department of Agriculture, each 
     appointed by the Secretary of Agriculture.
       ``(II) Four representatives of agricultural workers and 1 
     representative of the Department of Labor, each appointed by 
     the Secretary of Labor.

       ``(iii) Functions.--The Commission shall conduct a study 
     that shall address--

       ``(I) whether the employment of H-2A or unauthorized aliens 
     in the United States agricultural workforce has depressed 
     United States farm worker wages below the levels that would 
     otherwise have prevailed if alien farm workers had not been 
     employed in the United States;
       ``(II) whether an adverse effect wage rate is necessary to 
     prevent wages of United States farm workers in occupations in 
     which H-2A workers are employed from falling below the wage 
     levels that would have prevailed in the absence of the 
     employment of H-2A workers in those occupations;
       ``(III) whether alternative wage standards, such as a 
     prevailing wage standard, would be sufficient to prevent 
     wages in occupations in which H-2A workers are employed from 
     falling below the wage level that would have prevailed in the 
     absence of H-2A employment;
       ``(IV) whether any changes are warranted in the current 
     methodologies for calculating the adverse effect wage rate 
     and the prevailing wage rate; and
       ``(V) recommendations for future wage protection under this 
     section.

       ``(iv) Final report.--Not later than December 31, 2009, the 
     Commission shall submit a report to the Congress setting 
     forth the findings of the study conducted under clause (iii).
       ``(v) Termination date.--The Commission shall terminate 
     upon submitting its final report.
       ``(4) Guarantee of employment.--
       ``(A) Offer to worker.--The employer shall guarantee to 
     offer the worker employment for the hourly equivalent of at 
     least \3/4\ of the work days of the total period of 
     employment, beginning with the first work day after the 
     arrival of the worker at the place of employment and ending 
     on the expiration date specified in the job offer. For 
     purposes of this subparagraph, the hourly equivalent means 
     the number of hours in the work days as stated in the job 
     offer and shall exclude the worker's Sabbath and Federal 
     holidays. If the employer affords the United States or H-2A 
     worker less employment than that required under this 
     paragraph, the employer shall pay such worker the amount 
     which the worker would have earned had the worker, in fact, 
     worked for the guaranteed number of hours.
       ``(B) Failure to work.--Any hours which the worker fails to 
     work, up to a maximum of the number of hours specified in the 
     job offer for a work day, when the worker has 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 job offer in a work day, on the 
     worker's Sabbath, or on Federal holidays) may be counted by 
     the employer in calculating whether the period of guaranteed 
     employment has been met.
       ``(C) Abandonment of employment, termination for cause.--If 
     the worker voluntarily abandons employment before the end of 
     the contract period, or is terminated for cause, the worker 
     is not entitled to the `\3/4\ guarantee' described in 
     subparagraph (A).
       ``(D) Contract impossibility.--If, before the expiration of 
     the period of employment specified in the job offer, the 
     services of the worker are no longer required for reasons 
     beyond the control of the employer due to any form of natural 
     disaster, including a flood, hurricane, freeze, earthquake, 
     fire, drought, plant or animal disease or pest infestation, 
     or regulatory drought, before the guarantee in subparagraph 
     (A) is fulfilled, the employer may terminate the worker's 
     employment. In the event of such termination, the employer 
     shall fulfill the employment guarantee in subparagraph (A) 
     for the work days that have elapsed from the first work day 
     after the arrival of the worker to the termination of 
     employment. In such cases, the employer will make efforts to 
     transfer the United States worker to other comparable 
     employment acceptable to the worker. If such transfer is not 
     effected, the employer shall provide the return 
     transportation required in paragraph (2)(D).
       ``(5) Motor vehicle safety.--
       ``(A) Mode of transportation subject to coverage.--
       ``(i) In general.--Except as provided in clauses (iii) and 
     (iv), this subsection applies to any H-2A employer that uses 
     or causes to be used any vehicle to transport an H-2A worker 
     within the United States.
       ``(ii) Defined term.--In this paragraph, the term `uses or 
     causes to be used'--

       ``(I) applies only to transportation provided by an H-2A 
     employer to an H-2A worker, or by a farm labor contractor to 
     an H-2A worker at the request or direction of an H-2A 
     employer; and
       ``(II) does not apply to--

       ``(aa) transportation provided, or transportation 
     arrangements made, by an H-2A worker, unless the employer 
     specifically requested or arranged such transportation; or
       ``(bb) car pooling arrangements made by H-2A workers 
     themselves, using 1 of the workers' own vehicles, unless 
     specifically requested by the employer directly or through a 
     farm labor contractor.
       ``(iii) Clarification.--Providing a job offer to an H-2A 
     worker that causes the worker to travel to or from the place 
     of employment, or the payment or reimbursement of the 
     transportation costs of an H-2A worker by an H-2A employer, 
     shall not constitute an arrangement of, or participation in, 
     such transportation.
       ``(iv) Agricultural machinery and equipment excluded.--This 
     subsection does not apply to the transportation of an H-2A 
     worker on a tractor, combine, harvester, picker, or other 
     similar machinery or equipment while such worker is actually 
     engaged in the planting, cultivating, or harvesting of 
     agricultural commodities or the care of livestock or poultry 
     or engaged in transportation incidental thereto.
       ``(v) Common carriers excluded.--This subsection does not 
     apply to common carrier motor vehicle transportation in which 
     the provider holds itself out to the general public as 
     engaging in the transportation of passengers for hire and 
     holds a valid certification of authorization for such 
     purposes from an appropriate Federal, State, or local agency.
       ``(B) Applicability of standards, licensing, and insurance 
     requirements.--
       ``(i) In general.--When using, or causing to be used, any 
     vehicle for the purpose of providing transportation to which 
     this subparagraph applies, each employer shall--

       ``(I) ensure that each such vehicle conforms to the 
     standards prescribed by the Secretary of Labor under section 
     401(b) of the Migrant and Seasonal Agricultural Worker 
     Protection Act (29 U.S.C. 1841(b)) and other applicable 
     Federal and State safety standards;
       ``(II) ensure that each driver has a valid and appropriate 
     license, as provided by State law, to operate the vehicle; 
     and
       ``(III) have an insurance policy or a liability bond that 
     is in effect which insures the employer against liability for 
     damage to persons or property arising from the ownership, 
     operation, or causing to be operated, of any vehicle used to 
     transport any H-2A worker.

[[Page S983]]

       ``(ii) Amount of insurance required.--The level of 
     insurance required shall be determined by the Secretary of 
     Labor pursuant to regulations to be issued under this 
     subsection.
       ``(iii) Effect of workers' compensation coverage.--If the 
     employer of any H-2A worker provides workers' compensation 
     coverage for such worker in the case of bodily injury or 
     death as provided by State law, the following adjustments in 
     the requirements of subparagraph (B)(i)(III) relating to 
     having an insurance policy or liability bond apply:

       ``(I) No insurance policy or liability bond shall be 
     required of the employer, if such workers are transported 
     only under circumstances for which there is coverage under 
     such State law.
       ``(II) An insurance policy or liability bond shall be 
     required of the employer for circumstances under which 
     coverage for the transportation of such workers is not 
     provided under such State law.

       ``(c) Compliance With Labor Laws.--An employer shall assure 
     that, except as otherwise provided in this section, the 
     employer will comply with all applicable Federal, State, and 
     local labor laws, including laws affecting migrant and 
     seasonal agricultural workers, with respect to all United 
     States workers and alien workers employed by the employer, 
     except that a violation of this assurance shall not 
     constitute a violation of the Migrant and Seasonal 
     Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.).
       ``(d) Copy of Job Offer.--The employer shall provide to the 
     worker, not later than the day the work commences, a copy of 
     the employer's application and job offer described in section 
     218(a), or, if the employer will require the worker to enter 
     into a separate employment contract covering the employment 
     in question, such separate employment contract.
       ``(e) Range Production of Livestock.--Nothing in this 
     section, section 218, or section 218B shall preclude the 
     Secretary of Labor and the Secretary from continuing to apply 
     special procedures and requirements to the admission and 
     employment of aliens in occupations involving the range 
     production of livestock.

     ``SEC. 218B. PROCEDURE FOR ADMISSION AND EXTENSION OF STAY OF 
                   H-2A WORKERS.

