[Congressional Record (Bound Edition), Volume 153 (2007), Part 2]
[Senate]
[Pages 2265-2319]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 176. Mr. ENSIGN submitted an amendment intended to be proposed to 
amendment SA 152 submitted by Mr. Ensign (for himself and Mr. Inhofe) 
to the amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the 
bill H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide 
for an increase in the Federal minimum wage; which was ordered to lie 
on the table; as follows:

         Strike after the first word, and insert the following:

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

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

                                 ______
                                 
  SA 177. Mr. ENSIGN submitted an amendment intended to be proposed to 
amendment SA 153 submitted by Mr. Ensign (for himself, Mr. Sessions, 
Mr. Craig, Mrs. Dole, Mr. Thomas Mr. Cornyn, Mr. Inhofe, Mr. Isakson, 
and Mr. Coleman) to the amendment SA 100 proposed by Mr. Reid (for Mr. 
Baucus) to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       Strike after the first word and insert the following:

     SEC. __. TRANSMITTAL AND APPROVAL OF TOTALIZATION AGREEMENTS.

       (a) In General.--Section 233(e) of the Social Security Act 
     (42 U.S.C. 433(e)) is amended to read as follows:
       ``(e)(1) Any agreement to establish a totalization 
     arrangement which is entered into with another country under 
     this section shall enter into force with respect to the 
     United States if (and only if)--
       ``(A) the President, at least 90 calendar days before the 
     date on which the President enters into the agreement, 
     notifies each House of Congress of the President's intention 
     to enter into the agreement, and promptly thereafter 
     publishes notice of such intention in the Federal Register,
       ``(B) the President transmits the text of such agreement to 
     each House of Congress as provided in paragraph (2), and
       ``(C) an approval resolution regarding such agreement has 
     passed both Houses of Congress and has been enacted into law.
       ``(2)(A) Whenever an agreement referred to in paragraph (1) 
     is entered into, the President shall transmit to each House 
     of Congress a document setting forth the final legal text of 
     such agreement and including a report by the President in 
     support of such agreement. The President's report shall 
     include the following:
       ``(i) An estimate by the Chief Actuary of the Social 
     Security Administration of the effect of the agreement, in 
     the short term and in the long term, on the receipts and 
     disbursements under the social security system established by 
     this title.
       ``(ii) A statement of any administrative action proposed to 
     implement the agreement and how such action will change or 
     affect existing law.
       ``(iii) A statement describing whether and how the 
     agreement changes provisions of an agreement previously 
     negotiated.
       ``(iv) A statement describing how and to what extent the 
     agreement makes progress

[[Page 2266]]

     in achieving the purposes, policies, and objectives of this 
     title.
       ``(v) An estimate by the Chief Actuary of the Social 
     Security Administration, working in consultation with the 
     Comptroller General of the United States, of the number of 
     individuals who may become eligible for any benefits under 
     this title or who may otherwise be affected by the agreement.
       ``(vi) An assessment of the integrity of the retirement 
     data and records (including birth, death, and marriage 
     records) of the other country that is the subject of the 
     agreement.
       ``(vii) An assessment of the ability of such country to 
     track and monitor recipients of benefits under such 
     agreement.
       ``(B) If any separate agreement or other understanding with 
     another country (whether oral or in writing) relating to an 
     agreement to establish a totalization arrangement under this 
     section is not disclosed to Congress in the transmittal to 
     Congress under this paragraph of the agreement to establish a 
     totalization arrangement, then such separate agreement or 
     understanding shall not be considered to be part of the 
     agreement approved by Congress under this section and shall 
     have no force and effect under United States law.
       ``(3) For purposes of this subsection, the term `approval 
     resolution' means a joint resolution, the matter after the 
     resolving clause of which is as follows: `That the proposed 
     agreement entered into pursuant to section 233 of the Social 
     Security Act between the United States and _______ 
     establishing totalization arrangements between the social 
     security system established by title II of such Act and the 
     social security system of _______, transmitted to Congress by 
     the President on ______, is hereby approved.', the first two 
     blanks therein being filled with the name of the country with 
     which the United States entered into the agreement, and the 
     third blank therein being filled with the date of the 
     transmittal of the agreement to Congress.
       ``(4) Whenever a document setting forth an agreement 
     entered into under this section and the President's report in 
     support of the agreement is transmitted to Congress pursuant 
     to paragraph (2), copies of such document shall be delivered 
     to both Houses of Congress on the same day and shall be 
     delivered to the Clerk of the House of Representatives if the 
     House is not in session and to the Secretary of the Senate if 
     the Senate is not in session.
       ``(5) On the day on which a document setting forth the 
     agreement is transmitted to the House of Representatives and 
     the Senate pursuant to paragraph (1), an approval resolution 
     with respect to such agreement shall be introduced (by 
     request) in the House by the majority leader of the House, 
     for himself or herself and the minority leader of the House, 
     or by Members of the House designated by the majority leader 
     and minority leader of the House; and shall be introduced (by 
     request) in the Senate by the majority leader of the Senate, 
     for himself or herself and the minority leader of the Senate, 
     or by Members of the Senate designated by the majority leader 
     and minority leader of the Senate. If either House is not in 
     session on the day on which such an agreement is transmitted, 
     the approval resolution with respect to such agreement shall 
     be introduced in that House, as provided in the preceding 
     sentence, on the first day thereafter on which that House is 
     in session. The resolution introduced in the House of 
     Representatives shall be referred to the Committee on Ways 
     and Means and the resolution introduced in the Senate shall 
     be referred to the Committee on Finance.''.
       (b) Additional Reports and Evaluations.--Section 233 of the 
     Social Security Act (42 U.S.C. 433) is amended by adding at 
     the end the following new subsections:
       ``(f) Biennial SSA Report on Impact of Totalization 
     Agreements.--
       ``(1) Report.--For any totalization agreement transmitted 
     to Congress on or after January 1, 2007, the Commissioner of 
     Social Security shall submit a report to Congress and the 
     Comptroller General that--
       ``(A) compares the estimates contained in the report 
     submitted to Congress under clauses (i) and (v) of subsection 
     (e)(2)(A) with respect to that agreement with the actual 
     number of individuals affected by the agreement and the 
     actual effect of the agreement on social security system 
     receipts and disbursements; and
       ``(B) contains recommendations for adjusting the methods 
     used to make the estimates.
       ``(2) Dates for submission.--The report required under this 
     subsection shall be provided not later than 2 years after the 
     effective date of the totalization agreement that is the 
     subject of the report and biennially thereafter.
       ``(g) GAO Evaluation and Report.--
       ``(1) Evaluation of initial report on impact of 
     totalization agreements.--With respect to each initial report 
     regarding a totalization agreement submitted under subsection 
     (f), the Comptroller General of the United States shall 
     conduct an evaluation of the report that includes--
       ``(A) an evaluation of the procedures used for making the 
     estimates required by subsection (e)(2)(A);
       ``(B) an evaluation of the procedures used for determining 
     the actual number of individuals affected by the agreement 
     and the effects of the totalization agreement on receipts and 
     disbursements under the social security system; and
       ``(C) such recommendations as the Comptroller General 
     determines appropriate.
       ``(2) Report.--Not later than 1 year after the date of 
     submission of an initial report regarding a totalization 
     agreement under subsection (f), the Comptroller General shall 
     submit to Congress a report setting forth the results of the 
     evaluation conducted under paragraph (1).
       ``(3) Data collection.--The Commissioner of Social Security 
     shall collect and maintain the data necessary for the 
     Comptroller General of the United States to conduct the 
     evaluation required by paragraph (1).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to agreements establishing 
     totalization arrangements entered into under section 233 of 
     the Social Security Act which are transmitted to Congress on 
     or after December 31, 2006.

