[Congressional Record (Bound Edition), Volume 153 (2007), Part 2]
[Senate]
[Pages 1702-1727]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ISAKSON:
  S. 330. A bill to authorize secure borders and comprehensive 
immigration reform, and for other purposes; to the Committee on the 
Judiciary.
  Mr. ISAKSON. Mr. President, I am pleased to rise today before the 
Senate. This is an issue this Senate visited 9 months ago in the month 
of May. Nine months ago, the Senate tackled what I submit is the most 
important domestic issue in the United States of America and in every 
State. That is the issue of legal immigration and illegal immigration.
  In that debate of what became known as a comprehensive immigration 
reform bill, I submitted an amendment that ended up being amendment No. 
1. The amendment simply said that before any provision of this act that 
grants legal status to someone who is in America illegally takes 
effect, the Secretary of Homeland Security will certify to the Congress 
that all of the provisions of border security contained in the bill 
were funded, in place, and operational. It become known as a trigger--
and it was a trigger--because the immigration issue is not like when 
you can never figure what is the chicken, what is the egg, and what 
came first. There is no way to reform illegal immigration unless you 
first stop the porous borders we have and the flow of illegal 
immigrants. But to do only one without the other is a terrible mistake.
  The result of last year's debate was the Senate passed a bill without 
the trigger that granted new legal statuses. Although it provided for 
the authorization of border security, it did not provide for the 
guarantee of border security. The House reaction was, we want border 
security only, and the debate to this day between the House and the 
Senate has been the Senate is for comprehensive reform and the House is 
for border security only and never the twain will meet. The twain must 
meet. It is the No. 1 domestic issue.
  I come to the Senate today to introduce a major immigration reform 
bill that is the bridge from where we are to where we must go. For a 
moment, I will discuss the provisions of that proposal.
  First of all, it contains the trigger. It predicates any reform of 
immigration that grants legal status to someone here illegally to be 
noneffective until we have first closed the doors to the south and to 
the north. It provides for all the security measures the Senate passed 
last year--and they are 2,500 new port-of-entry inspectors, 14,000 
border inspectors, trained and ready to deploy, $454 million for 
unmanned aerial vehicles to give us the 24/7 eyes in the sky essential 
to enforcement on our border, authorization and ultimate appropriation 
for those barriers and those fences and those roads that are necessary 
for our agents to patrol, 20,000 beds for detention, to end the 
practice of cash and release.
  When I came to the Senate 2 years ago as a Georgian and one who loves 
the outdoors, I thought ``catch and release'' was a fishing term. I 
found out it became a border term, where we would catch people, tell 
them to go home, release them and they would wait for us to leave and 
come back again.
  We must remember the reason we have this problem is we have the 
greatest Nation on the face of this Earth. We do not find anyone trying 
to break out of the United States of America. They are all trying to 
break in and for a very special reason: The promise of hope, 
opportunity, and jobs. But we must make the right way to come to 
America be the legal way to come to America, not the ease of crossing 
our border in the dark of night under some other cover.
  Lastly, an integral part of border security is a verifiable program, 
where America's employers can be given a verifiable ID by someone who 
is here legally that verifies they are who they say they are. The 
biggest growth industry in the United States of America on our 
southwestern border is forged documents. We have a proliferation today 
of forged documents, where illegal aliens have legal-looking documents 
and we have a customs and immigration system that cannot tell an 
American farmer or an American employer that, in fact, the document 
they were shown is, in fact, right or wrong. That has to be fixed.
  Once those provisions are in, we have a secure border. Interestingly 
enough, it takes about the same amount of time to put in the barriers, 
get unmanned aerial vehicles in the air, train the border security and 
port-of-entry people as it takes to get the verifiable identification 
system in place. We know both will take about 24 months.
  When we have the trigger, it does not protract reform, but it 
precedes the implementation of what is going to take 24 months to do 
anyway. And all of a sudden we have a new paradigm in America. Those 
who want to come here realize the way to come is the legal way, not the 
illegal way. They learn there are consequences to coming illegally and 
employers know when they get an ID they can either swipe it on a 
computer or they can go up on the Internet and code to customs and 
immigration and find out that person is legal. The paradigm changes, 
and then the hope and opportunity of reforming legal immigration in 
this country can become a reality.
  I am not an obstructionist to doing it. In fact, if anything needs to 
be done, we need to reform the legal system because we almost promote, 
through the rigidity and difficulty of legal immigration, coming here 
illegally because we are looking the other way on the border. We have a 
historical precedent.
  In 1986, we reformed immigration with the Simpson Act. We granted 3 
million people amnesty, said we were going to secure the border and 
didn't. Today, we have 12 million because we did not secure that 
border. That can never happen again.
  Second, if the border is secure and we give people who are here 
illegally but are lawfully obeying the laws a chance to come forward, 
we can identify who is here who is not a problem.
  And you, also, leave open, for those who do not come forward whom you 
must concentrate on, to see to it they are not here for the wrong 
reasons and they go home. But you can never enforce the system 
internally before you first close the external opportunity to come 
through illegal immigration.
  Mr. President, in May 1903, Anders Isakson came through Ellis Island 
because of the potato famine in Scandinavia. In 1916, my father was 
born to him and his wife, Josephine. My father became a citizen of this 
country because he was born on our soil. In 1926, my grandfather became 
a naturalized citizen of the United States of America.
  In my home today, framed and hanging on the wall, are his 
naturalization certificates from 1926, when he raised

[[Page 1703]]

his right arm and pledged his allegiance to the United States of 
America. There is no one who has greater respect and greater joy in the 
promise of this country and the opportunity of immigration. But we must 
begin restoring the respect for legal immigration and shutting the door 
on illegal immigration, or else those lines become blurred, and the 
stress we have on our social service system, civil justice system, 
public health system, and public education system that is stretched to 
the limit because of illegal aliens today will increase.
  We owe it to the history of our country and the greatness which makes 
us great to secure our borders, to honor legal immigration, and to move 
forward with a reform of illegal immigration that matches the economic 
needs of the United States of America.
  I stand on the Senate floor today committed to work with any Member 
of this Senate for comprehensive reform, as long as its cornerstone in 
its foundation is that we fix the problem on our borders, have it 
certified, and have that fix be the foundation for the modernization 
and reform of our immigration laws.
  Mr. President, I thank you for the time and yield the floor.
  The PRESIDING OFFICER. The Senator from Tennessee.
  Mr. ALEXANDER. Mr. President, I congratulate the Senator from 
Georgia. He has described something that for the last several months I 
have been calling the Isakson principle. I believe the Isakson 
principle is the basis for a comprehensive immigration bill that could 
attract 85 to 90 votes in the Senate and could, in a fairly short 
period of time, be reconciled with legislation passed by the House of 
Representatives.
  It would be a single piece of legislation that would work in two 
stages. It would first secure our border; and then, as the Senator from 
Georgia says, the trigger would come in, and we would get the rest of 
the job done. And the rest of the job includes defining who can work 
and who can study in the United States if they come from overseas. The 
rest of the job also includes helping prospective citizens, of which 
there are about a million a year today--people who are here legally--to 
help them learn English, to learn our history, and to learn our 
democratic traditions so we can be one country.
  There is a lot of talk this week about the borders of Iraq. I believe 
there are some more important borders in this world, at least to us 
Americans, and they are the borders around our own country. It is more 
important that we secure our borders at home than it is to secure the 
borders in Iraq.
  Last year, both the Senate and the House of Representatives passed an 
immigration bill. I voted no on the Senate immigration bill. I opposed 
the bill because I did not believe it did enough to secure our borders. 
It had some good proposals for border security, and it had a number of 
other excellent proposals, but it did not guarantee they would be 
funded. We all know that border security on paper means nothing. It 
requires boots on the ground. It requires jeeps on the roads and 
unmanned aerial vehicles in the air. It requires an employer 
verification system. And it requires adequate funding.
  So I voted no. But I said at the time I was ready to vote for, and 
wanted to vote for, a comprehensive bill, one that fixed the whole 
problem. And I suggested then, as did a number of others, that the 
basis for such a bill was the Isakson principle.
  Well, instead of getting a bill passed into law, it was a political 
year, and some Members of the House of Representatives, including some 
members of my own party, thought the wiser course was basically to run 
against the Senate bill that I voted against. Well, we now know how 
successful that turned out to be. That was not successful because the 
American people expect us to act like grownups, deal with big issues, 
and come to a conclusion.
  There is no issue upon which we in the Congress have more need to 
come to a conclusion on than the issue of immigration. It is our 
responsibility. We cannot kick it to the Governors. We cannot blame the 
mayor of Nashville. We cannot blame anybody in Iraq. It is our job in 
the Senate and the House of Representatives.
  We should begin to do our job. We should take it up within the next 
few weeks. We should base our bill on the Isakson principle. And we 
should not stop our work on the immigration bill until we are finished.
  The Isakson principle is the basis for success with immigration 
because of the so-called trigger. As the Senator from Georgia said, 
once we put into effect all of the things we need to do to secure the 
border, the trigger operates, and then we get to all the rest of the 
issues, some of which are hard to solve. But they are made much easier 
to solve once we and the American people are assured the border will be 
secured.
  It is outrageous for us in the Senate to preach about the rule of law 
to the rest of the world and ignore it here at home. The rule of law is 
one of the most important principles of our country. We should make no 
apology, not be embarrassed 1 minute for insisting upon it. Every new 
citizen knows that. They do not come to this country to become an 
American based upon their color or their ethnic background. They come 
because to be an American, you believe in a few principles which you 
must learn if you are going to become a citizen. Foremost among those 
is the rule of law.
  So we start with that. But that is not the only principle new 
citizens learn. There is the principle of laissez-faire-- in other 
words, a strong economy. And immigrants help a strong economy, whether 
they are going to be Nobel Prize winners or whether they are going to 
be picking fruit in California.
  There is the principle of equal opportunity. There is the principle 
of e pluribus unum, engraved right up there above the Presiding 
Officer: How do we become one country? We learn our tradition. We learn 
a common language. We adhere to common principles, instead of color and 
background. And there is the tradition of the country that we are a 
nation of immigrants. By our failure to act, we are showing a lack of 
respect for the rule of law and a lack of respect for our tradition as 
a nation of immigrants.
  It is especially outrageous for us not to act when there is no one to 
blame but us. We cannot blame Syria for this one. We cannot blame the 
Iraqi Government. We cannot blame Iran. We cannot blame al-Qaida. It is 
us. It is our job. So, Mr. President, I am here today to commend the 
Senator from Georgia. Since last fall, he has had before us the basis 
for sound, comprehensive immigration legislation--all in one bill; two 
parts: secure our borders; and once that is done, then all the rest of 
it. I believe that would attract 85 or 90 votes. And I would suggest, 
respectfully, to my friend, the Democratic leader, and my friend, the 
Republican leader, that if we are looking for things to do that are 
important, that the American people expect us to act on, that we have 
already demonstrated we can work on together, that within a few weeks 
we take up the matter of immigration, we base it on the Isakson 
principle, and we do not stop until we finish the job.
                                 ______
                                 
      By Mr. THUNE (for himself, Mr. Salazar, and Mr. Hagel):
  S. 331. A bill to provide grants from moneys collected from 
violations of the corporate average fuel economy program to be used to 
expand infrastructure necessary to increase the availability of 
alternative fuels; to the Committee on Energy and Natural Resources.
  Mr. THUNE. Mr. President, I rise today along with my colleague from 
Colorado, Senator Salazar, regarding S. 331, the Alternative Energy 
Refueling Systems Act of 2007. The bill is a very straightforward 
measure that seeks to increase the number of alternative refueling 
stations across our country, something that I hope the full Senate will 
support later this year.
  Today, there are over 9 million alternative fuel automobiles on the 
road in America. However, while automakers have pledged to produce an 
increasing number of these vehicles, there is a serious shortfall in 
the number of gas stations to support these vehicles. For instance, 
while there are more than 6

[[Page 1704]]