       ``(a) Petitioning for Admission.--An employer, or an 
     association acting as an agent or joint employer for its 
     members, that seeks the admission into the United States of 
     an H-2A worker may file a petition with the Secretary. The 
     petition shall be accompanied by an accepted and currently 
     valid certification provided by the Secretary of Labor under 
     section 218(e)(2)(B) covering the petitioner.
       ``(b) Expedited Adjudication by the Secretary.--The 
     Secretary shall establish a procedure for expedited 
     adjudication of petitions filed under subsection (a) and 
     within 7 working days shall, by fax, cable, or other means 
     assuring expedited delivery, transmit a copy of notice of 
     action on the petition to the petitioner and, in the case of 
     approved petitions, to the appropriate immigration officer at 
     the port of entry or United States consulate (as the case may 
     be) where the petitioner has indicated that the alien 
     beneficiary (or beneficiaries) will apply for a visa or 
     admission to the United States.
       ``(c) Criteria for Admissibility.--
       ``(1) In general.--An H-2A worker shall be considered 
     admissible to the United States if the alien is otherwise 
     admissible under this section, section 218, and section 218A, 
     and the alien is not ineligible under paragraph (2).
       ``(2) Disqualification.--An alien shall be considered 
     inadmissible to the United States and ineligible for 
     nonimmigrant status under section 101(a)(15)(H)(ii)(a) if the 
     alien has, at any time during the past 5 years--
       ``(A) violated a material provision of this section, 
     including the requirement to promptly depart the United 
     States when the alien's authorized period of admission under 
     this section has expired; or
       ``(B) otherwise violated a term or condition of admission 
     into the United States as a nonimmigrant, including 
     overstaying the period of authorized admission as such a 
     nonimmigrant.
       ``(3) Waiver of ineligibility for unlawful presence.--
       ``(A) In general.--An alien who has not previously been 
     admitted into the United States pursuant to this section, and 
     who is otherwise eligible for admission in accordance with 
     paragraphs (1) and (2), shall not be deemed inadmissible by 
     virtue of section 212(a)(9)(B). If an alien described in the 
     preceding sentence is present in the United States, the alien 
     may apply from abroad for H-2A status, but may not be granted 
     that status in the United States.
       ``(B) Maintenance of waiver.--An alien provided an initial 
     waiver of ineligibility pursuant to subparagraph (A) shall 
     remain eligible for such waiver unless the alien violates the 
     terms of this section or again becomes ineligible under 
     section 212(a)(9)(B) by virtue of unlawful presence in the 
     United States after the date of the initial waiver of 
     ineligibility pursuant to subparagraph (A).
       ``(d) Period of Admission.--
       ``(1) In general.--The alien shall be admitted for the 
     period of employment in the application certified by the 
     Secretary of Labor pursuant to section 218(e)(2)(B), not to 
     exceed 10 months, supplemented by a period of not more than 1 
     week before the beginning of the period of employment for the 
     purpose of travel to the worksite and a period of 14 days 
     following the period of employment for the purpose of 
     departure or extension based on a subsequent offer of 
     employment, except that--
       ``(A) the alien is not authorized to be employed during 
     such 14-day period except in the employment for which the 
     alien was previously authorized; and
       ``(B) the total period of employment, including such 14-day 
     period, may not exceed 10 months.
       ``(2) Construction.--Nothing in this subsection shall limit 
     the authority of the Secretary to extend the stay of the 
     alien under any other provision of this Act.
       ``(e) Abandonment of Employment.--
       ``(1) In general.--An alien admitted or provided status 
     under section 101(a)(15)(H)(ii)(a) who abandons the 
     employment which was the basis for such admission or status 
     shall be considered to have failed to maintain nonimmigrant 
     status as an H-2A worker and shall depart the United States 
     or be subject to removal under section 237(a)(1)(C)(i).
       ``(2) Report by employer.--The employer, or association 
     acting as agent for the employer, shall notify the Secretary 
     not later than 7 days after an H-2A worker prematurely 
     abandons employment.
       ``(3) Removal by the secretary.--The Secretary shall 
     promptly remove from the United States any H-2A worker who 
     violates any term or condition of the worker's nonimmigrant 
     status.
       ``(4) Voluntary termination.--Notwithstanding paragraph 
     (1), an alien may voluntarily terminate his or her employment 
     if the alien promptly departs the United States upon 
     termination of such employment.
       ``(f) Replacement of Alien.--
       ``(1) In general.--Upon presentation of the notice to the 
     Secretary required by subsection (e)(2), the Secretary of 
     State shall promptly issue a visa to, and the Secretary shall 
     admit into the United States, an eligible alien designated by 
     the employer to replace an H-2A worker--
       ``(A) who abandons or prematurely terminates employment; or
       ``(B) whose employment is terminated after a United States 
     worker is employed pursuant to section 218(b)(2)(H)(iii), if 
     the United States worker voluntarily departs before the end 
     of the period of intended employment or if the employment 
     termination is for a lawful job-related reason.
       ``(2) Construction.--Nothing in this subsection is intended 
     to limit any preference required to be accorded United States 
     workers under any other provision of this Act.
       ``(g) Identification Document.--
       ``(1) In general.--Each alien authorized to be admitted 
     under section 101(a)(15)(H)(ii)(a) shall be provided an 
     identification and employment eligibility document to verify 
     eligibility for employment in the United States and verify 
     the alien's identity.
       ``(2) Requirements.--No identification and employment 
     eligibility document may be issued which does not meet the 
     following requirements:
       ``(A) The document shall be capable of reliably determining 
     whether--
       ``(i) the individual with the identification and employment 
     eligibility document whose eligibility is being verified is 
     in fact eligible for employment;
       ``(ii) the individual whose eligibility is being verified 
     is claiming the identity of another person; and
       ``(iii) the individual whose eligibility is being verified 
     is authorized to be admitted into, and employed in, the 
     United States as an H-2A worker.
       ``(B) The document shall be in a form that is resistant to 
     counterfeiting and to tampering.
       ``(C) The document shall--
       ``(i) be compatible with other databases of the Secretary 
     for the purpose of excluding aliens from benefits for which 
     they are not eligible and determining whether the alien is 
     unlawfully present in the United States; and
       ``(ii) be compatible with law enforcement databases to 
     determine if the alien has been convicted of criminal 
     offenses.
       ``(h) Extension of Stay of H-2A Aliens in the United 
     States.--
       ``(1) Extension of stay.--If an employer seeks approval to 
     employ an H-2A alien who is lawfully present in the United 
     States, the petition filed by the employer or an association 
     pursuant to subsection (a), shall request an extension of the 
     alien's stay and a change in the alien's employment.
       ``(2) Limitation on filing a petition for extension of 
     stay.--A petition may not be filed for an extension of an 
     alien's stay--
       ``(A) for a period of more than 10 months; or
       ``(B) to a date that is more than 3 years after the date of 
     the alien's last admission to the United States under this 
     section.
       ``(3) Work authorization upon filing a petition for 
     extension of stay.--
       ``(A) In general.--An alien who is lawfully present in the 
     United States may commence the employment described in a 
     petition under paragraph (1) on the date on which the 
     petition is filed.
       ``(B) Definition.--For purposes of subparagraph (A), the 
     term `file' means sending the petition by certified mail via 
     the United States Postal Service, return receipt requested, 
     or delivered by guaranteed commercial delivery which will 
     provide the employer with a documented acknowledgment of the 
     date of receipt of the petition.
       ``(C) Handling of petition.--The employer shall provide a 
     copy of the employer's petition to the alien, who shall keep 
     the petition

[[Page S984]]

     with the alien's identification and employment eligibility 
     document as evidence that the petition has been filed and 
     that the alien is authorized to work in the United States.
       ``(D) Approval of petition.--Upon approval of a petition 
     for an extension of stay or change in the alien's authorized 
     employment, the Secretary shall provide a new or updated 
     employment eligibility document to the alien indicating the 
     new validity date, after which the alien is not required to 
     retain a copy of the petition.
       ``(4) Limitation on employment authorization of aliens 
     without valid identification and employment eligibility 
     document.--An expired identification and employment 
     eligibility document, together with a copy of a petition for 
     extension of stay or change in the alien's authorized 
     employment that complies with the requirements of paragraph 
     (1), shall constitute a valid work authorization document for 
     a period of not more than 60 days beginning on the date on 
     which such petition is filed, after which time only a 
     currently valid identification and employment eligibility 
     document shall be acceptable.
       ``(5) Limitation on an individual's stay in status.--
       ``(A) Maximum period.--The maximum continuous period of 
     authorized status as an H-2A worker (including any 
     extensions) is 3 years.
       ``(B) Requirement to remain outside the united states.--
       ``(i) In general.--Subject to clause (ii), in the case of 
     an alien outside the United States whose period of authorized 
     status as an H-2A worker (including any extensions) has 
     expired, the alien may not again apply for admission to the 
     United States as an H-2A worker unless the alien has remained 
     outside the United States for a continuous period equal to at 
     least \1/5\ the duration of the alien's previous period of 
     authorized status as an H-2A worker (including any 
     extensions).
       ``(ii) Exception.--Clause (i) shall not apply in the case 
     of an alien if the alien's period of authorized status as an 
     H-2A worker (including any extensions) was for a period of 
     not more than 10 months and such alien has been outside the 
     United States for at least 2 months during the 12 months 
     preceding the date the alien again is applying for admission 
     to the United States as an H-2A worker.
       ``(i) Special Rules for Aliens Employed as Sheepherders, 
     Goat Herders, or Dairy Workers.--Notwithstanding any 
     provision of the Agricultural Job Opportunities, Benefits, 
     and Security Act of 2007, an alien admitted under section 
     101(a)(15)(H)(ii)(a) for employment as a sheepherder, goat 
     herder, or dairy worker--
       ``(1) may be admitted for an initial period of 12 months;
       ``(2) subject to subsection (j)(5), may have such initial 
     period of admission extended for a period of up to 3 years; 
     and
       ``(3) shall not be subject to the requirements of 
     subsection (h)(5) (relating to periods of absence from the 
     United States).
       ``(j) Adjustment to Lawful Permanent Resident Status for 
     Aliens Employed as Sheepherders, Goat Herders, or Dairy 
     Workers.--
       ``(1) Eligible alien.--For purposes of this subsection, the 
     term `eligible alien' means an alien--
       ``(A) having nonimmigrant status under section 
     101(a)(15)(H)(ii)(a) based on employment as a sheepherder, 
     goat herder, or dairy worker;
       ``(B) who has maintained such nonimmigrant status in the 
     United States for a cumulative total of 36 months (excluding 
     any period of absence from the United States); and
       ``(C) who is seeking to receive an immigrant visa under 
     section 203(b)(3)(A)(iii).
       ``(2) Classification petition.--In the case of an eligible 
     alien, the petition under section 204 for classification 
     under section 203(b)(3)(A)(iii) may be filed by--
       ``(A) the alien's employer on behalf of the eligible alien; 
     or
       ``(B) the eligible alien.
       ``(3) No labor certification required.--Notwithstanding 
     section 203(b)(3)(C), no determination under section 
     212(a)(5)(A) is required with respect to an immigrant visa 
     described in paragraph (1)(C) for an eligible alien.
       ``(4) Effect of petition.--The filing of a petition 
     described in paragraph (2) or an application for adjustment 
     of status based on the approval of such a petition shall not 
     constitute evidence of an alien's ineligibility for 
     nonimmigrant status under section 101(a)(15)(H)(ii)(a).
       ``(5) Extension of stay.--The Secretary shall extend the 
     stay of an eligible alien having a pending or approved 
     classification petition described in paragraph (2) in 1-year 
     increments until a final determination is made on the alien's 
     eligibility for adjustment of status to that of an alien 
     lawfully admitted for permanent residence.
       ``(6) Construction.--Nothing in this subsection shall be 
     construed to prevent an eligible alien from seeking 
     adjustment of status in accordance with any other provision 
     of law.