                                 ______
                                 
  SA 178. Mr. ENSIGN submitted an amendment intended to be proposed to 
amendment SA 154 submitted by Mr. Ensign (for himself, Mr. DeMint, Mr. 
Graham, and Mr. Coburn) to the amendment SA 100 proposed by Mr. Reid 
(for Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor Standards 
Act of 1938 to provide for an increase in the Federal minimum wage; 
which was ordered to lie on the table; as follows:

       Strike after the first word and insert the following:

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

       (a) In General.--Section 223(d)(2)(C) of the Internal 
     Revenue Code of 1986 (relating to exceptions) is amended by 
     striking ``or'' at the end of clause (iii), by striking the 
     period at the end of clause (iv) and inserting ``, or'', and 
     by adding at the end the following new clause:
       ``(v) a high deductible health plan, other than a group 
     health plan (as defined in section 5000(b)(1)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning on January 1, 2008.
                                 ______
                                 
  SA 179. Mr. THUNE submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

               TITLE III--SMALL BUSINESS HEALTH COVERAGE

     SEC. 301. SHORT TITLE.

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

     SEC. 302. RULES GOVERNING ASSOCIATION HEALTH PLANS.

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

           ``PART 8--RULES GOVERNING ASSOCIATION HEALTH PLANS

     ``SEC. 801. ASSOCIATION HEALTH PLANS.

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

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

[[Page 2267]]



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

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

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

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

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

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

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

     ``SEC. 804. PARTICIPATION AND COVERAGE REQUIREMENTS.

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

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

[[Page 2268]]

       ``(2) upon request, any employer eligible to participate is 
     furnished information regarding all coverage options 
     available under the plan; and
       ``(3) the applicable requirements of sections 701, 702, and 
     703 are met with respect to the plan.

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

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

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

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

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

     Any person issuing to a plan insurance described in clause 
     (i), (ii), or (iii) of subparagraph (B) shall notify the 
     Secretary of any failure of premium payment meriting 
     cancellation of the policy prior to undertaking such a 
     cancellation. Any regulations prescribed by the applicable 
     authority pursuant to clause (i) or (ii) of subparagraph (B) 
     may allow for such adjustments in the required levels of 
     excess/stop loss insurance as the qualified actuary may 
     recommend, taking into account the specific circumstances of 
     the plan.
       ``(b) Minimum Surplus in Addition to Claims Reserves.--In 
     the case of any association health plan described in 
     subsection (a)(2), the requirements of this subsection are 
     met if the plan establishes and maintains surplus in an 
     amount at least equal to--
       ``(1) $500,000, or
       ``(2) such greater amount (but not greater than $2,000,000) 
     as may be set forth in regulations prescribed by the 
     applicable authority, considering the level of aggregate and 
     specific excess/stop loss insurance provided with respect to 
     such plan and other factors related to solvency risk, such as 
     the plan's projected levels of participation or claims, the 
     nature of the plan's liabilities, and the types of assets 
     available to assure that such liabilities are met.
       ``(c) Additional Requirements.--In the case of any 
     association health plan described in subsection (a)(2), the 
     applicable authority may provide such additional requirements 
     relating to reserves, excess/stop loss insurance, and 
     indemnification insurance as the applicable authority 
     considers appropriate. Such requirements may be provided by 
     regulation with respect to any such plan or any class of such 
     plans.
       ``(d) Adjustments for Excess/Stop Loss Insurance.--The 
     applicable authority may provide for adjustments to the 
     levels of reserves otherwise required under subsections (a) 
     and (b) with respect to any plan or class of plans to take 
     into account excess/stop loss insurance provided with respect 
     to such plan or plans.
       ``(e) Alternative Means of Compliance.--The applicable 
     authority may permit an association health plan described in 
     subsection (a)(2) to substitute, for all or part of the 
     requirements of this section (except subsection 
     (a)(2)(B)(iii)), such security, guarantee, hold-harmless 
     arrangement, or other financial arrangement as the applicable 
     authority determines to be adequate to enable the plan to 
     fully meet all its financial obligations on a timely basis 
     and is otherwise no less protective of the interests of 
     participants and beneficiaries than the requirements for 
     which it is substituted. The applicable authority may take 
     into account, for purposes of this subsection, evidence 
     provided by the plan or sponsor which demonstrates an 
     assumption of liability with respect to the plan. Such 
     evidence may be in the form of a contract of indemnification, 
     lien, bonding, insurance, letter of credit, recourse under 
     applicable terms of the plan in the form of assessments of 
     participating employers, security, or other financial 
     arrangement.
       ``(f) Measures to Ensure Continued Payment of Benefits by 
     Certain Plans in Distress.--
       ``(1) Payments by certain plans to association health plan 
     fund.--
       ``(A) In general.--In the case of an association health 
     plan described in subsection

[[Page 2269]]