million flex-fuel vehicles on the road today which can run on E-85 or 
gasoline, less than 1 percent of all gas stations in this country offer 
E-85 fuel. Clearly, more must be done to increase the availability of 
alternative fuels at the retail level.
  The Alternative Energy Refueling Systems Act would authorize the 
Department of Energy, through the existing Clean Cities Program, to 
provide grants to gas station owners who will install alternative 
refueling systems. These grants would greatly assist in expanding the 
availability of alternative fuels such as E-85, which is a mix of 15 
percent gasoline and 85 percent ethanol, or biodiesel, natural gas, 
compressed natural gas, hydrogen, or liquefied petroleum gas.
  Under this legislation, gas station owners who wish to install a new 
alternative fuel tank would be reimbursed for up to 30 percent of the 
cost, not exceeding $30,000, of expenses related to the purchase and 
installation of a new alternative refueling system. Keep in mind that 
subject to an annual appropriations, funding for these grants would 
come from a portion of the penalties that are collected annually from 
auto manufacturers who violate the Corporate Average Fuel Economy, or 
CAFE standards, most of which are foreign automakers.
  I have to say the cost to install a pump like this generally runs 
somewhere from $30,000 to $40,000 to about $200,000, depending on where 
you are in the country. So obviously, it is a big investment for a lot 
of these filling station owners. But the fact is, they need to have an 
incentive and some assistance to make sure we are closing the gap that 
exists in this country between the production of renewable energy--a 
lot of ethanol production is going on in the country. In my State alone 
we have 11 plants currently operating, 5 more under construction, and 
we will be, by 2008, at 1 billion gallons annually of ethanol in South 
Dakota alone. So when you add to that the ethanol that is produced in 
other areas of the Midwest, we have a lot of production out there, and 
I think we have a big market growing. We have a renewable fuels 
standard that requires that we use 7.5 billion gallons annually by the 
year 2012, which, frankly, I think we will eclipse way before that 
time. Because at the current rate of production, we are going to blow 
by that in a very short time.
  But that being said, there is a requirement out there that a market 
develop for this. We have a lot of consumers around the country who 
would like to have access to renewable energy who believe for a lot of 
reasons, as I do, that it makes sense to lessen our dependence upon 
foreign sources of energy, to become more energy secure. It cleans up 
the environment and, obviously, in my part of the country, it is very 
good for American agriculture. But what we are missing in that 
distribution system is the retail level. We have the production, we 
have the demand, we have a renewable fuels standard, we have a market, 
but we don't have a way of joining those. Because of the costs 
associated with installing some of these pumps, a lot of filling 
station owners are reluctant to do so. What this would do is provide up 
to $30,000 or 30 percent of the cost not to exceed $30,000 toward that 
end. So we think this is a very commonsense approach to doing something 
that we really need to be doing in America today, and that is moving 
away from our dependence upon the oil industry for our energy.
  I wanted to tell my colleagues a little bit about who supports this 
piece of legislation. We have a number of businesses, agricultural and 
alternative energy groups, including General Motors, Ford Motors, 
Daimler Chrysler--all the big domestic automakers--Wal-Mart, the 
Petroleum Marketers Association of America, the National Ethanol 
Vehicle Coalition, the National Association of Fleet Administrators, 
the Renewable Fuels Association, the National Biodiesel Board, the 
National Corn Growers Association, the American Soybean Association, 
the American Coalition for Ethanol, and the National Association of 
Truck Stop Operators.
  So up and down the so-called food chain, from the production, the 
corn growers, the manufacturers of vehicles in this country, those who 
are involved at the retail level with getting fuel out there--filling 
stations, convenience stores--all the agricultural organizations, as I 
said, the ethanol industry, are all very much supportive of this 
particular piece of legislation.
  A measure very similar to this overwhelmingly passed in the House of 
Representatives by a vote of 355 to 9 back on July 4 of 2006. 
Unfortunately, the Senate was unable to consider our companion measure 
before adjourning last year.
  So Senator Salazar and I wholeheartedly believe this is a commonsense 
measure that will significantly increase the number of alternative 
refueling stations nationwide. As I said earlier, it accomplishes a lot 
of objectives that are important from a policy standpoint, a national 
security standpoint, energy security standpoint, and an environmental 
standpoint. This, to me, is a win-win, and I hope the Senate will act 
on it before this year is out. Hopefully, we will start to consider 
very seriously in the weeks and months ahead energy legislation and 
another farm bill, which I hope will have a very robust energy title 
included in it. It is high time we did something substantial to lessen 
or to close this gap we have and this problem that needs to be 
addressed in terms of our ability to continue to grow the renewable 
fuels industry in this country, home-grown energy, energy that we get 
on an annual basis.
  We raise a corn crop every year in South Dakota, as they do in Iowa, 
Minnesota, and Nebraska and in other States across this country which 
are all starting to realize the benefits of ethanol production and what 
it means to their agricultural economy. So this is a good piece of 
legislation that makes sense in so many ways. I hope the very clear 
logic of it will help us prevail in getting it passed in the Senate 
this year.
  This legislation is cosponsored by Senator Hagel of Nebraska and 
Senator Conrad of North Dakota. I again put this bill before the 
Senate, and I look forward to its consideration.
  Mr. SALAZAR. Mr. President, I join my colleague Senator Thune today 
in introducing S. 331, the Thune/Salazar Alternative Fuel Grant 
Program. I am proud that Senators Hagel and Conrad are also joining us 
in this effort.
  This morning I spoke about the dire threat that our dependence on 
foreign oil poses to our energy security and our national security. We 
are simply too vulnerable to oil shocks, supply disruptions, and the 
whims of oil-rich and democracy-poor countries.
  It is time to build a new, clean energy economy that runs on 
biofuels, wind, solar, and alternative energies. This clean energy 
economy will move us out of the shadows of our oil dependence. Our 
farmers, ranchers, engineers, and entrepreneurs should play a lead role 
in this clean energy revolution, and Congress should do more to help 
them.
  The bill that Senator Thune and I are introducing today, S. 331, is a 
straightforward bill that will help expand the availability of 
alternative fuels at our Nation's filling stations.
  It aims to solve a key problem that is slowing the growth of 
alternative fuels in the transportation sector. Although our farmers 
and ranchers are producing more and more biofuels each year, and our 
car manufacturers are building more and more vehicles that run on E-85, 
consumers still have a difficult time finding anything but gasoline at 
their filling station.
  Our alternative fuel infrastructure is woefully behind the times. At 
last count, only a few hundred filling stations around the country 
carried E-85 fuel, while more than 6 million flexible fuel vehicles are 
on the road.
  Consumers should have the choice of whether to fill their car with 
biofuels or with gasoline. Unfortunately, most of them do not.
  The bill we are introducing is simple. It would provide grants to 
eligible gas station owners, farmers, and businesses that install pumps 
to deliver alternative fuels, such as natural gas or E-85.
  The bill uses funds collected through CAFE penalties--approximately 
$20

[[Page 1705]]

million--for grants of up to $30,000. The funding would still be 
subject to annual appropriations and is budget neutral.
  This bill will dramatically improve the availability of alternative 
fuels to consumers. It will allow those with E-85 vehicles to finally 
use the fuel they dream of using. It will also put in place the 
infrastructure we need for cellulosic ethanol, which is expected to 
come to market in just a few years.
  I urge my colleagues to take a serious look at this bill--it is 
common sense, straightforward, fills a clear need, and is fiscally 
responsible.
  I again thank my colleague from South Dakota for his leadership on 
this matter.
                                 ______
                                 
      By Mr. WYDEN:
  S. 334. A bill to provide affordable, guaranteed private health 
coverage that will make Americans healthier and can never be taken 
away; to the Committee on Finance.
  Mr. WYDEN. Mr. President, it has been more than a decade since the 
U.S. Senate last addressed fixing health care. I do not think it is 
morally right for the Senate to duck on health care any longer and that 
is why I am proposing legislation today to provide affordable, 
guaranteed, private health coverage for all Americans.
  The legislation, called the Healthy Americans Act, ensures care for 
the 46 million Americans who now live without health insurance, frees 
business owners from the skyrocketing costs of insuring their workers, 
and promises every American health care coverage that can never be 
taken away. My proposal is fully paid for, holds down health care cost 
growth in the future and provides coverage just like Members of 
Congress can get now.
  America spent $2.2 trillion on health care last year. 
PriceWaterhouseCoopers expects premiums will increase 11 percent this 
year alone and I believe the American health care system as we know it 
is not sustainable.
  Our current employer-sponsored health insurance system is a historic 
accident. In the 1940s, employers needed a way to attract workers as 
wage and price controls continued. Our country needs a uniquely 
American solution that works for an economy that is competing not just 
with the company across town but the company across the world. 
Americans need a health care system that works for individuals and 
families, and encourages people to stay healthy instead of only seeking 
care after they are sick.
  The Healthy Americans Act does this and more. It doesn't take long to 
explain how the Healthy Americans Act works. From the first day 
individuals, families and businesses win. The Healthy Americans Act 
cuts the link between health insurance and employment altogether. Under 
the Healthy Americans Act, businesses paying for employee health 
premiums are required to increase their workers' paychecks by the 
amount they spent last year on their health coverage. Federal tax law 
is changed to hold the worker harmless for the extra compensation, and 
the worker is required to purchase private coverage through an exchange 
in their State that forces insurance companies to offer simplified, 
standardized coverage, with benefits like a Member of Congress gets, 
and prohibits insurers from engaging in price discrimination.
  Requiring employers to cash out their health premiums, as I propose 
in the Healthy Americans Act, is good for both employers and workers. 
With health premiums going up 11 percent this year, employers are going 
to be glad to be exempt from these increases. With the extra money in 
their paycheck, workers have a new incentive to shop for their health 
care and hold down their cost. If a worker can save a few hundred 
dollars on their health care purchase, they can use that money for 
something else they need.
  In addition, the Healthy Americans Act is easy to administer and 
guarantees lifetime health security. Once you have signed up with a 
plan through an exchange in the State in which you live, that is it; 
you have completed the administrative process. Even if you lose your 
job or you go bankrupt, you can never have your coverage taken away. 
Sign up, and the premium you pay for the plan and all of the 
administrative activities are handled through the tax system. For those 
who cannot afford private coverage, the Healthy Americans Act 
subsidizes their purchases.
  Businesses that have not been able to afford health coverage for 
their workers, under the new approach, will pay a fee--one that is 
tiered to their size and revenue, with some paying as little as 2 
percent of the national average premium amount per worker for that 
basic benefit package.
  It will be easy to administer, locally controlled, with guaranteed 
coverage as good as your Member of Congress gets. The Lewin Group has 
costed out my proposal and reports that it is fully paid for and in 
addition to expanding coverage for millions of people, guaranteeing 
health benefits as good as their Member of Congress gets, it also saves 
$4.5 billion in health spending in the first year. Money is saved by 
reducing the administrative costs of insurance, reducing cost shifting, 
and preventing those needless hospital emergency room visits. Also, 
there are substantial incentives that come about because insurance 
companies would have to compete for the business of consumers, who 
would have a new incentive to hold down health costs.
  There are other parts of the Healthy Americans Act I wish to describe 
briefly. As the name of the legislation suggests, I believe strongly 
that fixing American health care requires a new ethic of health care 
prevention, a sharp new focus in keeping our citizens well, and trying 
to keep them from falling victim to skyrocketing rates of increase in 
diabetes, heart attack, and strokes.
  Spending on these chronic illnesses is soaring, and it is especially 
sad to see so many children and seniors fall victim to these diseases. 
Yet many Government programs and private insurance devote most of their 
attention to treating Americans after they are ill and give short 
shrift to wellness.
  Under the Healthy Americans Act, there will be for the first time 
significant new incentives for all Americans to stay healthy. They are 
voluntary incentives, but ones that I think will make a real difference 
in building a national new ethic of wellness and health care 
prevention.
  Parents who enroll children in wellness programs will be eligible for 
discounts in their own premiums. Instead of mandating that parents take 
youngsters to various health programs--and maybe they do and maybe they 
don't--the Healthy Americans Act says when a parent takes a child to 
one of those wellness programs, the parent would be eligible to get a 
discount on the parent's health premiums.
  Under the Healthy Americans Act, employers who financially support 
health care prevention for their workers get incentives for doing that 
as well. Medicare is authorized to reduce outpatient Part B premiums so 
as to reward seniors trying to reduce their cholesterol, lose weight, 
or decrease the risk of stroke. It has never been done before. For 
example, Part B of Medicare, the outpatient part, doesn't offer any 
incentives for older Americans to change their behavior. Everybody pays 
the same Medicare Part B premium right now. The Healthy Americans Act 
proposes we change that and ensures that if a senior from Virginia or 
Oregon or elsewhere is involved in a wellness program, in health care 
prevention efforts, like smoking cessation, they could get a lower Part 
B premium for doing that.
  The preventive health efforts I have described are promoted through 
new voluntary incentives under the Healthy Americans Act, not heavy-
handed mandates. What this legislation says is--let's make it more 
attractive for people to stay healthy and change their behaviors to 
promote the kind of wellness practices we all know we should do but 
need an incentive to follow.
  Finally, and most importantly, the Healthy Americans Act does not 
harm those who have coverage in order to help those who have nothing. 
The legislation makes clear that all Americans retain the right to 
purchase as much

[[Page 1706]]