     ``SEC. 218C. WORKER PROTECTIONS AND LABOR STANDARDS 
                   ENFORCEMENT.

       ``(a) Enforcement Authority.--
       ``(1) Investigation of complaints.--
       ``(A) Aggrieved person or third-party complaints.--The 
     Secretary of Labor shall establish a process for the receipt, 
     investigation, and disposition of complaints respecting a 
     petitioner's failure to meet a condition specified in section 
     218(b), or an employer's misrepresentation of material facts 
     in an application under section 218(a). Complaints may be 
     filed by any aggrieved person or organization (including 
     bargaining representatives). No investigation or hearing 
     shall be conducted on a complaint concerning such a failure 
     or misrepresentation unless the complaint was filed not later 
     than 12 months after the date of the failure, or 
     misrepresentation, respectively. The Secretary of Labor shall 
     conduct an investigation under this subparagraph if there is 
     reasonable cause to believe that such a failure or 
     misrepresentation has occurred.
       ``(B) Determination on complaint.--Under such process, the 
     Secretary of Labor shall provide, within 30 days after the 
     date such a complaint is filed, for a determination as to 
     whether or not a reasonable basis exists to make a finding 
     described in subparagraph (C), (D), (E), or (G). If the 
     Secretary of Labor determines that such a reasonable basis 
     exists, the Secretary of Labor shall provide for notice of 
     such determination to the interested parties and an 
     opportunity for a hearing on the complaint, in accordance 
     with section 556 of title 5, United States Code, within 60 
     days after the date of the determination. If such a hearing 
     is requested, the Secretary of Labor shall make a finding 
     concerning the matter not later than 60 days after the date 
     of the hearing. In the case of similar complaints respecting 
     the same applicant, the Secretary of Labor may consolidate 
     the hearings under this subparagraph on such complaints.
       ``(C) Failures to meet conditions.--If the Secretary of 
     Labor finds, after notice and opportunity for a hearing, a 
     failure to meet a condition of paragraph (1)(A), (1)(B), 
     (1)(D), (1)(F), (2)(A), (2)(B), or (2)(G) of section 218(b), 
     a substantial failure to meet a condition of paragraph 
     (1)(C), (1)(E), (2)(C), (2)(D), (2)(E), or (2)(H) of section 
     218(b), or a material misrepresentation of fact in an 
     application under section 218(a)--
       ``(i) the Secretary of Labor shall notify the Secretary of 
     such finding and may, in addition, impose such other 
     administrative remedies (including civil money penalties in 
     an amount not to exceed $1,000 per violation) as the 
     Secretary of Labor determines to be appropriate; and
       ``(ii) the Secretary may disqualify the employer from the 
     employment of aliens described in section 
     101(a)(15)(H)(ii)(a) for a period of 1 year.
       ``(D) Willful failures and willful misrepresentations.--If 
     the Secretary of Labor finds, after notice and opportunity 
     for hearing, a willful failure to meet a condition of section 
     218(b), a willful misrepresentation of a material fact in an 
     application under section 218(a), or a violation of 
     subsection (d)(1)--
       ``(i) the Secretary of Labor shall notify the Secretary of 
     such finding and may, in addition, impose such other 
     administrative remedies (including civil money penalties in 
     an amount not to exceed $5,000 per violation) as the 
     Secretary of Labor determines to be appropriate;
       ``(ii) the Secretary of Labor may seek appropriate legal or 
     equitable relief to effectuate the purposes of subsection 
     (d)(1); and
       ``(iii) the Secretary may disqualify the employer from the 
     employment of H-2A workers for a period of 2 years.
       ``(E) Displacement of united states workers.--If the 
     Secretary of Labor finds, after notice and opportunity for 
     hearing, a willful failure to meet a condition of section 
     218(b) or a willful misrepresentation of a material fact in 
     an application under section 218(a), in the course of which 
     failure or misrepresentation the employer displaced a United 
     States worker employed by the employer during the period of 
     employment on the employer's application under section 218(a) 
     or during the period of 30 days preceding such period of 
     employment--
       ``(i) the Secretary of Labor shall notify the Secretary of 
     such finding and may, in addition, impose such other 
     administrative remedies (including civil money penalties in 
     an amount not to exceed $15,000 per violation) as the 
     Secretary of Labor determines to be appropriate; and
       ``(ii) the Secretary may disqualify the employer from the 
     employment of H-2A workers for a period of 3 years.
       ``(F) Limitations on civil money penalties.--The Secretary 
     of Labor shall not impose total civil money penalties with 
     respect to an application under section 218(a) in excess of 
     $90,000.
       ``(G) Failures to pay wages or required benefits.--If the 
     Secretary of Labor finds, after notice and opportunity for a 
     hearing, that the employer has failed to pay the wages, or 
     provide the housing allowance, transportation, subsistence 
     reimbursement, or guarantee of employment, required under 
     section 218A(b), the Secretary of Labor shall assess payment 
     of back wages, or other required benefits, due any United 
     States worker or H-2A worker employed by the employer in the 
     specific employment in question. The back wages or other 
     required benefits under section 218A(b) shall be equal to the 
     difference between the amount that should have been paid and 
     the amount that actually was paid to such worker.
       ``(2) Statutory construction.--Nothing in this section 
     shall be construed as limiting the authority of the Secretary 
     of Labor to conduct any compliance investigation under any 
     other labor law, including any law affecting migrant and 
     seasonal agricultural workers, or, in the absence of a 
     complaint under this section, under section 218 or 218A.

[[Page S985]]