     (a)(2), the requirements of this subsection are met if the 
     plan makes payments into the Association Health Plan Fund 
     under this subparagraph when they are due. Such payments 
     shall consist of annual payments in the amount of $5,000, 
     and, in addition to such annual payments, such supplemental 
     payments as the Secretary may determine to be necessary under 
     paragraph (2). Payments under this paragraph are payable to 
     the Fund at the time determined by the Secretary. Initial 
     payments are due in advance of certification under this part. 
     Payments shall continue to accrue until a plan's assets are 
     distributed pursuant to a termination procedure.
       ``(B) Penalties for failure to make payments.--If any 
     payment is not made by a plan when it is due, a late payment 
     charge of not more than 100 percent of the payment which was 
     not timely paid shall be payable by the plan to the Fund.
       ``(C) Continued duty of the secretary.--The Secretary shall 
     not cease to carry out the provisions of paragraph (2) on 
     account of the failure of a plan to pay any payment when due.
       ``(2) Payments by secretary to continue excess/stop loss 
     insurance coverage and indemnification insurance coverage for 
     certain plans.--In any case in which the applicable authority 
     determines that there is, or that there is reason to believe 
     that there will be: (A) a failure to take necessary 
     corrective actions under section 809(a) with respect to an 
     association health plan described in subsection (a)(2); or 
     (B) a termination of such a plan under section 809(b) or 
     810(b)(8) (and, if the applicable authority is not the 
     Secretary, certifies such determination to the Secretary), 
     the Secretary shall determine the amounts necessary to make 
     payments to an insurer (designated by the Secretary) to 
     maintain in force excess/stop loss insurance coverage or 
     indemnification insurance coverage for such plan, if the 
     Secretary determines that there is a reasonable expectation 
     that, without such payments, claims would not be satisfied by 
     reason of termination of such coverage. The Secretary shall, 
     to the extent provided in advance in appropriation Acts, pay 
     such amounts so determined to the insurer designated by the 
     Secretary.
       ``(3) Association health plan fund.--
       ``(A) In general.--There is established on the books of the 
     Treasury a fund to be known as the `Association Health Plan 
     Fund'. The Fund shall be available for making payments 
     pursuant to paragraph (2). The Fund shall be credited with 
     payments received pursuant to paragraph (1)(A), penalties 
     received pursuant to paragraph (1)(B); and earnings on 
     investments of amounts of the Fund under subparagraph (B).
       ``(B) Investment.--Whenever the Secretary determines that 
     the moneys of the fund are in excess of current needs, the 
     Secretary may request the investment of such amounts as the 
     Secretary determines advisable by the Secretary of the 
     Treasury in obligations issued or guaranteed by the United 
     States.
       ``(g) Excess/Stop Loss Insurance.--For purposes of this 
     section--
       ``(1) Aggregate excess/stop loss insurance.--The term 
     `aggregate excess/stop loss insurance' means, in connection 
     with an association health plan, a contract--
       ``(A) under which an insurer (meeting such minimum 
     standards as the applicable authority may prescribe by 
     regulation) provides for payment to the plan with respect to 
     aggregate claims under the plan in excess of an amount or 
     amounts specified in such contract;
       ``(B) which is guaranteed renewable; and
       ``(C) which allows for payment of premiums by any third 
     party on behalf of the insured plan.
       ``(2) Specific excess/stop loss insurance.--The term 
     `specific excess/stop loss insurance' means, in connection 
     with an association health plan, a contract--
       ``(A) under which an insurer (meeting such minimum 
     standards as the applicable authority may prescribe by 
     regulation) provides for payment to the plan with respect to 
     claims under the plan in connection with a covered individual 
     in excess of an amount or amounts specified in such contract 
     in connection with such covered individual;
       ``(B) which is guaranteed renewable; and
       ``(C) which allows for payment of premiums by any third 
     party on behalf of the insured plan.
       ``(h) Indemnification Insurance.--For purposes of this 
     section, the term `indemnification insurance' means, in 
     connection with an association health plan, a contract--
       ``(1) under which an insurer (meeting such minimum 
     standards as the applicable authority may prescribe by 
     regulation) provides for payment to the plan with respect to 
     claims under the plan which the plan is unable to satisfy by 
     reason of a termination pursuant to section 809(b) (relating 
     to mandatory termination);
       ``(2) which is guaranteed renewable and noncancellable for 
     any reason (except as the applicable authority may prescribe 
     by regulation); and
       ``(3) which allows for payment of premiums by any third 
     party on behalf of the insured plan.
       ``(i) Reserves.--For purposes of this section, the term 
     `reserves' means, in connection with an association health 
     plan, plan assets which meet the fiduciary standards under 
     part 4 and such additional requirements regarding liquidity 
     as the applicable authority may prescribe by regulation.
       ``(j) Solvency Standards Working Group.--
       ``(1) In general.--Within 90 days after the date of the 
     enactment of the Small Business Health Improvement Act of 
     2007, the applicable authority shall establish a Solvency 
     Standards Working Group. In prescribing the initial 
     regulations under this section, the applicable authority 
     shall take into account the recommendations of such Working 
     Group.
       ``(2) Membership.--The Working Group shall consist of not 
     more than 15 members appointed by the applicable authority. 
     The applicable authority shall include among persons invited 
     to membership on the Working Group at least one of each of 
     the following:
       ``(A) a representative of the National Association of 
     Insurance Commissioners;
       ``(B) a representative of the American Academy of 
     Actuaries;
       ``(C) a representative of the State governments, or their 
     interests;
       ``(D) a representative of existing self-insured 
     arrangements, or their interests;
       ``(E) a representative of associations of the type referred 
     to in section 801(b)(1), or their interests; and
       ``(F) a representative of multiemployer plans that are 
     group health plans, or their interests.