health care coverage as they want. All Americans will enjoy true health 
security with the Healthy Americans Act, a lifetime guarantee of 
coverage at least as good as their Member of Congress receives.
  A recent ``Health Affairs'' article pointed out that more than half 
of the Nation's uninsured are ineligible for public programs such as 
Medicaid, but do not have the money to purchase coverage for 
themselves.
  At present, for most poor people to receive health benefits, they 
have to go out and try to squeeze themselves into one of the categories 
that entitles them to care. Under the Healthy Americans Act, low-income 
people will receive private health coverage, coverage that is as good 
as a Member of Congress gets, automatically. Like everyone else, they 
will sign up through the exchange in their State. When they are 
working, the premiums they owe are withheld from their paycheck. If 
they lose their job, there is an automatic adjustment in their 
withholding.
  In addition, under the Healthy Americans Act, it will be more 
attractive for doctors and other health care providers to care for the 
poor. Those who are now in underfunded programs, such as Medicaid, are 
going to be able to have private insurance that pays doctors and other 
providers commercial rates which are traditionally higher than Medicaid 
reimbursement rates.
  Because low-income children and the disabled are so vulnerable, if 
Medicaid provides benefits that are not included in the kind of package 
Members of Congress get, then those low-income folks would be entitled 
to get the additional benefits from the Medicaid Program in their 
State.
  The Healthy Americans Act also makes changes in Medicare. As the 
largest Federal health program, Medicare's financial status is far more 
fragile than Social Security. Two-thirds of Medicare spending is now 
devoted to about 5 percent of the elderly population. Those are the 
seniors with chronic illness and the seniors who need compassionate 
end-of-life health care. The Healthy Americans Act strengthens Medicare 
for both seniors and taxpayers in both of these areas.
  In addition to reducing Medicare's outpatient premiums for seniors 
who adopt healthy lifestyles and reduce the prospect of chronic 
illness, primary care reimbursements for doctors and other providers 
get a boost under the Healthy Americans Act. Good primary care for 
seniors also reduces the likelihood of chronic illness that goes 
unmanaged. This reimbursement boost is sure to increase access to care 
for seniors--and I see them all over, in Oregon and elsewhere--who are 
having difficulty finding doctors who will treat them.
  To better meet the needs of seniors suffering from multiple chronic 
illnesses, the Healthy Americans Act promotes better coordination of 
their care by allowing a special management fee to providers who better 
assist seniors with these especially important services.
  Hospice law is changed so that seniors who are terminally ill do not 
have to give up care that allows them to treat their illness in order 
to get the Medicare hospice benefit. In addition, the Healthy Americans 
Act empowers all our citizens wishing to make their own end-of-life 
care decisions. The legislation requires hospitals and other facilities 
to give patients the choice of stating in writing how they would want 
their doctor and other health care providers to handle various end-of-
life care decisions.
  When I announced the Healthy Americans Act last December, I stood 
with an unprecedented coalition of labor and business. Andy Stern, 
president of SEIU said ``It is time for fundamental, not incremental 
change and Senator Wyden has a plan that is practical and principle, 
and sets down a moral test'' `Why doesn't every American have the right 
to the same health care as the President, the Vice President, 535 
members of Congress and 3 million Federal workers?''' Steve Burd, the 
CEO of Safeway, a Fortune 50 company that has focused on prevention and 
wellness, called the Healthy Americans Act ``an innovative proposal 
that lays a foundation to begin a serious discussion on health care 
reform in this country.''
  Ron Pollack of Families USA, listed the principles embodied in the 
Healthy Americans Act that he believes are important: universality; 
subsides to make the coverage affordable; community rating rules so the 
sicker and older are not priced out of the market; and benefits like a 
Member of Congress has today.
  Also at my press conference was Mike Roach, of Portland, OR, a 30-
year member of National Federation of Independent Businesses. He owns a 
clothing store in Portland and employs eight people. He believes the 
Healthy Americans Act will help him attract good employees. And Bob 
Beal, president of Oregon Iron Works, an Oregon-based company that 
competes internationally, believes that we must also address the 
skyrocketing health care costs that make it harder for companies like 
his in the international market place.
  Like me, the people who stood by me when I announced the Healthy 
Americans Act believe we need to move the health care debate forward 
and cannot afford to let more time to go by. The last time Congress 
took a serious look at reforming health care, there wasn't anything 
resembling this kind of coalition of labor, business, low-income and 
end-of-life advocates standing together to call for action.
  In tackling one-seventh of the economy, invariably technical issues 
arise. I want to thank many people who have assisted along the way. Len 
Nichols of the New America Foundation sent me e-mails at 2 in the 
morning that helped refine provisions. John Sheils, Randy Haught and 
Evelyn Murphy of the Lewin Group assisted in telling us our numbers 
worked or didn't. The Congressional Research Service staff followed up 
on questions from the common to the obscure. That group included: Bob 
Lyke, Jeanne Hearne, April Grady, Julie Whitaker, Christine Scott, 
Chris Peterson, Richard Rimkunas, Karen Trintz, Julie Stone and Andrew 
Sommers. The Senate Legislative Counsel staff translated the ideas and 
concepts into legislative language. They devoted an enormous amount of 
time in getting the ideas and the language right. I'd like to thank 
Mark Mathiesen, Mark McGunagle, Bill Baird, John Goetcheus, Stacy Kern-
Sheerer, Kelly Malone and Ruth Ernest for their patience and 
extraordinary effort.
  On my staff, Joshua Sheinkman, my legislative director and Jeff 
Michaels, my administrative assistant, were instrumental in completing 
the tax and business sections of the bill. Emily Katz who started in my 
office as a legislative fellow and became a permanent part of the Wyden 
health team made sure we had credible facts and statistics. Last but 
not least, I would like to thank Stephanie Kennan, my Senior Health 
Policy Adviser for the last 9 years who played devil's advocate, worked 
through the conflicting and evolving ideas, and kept the many threads 
of the bill working together.
  The full text of the Healthy Americans Act and the Lewin analysis are 
available on my Web site.
  In closing, I believe that without your health, you don't get to the 
starting line of life. For too long, the Congress has dodged the debate 
and chosen to slice off parts of the issue. And as worthy as those past 
efforts have been to help certain segments of our citizens, all 
Americans deserve guaranteed coverage like their Member of Congress, 
and no one should go to bed at night worrying about losing their health 
care. It is time for Congress to provide 21st century solutions to one 
of the most important issues our country must address. The Healthy 
Americans Act starts that debate.
  I ask unanimous consent, that the Healthy Americans Act section-by-
section summary, and examples of how the legislation would affect 
individuals and families and employers be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

              The Healthy Americans Act Section by Section

       Section 1-- Short Title and Table of Contents

[[Page 1707]]

       Section 2--Findings
       Section 3--Definitions


           TITLE I: HEALTHY AMERICANS PRIVATE INSURANCE PLANS

                Subtitle A--Guaranteed Private Coverage

       Section 101: Guarantee of Healthy Americans Private 
     Insurance Coverage: Within 2 years of enactment States must 
     create a system as outlined in the bill to provide 
     individuals the opportunity to purchase a Healthy Americans 
     Private Insurance (HAPI) plan that meets the requirements of 
     the Act.
       Section 102: Individual Responsibility to Enroll: Adults 
     (over age 19, U.S. citizens, not incarcerated) must enroll 
     themselves and dependent children in a plan offered through 
     the state-wide Health Help Agency (HHA) unless they provide 
     evidence of enrollment or coverage through Medicare, a health 
     insurance plan offered by the Department of Defense, an 
     employee benefit plan through a former employer (i.e. retiree 
     health plans), a qualified collective bargaining agreement, 
     the Department of Veterans Affairs, or the Indian Health 
     Service.
       Religious Exemption: If a person opposes for religious 
     reasons to purchasing health insurance the requirement may be 
     waived.
       Dependent Children: Each adult has the responsibility to 
     enroll each child in a plan. Dependent children include 
     individuals up to age 24 claimed by their parents for 
     deductions in the tax code.
       Penalty for Failure to Purchase Coverage: If an individual 
     fails to purchase coverage and does not meet the exceptions 
     or the religious exemption, then a financial penalty will be 
     assessed. The penalty is calculated by multiplying the number 
     of uncovered months times the weighted average of the monthly 
     premium for a plan in the person's coverage class and 
     coverage area, plus 15 percent. Payments will be made to the 
     HHA of the State in which the person resides. That agency 
     also may establish a procedure to waive the penalty if the 
     penalty poses a hardship. Each State shall determine 
     appropriate mechanisms to enforce the requirement that 
     individuals be enrolled, but the enforcement cannot be the 
     revocation or ineligibility of coverage.

 Subtitle B--Standards for Healthy Americans Private Insurance Coverage

       Section 111: Healthy Americans Private Insurance Plans: At 
     least two plans that meet the requirements of the Act must be 
     offered through the Health Help Agency in each State. The 
     offerings permitted through Health Help include several 
     options: (1) a plan similar to the Blue Cross Blue Shield 
     Standard Plan provided under the Federal Employees Health 
     Benefit Program as of January 1, 2007; (2) plans with 
     additional benefits added to the standard plan so long as 
     those benefits are priced and displayed separately; and (3) 
     actuarial equivalent plans to the standard plan. In addition, 
     plans must provide benefits for wellness programs; incentives 
     to promote wellness; provide coverage for catastrophic 
     medical events resulting in the exhaustion of lifetime 
     limits; create a health home for the covered individual or 
     family; ensure that as part of a first visit with a primary 
     care physician, a care plan is developed to maximize the 
     health of the individual through wellness and prevention 
     activities; provide for comprehensive disease prevention, 
     early detection and management; and provide for personal 
     responsibility contributions at the time services are 
     administered except for preventive items or services for 
     early detection.
       Family Planning: A health insurance issuer must make 
     available supplemental coverage for abortion services that 
     may be purchased in conjunction with a HAPI plan or an 
     actuarially equivalent HAPI.
       Actuarial Equivalent Plans: Actuarial equivalent plans have 
     to have a set of core benefits that include preventive items 
     and services; inpatient and outpatient hospital services; 
     physicians' surgical and medical services; and laboratory and 
     X-ray services. Like the other HAPI plans, actuarial 
     equivalent plans cannot charge copays for prevention and 
     chronic disease management items or services.
       Coverage Classes: There will be the following coverage 
     classes: (1) individual; (2) married couple or domestic 
     partnership (as determined by a State) without dependent 
     children; (3) coverage of an adult individual with 1 or more 
     dependent children; (4) coverage of a married couple or 
     domestic partnership as determined by a State with one or 
     more dependent children.
       Premium Determinations: Community rating or adjusted 
     community rating principles established by the State will be 
     used. States may permit premium variations based only on 
     geography, smoking status, and family size. States may 
     determine to have no variations.
       A State shall permit a health insurance issuer to provide 
     premium discounts and other incentives to enrollees based on 
     participation in wellness, chronic disease management, and 
     other programs designed to improve the health of 
     participants.
       Limitations: Age, gender, industry, health status or claims 
     experience may not be used to determine premiums.
       Section 112: Specific Coverage Requirements: This section 
     requires existing provisions of law currently applied to 
     group health markets to be applied to the plans offered 
     through Health Help Agencies including: protections for 
     coverage of pre-existing conditions; guaranteed availability 
     of coverage; guaranteed renewability of coverage; prohibition 
     of discrimination based on health status; coverage 
     protections for mothers and newborns, mental health parity, 
     and reconstructive surgery following a mastectomy; and 
     prohibition of discrimination on the basis of genetic 
     information.
       This section also states that a HAPI plan shall not 
     establish rules for eligibility for enrollment based on 
     genetic information, and premiums and personal responsibility 
     payments cannot be adjusted based on genetic information. A 
     plan cannot request or require an individual to have a 
     genetic test.
       Section 113: Updating Healthy Americans Private Insurance 
     Plan Requirements: The Secretary of Health and Human Services 
     (HHS) shall create a 15-person advisory committee that will 
     report annually to Congress and the Secretary concerning 
     modifications to benefits, items and services. The committee 
     members will include a health economist; an ethicist; health 
     care providers including nurses and other non-physician 
     providers; health insurance issuers; health care consumers; a 
     member of the U.S. Preventive Services Task Force; and an 
     actuary.

    Subtitle C--Eligibility for Premium and Personal Responsibility 
                         Contribution Subsidies

       Section 121: Eligibility for Premium Subsidies: Individuals 
     and families with modified adjusted gross incomes of 100% of 
     poverty ($9,800 individual, $20,000 for a family of four) and 
     below will be eligible for a full subsidy with which to 
     purchase health insurance. For individuals and families with 
     income between 100% of poverty and 400% of poverty ($39,200 
     for an individual, $52,800 for a couple and $80,000 for a 
     family of four), subsidies will be provided on a sliding 
     scale.
       [Note: To calculate the subsidy level, the individual or 
     family would first subtract the health deductions and a 
     deduction for children in the family to determine the 
     modified adjusted gross income. See deductions in Section 
     664.]
       Individuals have 60 days to notify the HHA that there has 
     been a change in income which may make them eligible or 
     ineligible for the subsidy. States may also develop other 
     mechanisms to ensure individuals do not have a break in 
     coverage due to a catastrophic financial event.
       Section 122: Eligibility for Personal Responsibility 
     Contribution Subsidies:
       Full subsidy: Individuals who have a modified adjusted 
     gross income below 100 percent of poverty will receive a 
     subsidy amount equal to the full amount of any personal 
     responsibility contributions.
       Partial subsidy: For individuals with modified adjusted 
     gross incomes at or above 100 percent of poverty an HHA may 
     provide a subsidy equal to the amount of any personal 
     responsibility contributions the person incurs.
       Section 123: Definitions and Special Rules:
       The term modified adjusted gross income means adjusted 
     gross income as defined in the Internal Revenue Code 
     increased by the amount of interest received during the year 
     and the amount of any Social Security benefits received 
     during the taxable year.
       Taxable year to be used to determine modified adjusted 
     gross income is determined by the individual's most recent 
     income tax return and other information the Secretary may 
     require.
       Poverty Line is the meaning given in the Community Health 
     Services Block Grant.
       The Secretary shall promulgate regulations to be used by 
     the HHAs to calculate premium subsides and personal 
     responsibility subsidies for individuals whose modified 
     adjusted gross income is significantly lower than for the 
     previous year being used to calculate the premium subsidy.
       Special Rule for Unlawfully Present Aliens: Subsidies may 
     not go to adult illegal aliens.
       Special Rule for Aliens: If an alien owes either a premium 
     payment or a penalty, the alien's visa may not be renewed or 
     adjusted.
       Bankruptcy: Debts created by failing to pay premiums are 
     not dischargeable through bankruptcy.

                     Subtitle D--Wellness Programs

       Section 131: Requirements for Wellness Programs:
       Defining Wellness: Wellness programs must consist of a 
     combination of activities designed to increase awareness, 
     assess risks, educate and promote voluntary behavior change 
     to improve the health of an individual, modify his or her 
     consumer health behavior, enhance his or her personal well-
     being and productivity, and prevent illness and injury.
       Discounts on premiums: Individuals who participate 
     successfully in approved wellness programs are eligible for a 
     discounted premium, including rewarding parents if their 
     child participates in an approved wellness program. 
     Determinations concerning successful participation by an 
     individual in a wellness program shall be made by the plan 
     based on a retrospective review of the activities the 
     individual participated in and the plan may require a minimum 
     level of successful participation.
       A plan may choose to provide discounts on personal 
     responsibility contributions.

[[Page 1708]]

       Wellness programs approved by the insurer must be offered 
     to all enrollees and permit enrollees an opportunity to meet 
     a reasonable alternative participation standard if it is 
     medically inadvisable to attempt to meet the initial program 
     standard. Participation in wellness programs cannot be used 
     as a proxy for health status.
       To be an approved wellness program, the program must be 
     designed to promote good health and prevent disease, is 
     approved by the HAPI plan, and is offered to all enrollees.
       Employers may deduct the costs of offering wellness 
     programs or worksite health centers.


                  TITLE II: HEALTHY START FOR CHILDREN

                  Subtitle A--Benefits and Eligibility

       Section 201: General Goal and Authorization of 
     Appropriations for HAPI Plan Coverage for Children: The 
     general goal of Healthy Start is to ensure all children 
     receive health coverage that is good quality, affordable and 
     includes prevention-oriented benefits.
       Funds needed for this section are to be appropriated.
       If a child is in a family with an income of 300% or below 
     and the child does not have coverage, Healthy Start shall 
     ensure the child is enrolled in a plan. The States and 
     insurers shall create a separate class of coverage for 
     children not enrolled in a plan by an adult. A child is 
     defined as those under the age of 18 or in the case of foster 
     care, under the age of 21.
       Section 202: Coordination of Supplemental Coverage under 
     the Medicaid Program to HAPI Plan Coverage for Children: If a 
     child was receiving services through Medicaid that are not 
     offered through the private coverage offered through Health 
     Help, Medicaid will continue to provide that assistance. This 
     includes Early Periodic Screening Diagnosis and Treatment 
     (EPSDT) services.