       ``(b) Rights Enforceable by Private Right of Action.--H-2A 
     workers may enforce the following rights through the private 
     right of action provided in subsection (c), and no other 
     right of action shall exist under Federal or State law to 
     enforce such rights:
       ``(1) The providing of housing or a housing allowance as 
     required under section 218A(b)(1).
       ``(2) The reimbursement of transportation as required under 
     section 218A(b)(2).
       ``(3) The payment of wages required under section 
     218A(b)(3) when due.
       ``(4) The benefits and material terms and conditions of 
     employment expressly provided in the job offer described in 
     section 218(a)(2), not including the assurance to comply with 
     other Federal, State, and local labor laws described in 
     section 218A(c), compliance with which shall be governed by 
     the provisions of such laws.
       ``(5) The guarantee of employment required under section 
     218A(b)(4).
       ``(6) The motor vehicle safety requirements under section 
     218A(b)(5).
       ``(7) The prohibition of discrimination under subsection 
     (d)(2).
       ``(c) Private Right of Action.--
       ``(1) Mediation.--Upon the filing of a complaint by an H-2A 
     worker aggrieved by a violation of rights enforceable under 
     subsection (b), and within 60 days of the filing of proof of 
     service of the complaint, a party to the action may file a 
     request with the Federal Mediation and Conciliation Service 
     to assist the parties in reaching a satisfactory resolution 
     of all issues involving all parties to the dispute. Upon a 
     filing of such request and giving of notice to the parties, 
     the parties shall attempt mediation within the period 
     specified in subparagraph (B).
       ``(A) Mediation services.--The Federal Mediation and 
     Conciliation Service shall be available to assist in 
     resolving disputes arising under subsection (b) between H-2A 
     workers and agricultural employers without charge to the 
     parties.
       ``(B) 90-day limit.--The Federal Mediation and Conciliation 
     Service may conduct mediation or other nonbinding dispute 
     resolution activities for a period not to exceed 90 days 
     beginning on the date on which the Federal Mediation and 
     Conciliation Service receives the request for assistance 
     unless the parties agree to an extension of this period of 
     time.
       ``(C) Authorization.--
       ``(i) In general.--Subject to clause (ii), there are 
     authorized to be appropriated to the Federal Mediation and 
     Conciliation Service $500,000 for each fiscal year to carry 
     out this section.
       ``(ii) Mediation.--Notwithstanding any other provision of 
     law, the Director of the Federal Mediation and Conciliation 
     Service is authorized to conduct the mediation or other 
     dispute resolution activities from any other appropriated 
     funds available to the Director and to reimburse such 
     appropriated funds when the funds are appropriated pursuant 
     to this authorization, such reimbursement to be credited to 
     appropriations currently available at the time of receipt.
       ``(2) Maintenance of civil action in district court by 
     aggrieved person.--An H-2A worker aggrieved by a violation of 
     rights enforceable under subsection (b) by an agricultural 
     employer or other person may file suit in any district court 
     of the United States having jurisdiction over the parties, 
     without regard to the amount in controversy, without regard 
     to the citizenship of the parties, and without regard to the 
     exhaustion of any alternative administrative remedies under 
     this Act, not later than 3 years after the date the violation 
     occurs.
       ``(3) Election.--An H-2A worker who has filed an 
     administrative complaint with the Secretary of Labor may not 
     maintain a civil action under paragraph (2) unless a 
     complaint based on the same violation filed with the 
     Secretary of Labor under subsection (a)(1) is withdrawn 
     before the filing of such action, in which case the rights 
     and remedies available under this subsection shall be 
     exclusive.
       ``(4) Preemption of state contract rights.--Nothing in this 
     Act shall be construed to diminish the rights and remedies of 
     an H-2A worker under any other Federal or State law or 
     regulation or under any collective bargaining agreement, 
     except that no court or administrative action shall be 
     available under any State contract law to enforce the rights 
     created by this Act.
       ``(5) Waiver of rights prohibited.--Agreements by employees 
     purporting to waive or modify their rights under this Act 
     shall be void as contrary to public policy, except that a 
     waiver or modification of the rights or obligations in favor 
     of the Secretary of Labor shall be valid for purposes of the 
     enforcement of this Act. The preceding sentence may not be 
     construed to prohibit agreements to settle private disputes 
     or litigation.
       ``(6) Award of damages or other equitable relief.--
       ``(A) If the court finds that the respondent has 
     intentionally violated any of the rights enforceable under 
     subsection (b), it shall award actual damages, if any, or 
     equitable relief.
       ``(B) Any civil action brought under this section shall be 
     subject to appeal as provided in chapter 83 of title 28, 
     United States Code.
       ``(7) Workers' compensation benefits; exclusive remedy.--
       ``(A) Notwithstanding any other provision of this section, 
     where a State's workers' compensation law is applicable and 
     coverage is provided for an H-2A worker, the workers' 
     compensation benefits shall be the exclusive remedy for the 
     loss of such worker under this section in the case of bodily 
     injury or death in accordance with such State's workers' 
     compensation law.
       ``(B) The exclusive remedy prescribed in subparagraph (A) 
     precludes the recovery under paragraph (6) of actual damages 
     for loss from an injury or death but does not preclude other 
     equitable relief, except that such relief shall not include 
     back or front pay or in any manner, directly or indirectly, 
     expand or otherwise alter or affect--
       ``(i) a recovery under a State workers' compensation law; 
     or
       ``(ii) rights conferred under a State workers' compensation 
     law.
       ``(8) Tolling of statute of limitations.--If it is 
     determined under a State workers' compensation law that the 
     workers' compensation law is not applicable to a claim for 
     bodily injury or death of an H-2A worker, the statute of 
     limitations for bringing an action for actual damages for 
     such injury or death under subsection (c) shall be tolled for 
     the period during which the claim for such injury or death 
     under such State workers' compensation law was pending. The 
     statute of limitations for an action for actual damages or 
     other equitable relief arising out of the same transaction or 
     occurrence as the injury or death of the H-2A worker shall be 
     tolled for the period during which the claim for such injury 
     or death was pending under the State workers' compensation 
     law.
       ``(9) Preclusive effect.--Any settlement by an H-2A worker 
     and an H-2A employer or any person reached through the 
     mediation process required under subsection (c)(1) shall 
     preclude any right of action arising out of the same facts 
     between the parties in any Federal or State court or 
     administrative proceeding, unless specifically provided 
     otherwise in the settlement agreement.
       ``(10) Settlements.--Any settlement by the Secretary of 
     Labor with an H-2A employer on behalf of an H-2A worker of a 
     complaint filed with the Secretary of Labor under this 
     section or any finding by the Secretary of Labor under 
     subsection (a)(1)(B) shall preclude any right of action 
     arising out of the same facts between the parties under any 
     Federal or State court or administrative proceeding, unless 
     specifically provided otherwise in the settlement agreement.
       ``(d) Discrimination Prohibited.--
       ``(1) In general.--It is a violation of this subsection for 
     any person who has filed an application under section 218(a), 
     to intimidate, threaten, restrain, coerce, blacklist, 
     discharge, or in any other manner discriminate against an 
     employee (which term, for purposes of this subsection, 
     includes a former employee and an applicant for employment) 
     because the employee has disclosed information to the 
     employer, or to any other person, that the employee 
     reasonably believes evidences a violation of section 218 or 
     218A or any rule or regulation pertaining to section 218 or 
     218A, or because the employee cooperates or seeks to 
     cooperate in an investigation or other proceeding concerning 
     the employer's compliance with the requirements of section 
     218 or 218A or any rule or regulation pertaining to either of 
     such sections.
       ``(2) Discrimination against h-2a workers.--It is a 
     violation of this subsection for any person who has filed an 
     application under section 218(a), to intimidate, threaten, 
     restrain, coerce, blacklist, discharge, or in any manner 
     discriminate against an H-2A employee because such worker 
     has, with just cause, filed a complaint with the Secretary of 
     Labor regarding a denial of the rights enumerated and 
     enforceable under subsection (b) or instituted, or caused to 
     be instituted, a private right of action under subsection (c) 
     regarding the denial of the rights enumerated under 
     subsection (b), or has testified or is about to testify in 
     any court proceeding brought under subsection (c).
       ``(e) Authorization To Seek Other Appropriate Employment.--
     The Secretary of Labor and the Secretary shall establish a 
     process under which an H-2A worker who files a complaint 
     regarding a violation of subsection (d) and is otherwise 
     eligible to remain and work in the United States may be 
     allowed to seek other appropriate employment in the United 
     States for a period not to exceed the maximum period of stay 
     authorized for such nonimmigrant classification.
       ``(f) Role of Associations.--
       ``(1) Violation by a member of an association.--An employer 
     on whose behalf an application is filed by an association 
     acting as its agent is fully responsible for such 
     application, and for complying with the terms and conditions 
     of sections 218 and 218A, as though the employer had filed 
     the application itself. If such an employer is determined, 
     under this section, to have committed a violation, the 
     penalty for such violation shall apply only to that member of 
     the association unless the Secretary of Labor determines that 
     the association or other member participated in, had 
     knowledge, or reason to know, of the violation, in which case 
     the penalty shall be invoked against the association or other 
     association member as well.
       ``(2) Violations by an association acting as an employer.--
     If an association filing an application as a sole or joint 
     employer is determined to have committed a violation under 
     this section, the penalty for such violation shall apply only 
     to the association unless the Secretary of Labor determines 
     that an association member or members participated in or had 
     knowledge, or reason to

[[Page S986]]

     know of the violation, in which case the penalty shall be 
     invoked against the association member or members as well.

     ``SEC. 218D. DEFINITIONS.

       ``For purposes of this section and section 218, 218A, 218B, 
     and 218C:
       ``(1) Agricultural employment.--The term `agricultural 
     employment' means any service or activity that is considered 
     to be agricultural under section 3(f) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural 
     labor under section 3121(g) of the Internal Revenue Code of 
     1986 or the performance of agricultural labor or services 
     described in section 101(a)(15)(H)(ii)(a).
       ``(2) Bona fide union.--The term `bona fide union' means 
     any organization in which employees participate and which 
     exists for the purpose of dealing with employers concerning 
     grievances, labor disputes, wages, rates of pay, hours of 
     employment, or other terms and conditions of work for 
     agricultural employees. Such term does not include an 
     organization formed, created, administered, supported, 
     dominated, financed, or controlled by an employer or employer 
     association or its agents or representatives.
       ``(3) Displace.--The term `displace', in the case of an 
     application with respect to 1 or more H-2A workers by an 
     employer, means laying off a United States worker from a job 
     for which the H-2A worker or workers is or are sought.
       ``(4) Eligible.--The term `eligible', when used with 
     respect to an individual, means an individual who is not an 
     unauthorized alien (as defined in section 274A).
       ``(5) Employer.--The term `employer' means any person or 
     entity, including any farm labor contractor and any 
     agricultural association, that employs workers in 
     agricultural employment.
       ``(6) H-2A employer.--The term `H-2A employer' means an 
     employer who seeks to hire 1 or more nonimmigrant aliens 
     described in section 101(a)(15)(H)(ii)(a).
       ``(7) H-2A worker.--The term `H-2A worker' means a 
     nonimmigrant described in section 101(a)(15)(H)(ii)(a).
       ``(8) Job opportunity.--The term `job opportunity' means a 
     job opening for temporary or seasonal full-time employment at 
     a place in the United States to which United States workers 
     can be referred.
       ``(9) Laying off.--
       ``(A) In general.--The term `laying off', with respect to a 
     worker--
       ``(i) means to cause the worker's loss of employment, other 
     than through a discharge for inadequate performance, 
     violation of workplace rules, cause, voluntary departure, 
     voluntary retirement, contract impossibility (as described in 
     section 218A(b)(4)(D)), or temporary suspension of employment 
     due to weather, markets, or other temporary conditions; but
       ``(ii) does not include any situation in which the worker 
     is offered, as an alternative to such loss of employment, a 
     similar employment opportunity with the same employer (or, in 
     the case of a placement of a worker with another employer 
     under section 218(b)(2)(E), with either employer described in 
     such section) at equivalent or higher compensation and 
     benefits than the position from which the employee was 
     discharged, regardless of whether or not the employee accepts 
     the offer.
       ``(B) Statutory construction.--Nothing in this paragraph is 
     intended to limit an employee's rights under a collective 
     bargaining agreement or other employment contract.
       ``(10) Regulatory drought.--The term `regulatory drought' 
     means a decision subsequent to the filing of the application 
     under section 218 by an entity not under the control of the 
     employer making such filing which restricts the employer's 
     access to water for irrigation purposes and reduces or limits 
     the employer's ability to produce an agricultural commodity, 
     thereby reducing the need for labor.
       ``(11) Seasonal.--Labor is performed on a `seasonal' basis 
     if--
       ``(A) ordinarily, it pertains to or is of the kind 
     exclusively performed at certain seasons or periods of the 
     year; and
       ``(B) from its nature, it may not be continuous or carried 
     on throughout the year.
       ``(12) Secretary.--Except as otherwise provided, the term 
     `Secretary' means the Secretary of Homeland Security.
       ``(13) Temporary.--A worker is employed on a `temporary' 
     basis where the employment is intended not to exceed 10 
     months.
       ``(14) United states worker.--The term `United States 
     worker' means any worker, whether a national of the United 
     States, an alien lawfully admitted for permanent residence, 
     or any other alien, who is authorized to work in the job 
     opportunity within the United States, except an alien 
     admitted or otherwise provided status under section 
     101(a)(15)(H)(ii)(a).''.
       (b) Table of Contents.--The table of contents of the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by striking the item relating to section 218 and 
     inserting the following:

``Sec. 218. H-2A employer applications.
``Sec. 218A. H-2A employment requirements.
``Sec. 218B. Procedure for admission and extension of stay of H-2A 
              workers.
``Sec. 218C. Worker protections and labor standards enforcement.
``Sec. 218D. Definitions.''.