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

       ``(a) Filing Fee.--Under the procedure prescribed pursuant 
     to section 802(a), an association health plan shall pay to 
     the applicable authority at the time of filing an application 
     for certification under this part a filing fee in the amount 
     of $5,000, which shall be available in the case of the 
     Secretary, to the extent provided in appropriation Acts, for 
     the sole purpose of administering the certification 
     procedures applicable with respect to association health 
     plans.
       ``(b) Information to Be Included in Application for 
     Certification.--An application for certification under this 
     part meets the requirements of this section only if it 
     includes, in a manner and form which shall be prescribed by 
     the applicable authority by regulation, at least the 
     following information:
       ``(1) Identifying information.--The names and addresses 
     of--
       ``(A) the sponsor; and
       ``(B) the members of the board of trustees of the plan.
       ``(2) States in which plan intends to do business.--The 
     States in which participants and beneficiaries under the plan 
     are to be located and the number of them expected to be 
     located in each such State.
       ``(3) Bonding requirements.--Evidence provided by the board 
     of trustees that the bonding requirements of section 412 will 
     be met as of the date of the application or (if later) 
     commencement of operations.
       ``(4) Plan documents.--A copy of the documents governing 
     the plan (including any bylaws and trust agreements), the 
     summary plan description, and other material describing the 
     benefits that will be provided to participants and 
     beneficiaries under the plan.
       ``(5) Agreements with service providers.--A copy of any 
     agreements between the plan and contract administrators and 
     other service providers.
       ``(6) Funding report.--In the case of association health 
     plans providing benefits options in addition to health 
     insurance coverage, a report setting forth information with 
     respect to such additional benefit options determined as of a 
     date within the 120-day period ending with the date of the 
     application, including the following:
       ``(A) Reserves.--A statement, certified by the board of 
     trustees of the plan, and a statement of actuarial opinion, 
     signed by a qualified actuary, that all applicable 
     requirements of section 806 are or will be met in accordance 
     with regulations which the applicable authority shall 
     prescribe.
       ``(B) Adequacy of contribution rates.--A statement of 
     actuarial opinion, signed by a qualified actuary, which sets 
     forth a description of the extent to which contribution rates 
     are adequate to provide for the payment of all obligations 
     and the maintenance of required reserves under the plan for 
     the 12-month period beginning with such date within such 120-
     day period, taking into account the expected coverage and 
     experience of the plan. If the contribution rates are not 
     fully adequate, the statement of actuarial opinion shall 
     indicate the extent to which the rates are inadequate and the 
     changes needed to ensure adequacy.
       ``(C) Current and projected value of assets and 
     liabilities.--A statement of actuarial opinion signed by a 
     qualified actuary, which sets forth the current value of the 
     assets and liabilities accumulated under the plan and a 
     projection of the assets, liabilities, income, and expenses 
     of the plan for the 12-month period referred to in 
     subparagraph (B). The income statement shall identify 
     separately the plan's administrative expenses and claims.
       ``(D) Costs of coverage to be charged and other expenses.--
     A statement of the costs of coverage to be charged, including 
     an

[[Page 2270]]

     itemization of amounts for administration, reserves, and 
     other expenses associated with the operation of the plan.
       ``(E) Other information.--Any other information as may be 
     determined by the applicable authority, by regulation, as 
     necessary to carry out the purposes of this part.
       ``(c) Filing Notice of Certification With States.--A 
     certification granted under this part to an association 
     health plan shall not be effective unless written notice of 
     such certification is filed with the applicable State 
     authority of each State in which at least 25 percent of the 
     participants and beneficiaries under the plan are located. 
     For purposes of this subsection, an individual shall be 
     considered to be located in the State in which a known 
     address of such individual is located or in which such 
     individual is employed.
       ``(d) Notice of Material Changes.--In the case of any 
     association health plan certified under this part, 
     descriptions of material changes in any information which was 
     required to be submitted with the application for the 
     certification under this part shall be filed in such form and 
     manner as shall be prescribed by the applicable authority by 
     regulation. The applicable authority may require by 
     regulation prior notice of material changes with respect to 
     specified matters which might serve as the basis for 
     suspension or revocation of the certification.
       ``(e) Reporting Requirements for Certain Association Health 
     Plans.--An association health plan certified under this part 
     which provides benefit options in addition to health 
     insurance coverage for such plan year shall meet the 
     requirements of section 103 by filing an annual report under 
     such section which shall include information described in 
     subsection (b)(6) with respect to the plan year and, 
     notwithstanding section 104(a)(1)(A), shall be filed with the 
     applicable authority not later than 90 days after the close 
     of the plan year (or on such later date as may be prescribed 
     by the applicable authority). The applicable authority may 
     require by regulation such interim reports as it considers 
     appropriate.
       ``(f) Engagement of Qualified Actuary.--The board of 
     trustees of each association health plan which provides 
     benefits options in addition to health insurance coverage and 
     which is applying for certification under this part or is 
     certified under this part shall engage, on behalf of all 
     participants and beneficiaries, a qualified actuary who shall 
     be responsible for the preparation of the materials 
     comprising information necessary to be submitted by a 
     qualified actuary under this part. The qualified actuary 
     shall utilize such assumptions and techniques as are 
     necessary to enable such actuary to form an opinion as to 
     whether the contents of the matters reported under this 
     part--
       ``(1) are in the aggregate reasonably related to the 
     experience of the plan and to reasonable expectations; and
       ``(2) represent such actuary's best estimate of anticipated 
     experience under the plan.

     The opinion by the qualified actuary shall be made with 
     respect to, and shall be made a part of, the annual report.

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

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

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

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

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

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

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

       ``(a) Appointment of Secretary as Trustee for Insolvent 
     Plans.--Whenever the Secretary determines that an association 
     health plan which is or has been certified under this part 
     and which is described in section 806(a)(2) will be unable to 
     provide benefits when due or is otherwise in a financially 
     hazardous condition, as shall be defined by the Secretary by 
     regulation, the Secretary shall, upon notice to the plan, 
     apply to the appropriate United States district court for 
     appointment of the Secretary as trustee to administer the 
     plan for the duration of the insolvency. The plan may appear 
     as a party and other interested persons may intervene in the 
     proceedings at the discretion of the court. The court shall 
     appoint such Secretary trustee if the court determines that 
     the trusteeship is necessary to protect the interests of the 
     participants and beneficiaries or providers of medical care 
     or to avoid any unreasonable deterioration of the financial 
     condition of the plan. The trusteeship of such Secretary 
     shall continue until the conditions described in the first 
     sentence of this subsection are remedied or the plan is 
     terminated.
       ``(b) Powers as Trustee.--The Secretary, upon appointment 
     as trustee under subsection (a), shall have the power--
       ``(1) to do any act authorized by the plan, this title, or 
     other applicable provisions of law to be done by the plan 
     administrator or any trustee of the plan;
       ``(2) to require the transfer of all (or any part) of the 
     assets and records of the plan to the Secretary as trustee;
       ``(3) to invest any assets of the plan which the Secretary 
     holds in accordance with the provisions of the plan, 
     regulations prescribed by the Secretary, and applicable 
     provisions of law;
       ``(4) to require the sponsor, the plan administrator, any 
     participating employer, and any employee organization 
     representing plan participants to furnish any information 
     with respect to the plan which the Secretary as trustee may 
     reasonably need in order to administer the plan;
       ``(5) to collect for the plan any amounts due the plan and 
     to recover reasonable expenses of the trusteeship;
       ``(6) to commence, prosecute, or defend on behalf of the 
     plan any suit or proceeding involving the plan;
       ``(7) to issue, publish, or file such notices, statements, 
     and reports as may be required by the Secretary by regulation 
     or required by any order of the court;
       ``(8) to terminate the plan (or provide for its termination 
     in accordance with section 809(b)) and liquidate the plan 
     assets, to restore the plan to the responsibility of the 
     sponsor, or to continue the trusteeship;
       ``(9) to provide for the enrollment of plan participants 
     and beneficiaries under appropriate coverage options; and
       ``(10) to do such other acts as may be necessary to comply 
     with this title or any order of the court and to protect the 
     interests of plan participants and beneficiaries and 
     providers of medical care.
       ``(c) Notice of Appointment.--As soon as practicable after 
     the Secretary's appointment as trustee, the Secretary shall 
     give notice of such appointment to--
       ``(1) the sponsor and plan administrator;
       ``(2) each participant;
       ``(3) each participating employer; and