                     Subtitle B--Service Providers

       Section 211: Inclusion of Providers under HAPI Plans: 
     Children receiving care though school based health centers, 
     other centers funded through Public Health Service Act, rural 
     health clinics or an Indian Health Service facility will be 
     provided services at no cost or HAPI plans will reimburse the 
     providers for the services.
       Section 212: Use of, and Grants for, School Based Health 
     Centers: Creates and defines school based health centers and 
     provides for grants to develop more school based health 
     centers.
       School based health centers must be located in elementary 
     or secondary schools, operated in collaboration with the 
     school in which the center is located; administered by a 
     community-based organization including a hospital, public 
     health department, community health center, or nonprofit 
     health care agency. The school based health center must 
     provide primary health care services including health 
     assessments, diagnosis and treatment of minor acute or 
     chronic conditions and Healthy Start benefits; and mental 
     health services. Services must be available when the school 
     is open and through on call coverage. Services are to be 
     provided by appropriately credentialed individuals including 
     nurse practitioner, physician assistant, a mental health 
     professional, physician or an assistant. Centers must use 
     electronic medical records by January 1, 2010. In addition, 
     the centers may also provide preventive dental services 
     consistent with State licensure law through dental hygienists 
     or dental assistants.
       School based health centers may provide services to 
     students in more than one school if it is determined to be 
     appropriate.
       A parent must give permission for the child to receive care 
     in a school based health center. Centers may seek 
     reimbursement from a third party payer including HAPI plans. 
     Funds received from third party payer reimbursement shall be 
     allocated to the center in which the care was provided.
       Development Grants: The Secretary shall provide grants to 
     local school districts and communities for the establishment 
     and operation of school based health centers. The Secretary 
     shall give priority to applicants who will establish a school 
     based health center in medically underserved areas or areas 
     for which there are extended distances between the school 
     involved and appropriate providers of care for children; 
     services students with the highest incidence of unmet medical 
     and psycho social needs; and can demonstrate that funding 
     state, local or community partners have provided at least 50 
     percent of the funding for the center to ensure the ongoing 
     operation of the center.
       Federal Tort Claims Act: A health care provider shall have 
     malpractice coverage through the Federal Tort Claims Act for 
     services provided through a school based health center.


       TITLE III: BETTER HEALTH FOR OLDER AND DISABLED AMERICANS

        Subtitle A--Assurance of Supplemental Medicaid Coverage

       Section 301: Coordination of Supplemental Coverage under 
     the Medicaid Program for Elderly and Disabled Individuals: 
     The Secretary shall provide guidance to States and insurers 
     that takes into account the specific health care needs of 
     elderly and disabled individuals who receive Medicaid 
     benefits so that Medicaid may provide services not provided 
     by HAPI plans.

Subtitle B--Empowering Individuals and States To Improve Long-Term Care 
                                Choices

       Section 311: New, Automatic Medicaid Option for State 
     Choices for Long-Term Care: If a State decides to do a waiver 
     similar to the Vermont waiver which allows individuals to 
     have access to home and community based services, so long as 
     the State meets criteria specified, the State may 
     automatically implement the program.
       Section 312: Simpler and More Affordable Long-Term Care 
     Insurance Coverage: This section creates Medigap-like models 
     for tax qualified long term care policies and adds additional 
     consumer protections.
       A Qualified Long Term Care Plan is a plan that meets the 
     standards and requirements developed by either the National 
     Association of Insurance Commissioners (NAIC) or by federal 
     regulations.
       Development of Standards and Requirements: Within 9 months 
     after the date of enactment, the NAIC should adopt a model 
     regulation to regulate limitations on the groups or packages 
     of benefits that may be offered under a long term care 
     insurance policy; uniform language and definitions; uniform 
     format to be used in the policy with respect to benefits; and 
     other standards required by the Secretary of HHS.
       If NAIC does not adopt a model regulation with the 9-month 
     period, the Secretary shall promulgate regulations within 9 
     months that do the same as the above section. In developing 
     standards and requirements, the Secretary shall consult with 
     a working group of representatives of long term care 
     insurers, beneficiaries and consumer groups, and other 
     individuals.
       Limitations on Groups and Packages of Benefits: The model 
     regulation or federal regulation shall provide for the 
     identification of a core group of basic benefits common to 
     all policies and the total number of different benefit 
     packages and combination of benefits that maybe offered as a 
     separate benefit package may not exceed 10.
       The objectives that need to be balanced in developing the 
     packages are: to simplify the market to facilitate 
     comparisons among policies; avoiding adverse selection; 
     provide consumer choice; provide market stability and promote 
     competition.
       The requirements would go into effect no later than one 
     year after the date NAIC or the Secretary adopts the 
     standards.
       Required State Legislation: State legislatures would adopt 
     the standards.
       Additional Consumer Protections: This section amends the 
     1993 NAIC model regulation and model Act to require 
     additional consumer protections for qualified long term care 
     policies concerning, guaranteed renewal or noncancelability; 
     prohibitions on limitations and exclusions, continuation or 
     conversion of coverage, unintentional lapse, probationary 
     periods, preexisting conditions, and other issues.
       Any person selling a long term care insurance policy shall 
     make available for sale a policy with only the core group of 
     basic benefits.


                      TITLE IV: HEALTHIER MEDICARE

  Subtitle A--Authority To Adjust Amount of Part B Premium To Reward 
                        Positive Health Behavior

       Section 401: Authority to Adjust Amount of Medicare Part B 
     Premium to Reward Positive Health Behavior: The Secretary may 
     adjust Part B premiums for an individual based on whether or 
     not the individual participates in healthy behaviors, 
     including weight management, exercise, nutrition counseling, 
     refraining from tobacco use, designating a health home, and 
     other behaviors determined appropriate by the Secretary. In 
     adjusting the Part B premium, the Secretary must ensure 
     budget neutrality and the aggregate must be equal to 25 
     percent of premium paid (as in current law).

     Subtitle B--Promoting Primary Care for Medicare Beneficiaries

       Section 411: Primary Care Services Management Payment: This 
     section requires the Secretary to create a primary care 
     management fee for providers who are designated the health 
     home of a Medicare beneficiary and who provide continuous 
     medical care, including prevention and treatment, and 
     referrals to specialists. This section is cross referenced in 
     the chronic care disease management section so that primary 
     care physicians providing chronic disease management may 
     receive the primary care services management fee for those 
     services. The amount of the payment will be determined by the 
     Secretary in consultation with MedPAC.
       Requirement for Designation as a Health Home: The 
     management fee shall be provided if the beneficiary has 
     designated the provider as a health home. A health home is a 
     provider that a Medicare beneficiary has designated to 
     monitor the health and health care of the senior.

              Subtitle C--Chronic Care Disease Management

       Section 421: Chronic Care Disease Management: This section 
     requires Medicare to have a chronic disease management 
     program available to all Medicare beneficiaries no later than 
     January 1, 2008. The program must cover the 5 most prevalent 
     diseases. Physicians who are not primary care providers, but 
     do provide chronic disease management may receive an 
     additional payment

[[Page 1709]]

     for providing chronic disease management. The fee will be 
     determined by the Secretary in consultation with MedPAC.
       The Secretary shall establish procedures for identifying 
     and enrolling Medicare beneficiaries who may benefit from 
     participation in the program.
       Section 422: Chronic Care Education Centers: This section 
     creates Chronic Care Education Centers to serve as 
     clearinghouses for information on health care providers who 
     have expertise in the management of chronic disease.

               Subtitle D--Part D Improvements Chapter 1

       Section 431: Negotiating Fair Prices for Medicare 
     Prescription Drugs (based on Snowe-Wyden MEND bill): This 
     section provides the Secretary with authority to negotiate 
     prices with manufacturers of prescription drugs. The 
     Secretary must negotiate for fall back plans and if a plan 
     requests assistance. However, the authority to negotiate is 
     not limited to these two scenarios. Specifies no uniform 
     formulary or price setting is permitted. Savings are to go 
     towards filling the coverage gap or deficit reduction.
       Section 432: Process for Individuals Entering the Medicare 
     Coverage Gap to Switch to a Plan that Provides Coverage in 
     the Gap (based on Snowe-Wyden Lifeline Act to permit people 
     to change plans if they hit the donut hole): Permits 
     individuals to change plans if they hit the coverage gap. In 
     addition, the section requires the Secretary to notify 
     individuals they are getting close to the coverage gap and 
     what their options are. This provision would sunset 5 years 
     after enactment.

      Subtitle E--Improving Quality in Hospitals for All Patients

       Section 441: Improving Quality in Hospitals for All 
     Patients: Within 2 years after enactment, hospitals must 
     demonstrate to accrediting bodies improvements in quality 
     control that include: rapid response teams; heart attack 
     treatments; procedures that reduce medication errors; 
     infection prevention; procedures that reduce the incidence of 
     ventilator-related illnesses; and other elements the 
     Secretary wishes to add.
       Within 2 years after enactment, the Secretary shall convene 
     a panel of independent experts to ensure hospitals have state 
     of the art quality control that is updated on an annual 
     basis.

               Subtitle F--End-of-Life Care Improvements

       Section 451: Patient Empowerment and Following a Patient's 
     Health Care Wishes: Within 2 years after enactment, health 
     care facilities receiving Medicare funds must provide each 
     patient with a document designed to promote patient autonomy 
     by documenting the patient's treatment preferences and 
     coordinating these preferences with physician orders. The 
     document must transfer with the patient from one setting to 
     another; provide a summary of treatment preferences in 
     multiple scenarios by the patient or the patient's guardian 
     and a physician or other practitioner's order for care; is 
     easy to read in an emergency situation; reduces repetitive 
     activities in complying with the Patient Self Determination 
     Act; ensures that the use of the document is voluntary by the 
     patient or the patient's guardian; is easily accessible in 
     the patient's medical chart and does not supplant State 
     health care proxy, living wills or other end-of-life care 
     forms.
       Section 452: Permitting Hospice Beneficiaries to Receive 
     Curative Care: Changes the current Medicare requirement that 
     to choose hospice an individual must give up curative care. 
     Instead, an individual may continue curative care while 
     receiving hospice.
       Section 453: Providing Beneficiaries with Information 
     Regarding End-of-Life Care Clearinghouse: When signing up for 
     Medicare, the Secretary shall refer people to the 
     clearinghouse described in this Act.
       Section 454: Clearinghouse: The Secretary shall establish a 
     national toll-free information clearinghouse that the public 
     may access to find out State-specific information regarding 
     advance directives and end-of-life care decisions. If such a 
     clearinghouse exists and is administered by a not-for-profit 
     organization the Secretary must support that clearinghouse 
     instead of creating a new one.

                   Subtitle G--Additional Provisions

       Section 461: Additional Cost Information: The Secretary of 
     HHS shall require Medicare Advantage Organizations to 
     aggregate claims information into episodes of care and to 
     provide the information to the Secretary so costs for 
     specific hospitals and physicians may be measured and 
     compared. The Secretary shall make the information public on 
     an annual basis.
       Section 462: Reducing Medicare Paperwork and Regulatory 
     Burdens: Not later than 18 months after the date of 
     enactment, the Secretary shall provide to Congress a plan for 
     reducing regulations and paperwork in the Medicare program. 
     The plan shall focus initially on regulations that do not 
     directly enhance the quality of patient care provided under 
     Medicare.


                  title v: state health help agencies

       Section 501: Establishment: Each state will establish a 
     Health Help Agency to administer HAPI plans. States must 
     establish an HHA in order to get transition payments to 
     develop them.
       Section 502: Responsibilities and Authorities: Health Help 
     Agencies shall promote prevention and wellness through 
     education; distribution of information about wellness 
     programs; making available to the public the number of 
     individuals in each plan that have chosen a health home; and 
     promoting the use and understanding of health information 
     technology.
       Enrollment Oversight: Each HHA shall oversee enrollment in 
     plans by: providing standardized unbiased information on 
     plans available; administering open enrollment periods; 
     assisting changes required by birth, divorce, marriage, 
     adoption or other circumstances that may affect the plan a 
     person chooses; establishing a default enrollment process; 
     establishing procedures for hospitals and other providers to 
     report individuals not enrolled in a plan; ensuring 
     enrollment of all individuals; developing standardized 
     language for plan terms and conditions to be used; providing 
     enrollees with a comparative document of HAPI plans; and 
     assisting consumers in choosing a plan by publishing loss 
     ratios, outcome data regarding wellness programs, and disease 
     detection and chronic care management programs categorized by 
     health insurer.
       The HHA will determine and administer subsidies to eligible 
     individuals and collect premium payments made by or on behalf 
     of individuals and send the payments to the plans.
       HHAs shall empower individuals to make health care 
     decisions by providing State-specific information concerning 
     the right to refuse treatment and laws relating to end-of-
     life care decisions; and by providing access to State forms.
       Each HHA will establish plan coverage areas for the State.
       States that share one or more metropolitan statistical 
     areas may enter into agreements to share responsibilities for 
     administration.
       States will have to work with the Secretary of HHS to 
     ensure transition from Medicaid and SCHIP is orderly and that 
     individuals receiving other benefits from Medicaid continue 
     to do so.
       Section 503: Appropriations for Transition to State Health 
     Help Agencies: States will receive federal funds to establish 
     HHAs for two full fiscal years. States may assess insurers 
     for administrative costs of running their HHAs.


                   TITLE VI--SHARED RESPONSIBILITIES

                Subtitle A--Individual Responsibilities

       Section 601: Individual Responsibility to Ensure HAPI Plan 
     Coverage: Individuals must enroll themselves and their 
     children in a plan during open enrollment periods; submit 
     documentation to the HHA to determine premium and personal 
     responsibility contribution subsidies; pay the required 
     premium and personal responsibility contributions; and inform 
     the HHA of any changes that affect family status or 
     residence.

                 Subtitle B--Employer Responsibilities

       Section 611: Health Care Responsibility Payments: Reorders 
     and changes the IRS code.