                  Subtitle C--Miscellaneous Provisions

     SEC. 241. DETERMINATION AND USE OF USER FEES.

       (a) Schedule of Fees.--The Secretary shall establish and 
     periodically adjust a schedule of fees for the employment of 
     aliens pursuant to the amendment made by section 231(a) of 
     this Act and a collection process for such fees from 
     employers. Such fees shall be the only fees chargeable to 
     employers for services provided under such amendment.
       (b) Determination of Schedule.--
       (1) In general.--The schedule under subsection (a) shall 
     reflect a fee rate based on the number of job opportunities 
     indicated in the employer's application under section 218 of 
     the Immigration and Nationality Act, as amended by section 
     231 of this Act, and sufficient to provide for the direct 
     costs of providing services related to an employer's 
     authorization to employ aliens pursuant to the amendment made 
     by section 231(a) of this Act, to include the certification 
     of eligible employers, the issuance of documentation, and the 
     admission of eligible aliens.
       (2) Procedure.--
       (A) In general.--In establishing and adjusting such a 
     schedule, the Secretary shall comply with Federal cost 
     accounting and fee setting standards.
       (B) Publication and comment.--The Secretary shall publish 
     in the Federal Register an initial fee schedule and 
     associated collection process and the cost data or estimates 
     upon which such fee schedule is based, and any subsequent 
     amendments thereto, pursuant to which public comment shall be 
     sought and a final rule issued.
       (c) Use of Proceeds.--Notwithstanding any other provision 
     of law, all proceeds resulting from the payment of the fees 
     pursuant to the amendment made by section 231(a) of this Act 
     shall be available without further appropriation and shall 
     remain available without fiscal year limitation to reimburse 
     the Secretary, the Secretary of State, and the Secretary of 
     Labor for the costs of carrying out sections 218 and 218B of 
     the Immigration and Nationality Act, as amended and added, 
     respectively, by section 231 of this Act, and the provisions 
     of this title.

     SEC. 242. REGULATIONS.

       (a) Requirement for the Secretary to Consult.--The 
     Secretary shall consult with the Secretary of Labor and the 
     Secretary of Agriculture during the promulgation of all 
     regulations to implement the duties of the Secretary under 
     this title and the amendments made by this title.
       (b) Requirement for the Secretary of State to Consult.--The 
     Secretary of State shall consult with the Secretary, the 
     Secretary of Labor, and the Secretary of Agriculture on all 
     regulations to implement the duties of the Secretary of State 
     under this title and the amendments made by this title.
       (c) Requirement for the Secretary of Labor to Consult.--The 
     Secretary of Labor shall consult with the Secretary of 
     Agriculture and the Secretary on all regulations to implement 
     the duties of the Secretary of Labor under this title and the 
     amendments made by this title.
       (d) Deadline for Issuance of Regulations.--All regulations 
     to implement the duties of the Secretary, the Secretary of 
     State, and the Secretary of Labor created under sections 218, 
     218A, 218B, 218C, and 218D of the Immigration and Nationality 
     Act, as amended or added by section 231 of this Act, shall 
     take effect on the effective date of section 231 and shall be 
     issued not later than 1 year after the date of enactment of 
     this Act.

     SEC. 243. REPORTS TO CONGRESS.

       (a) Annual Report.--Not later than September 30 of each 
     year, the Secretary shall submit a report to Congress that 
     identifies, for the previous year--
       (1) the number of job opportunities approved for employment 
     of aliens admitted under section 101(a)(15)(H)(ii)(a) of the 
     Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(ii)(a)), and the number of workers actually 
     admitted, disaggregated by State and by occupation;
       (2) the number of such aliens reported to have abandoned 
     employment pursuant to subsection 218B(e)(2) of such Act;
       (3) the number of such aliens who departed the United 
     States within the period specified in subsection 218B(d) of 
     such Act;
       (4) the number of aliens who applied for adjustment of 
     status pursuant to section 211(a);
       (5) the number of such aliens whose status was adjusted 
     under section 211(a);
       (6) the number of aliens who applied for permanent 
     residence pursuant to section 213(c); and
       (7) the number of such aliens who were approved for 
     permanent residence pursuant section 213(c).
       (b) Implementation Report.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary shall 
     prepare and submit to Congress a report that describes the 
     measures being taken and the progress made in implementing 
     this Act.

     SEC. 244. EFFECTIVE DATE.

       Except as otherwise provided, sections 231 and 241 shall 
     take effect 1 year after the date of the enactment of this 
     Act.
                                 ______
                                 
  SA 169. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the end, add the following new section:

[[Page S987]]

     SEC. 4. SHARING OF SOCIAL SECURITY DATA FOR IMMIGRATION 
                   ENFORCEMENT PURPOSES.

       (a) Social Security Account Numbers.--Section 264(f) of the 
     Immigration and Nationality Act (8 U.S.C. 1304(f)) is amended 
     to read as follows:
       ``(f) Notwithstanding any other provision of law (including 
     section 6103 of the Internal Revenue Code of 1986), the 
     Secretary of Homeland Security, the Secretary of Labor, and 
     the Attorney General are authorized to require any individual 
     to provide his or her own social security account number for 
     purposes of inclusion in any record of the individual 
     maintained by either such Secretary or the Attorney General, 
     or of inclusion in any application, document, or form 
     provided under or required by the immigration laws.''.
       (b) Exchange of Information.--Section 290(c) of the 
     Immigration and Nationality Act (8 U.S.C. 1360(c)) is amended 
     by striking paragraph (2) and inserting the following new 
     paragraphs:
       ``(2)(A) Notwithstanding any other provision of law 
     (including section 6103 of the Internal Revenue Code of 1986) 
     if earnings are reported on or after January 1, 1997, to the 
     Social Security Administration on a social security account 
     number issued to an alien not authorized to work in the 
     United States, the Commissioner of Social Security shall 
     provide the Secretary of Homeland Security with information 
     regarding the name, date of birth, and address of the alien, 
     the name and address of the person reporting the earnings, 
     and the amount of the earnings.
       ``(B) The information described in subparagraph (A) shall 
     be provided in an electronic form agreed upon by the 
     Commissioner and the Secretary.
       ``(3)(A) Notwithstanding any other provision of law 
     (including section 6103 of the Internal Revenue Code of 
     1986), if a social security account number was used with 
     multiple names, the Commissioner of Social Security shall 
     provide the Secretary of Homeland Security with information 
     regarding the name, date of birth, and address of each 
     individual who used that social security account number, and 
     the name and address of the person reporting the earnings for 
     an individual who used that social security account number.
       ``(B) The information described in subparagraph (A) shall 
     be provided in an electronic form agreed upon by the 
     Commissioner and the Secretary for the sole purpose of 
     enforcing the immigration laws.
       ``(C) The Secretary, in consultation with the Commissioner, 
     may limit or modify the requirements of this paragraph, as 
     appropriate, to identify the cases posing the highest 
     possibility of fraudulent use of social security account 
     numbers related to violation of the immigration laws.
       ``(4)(A) Notwithstanding any other provision of law 
     (including section 6103 of the Internal Revenue Code of 
     1986), if more than one person reports earnings for an 
     individual during a single tax year, the Commissioner of 
     Social Security shall provide the Secretary of Homeland 
     Security information regarding the name, date of birth, and 
     address of the individual, and the name and address of the 
     each person reporting earnings for that individual.
       ``(B) The information described in subparagraph (A) shall 
     be provided in an electronic form agreed upon by the 
     Commissioner and the Secretary for the sole purpose of 
     enforcing the immigration laws.
       ``(C) The Secretary, in consultation with the Commissioner, 
     may limit or modify the requirements of this paragraph, as 
     appropriate, to identify the cases posing the highest 
     possibility of fraudulent use of social security account 
     numbers related to violation of the immigration laws.
       ``(5)(A) The Commissioner of Social Security shall perform, 
     at the request to the Secretary of Homeland Security, any 
     search or manipulation of records held by the Commissioner if 
     the Secretary certifies that the purpose of the search or 
     manipulation is to obtain information that is likely to 
     assist in identifying individuals (and their employers) who 
     are using false names or social security numbers, who are 
     sharing a single valid name and social security number among 
     multiple individuals, who are using the social security 
     number of a person who is deceased, too young to work, or not 
     authorized to work, or who are otherwise engaged in a 
     violation of the immigration laws. The Commissioner shall 
     provide the results of such search or manipulation to the 
     Secretary, notwithstanding any other provision law (including 
     section 6103 of the Internal Revenue Code of 1986).
       ``(B) The Secretary shall transfer to the Commissioner the 
     funds necessary to cover the costs directly incurred by the 
     Commissioner in carrying out each search or manipulation 
     requested by the Secretary under subparagraph (A).''.
       (c) False Claims of Citizenship by Nationals of the United 
     States.--Section 212(a)(6)(C)(ii)(I) of the Immigration and 
     Nationality Act (8 U.S.C. 1182(a)(6)(C)(ii)(I)) is amended by 
     inserting ``or national'' after ``citizen''.
                                 ______
                                 
  SA 170. Mr. GREGG (for himself, Mr. Sununu, and Mr. Isakson) 
submitted an amendment intended to be proposed by him to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EMPLOYEE OPTION TIME.