[[Page 2271]]

       ``(4) if applicable, each employee organization which, for 
     purposes of collective bargaining, represents plan 
     participants.
       ``(d) Additional Duties.--Except to the extent inconsistent 
     with the provisions of this title, or as may be otherwise 
     ordered by the court, the Secretary, upon appointment as 
     trustee under this section, shall be subject to the same 
     duties as those of a trustee under section 704 of title 11, 
     United States Code, and shall have the duties of a fiduciary 
     for purposes of this title.
       ``(e) Other Proceedings.--An application by the Secretary 
     under this subsection may be filed notwithstanding the 
     pendency in the same or any other court of any bankruptcy, 
     mortgage foreclosure, or equity receivership proceeding, or 
     any proceeding to reorganize, conserve, or liquidate such 
     plan or its property, or any proceeding to enforce a lien 
     against property of the plan.
       ``(f) Jurisdiction of Court.--
       ``(1) In general.--Upon the filing of an application for 
     the appointment as trustee or the issuance of a decree under 
     this section, the court to which the application is made 
     shall have exclusive jurisdiction of the plan involved and 
     its property wherever located with the powers, to the extent 
     consistent with the purposes of this section, of a court of 
     the United States having jurisdiction over cases under 
     chapter 11 of title 11, United States Code. Pending an 
     adjudication under this section such court shall stay, and 
     upon appointment by it of the Secretary as trustee, such 
     court shall continue the stay of, any pending mortgage 
     foreclosure, equity receivership, or other proceeding to 
     reorganize, conserve, or liquidate the plan, the sponsor, or 
     property of such plan or sponsor, and any other suit against 
     any receiver, conservator, or trustee of the plan, the 
     sponsor, or property of the plan or sponsor. Pending such 
     adjudication and upon the appointment by it of the Secretary 
     as trustee, the court may stay any proceeding to enforce a 
     lien against property of the plan or the sponsor or any other 
     suit against the plan or the sponsor.
       ``(2) Venue.--An action under this section may be brought 
     in the judicial district where the sponsor or the plan 
     administrator resides or does business or where any asset of 
     the plan is situated. A district court in which such action 
     is brought may issue process with respect to such action in 
     any other judicial district.
       ``(g) Personnel.--In accordance with regulations which 
     shall be prescribed by the Secretary, the Secretary shall 
     appoint, retain, and compensate accountants, actuaries, and 
     other professional service personnel as may be necessary in 
     connection with the Secretary's service as trustee under this 
     section.

     ``SEC. 811. STATE ASSESSMENT AUTHORITY.