         Subchapter A: Employer Shared Responsibility Payments

       Section 3411: Payment Requirement: Employer Shared 
     Responsibility Payments: Every Employer must make an employer 
     shared responsibility payment (ESR) for each calendar year in 
     the amount equal to the number of full time equivalent 
     employees employed by the employer during the previous year 
     multiplied by a percentage of the average HAPI plan premium 
     amount. The percentage used is determined by size and revenue 
     per employee.
       Once in effect, the percentages employers would pay are:
       Large employers:
       0-20th percentile 17%
       21st-40th percentile 19%
       41st-60th percentile 21%
       61st-80th percentile 23%
       81st-99th percentile 25%
       Small employers:
       0-20th percentile 2%
       21st-40th percentile 4%
       41st-60th percentile 6%
       61st-80th percentile 8%
       81st-99th percentile 10%
       At the beginning of each calendar year, the Secretary in 
     consultation with the Secretary of Labor shall publish a 
     table based on a sampling of employers to be used in 
     determining the national percentile for revenue per employee 
     amounts.
       Transition Rates: Employers who offered health insurance 
     prior to enactment will contribute ``make good'' payments to 
     their employees. The payments will be equal to the cash value 
     of the health insurance provided and the amount will be added 
     to the employee's wages. These employers will not be required 
     to make any other payments in the first two years.
       If an employer did not provide health insurance to 
     employees prior to this legislation, the employer shared 
     responsibility payment for the first year will be equal to 
     one-third of the amount otherwise required and the payment 
     for the second year will be two thirds of the amount 
     required.
       Employer Shared Responsibility Credit: The Secretary may 
     provide a credit to private employers who provided health 
     insurance benefits greater than the 80th percentile of the 
     national average in the 2 years

[[Page 1710]]

     prior to enactment, can demonstrate the benefits provided 
     encouraged prevention and wellness activities and continue to 
     provide wellness programs.
       Section 3412: Instrumentalities of the United States: State 
     and local governments must make employer shared 
     responsibility payments.

        Subchapter B: Individual Shared Responsibility Payments

       Section 3421: Amount of Payment: Every individual shall pay 
     an amount equal to the premium amount they owe.
       Section 3422: Deduction of Individual Shared Responsibility 
     Payment from Wages: Employers may deduct the amount of the 
     payment for premiums from their employees' wages.

                    Subchapter C: General Provisions

       Section 3431: Definitions and Special Rules: Provides 
     definitions.
       The average HAPI plan premium used to compute employer 
     responsibility payments will be a simple average of all four 
     premium classes (individuals, married, head of household and 
     family)
       All individuals who perform work for an employer for more 
     than three months in the previous calendar year and who meet 
     the definition of common law employee, either full or part 
     time, will be counted toward the employer's total employees 
     when determining the employer shared responsibility payments.
       Section 3431: Definitions and Special Rules: Provides 
     definitions
       Section 3432: Labor Contracts: In general these provisions 
     do not apply to collective bargaining agreements until the 
     earlier of 7 years after the date of enactment or the date 
     the collective bargaining agreement expires.
       Section 612: Distribution of Individual Responsibility 
     Payments to HHAs: The Treasury will provide to each HHA an 
     amount equal to the amount of individual shared 
     responsibility payments made through the tax code by each 
     eligible individual.

                  Subtitle C--Insurer Responsibilities

       Section 621: Insurer Responsibilities: To offer a HAPI plan 
     through an HHA, insurers will be required to: implement and 
     emphasize prevention, early detection and chronic disease 
     management; ensure wellness programs are available; 
     demonstrate how provider reimbursement methodology achieves 
     quality and cost efficiency; ensure a physical and a care 
     plan are available to the individual; ensure enrollees have 
     the opportunity to designate a health home and make public 
     how many enrollees have designated a health home; create a 
     medical record if the patient wants one; comply with loss 
     ratios established; use common claims form and billing 
     practices; make administrative payments the State requires 
     for the operation of its HHA; provide discounts and 
     incentives for the parent if the child participates in a 
     wellness program; report outcome data on wellness programs, 
     disease detection and chronic care management, and loss ratio 
     information; send large hospital bills to patients with a 
     contact name so the patient can contact a person to discuss 
     questions or complaints; and provide HHA with information 
     concerning the plans offered.
       Insurers must use standardized common claim forms 
     prescribed by the State HHA chronic care programs offered 
     must help provide early identification and management. Each 
     program will use a uniform set of clinical performance 
     standards.
       Insurers must report performance and outcomes of chronic 
     care management programs and loss ratios. Loss ratios will be 
     defined by the Secretary in consultation with NAIC, 
     consumers, and insurers.
       Defines administrative expenses as including all taxes, 
     reinsurance premiums, medical and dental consultants used in 
     the adjudication process, concurrent or managed care review 
     when not billed by a health provider and other forms of 
     utilization review, the cost of maintaining eligibility 
     files, legal expenses incurred in the litigation of benefit 
     payments and bank charges for letters of credit.
       The cost of personnel, equipment and facilities directly 
     used in the delivery of health care services, payments to 
     HHAs and the cost of overseeing chronic disease management 
     programs and wellness programs are not included in the 
     definition of administrative costs.

                   Subtitle D--State Responsibilities

       Section 631: State Responsibilities: States must: designate 
     or create a Health Help Agency; ensure HAPI plans are sold 
     through the HHA and comply with requirements (there must be 
     at least two HAPI plans offered); develop mechanisms for 
     enrollment and the collection of premiums; ensure enrollment 
     and develop methods to check on enrollment status; implement 
     mechanisms to enforce the individual responsibility to 
     purchase coverage (but this may not include revocation of 
     insurance); and implement a way to automatically enroll 
     individuals who are not covered and seek care in emergency 
     departments.
       States will continue to apply State law on consumer 
     protections and licensure.
       States must continue a maintenance of effort so they are 
     required to contribute 100 percent of what they spent on 
     health services prior to enactment.
       Section 632: Empowering States to Innovate through Waivers: 
     A State may be granted a waiver if the legislature enacts 
     legislation or the State approves through ballot initiative a 
     plan to provide heath care coverage that is at least as 
     comprehensive as required under a HAPI plan. If the State 
     submits a waiver to the Secretary, the Secretary must respond 
     no later than 180 days and if the Secretary refuses to grant 
     a waiver, the Secretary must notify the State and Congress 
     about why the waiver was not granted.

         Subtitle E--Federal Fallback Guarantee Responsibility

       Section 641: Federal Guarantee of Access to Coverage: If a 
     State does not establish an HHA and have a system up within 
     two years, the Secretary shall establish a fallback plan so 
     individuals can still receive a HAPI plan.

             Subtitle F--Federal Financing Responsibilities

       Section 561: Appropriation for Subsidy Payments: 
     Appropriations will be made each year to fund the insurance 
     premium subsides.
       Section 652: Recapture of Medicare and 90 Percent of 
     Medicaid Federal DSH Funds to Strengthen Medicare and Ensure 
     Continued Support for Public Health Programs: All of Medicare 
     DSH stops and remains in the Part A Trust Fund.
       Medicaid DSH continues at 10 percent of current levels. The 
     amount not spent is put into a new trust fund, the ``Healthy 
     Americans Public Health Trust Fund.''
       Section 9511: Healthy Americans Public Health Trust Fund: 
     The Treasury shall establish a trust fund in which the funds 
     that would have been spent on Medicaid DSH will now go. This 
     trust fund will be used only for premium and personal 
     responsibility payment subsidies and to States for a bonus 
     payment if they adopt certain medical malpractice reforms. 
     Any additional amounts will go toward reducing the federal 
     budget deficit.

    Subtitle G--Tax Treatment of Health Care Coverage Under Healthy 
  Americans Program; Termination of Coverage Under Other Governmental 
          Programs and Transition Rules for Medicaid and SCHIP

       Part 1: Tax Treatment of Health Care Coverage Under Healthy 
     Americans Program
       Section 661: Limited Employee Income and Payroll Tax 
     Exclusion for Employer Shared Responsibility Payments, 
     Historic Retiree Health Contributions, and Transitional 
     Coverage Contributions: The following payments made by 
     employers are not taxable as income to their employees: (1) 
     shared responsibility payments by employers; (2) payments for 
     coverage of retirees under existing retiree health plans; (3) 
     payments for continuing employer-provided health plans under 
     existing collective bargaining agreements; and (4) payments 
     for employer-provided coverage for long-term care.
       Section 662: Exclusion for Limited Employer-Provided Health 
     Care Fringe Benefits: The value of employer-provided wellness 
     programs and on-site first aid coverage for employees is not 
     taxable as income to the employees.
       Section 663: Limited Employer Deduction for Employer Shared 
     Responsibility Payments, Retiree Health Contributions and 
     other Health Care Expenses: Limits the current employer 
     deduction for the costs of employee health care coverage to 
     the following: (1) shared responsibility payments made by 
     employers; (2) coverage of retirees under existing retiree 
     health plans; (3) continuing employer-provided health plans 
     under existing collective bargaining agreements; (4) 
     employer-provided wellness programs; and (5) on-site first 
     aid coverage for employees.
       Section 664: Health Care Standard Deduction: Creates a new 
     Health Care Standard Deduction. Taxpayers can claim this 
     deduction and reduce the amount they pay in taxes whether 
     they file an itemized tax return or take the standard 
     deduction. The amount of the deduction a taxpayer can claim 
     depends on the class of health care coverage the taxpayer 
     has. The deduction is indexed to the consumer price index 
     with the deduction amounts initially set as follows:
       Individual coverage--$6,025
       Married couple or domestic partnership coverage--$12,050
       Unmarried individual with dependent children--$8, 610 plus 
     $2,000 for each dependent child
       Married couple or domestic partnership (as determined by a 
     State) with dependent children--$15,210 plus $2,000 for each 
     dependent child
       The deduction can be claimed by individuals and families 
     with incomes greater than the poverty line. Both the health 
     care and the healthy child deduction are phased in starting 
     from 100-400 percent of poverty. The deduction begins phasing 
     out starting at $62,500 ($125,000 in the case of a joint 
     return) and is fully phased out at $125,000 ($250,000 in the 
     case of a joint return). The deduction will be adjusted for 
     inflation
       Section 665: Modification of Other Tax Incentives to 
     Complement Healthy Americans Program: Sunsets the following 
     tax breaks for health care: tax credit for health insurance 
     costs of individuals; coverage of health care benefits under 
     ``cafeteria plans''; and Archer Medical Savings Accounts. 
     This section also allows Health Savings Accounts in

[[Page 1711]]

     conjunction with high deductible Healthy Americans Private 
     Insurance plans and long-term care benefits to be provided 
     tax-free to workers through cafeteria plans.
       Section 666: Termination of Certain Employer Incentives 
     When Replaced by Lower Health Care Costs: Beginning 2 years 
     after enactment, terminates tax provisions relating to income 
     attributable to domestic production activities, relating to 
     tax-exempt status of voluntary employees' beneficiary 
     associations, and relating to inventory property sales source 
     rule exception, and the deferral of active income of 
     controlled foreign corporations.
       Part II: Termination of Group Coverage under other 
     Governmental Programs and Transition Rules for Medicaid and 
     SCHIP
       Sections 671-673: eliminates group coverage, FEHBP, 
     Medicaid (except for its wrap around and long term care 
     functions) and SCHIP.


                      title vii: other provisions

           Subtitle A--Effective Health Services and Products

       Section 701: One Time Disallowance of Deduction for 
     Advertising and Promotional Expenses for Certain Prescription 
     Pharmaceuticals: If a drug is new and on the market, there is 
     no tax deduction for advertising unless it is being studied 
     for comparison effectiveness. If the drug is already on the 
     market it must inform consumers that a generic will be on the 
     market if the drug is coming off patent.
       Section 702: Enhanced New Drug and Device Approval: Drugs 
     and devices get additional exclusivity or additional patent 
     protection if they submit comparison effectiveness as part of 
     their application to the Food and Drug Administration.
       Section 703: Medical Schools and Finding What Works in 
     Health Care: Medical schools and other researchers may post 
     on a website run by Agency Healthcare Research and Quality 
     (AHRQ) evidence-informed best practices. AHRQ will run a 
     pilot program to find ways to get that information into the 
     curricula of medical schools.
       Section 704: Finding Affordable Health Care Providers 
     Nearby: Creates a website so individuals can find affordable 
     high quality providers by zip code. The website can begin 
     with the providers who report under pay for performance 
     efforts and then be broadened out to include all providers 
     using uniform care standards developed in consultation with 
     Quality Improvement Organizations (QIOs).
       The affordability standard would be developed by the 
     Secretary in consultation with insurers.

   Subtitle B--Other Provisions to Improve Health Care Services and 
                                Quality

       Section 711: Individual Medical Records: Individuals own 
     their medical records.
       Section 712: Bonus Payment for Medical Malpractice Reform: 
     If a State adopts certain reforms the State may get 
     additional funds. Those reforms are: (1) require an 
     individual who files a malpractice action in state court have 
     the facts of their case reviewed by a panel with not less 
     than one qualified medical expert chosen in consultation with 
     the State Medicare quality improvement organization or 
     physician specialty whose expertise is appropriate for the 
     case; not less than one legal expert and not less than one 
     community representative to verify that a malpractice claim 
     exists; (2) permit an individual to engage in voluntary non-
     binding mediation with respect to the malpractice claim prior 
     to filing an action in court; (3) impose sanctions against 
     plaintiffs and attorneys who file frivolous medical 
     malpractice claims in courts; (4) prohibit attorneys who file 
     three or more medical malpractice actions in state courts 
     from filing others in state courts for a period of 10 years; 
     and provides for the application of presumption of 
     reasonableness if the defendant establishes that he or she 
     followed accepted clinical practice guidelines established by 
     the specialty or listed in the National Guideline 
     clearinghouse.
       The bonus payments must be used to carry out activities 
     related to disease and illness prevention and for children's 
     health care services.


                  title viii: containing medical costs

       Section 801: Cost-Containment Results of the Healthy 
     Americans Act: Summarizes what in the bill contains costs.