       (a) Biweekly Work Programs.--
       (1) In general.--The Fair Labor Standards Act of 1938 is 
     amended by inserting after section 13 (29 U.S.C. 213) the 
     following:

     ``SEC. 13A. BIWEEKLY WORK PROGRAMS.

       ``(a) Voluntary Participation.--
       ``(1) Option of employee.--Except as provided in paragraph 
     (2), no employee may be required to participate in a program 
     described in this section. Participation in a program 
     described in this section may not be a condition of 
     employment.
       ``(2) Collective bargaining agreement.--In a case in which 
     a valid collective bargaining agreement exists between an 
     employer and the labor organization that has been certified 
     or recognized as the representative of the employees of the 
     employer under applicable law, an employee may only be 
     required to participate in such a program in accordance with 
     the agreement.
       ``(b) Biweekly Work Programs.--
       ``(1) In general.--Notwithstanding section 7, an employer 
     may establish biweekly work programs that--
       ``(A) allow the use of a biweekly work schedule--
       ``(i) that consists of a basic work requirement of not more 
     than 80 hours, over a 2-week period; and
       ``(ii) in which more than 40 hours of the work requirement 
     may occur in a week of the period, except that no more than 
     10 hours may be shifted between the 2 weeks involved; and
       ``(B) provides that an employee participating in the 
     program is compensated for overtime hours in accordance with 
     paragraph (4).
       ``(2) Conditions.--An employer may carry out a biweekly 
     work program described in paragraph (1) for employees only 
     pursuant to the following:
       ``(A) Agreement.--The program may be carried out only in 
     accordance with--
       ``(i) applicable provisions of a collective bargaining 
     agreement between the employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees under applicable law; or
       ``(ii) in the case of an employee who is not represented by 
     a labor organization described in clause (i), a written 
     agreement arrived at between the employer and employee before 
     the performance of the work involved if the agreement was 
     entered into knowingly and voluntarily by such employee and 
     was not a condition of employment.
       ``(B) Statement of voluntary participation.--The program 
     shall apply to an employee described in subparagraph (A)(ii) 
     if such employee has affirmed, in a written statement that is 
     made, kept, and preserved in accordance with section 11(c), 
     that the employee has voluntarily chosen to participate in 
     the program.
       ``(C) Minimum service.--No employee may participate, or 
     agree to participate, in the program unless the employee has 
     been employed for at least 12 months by the employer, and for 
     at least 1,250 hours of service with the employer during the 
     previous 12-month period.
       ``(3) Compensation for hours in schedule.--Notwithstanding 
     section 7, in the case of an employee participating in such a 
     biweekly work program, the employee shall be compensated for 
     each hour in such a biweekly work schedule at a rate not less 
     than the regular rate at which the employee is employed.
       ``(4) Overtime compensation provision.--An employee 
     participating in such a biweekly work program shall be 
     compensated for each overtime hour at a rate not less than 
     one and one-half times the regular rate at which the employee 
     is employed, in accordance with section 7(a)(1).
       ``(5) Discontinuance of program or withdrawal.--
       ``(A) Discontinuance of program.--An employer that has 
     established a biweekly work program under paragraph (1) may 
     discontinue the program for employees described in paragraph 
     (2)(A)(ii) after providing 30 days' written notice to the 
     employees who are subject to an agreement described in 
     paragraph (2)(A)(ii).
       ``(B) Withdrawal.--An employee may withdraw an agreement 
     described in paragraph (2)(A)(ii) at the end of any 2-week 
     period described in paragraph (1)(A)(i), by submitting a 
     written notice of withdrawal to the employer of the employee.
       ``(c) Prohibition of Coercion.--
       ``(1) In general.--An employer shall not directly or 
     indirectly intimidate, threaten, or coerce, or attempt to 
     intimidate, threaten, or coerce, any employee for the purpose 
     of interfering with the rights of the employee under this 
     section to elect or not to elect to work a biweekly work 
     schedule.
       ``(2) Definition.--In paragraph (1), the term `intimidate, 
     threaten, or coerce' includes promising to confer or 
     conferring any benefit (such as appointment, promotion, or 
     compensation) or effecting or threatening to effect any 
     reprisal (such as deprivation of appointment, promotion, or 
     compensation).
       ``(d) Definitions.--In this section:
       ``(1) Basic work requirement.--The term `basic work 
     requirement' means the number of hours, excluding overtime 
     hours, that an employee is required to work or is required to 
     account for by leave or otherwise.

[[Page S988]]

       ``(2) Collective bargaining.--The term `collective 
     bargaining' means the performance of the mutual obligation of 
     the representative of an employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees of the employer under applicable law to meet 
     at reasonable times and to consult and bargain in a good-
     faith effort to reach agreement with respect to the 
     conditions of employment affecting such employees and to 
     execute, if requested by either party, a written document 
     incorporating any collective bargaining agreement reached, 
     but the obligation referred to in this paragraph shall not 
     compel either party to agree to a proposal or to make a 
     concession.
       ``(3) Collective bargaining agreement.--The term 
     `collective bargaining agreement' means an agreement entered 
     into as a result of collective bargaining.
       ``(4) Employee.--The term `employee' means an individual--
       ``(A) who is an employee (as defined in section 3);
       ``(B) who is not an employee of a public agency; and
       ``(C) to whom section 7(a) applies.
       ``(5) Employer.--The term `employer' does not include a 
     public agency.
       ``(6) Overtime hours.--The term `overtime hours' when used 
     with respect to biweekly work programs under subsection (b), 
     means all hours worked in excess of the biweekly work 
     schedule involved, in excess of the allotted 50 hours a week, 
     or in excess of the allotted 80 hours in the 2-week period 
     involved, that are requested in advance by an employer.
       ``(7) Regular rate.--The term `regular rate' has the 
     meaning given the term in section 7(e).''.
       (2) Remedies.--
       (A) Prohibitions.--Section 15(a)(3) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
       (i) by inserting ``(A)'' after ``(3)'';
       (ii) by adding ``or'' after the semicolon; and
       (iii) by adding at the end the following:
       ``(B) to violate any of the provisions of section 13A;''.
       (B) Remedies and sanctions.--Section 16 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216) is amended--
       (i) in subsection (c)--

       (I) in the first sentence--

       (aa) by inserting after ``7 of this Act'' the following: 
     ``, or of the appropriate legal or monetary equitable relief 
     owing to any employee or employees under section 13A''; and
       (bb) by striking ``wages or unpaid overtime compensation 
     and'' and inserting ``wages, unpaid overtime compensation, or 
     legal or monetary equitable relief, as appropriate, and'';

       (II) in the second sentence, by striking ``wages or 
     overtime compensation and'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, and''; and
       (III) in the third sentence--

       (aa) by inserting after ``first sentence of such 
     subsection'' the following: ``, or the second sentence of 
     such subsection in the event of a violation of section 
     13A,''; and
       (bb) by striking ``wages or unpaid overtime compensation 
     under sections 6 and 7 or'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, or''; and
       (ii) in subsection (e)--

       (I) in the second sentence, by striking ``section 6 or 7'' 
     and inserting ``section 6, 7, or 13A''; and
       (II) in the fourth sentence, in paragraph (3), by striking 
     ``15(a)(4) or'' and inserting ``15(a)(4), a violation of 
     section 15(a)(3)(B), or''.

       (3) Notice to employees.--Not later than 30 days after the 
     date of enactment of this section, the Secretary of Labor 
     shall revise the materials the Secretary provides, under 
     regulations contained in section 516.4 of title 29, Code of 
     Federal Regulations, to employers for purposes of a notice 
     explaining the Fair Labor Standards Act of 1938 (29 U.S.C. 
     201 et seq.) to employees so that the notice reflects the 
     amendments made to the Act by this section.
       (b) Congressional Coverage.--Section 203 of the 
     Congressional Accountability Act of 1995 (2 U.S.C. 1313) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and section 12(c)'' and 
     inserting ``section 12(c), and section 13A''; and
       (B) by striking paragraph (3);
       (2) in subsection (b)--
       (A) by striking ``The remedy'' and inserting the following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     remedy''; and
       (B) by adding at the end the following:
       ``(2) Biweekly work programs and flexible credit hours 
     programs.--The remedy for a violation of subsection (a) 
     relating to the requirements of section 13A of the Fair Labor 
     Standards Act of 1938 shall be such remedy as would be 
     appropriate if awarded under sections 16 and 17 of such Act 
     (29 U.S.C. 216, 217) for such a violation.''; and
       (3) in subsection (c), by striking paragraph (4).
       (c) Termination.--The authority provided by this section 
     and the amendments made by this section terminates 5 years 
     after the date of enactment of this section.
                                 ______
                                 
  SA 171. Mr. GREGG (for himself, Mr. Sununu, and Mr. Isakson) 
submitted an amendment intended to be proposed to amendment SA 100 
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the 
Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. EMPLOYEE OPTION TIME.

       (a) Biweekly Work Programs.--
       (1) In general.--The Fair Labor Standards Act of 1938 is 
     amended by inserting after section 13 (29 U.S.C. 213) the 
     following:

     ``SEC. 13A. BIWEEKLY WORK PROGRAMS.