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

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

       ``(a) Definitions.--For purposes of this part--
       ``(1) Group health plan.--The term `group health plan' has 
     the meaning provided in section 733(a)(1) (after applying 
     subsection (b) of this section).
       ``(2) Medical care.--The term `medical care' has the 
     meaning provided in section 733(a)(2).
       ``(3) Health insurance coverage.--The term `health 
     insurance coverage' has the meaning provided in section 
     733(b)(1).
       ``(4) Health insurance issuer.--The term `health insurance 
     issuer' has the meaning provided in section 733(b)(2).
       ``(5) Applicable authority.--The term `applicable 
     authority' means the Secretary, except that, in connection 
     with any exercise of the Secretary's authority regarding 
     which the Secretary is required under section 506(d) to 
     consult with a State, such term means the Secretary, in 
     consultation with such State.
       ``(6) Health status-related factor.--The term `health 
     status-related factor' has the meaning provided in section 
     733(d)(2).
       ``(7) Individual market.--
       ``(A) In general.--The term `individual market' means the 
     market for health insurance coverage offered to individuals 
     other than in connection with a group health plan.
       ``(B) Treatment of very small groups.--
       ``(i) In general.--Subject to clause (ii), such term 
     includes coverage offered in connection with a group health 
     plan that has fewer than 2 participants as current employees 
     or participants described in section 732(d)(3) on the first 
     day of the plan year.
       ``(ii) State exception.--Clause (i) shall not apply in the 
     case of health insurance coverage offered in a State if such 
     State regulates the coverage described in such clause in the 
     same manner and to the same extent as coverage in the small 
     group market (as defined in section 2791(e)(5) of the Public 
     Health Service Act) is regulated by such State.
       ``(8) Participating employer.--The term `participating 
     employer' means, in connection with an association health 
     plan, any employer, if any individual who is an employee of 
     such employer, a partner in such employer, or a self-employed 
     individual who is such employer (or any dependent, as defined 
     under the terms of the plan, of such individual) is or was 
     covered under such plan in connection with the status of such 
     individual as such an employee, partner, or self-employed 
     individual in relation to the plan.
       ``(9) Applicable state authority.--The term `applicable 
     State authority' means, with respect to a health insurance 
     issuer in a State, the State insurance commissioner or 
     official or officials designated by the State to enforce the 
     requirements of title XXVII of the Public Health Service Act 
     for the State involved with respect to such issuer.
       ``(10) Qualified actuary.--The term `qualified actuary' 
     means an individual who is a member of the American Academy 
     of Actuaries.
       ``(11) Affiliated member.--The term `affiliated member' 
     means, in connection with a sponsor--
       ``(A) a person who is otherwise eligible to be a member of 
     the sponsor but who elects an affiliated status with the 
     sponsor,
       ``(B) in the case of a sponsor with members which consist 
     of associations, a person who is a member of any such 
     association and elects an affiliated status with the sponsor, 
     or
       ``(C) in the case of an association health plan in 
     existence on the date of the enactment of the Small Business 
     Health Improvement Act of 2007, a person eligible to be a 
     member of the sponsor or one of its member associations.
       ``(12) Large employer.--The term `large employer' means, in 
     connection with a group health plan with respect to a plan 
     year, an employer who employed an average of at least 51 
     employees on business days during the preceding calendar year 
     and who employs at least 2 employees on the first day of the 
     plan year.
       ``(13) Small employer.--The term `small employer' means, in 
     connection with a group health plan with respect to a plan 
     year, an employer who is not a large employer.
       ``(b) Rules of Construction.--
       ``(1) Employers and employees.--For purposes of determining 
     whether a plan, fund, or program is an employee welfare 
     benefit plan which is an association health plan, and for 
     purposes of applying this title in connection with such plan, 
     fund, or program so determined to be such an employee welfare 
     benefit plan--
       ``(A) in the case of a partnership, the term `employer' (as 
     defined in section 3(5)) includes the partnership in relation 
     to the partners, and the term `employee' (as defined in 
     section 3(6)) includes any partner in relation to the 
     partnership; and
       ``(B) in the case of a self-employed individual, the term 
     `employer' (as defined in section 3(5)) and the term 
     `employee' (as defined in section 3(6)) shall include such 
     individual.
       ``(2) Plans, funds, and programs treated as employee 
     welfare benefit plans.--In the case of any plan, fund, or 
     program which was established or is maintained for the 
     purpose of providing medical care (through the purchase of 
     insurance or otherwise) for employees (or their dependents) 
     covered thereunder and which demonstrates to the Secretary 
     that all requirements for certification under this part would 
     be met with respect to such plan, fund, or program if such 
     plan, fund, or program were a group health plan, such plan, 
     fund, or program shall be treated for purposes of this title 
     as an employee welfare benefit plan on and after the date of 
     such demonstration.''.
       (b) Conforming Amendments to Preemption Rules.--
       (1) Section 514(b)(6) of such Act (29 U.S.C. 1144(b)(6)) is 
     amended by adding at the end the following new subparagraph:
       ``(E) The preceding subparagraphs of this paragraph do not 
     apply with respect to any State law in the case of an 
     association health plan which is certified under part 8.''.

[[Page 2272]]

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

           ``Part 8--Rules Governing Association Health Plans

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

     SEC. 303. CLARIFICATION OF TREATMENT OF SINGLE EMPLOYER 
                   ARRANGEMENTS.

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

     SEC. 304. ENFORCEMENT PROVISIONS RELATING TO ASSOCIATION 
                   HEALTH PLANS.

       (a) Criminal Penalties for Certain Willful 
     Misrepresentations.--Section 501 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1131) is amended--
       (1) by inserting ``(a)'' after ``Sec. 501.''; and
       (2) by adding at the end the following new subsection:
       ``(b) Any person who willfully falsely represents, to any 
     employee, any employee's beneficiary, any employer, the 
     Secretary, or any State, a plan or other arrangement 
     established or maintained for the purpose of offering or 
     providing any benefit described in section 3(1) to employees 
     or their beneficiaries as--
       ``(1) being an association health plan which has been 
     certified under part 8;

[[Page 2273]]

       ``(2) having been established or maintained under or 
     pursuant to one or more collective bargaining agreements 
     which are reached pursuant to collective bargaining described 
     in section 8(d) of the National Labor Relations Act (29 
     U.S.C. 158(d)) or paragraph Fourth of section 2 of the 
     Railway Labor Act (45 U.S.C. 152, paragraph Fourth) or which 
     are reached pursuant to labor-management negotiations under 
     similar provisions of State public employee relations laws; 
     or
       ``(3) being a plan or arrangement described in section 
     3(40)(A)(i),

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

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

     SEC. 305. COOPERATION BETWEEN FEDERAL AND STATE AUTHORITIES.

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

     SEC. 306. EFFECTIVE DATE AND TRANSITIONAL AND OTHER RULES.

       (a) Effective Date.--The amendments made by this title 
     shall take effect one year after the date of the enactment of 
     this Act. The Secretary of Labor shall first issue all 
     regulations necessary to carry out the amendments made by 
     this title within one year after the date of the enactment of 
     this Act.
       (b) Treatment of Certain Existing Health Benefits 
     Programs.--
       (1) In general.--In any case in which, as of the date of 
     the enactment of this Act, an arrangement is maintained in a 
     State for the purpose of providing benefits consisting of 
     medical care for the employees and beneficiaries of its 
     participating employers, at least 200 participating employers 
     make contributions to such arrangement, such arrangement has 
     been in existence for at least 10 years, and such arrangement 
     is licensed under the laws of one or more States to provide 
     such benefits to its participating employers, upon the filing 
     with the applicable authority (as defined in section 
     812(a)(5) of the Employee Retirement Income Security Act of 
     1974 (as amended by this subtitle)) by the arrangement of an 
     application for certification of the arrangement under part 8 
     of subtitle B of title I of such Act--
       (A) such arrangement shall be deemed to be a group health 
     plan for purposes of title I of such Act;
       (B) the requirements of sections 801(a) and 803(a) of the 
     Employee Retirement Income Security Act of 1974 shall be 
     deemed met with respect to such arrangement;
       (C) the requirements of section 803(b) of such Act shall be 
     deemed met, if the arrangement is operated by a board of 
     directors which--
       (i) is elected by the participating employers, with each 
     employer having one vote; and
       (ii) has complete fiscal control over the arrangement and 
     which is responsible for all operations of the arrangement;
       (D) the requirements of section 804(a) of such Act shall be 
     deemed met with respect to such arrangement; and
       (E) the arrangement may be certified by any applicable 
     authority with respect to its operations in any State only if 
     it operates in such State on the date of certification.