  THE HEALTHY AMERICANS ACT--AFFORDABLE HEALTH CARE FOR EVERY AMERICAN
------------------------------------------------------------------------
                                    Current Health
         Worker Profiles                System            Wyden Plan
------------------------------------------------------------------------
Fabulous Clean, janitor, has      Pays $2,000 in      Pays $1,200 in
 $25,000/year income; married      premiums; Tax       subsidized
 with 2 children; family insured   savings: $500       premiums; Salary
 through employer.                 (not taxed on       increase: $5,000;
                                   employer's $5,000   Additional taxes
                                   contribution).      after the new
                                  Net cost:$1,500...   health care tax
                                                       deduction: $150
                                                      Net savings:$3,650
Sally Forth, secretary, has       Pays $2,500 in      Pays $3,600 in
 $40,000/year income; married      premiums; Tax       subsidized
 with 2 children; family insured   savings: $1,500     premiums; Salary
 through employer.                 (not taxed on       increase:
                                   employer's          $10,000;
                                   $10,000             Additional taxes
                                   contribution).      after the new
                                  Net cost:$1,000...   health care tax
                                                       deduction: $60
                                                      Net savings:$6,340
Bess Driver, school bus driver,   Pays $1,000 in      Pays $8,200 in
 has $55,000/year income;          premiums; Tax       premiums; Salary
 married; couple insured through   savings: $1,575     increase:
 employer.                         (not taxed on       $10,500; Tax
                                   employer's          savings after the
                                   $10,500             new health care
                                   contribution).      tax deduction:
                                  Net savings:$575..   $230
                                                      Net savings:$2,530
Ann Bankroll, investment banker,  Pays $2,500 in      Pays $10,600 in
 has $200,000/year income;         premiums; Tax       premiums; Salary
 married; 2 children; family       savings: $3,300     increase:
 insured through employer.         (not taxed on       $10,000;
                                   employer's          Additional taxes
                                   $10,000             after the new
                                   contribution).      health care tax
                                  Net savings:$800..   deduction: $1,271
                                                      Net cost:$1,871
Shirley Needing, waitress, has    None..............  Pays $600 in
 $15,000/year income; single; no                       subsidized
 health coverage.                                      premiums; Tax
                                                       savings after new
                                                       health care tax
                                                       deduction:: $100
                                                      Net cost:$500 ($42/
                                                       month)
Harold Heart, salesman, has       None available      Pays $600 in
 $25,000/year income; married      because of          subsidized
 with 2 children; no health        preexisting         premiums; Tax
 coverage.                         condition.          savings*: $150
                                                      Net cost:$450 ($38/
                                                       month)
------------------------------------------------------------------------

            The Healthy Americans Act: Working for Employers


                         Small Service Employer

       Daisy Hills Day Care has 32 employees, 8 are full-time and 
     the other 24 work an average of 20 hours per week. Only the 8 
     full-time employees are currently eligible for the Daisy 
     Hills health plan, and 6 take advantage of it. The firm pays 
     half of the premium for employees, nothing for family 
     coverage. Daisy Hills's total current health care costs are 
     $10,400 per year, which pays for coverage of only 6 
     employees. Under the Healthy Americans Act, Daisy Hills would 
     pay a total of $6,208 per year in Employer Shared 
     Responsibility payments. This amount represents 4 percent of 
     the national average essential benefit premium multiplied by 
     20 full-time equivalent employees.


                            Small Restaurant

       Doug's Diner has 3 full-time and 9 part-time employees who 
     work an average of 30 hours per week. Doug cannot currently 
     afford to offer health care to his employees. He often loses 
     his best staff to chain restaurants that offer health 
     insurance and is unable to afford insurance for himself and 
     his family on the individual market. This small family 
     business falls into the lowest rate tier under revenue by 
     employee, paying a 2 percent rate. Under the Healthy 
     Americans Act Doug will pay $1,513 per year and he, his 
     family, and all of his employees will have access to 
     affordable health insurance.


                     Mid-Size Financial Institution

       Happy Valley Bank has 1,600 full-time employees and 400 
     part-time employees who work an average of 25 hours per week. 
     All employees who work over 20 hours per week are offered and 
     take advantage of health care. The firm pays 80 percent of 
     the premiums for individuals and families. Under the current 
     system, Happy Valley's total health care expenditures are 
     $10,200,000 per year. Under the Healthy Americans Act, they 
     will pay a total of $3,589,463 per year. This amount 
     represents 25 percent of the national average essential 
     benefit premium per employee.


                      Mid-Sized Manufacturing Firm

       Allied Industrial has 1,000 full time employees. The firm 
     pays 100 percent of individual premiums and 80 percent of 
     family premiums for all employees. Currently Allied pays 
     $6,100,000 per year in health care premiums and has been 
     seeing 10 percent increases year over year for several years 
     despite the use of a number of cost-control measures. Allied 
     falls into the middle range of companies in revenue per 
     employee, paying the 21 percent rate. Under the Healthy 
     Americans Act, Allied will pay $1,629,890.


                        Large Specialty Retailer

       Acme Game Emporiums is a national specialty retailer with 
     2,000 full time and 7,000 part time employees who work an 
     average of 22 hours per week. All full time and 4,500 of the 
     part time employees are eligible for and take advantage of 
     Acme's health plan. The firm pays 95 percent of employees' 
     premiums and 60 percent of family premiums. Their current 
     total health care costs are $52,000,000 per year. As a 
     retailer with relatively low revenue per employee, Acme pays 
     the 19 percent rate. Under the Healthy Americans Act, Acme 
     will pay $8,626,351.
                                 ______
                                 
      By Mr. DORGAN (for himself, Mrs. Murray, Ms. Mikulski, Mr. Akaka, 
        Mr. Leahy, Mr. Levin, Mr. Kennedy, Ms. Cantwell, Mr. 
        Rockefeller, Mr. Kerry, Mr. Inouye, Mr. Cardin, Mrs. Boxer, Mr. 
        Lieberman, Mr. Menendez, Mrs. Feinstein, and Mr. Lautenberg):
  S. 335. A bill to prohibit the Internal Revenue Service from using 
private debt collection companies, and for other purposes; to the 
Committee on Finance.
  Mr. DORGAN. Mr. President, today I am joined by Senator Murray and 15 
of our Senate colleagues in reintroducing legislation to stop the 
Internal Revenue Service from outsourcing part of its tax collection 
responsibilities to private collection companies.
  Last fall, the Internal Revenue Service, IRS, ignored objections 
raised by many Federal policymakers and tax experts, including the 
IRS's own National Taxpayer Advocate, and moved ahead with its 
controversial plan to

[[Page 1712]]

hire private companies to collect Federal tax debts. When the IRS 
attempted a similar plan in 1996, it failed miserably. The 1996 
initiative lost money. Taxpayers were harassed by private debt 
collectors. In many instances, private debt collectors violated Federal 
debt collection laws and confidential taxpayer information was not 
properly secured.
  Today, the IRS is planning to share more than 2.5 million taxpayer 
accounts with up to 12 private collection companies when its new 
private debt collection plan is fully implemented--even though there is 
compelling evidence that this new initiative will suffer from many of 
the same maladies experienced by the IRS and taxpayers in the ill-fated 
1996 plan.
  IRS Commissioner Everson readily admits that if the IRS hired and 
used trained IRS employees for this purpose, not private collectors, 
far more revenues would be deposited in the U.S. Treasury fund. Yet the 
IRS is ready to hand out very large commissions ranging from 21 to 24 
percent to private firms for every dollar they collect, when internal 
IRS reports suggest that it would cost the Federal Government just 3 
pennies on a dollar to have trained IRS employees collect tax debts 
that are owed.
  Stated another way, the IRS anticipates spending well over $300 
million in commission payments to private firms to collect an estimated 
$1.4 billion in tax debt over 10 years, when internal IRS reports 
suggest that spending $296 million to hire new IRS collectors could 
raise some $9.5 billion annually. At a time of exploding deficits and 
Federal debt, the IRS's use of private debt collectors is an 
inexcusable waste of taxpayer money.
  In fact, the Government Accountability Office, GAO, released a report 
last September revealing that the cost of implementing the IRS's 
initial phases of its tax debt collection initiative alone, excluding 
any commission payments, may actually exceed all of the tax revenues 
collected by these private collectors by millions of dollars. The IRS 
plan is riddled with hidden costs. For example, the three companies 
hired by the IRS in the initial phase of its private collection plan 
have some 75 employees working on what the IRS has described as 
relatively easy collection cases. However, at least 65 IRS employees 
have been tasked to monitor the work of these collectors. So from a 
revenue collection and efficiency standpoint, it doesn't take a 
calculator to figure out that IRS private collection plan is not worth 
the paper it's printed on.
  Using private debt collectors is also very troubling because it puts 
confidential taxpayer information at risk of public disclosure and 
misuse. Just over two years ago, a Treasury Inspector General for Tax 
Administration, TIGTA, investigation found that a contractor's 
employees committed security violations, placing IRS equipment and 
taxpayer data at risk. In some cases, TIGTA officials found that 
contractors ``blatantly circumvented IRS policies and procedures even 
when security personnel had identified inappropriate practices.''
  As I've mentioned, the IRS has agreed to pay three private collection 
firms at the outset of its initiative nearly a quarter for every dollar 
their employees collect on what the IRS has described as relatively 
easy cases. The IRS's use of very large commissions to pay private 
firms for their work on such cases is not only fiscally unsound and a 
shameful example of government waste, it also increases the potential 
for overzealous collection practices and the misuse of sensitive 
taxpayer return information. Private debt collection agencies are 
driven by profit motives, not public service.
  Let me emphasize, once again, one very important point. Everybody 
needs to pay the taxes they owe. If they do not, however, professional 
IRS employees, not private collectors in search of profits, should be 
the ones to ensure that outstanding tax debts are paid. If the IRS now 
says it needs more resources for tax enforcement and collection 
activities, then Congress should consider providing them.
  I fully agree with the recommendations by the independent Taxpayer 
Advocacy Panel last summer--and recently echoed by National Taxpayer 
Advocate Nina Olson in the Taxpayer Advocate's 2006 Annual Report to 
Congress--that the IRS should terminate its outsourcing of taxpayer 
debt collection and restrict collection activities to properly trained 
and proficient IRS employees. Indeed, the IRS should immediately 
reverse course and indefinitely suspend the implementation of its 
private debt collection activities.
  The House of Representatives voted last year to eliminate funding for 
this IRS initiative in its version of the Treasury Department spending 
bill, which was never approved by the full Congress. I will be working 
with Senator Murray and many of our colleagues early in this new 
Congress to get similar language passed by the full Senate at the first 
available opportunity.
  The IRS should act on its own to stop its use of private debt 
collectors and save any further expenditures of taxpayer money for this 
purpose. If it will not, however, I will do everything in my power to 
put the brakes on this initiative in the U.S. Senate. That's why I urge 
my colleagues to cosponsor this legislation and help us, as the 
Taxpayer Advocate has suggested, terminate the IRS's privatization 
collection initiative ``once and for all.''
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Voinovich, Mr. Levin, Mr. Obama, 
        Mr. Bayh, Mr. Kohl, Ms. Stabenow, and Mr. Lugar):
  S. 336. A bill to require the Secretary of the Army to operate and 
maintain as a system the Chicago Sanitary and Ship Canal dispersal 
barriers, and for other purposes; to the Committee on Environment and 
Public Works.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 336

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Barrier Project 
     Consolidation and Construction Act of 2007''.

     SEC. 2. CONSOLIDATION OF BARRIER PROJECTS.

       (a) In General.--The Chicago Sanitary and Ship Canal 
     Dispersal Barrier Project (referred to in this Act as 
     ``Barrier I'') (as in existence on the date of enactment of 
     this Act), constructed as a demonstration project under 
     section 1202(i)(3) of the Nonindigenous Aquatic Nuisance 
     Prevention and Control Act of 1990 (16 U.S.C. 4722(i)(3)), 
     and the project relating to the Chicago Sanitary and Ship 
     Canal Dispersal Barrier, as authorized by section 345 of the 
     District of Columbia Appropriations Act, 2005 (Public Law 
     108-335; 118 Stat. 1352) (referred to in this Act as 
     ``Barrier II''), shall be considered to constitute a single 
     project.
       (b) Activities Relating to Barrier I and Barrier II.--
       (1) Duties of secretary of the army.--The Secretary of the 
     Army (referred to in this Act as the ``Secretary'') shall, at 
     full Federal expense--
       (A) upgrade and make permanent Barrier I;
       (B) construct Barrier II, notwithstanding the project 
     cooperation agreement with the State of Illinois dated June 
     14, 2005;
       (C) operate and maintain Barrier I and Barrier II as a 
     system to optimize effectiveness;
       (D) conduct, in consultation with appropriate Federal, 
     State, local, and nongovernmental entities, a study of a full 
     range of options and technologies for reducing impacts of 
     hazards that may reduce the efficacy of the Barriers; and
       (E) provide to each State a credit in an amount equal to 
     the amount of funds contributed by the State toward Barrier 
     II.
       (2) Application of credit.--A State may apply a credit 
     received under paragraph (1)(E) to any cost-sharing 
     responsibility for an existing or future Federal project with 
     the Corps of Engineers in the State.
       (c) Feasibility Study.--The Secretary, in consultation with 
     appropriate Federal, State, local, and nongovernmental 
     entities, shall conduct a feasibility study, at full Federal 
     expense, of the range of options and technologies available 
     to prevent the spread of aquatic nuisance species between the 
     Great Lakes and Mississippi River Basins through the Chicago 
     Sanitary and Ship Canal and other aquatic pathways.
       (d) Conforming Amendment.--Section 345 of the District of 
     Columbia Appropriations Act, 2005 (Public Law 108-335; 118 
     Stat. 1352) is amended to read as follows:
       ``Sec. 345.  There are authorized to be appropriated such 
     sums as are necessary to carry out the Barrier II project of 
     the project

[[Page 1713]]

     for the Chicago Sanitary and Ship Canal Dispersal Barrier, 
     Illinois, initiated pursuant to section 1135 of the Water 
     Resources Development Act of 1986 (33 U.S.C. 2309a).''.
                                 ______
                                 