       ``(a) Voluntary Participation.--
       ``(1) Option of employee.--Except as provided in paragraph 
     (2), no employee may be required to participate in a program 
     described in this section. Participation in a program 
     described in this section may not be a condition of 
     employment.
       ``(2) Collective bargaining agreement.--In a case in which 
     a valid collective bargaining agreement exists between an 
     employer and the labor organization that has been certified 
     or recognized as the representative of the employees of the 
     employer under applicable law, an employee may only be 
     required to participate in such a program in accordance with 
     the agreement.
       ``(b) Biweekly Work Programs.--
       ``(1) In general.--Notwithstanding section 7, an employer 
     may establish biweekly work programs that--
       ``(A) allow the use of a biweekly work schedule--
       ``(i) that consists of a basic work requirement of not more 
     than 80 hours, over a 2-week period; and
       ``(ii) in which more than 40 hours of the work requirement 
     may occur in a week of the period, except that no more than 
     10 hours may be shifted between the 2 weeks involved; and
       ``(B) provides that an employee participating in the 
     program is compensated for overtime hours in accordance with 
     paragraph (4).
       ``(2) Conditions.--An employer may carry out a biweekly 
     work program described in paragraph (1) for employees only 
     pursuant to the following:
       ``(A) Agreement.--The program may be carried out only in 
     accordance with--
       ``(i) applicable provisions of a collective bargaining 
     agreement between the employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees under applicable law; or
       ``(ii) in the case of an employee who is not represented by 
     a labor organization described in clause (i), a written 
     agreement arrived at between the employer and employee before 
     the performance of the work involved if the agreement was 
     entered into knowingly and voluntarily by such employee and 
     was not a condition of employment.
       ``(B) Statement of voluntary participation.--The program 
     shall apply to an employee described in subparagraph (A)(ii) 
     if such employee has affirmed, in a written statement that is 
     made, kept, and preserved in accordance with section 11(c), 
     that the employee has voluntarily chosen to participate in 
     the program.
       ``(C) Minimum service.--No employee may participate, or 
     agree to participate, in the program unless the employee has 
     been employed for at least 12 months by the employer, and for 
     at least 1,250 hours of service with the employer during the 
     previous 12-month period.
       ``(3) Compensation for hours in schedule.--Notwithstanding 
     section 7, in the case of an employee participating in such a 
     biweekly work program, the employee shall be compensated for 
     each hour in such a biweekly work schedule at a rate not less 
     than the regular rate at which the employee is employed.
       ``(4) Overtime compensation provision.--An employee 
     participating in such a biweekly work program shall be 
     compensated for each overtime hour at a rate not less than 
     one and one-half times the regular rate at which the employee 
     is employed, in accordance with section 7(a)(1).
       ``(5) Discontinuance of program or withdrawal.--
       ``(A) Discontinuance of program.--An employer that has 
     established a biweekly work program under paragraph (1) may 
     discontinue the program for employees described in paragraph 
     (2)(A)(ii) after providing 30 days' written notice to the 
     employees who are subject to an agreement described in 
     paragraph (2)(A)(ii).
       ``(B) Withdrawal.--An employee may withdraw an agreement 
     described in paragraph (2)(A)(ii) at the end of any 2-week 
     period described in paragraph (1)(A)(i), by submitting a 
     written notice of withdrawal to the employer of the employee.
       ``(c) Prohibition of Coercion.--
       ``(1) In general.--An employer shall not directly or 
     indirectly intimidate, threaten, or coerce, or attempt to 
     intimidate, threaten, or coerce, any employee for the purpose 
     of interfering with the rights of the employee under this 
     section to elect or not to elect to work a biweekly work 
     schedule.
       ``(2) Definition.--In paragraph (1), the term `intimidate, 
     threaten, or coerce' includes promising to confer or 
     conferring any benefit (such as appointment, promotion, or 
     compensation) or effecting or threatening to effect any 
     reprisal (such as deprivation of appointment, promotion, or 
     compensation).
       ``(d) Definitions.--In this section:
       ``(1) Basic work requirement.--The term `basic work 
     requirement' means the number of hours, excluding overtime 
     hours, that an

[[Page S989]]

     employee is required to work or is required to account for by 
     leave or otherwise.
       ``(2) Collective bargaining.--The term `collective 
     bargaining' means the performance of the mutual obligation of 
     the representative of an employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees of the employer under applicable law to meet 
     at reasonable times and to consult and bargain in a good-
     faith effort to reach agreement with respect to the 
     conditions of employment affecting such employees and to 
     execute, if requested by either party, a written document 
     incorporating any collective bargaining agreement reached, 
     but the obligation referred to in this paragraph shall not 
     compel either party to agree to a proposal or to make a 
     concession.
       ``(3) Collective bargaining agreement.--The term 
     `collective bargaining agreement' means an agreement entered 
     into as a result of collective bargaining.
       ``(4) Employee.--The term `employee' means an individual--
       ``(A) who is an employee (as defined in section 3);
       ``(B) who is not an employee of a public agency; and
       ``(C) to whom section 7(a) applies.
       ``(5) Employer.--The term `employer' does not include a 
     public agency.
       ``(6) Overtime hours.--The term `overtime hours' when used 
     with respect to biweekly work programs under subsection (b), 
     means all hours worked in excess of the biweekly work 
     schedule involved, in excess of the allotted 50 hours a week, 
     or in excess of the allotted 80 hours in the 2-week period 
     involved, that are requested in advance by an employer.
       ``(7) Regular rate.--The term `regular rate' has the 
     meaning given the term in section 7(e).''.
       (2) Remedies.--
       (A) Prohibitions.--Section 15(a)(3) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
       (i) by inserting ``(A)'' after ``(3)'';
       (ii) by adding ``or'' after the semicolon; and
       (iii) by adding at the end the following:
       ``(B) to violate any of the provisions of section 13A;''.
       (B) Remedies and sanctions.--Section 16 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216) is amended--
       (i) in subsection (c)--

       (I) in the first sentence--

       (aa) by inserting after ``7 of this Act'' the following: 
     ``, or of the appropriate legal or monetary equitable relief 
     owing to any employee or employees under section 13A''; and
       (bb) by striking ``wages or unpaid overtime compensation 
     and'' and inserting ``wages, unpaid overtime compensation, or 
     legal or monetary equitable relief, as appropriate, and'';

       (II) in the second sentence, by striking ``wages or 
     overtime compensation and'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, and''; and
       (III) in the third sentence--

       (aa) by inserting after ``first sentence of such 
     subsection'' the following: ``, or the second sentence of 
     such subsection in the event of a violation of section 
     13A,''; and
       (bb) by striking ``wages or unpaid overtime compensation 
     under sections 6 and 7 or'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, or''; and
       (ii) in subsection (e)--

       (I) in the second sentence, by striking ``section 6 or 7'' 
     and inserting ``section 6, 7, or 13A''; and
       (II) in the fourth sentence, in paragraph (3), by striking 
     ``15(a)(4) or'' and inserting ``15(a)(4), a violation of 
     section 15(a)(3)(B), or''.

       (3) Notice to employees.--Not later than 30 days after the 
     date of enactment of this section, the Secretary of Labor 
     shall revise the materials the Secretary provides, under 
     regulations contained in section 516.4 of title 29, Code of 
     Federal Regulations, to employers for purposes of a notice 
     explaining the Fair Labor Standards Act of 1938 (29 U.S.C. 
     201 et seq.) to employees so that the notice reflects the 
     amendments made to the Act by this section.
       (b) Congressional Coverage.--Section 203 of the 
     Congressional Accountability Act of 1995 (2 U.S.C. 1313) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and section 12(c)'' and 
     inserting ``section 12(c), and section 13A''; and
       (B) by striking paragraph (3);
       (2) in subsection (b)--
       (A) by striking ``The remedy'' and inserting the following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     remedy''; and
       (B) by adding at the end the following:
       ``(2) Biweekly work programs and flexible credit hours 
     programs.--The remedy for a violation of subsection (a) 
     relating to the requirements of section 13A of the Fair Labor 
     Standards Act of 1938 shall be such remedy as would be 
     appropriate if awarded under sections 16 and 17 of such Act 
     (29 U.S.C. 216, 217) for such a violation.''; and
       (3) in subsection (c), by striking paragraph (4).
       (c) Termination.--The authority provided by this section 
     and the amendments made by this section terminates 5 years 
     after the date of enactment of this section.
                                 ______
                                 
  SA 172. Mr. ROBERTS submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place insert the following:

     SEC. __. AGRICULTURAL CHEMICALS SECURITY CREDIT.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.

       ``(a) In General.--For purposes of section 38, in the case 
     of an eligible agricultural business, the agricultural 
     chemicals security credit determined under this section for 
     the taxable year is 30 percent of the qualified security 
     expenditures for the taxable year.
       ``(b) Facility Limitation.--The amount of the credit 
     determined under subsection (a) with respect to any facility 
     for any taxable year shall not exceed--
       ``(1) $100,000, reduced by
       ``(2) the aggregate amount of credits determined under 
     subsection (a) with respect to such facility for the 5 prior 
     taxable years.
       ``(c) Annual Limitation.--The amount of the credit 
     determined under subsection (a) with respect to any taxpayer 
     for any taxable year shall not exceed $2,000,000.
       ``(d) Qualified Chemical Security Expenditure.--For 
     purposes of this section, the term `qualified chemical 
     security expenditure' means, with respect to any eligible 
     agricultural business for any taxable year, any amount paid 
     or incurred by such business during such taxable year for--
       ``(1) employee security training and background checks,
       ``(2) limitation and prevention of access to controls of 
     specified agricultural chemicals stored at the facility,
       ``(3) tagging, locking tank valves, and chemical additives 
     to prevent the theft of specified agricultural chemicals or 
     to render such chemicals unfit for illegal use,
       ``(4) protection of the perimeter of specified agricultural 
     chemicals,
       ``(5) installation of security lighting, cameras, recording 
     equipment, and intrusion detection sensors,
       ``(6) implementation of measures to increase computer or 
     computer network security,
       ``(7) conducting a security vulnerability assessment,
       ``(8) implementing a site security plan, and
       ``(9) such other measures for the protection of specified 
     agricultural chemicals as the Secretary may identify in 
     regulation.