     The provisions of this subsection shall cease to apply with 
     respect to any such arrangement at such time after the date 
     of the enactment of this Act as the applicable requirements 
     of this subsection are not met with respect to such 
     arrangement.
       (2) Definitions.--For purposes of this subsection, the 
     terms ``group health plan'', ``medical care'', and 
     ``participating employer'' shall have the meanings provided 
     in section 812 of the Employee Retirement Income Security Act 
     of 1974, except that the reference in paragraph (7) of such 
     section to an ``association health plan'' shall be deemed a 
     reference to an arrangement referred to in this subsection.
                                 ______
                                 
  SA 180. Mr. KENNEDY submitted an amendment intended to be proposed to 
amendment SA 143 submitted by Mr. Sessions and intended to be proposed 
to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 to 
provide for an increase in the Federal minimum wage; which was ordered 
to lie on the table; as follows:

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

                     DIVISION B--IMMIGRATION REFORM

     SECTION 1001. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Secure America and Orderly Immigration Act''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

                     DIVISION B--IMMIGRATION REFORM

Sec. 1001. Short title; table of contents.
Sec. 1002. Findings.

                        TITLE I--BORDER SECURITY

Sec. 1101. Definitions.

             Subtitle A--Border Security Strategic Planning

Sec. 1111. National Strategy for Border Security.
Sec. 1112. Reports to Congress.
Sec. 1113. Authorization of appropriations.

Subtitle B--Border Infrastructure, Technology Integration, and Security 
                              Enhancement

Sec. 1121. Border security coordination plan.
Sec. 1122. Border security advisory committee.
Sec. 1123. Programs on the use of technologies for border security.
Sec. 1124. Combating human smuggling.
Sec. 1125. Savings clause.

              Subtitle C--International Border Enforcement

Sec. 1131. North American Security Initiative.
Sec. 1132. Information sharing agreements.
Sec. 1133. Improving the security of Mexico's southern border.

               TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

Sec. 1201. State criminal alien assistance program authorization of 
              appropriations.
Sec. 1202. Reimbursement of States for indirect costs relating to the 
              incarceration of illegal aliens.
Sec. 1203. Reimbursement of States for pre-conviction costs relating to 
              the incarceration of illegal aliens.

                TITLE III--ESSENTIAL WORKER VISA PROGRAM

Sec. 1301. Essential workers.
Sec. 1302. Admission of essential workers.
Sec. 1303. Employer obligations.
Sec. 1304. Protection for workers.
Sec. 1305. Market-based numerical limitations.

[[Page 2274]]

Sec. 1306. Adjustment to lawful permanent resident status.
Sec. 1307. Essential Worker Visa Program Task Force.
Sec. 1308. Willing worker-willing employer electronic job registry.
Sec. 1309. Authorization of appropriations.

                         TITLE IV--ENFORCEMENT

Sec. 1401. Document and visa requirements.
Sec. 1402. Employment Eligibility Confirmation System.
Sec. 1403. Improved entry and exit data system.
Sec. 1404. Department of labor investigative authorities.
Sec. 1405. Protection of employment rights.
Sec. 1406. Increased fines for prohibited behavior.

             TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

Sec. 1501. Labor migration facilitation programs.
Sec. 1502. Bilateral efforts with Mexico to reduce migration pressures 
              and costs.

              TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

Sec. 1601. Elimination of existing backlogs.
Sec. 1602. Country limits.
Sec. 1603. Allocation of immigrant visas.
Sec. 1604. Relief for children and widows.
Sec. 1605. Amending the affidavit of support requirements.
Sec. 1606. Discretionary authority.
Sec. 1607. Family unity.

                     TITLE VII--H-5B NONIMMIGRANTS

Sec. 1701. H-5B nonimmigrants.
Sec. 1702. Adjustment of status for H-5B nonimmigrants.
Sec. 1703. Aliens not subject to direct numerical limitations.
Sec. 1704. Employer protections.
Sec. 1705. Authorization of appropriations.

            TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

Sec. 1801. Right to qualified representation.
Sec. 1802. Protection of witness testimony.

                      TITLE IX--CIVICS INTEGRATION

Sec. 1901. Funding for the Office of Citizenship.
Sec. 1902. Civics integration grant program.

                TITLE X--PROMOTING ACCESS TO HEALTH CARE

Sec. 2001. Federal reimbursement of emergency health services furnished 
              to undocumented aliens.
Sec. 2002. Prohibition against offset of certain medicare and medicaid 
              payments.
Sec. 2003. Prohibition against discrimination against aliens on the 
              basis of employment in hospital-based versus nonhospital-
              based sites.
Sec. 2004. Binational public health infrastructure and health 
              insurance.

                        TITLE XI--MISCELLANEOUS

Sec. 2101. Submission to congress of information regarding H-5A 
              nonimmigrants.
Sec. 2102. H-5 nonimmigrant petitioner account.
Sec. 2103. Anti-discrimination protections.
Sec. 2104. Women and children at risk of harm.
Sec. 2105. Expansion of S visa.
Sec. 2106. Volunteers.

     SEC. 1002. FINDINGS.

       Congress makes the following findings:
       (1) The Government of the United States has an obligation 
     to its citizens to secure its borders and ensure the rule of 
     law in its communities.
       (2) The Government of the United States must strengthen 
     international border security efforts by dedicating adequate 
     and significant resources for technology, personnel, and 
     training for border region enforcement.
       (3) Federal immigration policies must adhere to the United 
     States tradition as a nation of immigrants and reaffirm this 
     Nation's commitment to family unity, economic opportunity, 
     and humane treatment.
       (4) Immigrants have contributed significantly to the 
     strength and economic prosperity of the United States and 
     action must be taken to ensure their fair treatment by 
     employers and protection against fraud and abuse.
       (5) Current immigration laws and the enforcement of such 
     laws are ineffective and do not serve the people of the 
     United States, the national security interests of the United 
     States, or the economic prosperity of the United States.
       (6) The United States cannot effectively carry out its 
     national security policies unless the United States 
     identifies undocumented immigrants and encourages them to 
     come forward and participate legally in the economy of the 
     United States.
       (7) Illegal immigration fosters other illegal activity, 
     including human smuggling, trafficking, and document fraud, 
     all of which undermine the national security interests of the 
     United States.
       (8) Illegal immigration burdens States and local 
     communities with hundreds of millions of dollars in 
     uncompensated expenses for law enforcement, health care, and 
     other essential services.
       (9) Illegal immigration creates an underclass of workers 
     who are vulnerable to fraud and exploitation.
       (10) Fixing the broken immigration system requires a 
     comprehensive approach that provides for adequate legal 
     channels for immigration and strong enforcement of 
     immigration laws which will serve the economic, social, and 
     security interests of the United States.
       (11) Foreign governments, particularly those that share an 
     international border with the United States, must play a 
     critical role in securing international borders and deterring 
     illegal entry of foreign nationals into the United States.
       (12) Federal immigration policy should foster economic 
     growth by allowing willing workers to be matched with willing 
     employers when no United States worker is available to take a 
     job.
       (13) Immigration reform is a key component to achieving 
     effective enforcement and will allow for the best use of 
     security and enforcement resources to be focused on the 
     greatest risks.
       (14) Comprehensive immigration reform and strong 
     enforcement of immigration laws will encourage legal 
     immigration, deter illegal immigration, and promote the 
     economic and national security interests of the United 
     States.