      By Mr. CONRAD (for himself, Mr. Hatch, Mr. Wyden, Mr. Vitter, Mr. 
        Dorgan, and Mrs. Lincoln):
  S. 338. A bill to amend title XVIII of the Social Security Act to 
ensure and foster continued patient quality of care by establishing 
facility and patient criteria for long-term care hospitals and related 
improvements under the Medicare program; to the Committee on Finance.
  Mr. CONRAD. Mr. President, today I am introducing legislation that 
would take steps to protect access to long-term care hospitals while 
ensuring that these institutions are admitting the appropriate type of 
patients. I am pleased to be introducing the bill along with my 
colleague, Senator Hatch, and I urge my colleagues to consider 
cosponsoring this cost-saving proposal.
  Long Term Acute Care hospitals, or LTAC hospitals, serve a vital role 
in the Medicare program by providing care to beneficiaries with 
clinically complex conditions that need hospital care for extended 
periods of time. These are patients who are too sick to go home or even 
to a skilled nursing facility, but are stable enough to be released 
from an intensive care unit. I am happy to have two of these hospitals 
in North Dakota, one in Fargo and one in Mandan. Together, these two 
hospitals employ several hundred people and provide care to thousands 
of North Dakotans. They are a vital part of the North Dakota continuum 
of care.
  While these hospitals provide important health services to very frail 
individuals, the Centers for Medicare and Medicaid Services (CMS) has 
become concerned with the growth in these facilities. In 2006, there 
were 400 LTAC hospitals, compared to 100 in 1996. In addition, the 
agency has also expressed concern that some LTAC hospitals are 
admitting patients that may be better served by nursing homes or 
another level of care. As a result, CMS has begun to arbitrarily cut 
LTAC hospital payments across-the-board.
  As Chairman of the Budget Committee, I have a unique appreciation for 
the enormous fiscal challenges that face our country and respect CMS's 
efforts to reduce growth in Medicare. However, any cuts in spending 
should be targeted at waste and abuse. We should address the growth in 
LTAC hospitals, but we also want to ensure that there is a place for 
patients who truly need long-term hospital stays.
  The legislation I'm introducing today is a first step in clarifying 
Congressional intent and giving CMS clearer definitions of what is and 
is not a LTAC hospital and what type of patient should be admitted to 
these facilities. At the heart of this bill is a provision that limits 
the types of patients who can be admitted to LTAC hospitals to those 
who truly need the specialized care these facilities provide. LTAC 
hospitals like those in my state that admit only very sick patients 
will not be significantly affected. But, by eliminating abuses by those 
facilities that have been receiving generous payments for patients who 
do not require this sort of specialized care, this provision of the 
bill would significantly reduce Medicare spending on LTAC hospitals.
  It was not easy for the LTAC hospitals in North Dakota and across the 
country to support legislation that restricts their payments, but I 
compliment them for working with me to put forward a constructive 
public policy proposal. In particular, I want to recognize Custer 
Huseby, Chief Executive Officer of SCCI Hospital in Fargo. He 
understands that the status quo is no longer defensible and has fought 
to put forward a workable solution that maintains access to these vital 
facilities, where they are appropriate. I also want to thank Chip 
Thomas and Karen Haskins of the North Dakota Healthcare Association, 
who have partnered with Mr. Huseby to support this legislation.
  Long-term care hospitals serve a vital role in our health care 
system, and we must protect access to these facilities for those who 
truly need it. But, we can also take responsible steps to ensure that 
our federal tax dollars are well spent and directed to the most 
appropriate level of care. I believe my legislation achieves this 
balance and urge my colleagues to support this measure.
  Mr. HATCH. Mr. President, I am happy to join my colleagues, Senators 
Conrad, Wyden, Vitter, Dorgan and Lincoln in introducing legislation to 
create standards for long-term, acute-care (LTAC) hospitals. My home 
State of Utah has LTAC hospitals located in Salt Lake City, West Valley 
City and Bountiful.
  Let me explain what LTAC hospitals are to my colleagues, and discuss 
the need for this legislation. A general hospital stay in the United 
States is about 6 days. In contrast, the average patient stay in an 
LTAC hospital is 25 days. LTAC hospitals represent one of four post-
acute care facilities. Of the four types of post-acute care, LTAC 
hospitals are the most expensive. And, the number of LTAC hospitals has 
grown rapidly from 100 to 400 over a 10-year period. These dynamics 
have led the Centers for Medicare & Medicaid Services (CMS) to push for 
having certain LTAC patients treated in less costly facilities such as 
nursing homes or rehabilitation clinics.
  Our legislation is premised on the belief that only truly sick 
patients should go to LTAC hospitals. Less medically-complex patients 
should be seen at less intensive facilities. S. 338 limits the type of 
patients who may be treated in LTAC hospitals and, by doing so, it will 
generate at least $1 billion in savings over the next 5 years.
  LTAC hospitals have a role to play in the American continuum of 
health care. We all agree that there should be a place for patients who 
truly need long-term hospital stays. In that sense, LTAC hospitals 
serve an important role. Today, Medicare spending on LTAC hospitals is 
little more than one percent of total Medicare spending.
  Let me conclude by saying that this bill is just one component of a 
larger debate that we need to have about Medicare post-acute care. LTAC 
hospitals are one component. Nursing homes and rehabilitation clinics 
are other components. All long-term care providers need to do a better 
job in convincing the Congress and Federal regulators why our health 
care system needs four different types of post-acute facilities.
  I urge my colleagues to cosponsor the Conrad-Hatch legislation--it is 
a good bill and it addresses an important aspect of the long-term 
health care debate. As baby boomers continue to retire, long-term care 
will become more and more important to all Americans.
  Mr. LEAHY. Mr. President, today I join, again, with a bipartisan 
group of Senators to introduce a bill to reform our immigration laws 
concerning foreign agricultural workers. America's farmers are calling 
for a greater number of legal foreign workers, and an improved system 
for obtaining those workers. We need to likewise ensure meaningful 
benefits and protections to the workers who will fill these jobs.
  I am especially pleased that measures are included to help dairy 
farmers, who in my home State of Vermont are an integral part of our 
economy, our history, and our culture. Indeed, it is difficult to think 
of the Green Mountain State without conjuring up the image of verdant 
rolling hills dotted with Holstein cows. The provisions in this bill 
make the H-2A program more workable for dairy farmers by lengthening 
the time period a foreign worker may remain in the country, providing a 
process by which an employer can extend the stay of a worker, and by 
ensuring that workers may ultimately apply for an adjustment to 
permanent legal resident status.
  The bill we introduce today goes a long way toward reforming our H-2A 
visa program. Along with measures to help streamline procedures for 
labor certification by employers, the bill will make it easier for 
employers to meet their responsibilities to ensure that available 
agricultural jobs are offered first to domestic workers. The bill also 
makes the process easier for an employer to apply for an extension to a 
worker's stay, and makes it easier for a foreign worker to switch jobs 
during their stay.

[[Page 1714]]

  The bill includes greater protections for workers, including the 
requirement that employers meet the same motor vehicle safety standards 
for H-2A workers that are required for domestic workers. A limited 
Federal right of action is provided for H-2A workers to enforce the 
economic benefits provided under the H-2A program, or those provided in 
writing by their employers. More flexibility is provided for workers 
and employers by permitting employers to elect to provide a housing 
allowance, instead of housing. These are but a few of the positive 
reforms contained in the bill.
  The bill also contains a procedure by which undocumented workers who 
have been working in agriculture can apply for a ``blue card,'' a 
system where through consistent employment, a fine, proof of the 
payment of taxes, and proof of no serious criminal history, an 
undocumented worker can continue his or her contribution legally, and 
eventually adjust his or her status. The ``blue card'' program 
encourages family unification by making special provisions for spouses 
and children of the card holder. The program also has a numerical cap 
and the built-in safeguard of a sunset provision.
  These reforms are a commonsense response that should help meet the 
needs of our farmers without burdening them with an unduly, time-
consuming procedure for securing legal workers. The bill represents an 
effort to meet both the needs of agricultural employers while 
respecting the rights and interests of agricultural workers, and is an 
example of a bipartisan group of legislators listening and responding 
to the interests of all parties affected.
  I join with other Senators in recognizing the needs of our modern 
economy, and the needs of the American farmer as well as the rights of 
the individuals who make up the backbone of many farming operations. 
Working together we can ensure that no American farmer is put in the 
position of having to choose between obeying the law and making a 
living, and that no willing worker is denied a chance to work.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself, Mr. Craig, Mr. Kennedy, Mr. 
        Martinez, Mrs. Boxer, Mr. Voinovich, Mr. Leahy, Mr. Specter, 
        Mrs. Clinton, Mr. McCain, Mr. Obama, Mr. Hagel, Mr. Schumer, 
        Mr. Domenici, Mr. Kohl, Mr. Salazar, and Mrs. Murray):
  S. 340. A bill to improve agricultural job opportunities, benefits, 
and security for aliens in the United States and for other purposes; to 
the Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, Senators Craig, Kennedy, Martinez, 
Boxer, Voinovich, and several others are once again introducing 
legislation that will address the chronic labor shortage in our 
Nation's agricultural industry. This bill is a priority for me and for 
the tens of thousands of farmers who are currently suffering--and I 
hope we will move it forward early in this Congress.
  The Agricultural Job Opportunities, Benefits, and Security Act, or 
AgJOBS, is the product of more than ten years of work. It is a 
bipartisan bill supported by growers, farmers, and farm workers alike. 
It passed the Senate last year as part of the comprehensive immigration 
reform bill last spring in the 109th Congress. It is time to move this 
bill forward.
  The agricultural industry is in crisis. Farmers across the Nation 
report a twenty percent decline in labor.
  The result is that there are simply not enough farm workers to 
harvest the crops.
  The Nation's agricultural industry has suffered. If we do not enact a 
workable solution to the agricultural labor crisis, we risk a national 
production loss of $5 billion to $9 billion each year, according to the 
American Farm Bureau.
  California, in particular, will suffer. California is the single 
largest agricultural State in the Nation. California agriculture 
accounts for $34 billion in annual revenue. There are 76,500 farms that 
produce half of the Nation's fruits, vegetables, and nuts from only 3 
percent of the Nation's farmland. California farms produce 
approximately 350 different crops: pears, walnuts, raisins, lettuce, 
onions, cotton, just to name a few.
  Many of the farmers who grow these crops have been in the business 
for generations. They farm the land that their parents and their 
grandparents farmed before them.
  The sad consequence of the labor shortage is that many of these 
farmers are giving up their farms. Some are leaving the business 
entirely. Others are bulldozing their fruit trees--literally pulling 
out trees that have been in the family for generations--because they do 
not have the labor they need to harvest their fruit.
  Once the trees are gone, they are replaced by crops that do not 
require manual labor. And our pears, our apples, our oranges will come 
from foreign sources. The trend is quite clear. If there is not a means 
to grow and harvest our produce here, we will import produce from 
China, from Mexico, from other countries who have the labor they need.
  We will put American farmers out of business. And there will be a 
ripple effect felt throughout the economy: in farm equipment, inputs, 
packaging, processing, transportation, marketing, lending and 
insurance. Jobs will be lost and our economy will suffer.
  The reality is that Americans have come to rely on undocumented 
workers to harvest their crops for them.
  In California alone, we rely on approximately one million 
undocumented workers to harvest the crops. The United Farm Workers 
estimate that undocumented workers make up as much as 90 percent of the 
farm labor payroll. Americans simply will not do the work. It is hard, 
stooped labor, requiring long and unpredictable hours. Farm workers 
must leave home and travel from farm to farm to plant, prune, and 
harvest crops according to the season. We must come to terms with the 
fact that we rely on an undocumented migrant work force. We must bring 
those workers out of the shadows and create a legal and enforceable 
means to provide labor for agriculture. That realization is what led to 
the long and careful negotiations creating AgJOBS.
  The AgJOBS bill is a two part bill. Part one identifies and deals 
with those undocumented agricultural workers who have been working in 
the United States for the past 2 years or more. Part two creates a more 
usable H-2A Program, to implement a realistic and effective guest 
worker program.
  The first step requires undocumented agricultural workers to apply 
for a ``blue card'' if they can demonstrate that they have worked in 
American agriculture for at least 150 workdays over the past 2 years. 
The blue card entitles the worker to a temporary legal resident status. 
The blue card itself is encrypted and machine readable; it is tamper 
and counterfeit resistant, and contains biometric identifiers unique to 
the farm worker.
  The second step requires that a blue card holder work in American 
agriculture for an additional 5 years for at least 100 workdays a year, 
or 3 years at 150 workdays a year. Blue card workers would have to pay 
a $500 fine. The workers can travel abroad and reenter the United 
States and they may work in other, non-agricultural jobs, as long as 
they meet the agricultural work requirements.
  The blue card worker's spouse and minor children, who already live in 
the United States, may also apply for a temporary legal status and 
identification card, which would permit them to work and travel. The 
total number of blue cards is capped at 1.5 million over a five year 
period and the program sunsets after 5 years. At the end of the 
required work period, the blue card worker may apply for a green card 
to become a legal permanent resident.
  There are also a number of safeguards. If a blue card worker does not 
apply for a green card, or does not fulfill the work requirements, that 
individual can be deported.
  Likewise, a blue card holder who commits a felony, three 
misdemeanors, or any crime that involves bodily injury, the threat of 
serious bodily injury, or harm to property in excess of

[[Page 1715]]

$500, cannot get a green card and can be deported.
  This program, for the first time, allows us to identify those 
hundreds of thousands of farm workers who now work in the shadows. It 
requires the farm workers to come forward and to be identified in 
exchange for the right to work and live legally in the United States. 
And it gives farmers the legal certainty they need to hire the workers 
they need. The program also modifies the H-2A guest worker program so 
that it realistically responds to our agricultural needs.
  Currently, the H-2A program is bureaucratic, unresponsive, expensive, 
and prone to litigation. Farmers cannot get the labor when they need 
it. AgJOBS offers a much-needed reform of the outdated system. The 
labor certification process, which often takes 60 days or more, is 
replaced by an ``attestation'' process. The employer can file a fax-
back application form agreeing to abide by the requirements of the H-2A 
program. Approval should occur in 48 to 72 hours. The interstate 
clearance order to determine whether there are U.S. workers who can 
qualify for the jobs is replaced by a requirement that the employer 
file a job notification with the local office of the State Employment 
Security Agency. Advertising and positive recruitment must take place 
in the local labor market area.
  Agricultural associations can continue to file applications on behalf 
of members. The statutory prohibition against ``adversely affecting'' 
U.S. workers is eliminated. The Adverse Effect Wage Rate is instead 
frozen for 3 years, and thereafter indexed by a methodology that will 
lead to its gradual replacement with a prevailing wage standard. 
Employers may elect to provide a housing allowance in lieu of housing 
if the governor determines that there is adequate rental housing 
available in the area of employment.
  Inbound and return transportation and subsistence is required on the 
same basis as under the current program, except that trips of less than 
100 miles are excluded, and workers whom an employer is not required to 
provide housing are excluded.
  The motor vehicle safety standards for U.S. workers are extended to 
H-2A workers. Petitions for admission of H-2A workers must be processed 
and the consulate or port of entry notified within 7 days of receipt. 
Requirements are the same as current law.
  Petitions extending aliens' stay or changing employers are valid upon 
filing. Employers may apply for the admission of new H-2A workers to 
replace those who abandoned their work or are terminated for cause and 
the Department of Homeland Security is required to remove H-2A aliens 
who abandoned their work. H-2A visas will be secure and counterfeit 
resistant.
  A new limited Federal right of action is available to foreign workers 
to enforce the economic benefits required under the H-2A program, and 
any benefits expressly offered by the employer in writing. A statute of 
limitations of 3 years is imposed.
  Finally, lawsuits in State court under State contract law alleging 
violations of the H-2A program requirements and obligations are 
expressly preempted. Such State court lawsuits have been the venue of 
choice for litigation against H-2A employers in recent years.
  AgJOBS is the one part of the immigration bill about which there is 
uniform agreement. Everyone knows that agriculture in America is 
supported by undocumented workers. As immigration enforcement tightens 
up, and increasing numbers of people are prevented from crossing the 
borders or are being deported, the result is our crops go unharvested. 
We are faced today with a very practical dilemma and one that is easy 
to solve. The legislation has been vetted over and over again. Senator 
Craig, I, and a multitude of other Senators have sat down with the 
growers, with the farm bureaus, with the chambers, with everybody who 
knows agriculture, and they have all signed off on the AgJOBS bill. 
This is our opportunity to solve a real problem.
  I ask my colleagues to join this bipartisan coalition and support 
this legislation. I also ask unanimous consent that the text of this 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 340

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

     SECTION 1. SHORT TITLE, TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Agricultural Job Opportunities, Benefits, and Security Act 
     of 2007'' or the ``AgJOBS Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title, table of contents.
Sec. 2. Definitions.