     Amounts described in the preceding sentence shall be taken 
     into account only to the extent that such amounts are paid or 
     incurred for the purpose of protecting specified agricultural 
     chemicals.
       ``(e) Eligible Agricultural Business.--For purposes of this 
     section, the term `eligible agricultural business' means any 
     person in the trade or business of--
       ``(1) selling agricultural products, including specified 
     agricultural chemicals, at retail predominantly to farmers 
     and ranchers, or
       ``(2) manufacturing, formulating, distributing, or aerially 
     applying specified agricultural chemicals.
       ``(f) Specified Agricultural Chemical.--For purposes of 
     this section, the term `specified agricultural chemical' 
     means--
       ``(1) any fertilizer commonly used in agricultural 
     operations which is listed under--
       ``(A) section 302(a)(2) of the Emergency Planning and 
     Community Right-to-Know Act of 1986,
       ``(B) section 101 of part 172 of title 49, Code of Federal 
     Regulations, or
       ``(C) part 126, 127, or 154 of title 33, Code of Federal 
     Regulations, and
       ``(2) any pesticide (as defined in section 2(u) of the 
     Federal Insecticide, Fungicide, and Rodenticide Act), 
     including all active and inert ingredients thereof, which is 
     customarily used on crops grown for food, feed, or fiber.
       ``(g) Controlled Groups.--Rules similar to the rules of 
     paragraphs (1) and (2) of section 41(f) shall apply for 
     purposes of this section.
       ``(h) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section, including regulations which--
       ``(1) provide for the proper treatment of amounts which are 
     paid or incurred for purpose of protecting any specified 
     agricultural chemical and for other purposes, and
       ``(2) provide for the treatment of related properties as 
     one facility for purposes of subsection (b).
       ``(i) Termination.--This section shall not apply to any 
     amount paid or incurred after December 31, 2010.''.
       (b) Credit Allowed as Part of General Business Credit.--
     Section 38(b) is amended by striking ``plus'' at the end of 
     paragraph (30), by striking the period at the end of 
     paragraph (31) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(32) in the case of an eligible agricultural business (as 
     defined in section 45O(e)), the agricultural chemicals 
     security credit determined under section 45O(a).''.
       (c) Denial of Double Benefit.--Section 280C is amended by 
     adding at the end the following new subsection:

[[Page S990]]

       ``(f) Credit for Security of Agricultural Chemicals.--No 
     deduction shall be allowed for that portion of the expenses 
     (otherwise allowable as a deduction) taken into account in 
     determining the credit under section 45O for the taxable year 
     which is equal to the amount of the credit determined for 
     such taxable year under section 45O(a).''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 is amended by 
     adding at the end the following new item:

``Sec. 45O. Agricultural chemicals security credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2006.
                                 ______
                                 
  SA 173. Mr. KERRY submitted an amendment intended to be proposed to 
amendment SA 112 submitted by Mr. Sununu to the amendment SA 100 
proposed by Mr. Reid (Mr. Baucus) to the bill H.R. 2, to amend the Fair 
Labor Standards Act of 1938 to provide for an increase in the Federal 
minimum wage; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. __. SUSTAINABILITY PROGRAM.

       (a) In General.--Section 29(l) of the Small Business Act 
     (15 U.S.C. 656(l)) is amended--
       (1) in the subsection heading, by striking ``Pilot'';
       (2) in paragraph (1), by striking ``4-year pilot''; and
       (3) in paragraph (5), by striking ``pilot''.
       (b) Conforming Amendments.--Section 29(k) of the Small 
     Business Act (15 U.S.C. 656(k)) is amended--
       (1) in paragraph (1), by striking ``pilot'';
       (2) in paragraph (4)--
       (A) in the paragraph heading, by striking ``pilot'';
       (B) in subparagraph (A), by adding at the end the 
     following:
       ``(v) For fiscal years 2007 and 2008, not less than 41 
     percent.''; and
       (C) in the heading for subparagraph (B), by striking 
     ``pilot''.
                                 ______
                                 
  SA 174. Mr. KERRY submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SUSTAINABILITY PROGRAM.

       (a) In General.--Section 29(l) of the Small Business Act 
     (15 U.S.C. 656(l)) is amended--
       (1) in the subsection heading, by striking ``Pilot'';
       (2) in paragraph (1), by striking ``4-year pilot''; and
       (3) in paragraph (5), by striking ``pilot''.
       (b) Conforming Amendments.--Section 29(k) of the Small 
     Business Act (15 U.S.C. 656(k)) is amended--
       (1) in paragraph (1), by striking ``pilot'';
       (2) in paragraph (4)--
       (A) in the paragraph heading, by striking ``pilot'';
       (B) in subparagraph (A), by adding at the end the 
     following:
       ``(v) For fiscal years 2007 and 2008, not less than 41 
     percent.''; and
       (C) in the heading for subparagraph (B), by striking 
     ``pilot''.
                                 ______
                                 
  SA 175. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROVISIONS TO IMPROVE AND EXPAND THE AVAILABILITY OF 
                   HEALTH SAVINGS ACCOUNTS.

       (a) Provisions Relating to Eligibility to Contribute to 
     HSAs.--
       (1) Individuals eligible for reimbursement under spouse's 
     flexible spending arrangement.--Section 223(c)(1) (defining 
     eligible individual) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Special rule for certain flexible spending 
     arrangements.--For purposes of subparagraph (A)(ii), an 
     individual shall not be treated as covered under a health 
     plan described in such subparagraph merely because the 
     individual is covered under a flexible spending arrangement 
     (within the meaning of section 106(c)(2)) which is maintained 
     by an employer of the spouse of the individual, but only if--
       ``(i) the employer is not also the employer of the 
     individual, and
       ``(ii) the individual certifies to the employer and to the 
     Secretary (in such form and manner as the Secretary may 
     prescribe) that the individual and the individual's spouse 
     will not accept reimbursement under the arrangement for any 
     expenses for medical care provided to the individual.''.
       (2) Individuals over age 65 automatically enrolled in 
     medicare part a.--Section 223(b)(7) (relating to contribution 
     limitation on medicare eligible individuals) is amended by 
     adding at the end the following new sentence: ``This 
     paragraph shall not apply to any individual during any period 
     the individual's only entitlement to such benefits is an 
     entitlement to hospital insurance benefits under part A of 
     title XVIII of such Act pursuant to an automatic enrollment 
     for such hospital insurance benefits under the regulations 
     under section 226(a)(1) of such Act.''
       (3) Individuals eligible for certain veterans benefits.--
     Section 223(c)(1) (defining eligible individual), as amended 
     by subsection (a), is amended by adding at the end the 
     following new subparagraph:
       ``(D) Special rule for individuals eligible for certain 
     veterans benefits.--For purposes of subparagraph (A)(ii), an 
     individual shall not be treated as covered under a health 
     plan described in such subparagraph merely because the 
     individual receives periodic hospital care or medical 
     services for a service-connected disability under any law 
     administered by the Secretary of Veterans Affairs but only if 
     the individual is not eligible to receive such care or 
     services for any condition other than a service-connected 
     disability.''.
       (b) Family Plan May Have Individual Annual Deductible 
     Limit.--Section 223(c)(2) (defining high deductible health 
     plan) is amended by adding at the end the following new 
     subparagraph:
       ``(E) Special rule for family coverage.--A health plan 
     providing family coverage shall not fail to meet the 
     requirements of subparagraph (A)(i)(II) merely because the 
     plan elects to provide both--
       ``(i) an aggregate annual deductible limit for all 
     individuals covered by the plan which is not less than the 
     amount in effect under subparagraph (A)(i)(II), and
       ``(ii) an annual deductible limit for each individual 
     covered by the plan which is not less than the amount in 
     effect under subparagraph (A)(i)(I).''.
       (c) Definition of Qualified Medical Expenses.--
       (1) Premiums for low premium health plans treated as 
     qualified medical expenses.--Subparagraph (C) of section 
     223(d)(2) is amended by striking ``or'' at the end of clause 
     (iii), by striking the period at the end of clause (iv) and 
     inserting ``, or'', and by adding at the end the following 
     new clause:
       ``(v) a high deductible health plan, but only if the 
     expenses are for coverage for a month with respect to which 
     the account beneficiary is an eligible individual by reason 
     of the coverage under the plan.''.
       (2) Special rule for certain medical expenses incurred 
     before establishment of account.--Paragraph (2) of section 
     223(d) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Certain medical expenses incurred before 
     establishment of account treated as qualified.--An expense 
     shall not fail to be treated as a qualified medical expense 
     solely because such expense was incurred before the 
     establishment of the health savings account if such expense 
     was incurred--
       ``(i) during either--

       ``(I) the taxable year in which the health savings account 
     was established, or
       ``(II) the preceding taxable year in the case of a health 
     savings account established after the taxable year in which 
     such expense was incurred but before the time prescribed by 
     law for filing the return for such taxable year (not 
     including extensions thereof), and

       ``(ii) for medical care of an individual during a period 
     that such individual was an eligible individual.

     For purposes of clause (ii), an individual shall be treated 
     as an eligible individual for any portion of a month the 
     individual is described in subsection (c)(1), determined 
     without regard to whether the individual is covered under a 
     high deductible health plan on the 1st day of such month.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

                          ____________________