  TITLE I--PILOT PROGRAM FOR EARNED STATUS ADJUSTMENT OF AGRICULTURAL 
                                WORKERS

                      Subtitle A--Blue Card Status

Sec. 101. Requirements for blue card status.
Sec. 102. Treatment of aliens granted blue card status.
Sec. 103. Adjustment to permanent residence.
Sec. 104. Applications.
Sec. 105. Waiver of numerical limitations and certain grounds for 
              inadmissibility.
Sec. 106. Administrative and judicial review.
Sec. 107. Use of information.
Sec. 108. Regulations, effective date, authorization of appropriations.

           Subtitle B--Correction of Social Security Records

Sec. 111. Correction of Social Security records.

                TITLE II--REFORM OF H-2A WORKER PROGRAM

Sec. 201. Amendment to the Immigration and Nationality Act.

                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Determination and use of user fees.
Sec. 302. Regulations.
Sec. 303. Reports to Congress.
Sec. 304. Effective date.

     SEC. 2. DEFINITIONS.

       In this Act:
       (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 
     101(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.

  TITLE I--PILOT PROGRAM FOR EARNED STATUS ADJUSTMENT OF AGRICULTURAL 
                                WORKERS

                      Subtitle A--Blue Card Status

     SEC. 101. 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 105(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 1716]]

     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 103, 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 105(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 103(a)(1)(A) unless the alien was unable to 
     work in agricultural employment due to the extraordinary 
     circumstances described in section 103(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. 102. 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 103.
       (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 103(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 101(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. 103. 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 101(e); 
     or
       (B) such documentation as may be submitted under section 
     104(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;

[[Page 1717]]

       (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 105(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 101.
       (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 105(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. 104. APPLICATIONS.

       (a) Submission.--The Secretary shall provide that--
       (1) applications for blue card status under section 101 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 103 
     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 101(a)(1) or 103(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 101(a) or 103(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 
     101(a)(1) or 103(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 
     101(a)(1) or 103(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

[[Page 1718]]

       (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 101 or 
     an adjustment of status under section 103 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 
     101 or an adjustment of status under section 103 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 101 or an adjustment of 
     status under section 103.
       (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 101 or for an adjustment of 
     status under section 103; 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 101 or an adjustment of status under 
     section 103.

     SEC. 105. 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 103.
       (b) Waiver of Certain Grounds of Inadmissibility.--In the 
     determination of an alien's eligibility for status under 
     section 101(a) or an alien's eligibility for adjustment of 
     status under section 103(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 
     101 or an adjustment of status under section 103 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 101(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 101(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. 106. 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 101 or adjustment of 
     status under section 103 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. 107. USE OF INFORMATION.

       Beginning not later than the first day of the application 
     period described in section 101(a)(2), the Secretary, in 
     cooperation with qualified designated entities (as that term 
     is defined in section 104(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. 108. 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.

[[Page 1719]]

       (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.

           Subtitle B--Correction of Social Security Records

     SEC. 111. 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.

                TITLE II--REFORM OF H-2A WORKER PROGRAM

     SEC. 201. 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

[[Page 1720]]

     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 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

[[Page 1721]]

     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 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

[[Page 1722]]

     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.

       ``(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.

[[Page 1723]]

       ``(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 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).

[[Page 1724]]

       ``(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.
       ``(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

[[Page 1725]]

     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 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

[[Page 1726]]

       ``(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.''.

                  TITLE III--MISCELLANEOUS PROVISIONS

     SEC. 301. 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 201(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 
     201 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 201(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 201(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 201 of this Act, and the provisions 
     of this Act.

     SEC. 302. 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 Act and the amendments made by this Act.
       (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 Act and the amendments made by this Act.
       (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 Act and the 
     amendments made by this Act.
       (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 201 of this Act, shall 
     take effect on the effective date of section 201 and shall be 
     issued not later than 1 year after the date of enactment of 
     this Act.

     SEC. 303. 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 101(a);
       (5) the number of such aliens whose status was adjusted 
     under section 101(a);
       (6) the number of aliens who applied for permanent 
     residence pursuant to section 103(c); and
       (7) the number of such aliens who were approved for 
     permanent residence pursuant section 103(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. 304. EFFECTIVE DATE.

       Except as otherwise provided, sections 201 and 301 shall 
     take effect 1 year after the date of the enactment of this 
     Act.

  Mr. CRAIG. Mr. President, the last Congress worked long and hard to 
resolve one of the most contentious issues of our time: immigration. As 
many of our colleagues know, while a number of border enforcement 
measures were enacted, we did not complete all the critical elements of 
a comprehensive strategy on immigration reform.
  Today, I am joining with Senators Feinstein, Kennedy, Specter, Leahy, 
Martinez, Voinovich, McCain, Hagel, Domenici, Boxer, Clinton, Obama, 
Kohl, Salazar, Murray, and Schumer in reintroducing legislation to 
address a very important piece of that unfinished business: the 
establishment of a workable, secure, effective temporary worker program 
to match willing foreign workers with jobs that Americans are unwilling 
or unable to perform.
  Our legislation is specific to U.S. agriculture, because this 
economic sector, more than any other, has become dependent for its 
existence on the labor of immigrants who are here without legal 
documentation. The only program currently in place to respond to a lack 
of legal domestic agricultural workers, the H-2A Guest Worker Program, 
is profoundly broken. Outside of H-2A, farm employers have no 
effective, reliable assurance that their employees are legal.
  The bill we are reintroducing is called AgJOBS--the Agricultural Job 
Opportunity, Benefits, and Security Act. This bill was part of the 
comprehensive immigration legislation passed last year by the Senate. 
Today's version incorporates a few language changes that update, but do 
not substantively amend, that measure.
  We are reintroducing AgJOBS to fix the serious flaws that plague our 
country's current agricultural labor system. Agriculture has unique 
workforce needs because of the special nature of its products and 
production, and our bill addresses those needs.
  Our bill offers a thoughtful, thorough, two-step solution. On a one-
time basis, experienced, trusted workers with a significant work 
history in American agriculture would be allowed to stay here legally 
and earn adjustment to legal status. For workers and growers using the 
H-2A legal guest worker program, that program would be overhauled and 
made more streamlined, practical, and secure.
  This legislation has been tested and examined for years in the Senate 
and

[[Page 1727]]

House of Representatives, and it remains the best alternative for 
resolving urgent problems in our agriculture that require immediate 
attention. That is why AgJOBS has been endorsed by a historic, broad-
based coalition of more than 400 national, State, and local 
organizations, including farmworkers, growers, the general business 
community, Latino and immigration issue groups, taxpayer groups, other 
public interest organizations, State directors of agriculture, and 
religious groups.
  We all want and need a stable, predictable, legal workforce in 
American agriculture. Willing American workers deserve a system that 
puts them first in line for available jobs with fair market wages. All 
workers should receive decent treatment and protection of fundamental 
legal rights. Consumers deserve a safe, stable, domestic food supply. 
American citizens and taxpayers deserve secure borders and a government 
that works.
  AgJOBS would serve all these goals.
  Last year, we saw millions of dollars' worth of produce rot in the 
fields for lack of workers. We are beginning to hear talk of farms 
moving out of the country, moving to the foreign workforce. All 
Americans face the danger of losing more and more of our safe, domestic 
food supply to imports.
  Time is running out for American agriculture, farmworkers, and 
consumers. What was a problem years ago is a crisis today and will be a 
catastrophe if we do not act immediately. I urge my colleagues to 
demonstrate their support for U.S. agriculture by cosponsoring the 
Agricultural Job Opportunity, Benefits, and Security Act--AgJOBS 2007--
and by helping us pass this critical legislation as soon as possible.
  Mr. KENNEDY. Mr. President, it's a privilege to join Senators 
Feinstein and Craig and my other colleagues today as we re-introduce 
the Agricultural Jobs, Opportunity, Benefits, and Security Act of 2007. 
I commend them and Representatives Howard Berman and Chris Cannon for 
their bipartisan leadership and am pleased to be part to this landmark 
legislation.
  The bill reflects a far-reaching and welcome agreement between the 
United Farm Workers and the agricultural industry, one of the most 
difficult immigration challenges we face, and we in Congress should 
make the most of this unique opportunity for progress.
  America has a proud tradition as a nation of immigrants and a nation 
of laws. But our current immigration laws have failed us on both 
counts. Much of the Nation's economy today depends on the hard work and 
the many contributions of immigrants. The agricultural industry would 
grind to a halt without immigrant farm workers. Yet, the overwhelming 
majority of these workers lack legal status, and thus can be easily 
exploited by unscrupulous employers.
  The Agricultural Jobs, Opportunity, Benefits, and Security Act--
AgJOBS--is an opportunity to correct these long-festering problems. It 
will give farm workers and their families the dignity and justice they 
deserve, and it will give agricultural employees a legal workforce.
  This compromise has broad support in Congress, and from business and 
labor, civic and faith-based organizations, liberals and conservatives, 
trade associations and immigrant rights groups.
  The AgJOBS Act is a needed reform in our immigration laws, to reflect 
current economic realities, address our security needs more 
effectively, and do so in a way that respects America's immigrant 
heritage. It provides a fair and reasonable way for undocumented 
agricultural workers to earn legal status and also reforms the current 
visa program, so that employers unable to find American workers can 
hire needed foreign workers. Together they serve as the cornerstone for 
comprehensive immigration reform of the agricultural sector.
  AgJOBS is good for labor and business. The Nation can no longer 
ignore the fact that more than half of our agricultural workers are 
undocumented. Growers need an immediate, reliable and legal workforce 
at harvest time. Farm workers need legal status to improve their wages 
and working conditions. Everyone is harmed when crops rot in the field 
because of the lack of an adequate labor force.
  The AgJOBS Act provides a fair and reasonable process for 
undocumented agricultural workers to earn legal status. Undocumented 
farm workers are clearly vulnerable to abuse by unscrupulous labor 
contractors and growers, and their illegal status deprives them of 
bargaining power and depresses the wages of all farm workers. Our bill 
provides fair solutions for undocumented workers who have been toiling 
in our fields, harvesting our fruits and vegetables.
  The bill is not an amnesty. To earn the right to remain in this 
country, workers would not only have to demonstrate past work 
contributions to the U.S. economy, but also make a substantial future 
work commitment. These workers will be able to come forward, identify 
themselves, provide evidence that they have been employed in 
agriculture, and continue to work hard and play by the rules.
  The legislation will also modify the current temporary foreign 
agricultural worker program, while preserving and enhancing key labor 
protections. It strikes a fair balance and streamlines the H-2A 
program's application process by reducing paperwork for employers and 
accelerate processing. But individuals participating in the program 
receive strong labor protections. Anything else would undermine the 
jobs, wages and working conditions of U.S. workers.
  This legislation would unify families. When temporary residence is 
granted, the farm worker's spouse and minor children would be allowed 
to remain legally in the U.S., but they would not be authorized to 
work. When the worker becomes a permanent resident, the spouse and 
minor children would also gain such status.
  AgJOBS will also enhance national security and reduce illegal 
immigration. AgJOBS will also reduce the chaotic, illegal, and all-too-
deadly flows of immigrants at our borders by providing safe and legal 
avenues for farm workers and their families. Future temporary workers 
will be carefully screened to meet security concerns. Enforcement 
resources will be more effectively focused on the highest risks. By 
bringing undocumented farm workers out of the shadows and require them 
to pass thorough security checks, it will enable our officers to more 
effectively train their sights on terrorists and criminals.
  Last year, the Senate came together--Democrats and Republicans--to 
pass farreaching immigration reform legislation, which included the 
AgJOBS bill. The American people are calling on us to come together 
again. They know there is a crisis and they want action now.
  The President has been a leader on immigration reform, and I'm 
hopeful that he will renew his efforts with members of his party, so 
that we can enact comprehensive reform legislation, to end the 
festering crisis once and for all. The House of Representatives is now 
ready to be a genuine partner in this effort.
  By heritage and history, America is a nation of immigrants. Our 
legislation proposes necessary changes in the law while preserving this 
tradition. This bill will ensure that immigrant farm workers can live 
the American dream and contribute to our prosperity, our security, and 
our values and I hope very much that it can be enacted quickly in this 
new Congress.

                          ____________________