                        TITLE I--BORDER SECURITY

     SEC. 1101. DEFINITIONS.

       In this title:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (B) the Committee on the Judiciary of the Senate;
       (C) the Committee on Homeland Security of the House of 
     Representatives; and
       (D) the Committee on the Judiciary of the House of 
     Representatives.
       (2) International border of the united states.--The term 
     ``international border of the United States'' means the 
     international border between the United States and Canada and 
     the international border between the United States and 
     Mexico, including points of entry along such international 
     borders.
       (3) Secretary.--Except as otherwise provided, the term 
     ``Secretary'' means the Secretary of Homeland Security.
       (4) Security plan.--The term ``security plan'' means a 
     security plan developed as part of the National Strategy for 
     Border Security set forth under section 111(a) for the Border 
     Patrol and the field offices of the Bureau of Customs and 
     Border Protection of the Department of Homeland Security that 
     has responsibility for the security of any portion of the 
     international border of the United States.

             Subtitle A--Border Security Strategic Planning

     SEC. 1111. NATIONAL STRATEGY FOR BORDER SECURITY.

       (a) In General.--In conjunction with strategic homeland 
     security planning efforts, the Secretary shall develop, 
     implement, and update, as needed, a National Strategy for 
     Border Security that includes a security plan for the Border 
     Patrol and the field offices of the Bureau of Customs and 
     Border Protection of the Department of Homeland Security that 
     has responsibility for the security of any portion of the 
     international border of the United States.
       (b) Contents.--The National Strategy for Border Security 
     shall include--
       (1) the identification and evaluation of the points of 
     entry and all portions of the international border of the 
     United States that, in the interests of national security and 
     enforcement, must be protected from illegal transit;
       (2) a description of the most appropriate, practical, and 
     cost-effective means of defending the international border of 
     the United States against threats to security and illegal 
     transit, including intelligence capacities, technology, 
     equipment, personnel, and training needed to address security 
     vulnerabilities within the United States for the Border 
     Patrol and the field offices of the Bureau of Customs and 
     Border Protection that have responsibility for any portion of 
     the international border of the United States;
       (3) risk-based priorities for assuring border security and 
     realistic deadlines for addressing security and enforcement 
     needs identified in paragraphs (1) and (2);
       (4) a strategic plan that sets out agreed upon roles and 
     missions of Federal, State, regional, local, and tribal 
     authorities, including appropriate coordination among such 
     authorities, to enable security enforcement and border lands 
     management to be carried out in an efficient and effective 
     manner;
       (5) a prioritization of research and development objectives 
     to enhance the security of the international border of the 
     United States and enforcement needs to promote such security 
     consistent with the provisions of subtitle B;
       (6) an update of the 2001 Port of Entry Infrastructure 
     Assessment Study conducted by the United States Customs 
     Service, in consultation with the General Services 
     Administration;
       (7) strategic interior enforcement coordination plans with 
     personnel of Immigration and Customs Enforcement;

[[Page 2275]]

       (8) strategic enforcement coordination plans with overseas 
     personnel of the Department of Homeland Security and the 
     Department of State to end human smuggling and trafficking 
     activities;
       (9) any other infrastructure or security plan or report 
     that the Secretary determines appropriate for inclusion;
       (10) the identification of low-risk travelers and how such 
     identification would facilitate cross-border travel; and
       (11) ways to ensure that the trade and commerce of the 
     United States is not diminished by efforts, activities, and 
     programs aimed at securing the homeland.
       (c) Priority of National Strategy.--The National Strategy 
     for Border Security shall be the governing document for 
     Federal security and enforcement efforts related to securing 
     the international border of the United States.

     SEC. 1112. REPORTS TO CONGRESS.

       (a) National Strategy.--
       (1) Initial submission.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary shall submit the 
     National Strategy for Border Security, including each 
     security plan, to the appropriate congressional committees. 
     Such plans shall include estimated costs of implementation 
     and training from a fiscal and personnel perspective and a 
     cost-benefit analysis of any technological security 
     implementations.
       (2) Subsequent submissions.--After the submission required 
     under paragraph (1), the Secretary shall submit to the 
     appropriate congressional committees any revisions to the 
     National Strategy for Border Security, including any 
     revisions to a security plan, not less frequently than April 
     1 of each odd-numbered year. The plan shall include estimated 
     costs for implementation and training and a cost-benefit 
     analysis of technological security implementations that take 
     place during the time frame under evaluation.
       (b) Periodic Progress Reports.--
       (1) Requirement for report.--Each year, in conjunction with 
     the submission of the budget to Congress under section 
     1105(a) of title 31, United States Code, the Secretary shall 
     submit to the appropriate congressional committees an 
     assessment of the progress made on implementing the National 
     Strategy for Border Security, including each security plan.
       (2) Content.--Each progress report submitted under this 
     subsection shall include any recommendations for improving 
     and implementing the National Strategy for Border Security, 
     including any recommendations for improving and implementing 
     a security plan.
       (c) Classified Material.--
       (1) In general.--Any material included in the National 
     Strategy for Border Security, including each security plan, 
     that includes information that is properly classified under 
     criteria established by Executive order shall be submitted to 
     the appropriate congressional committees in a classified 
     form.
       (2) Unclassified version.--As appropriate, an unclassified 
     version of the material described in paragraph (1) shall be 
     provided to the appropriate congressional committees.

     SEC. 1113. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary 
     such sums as may be necessary to carry out this subtitle for 
     each of the 5 fiscal years beginning with the fiscal year 
     after the fiscal year in which this Act was enacted.

Subtitle B--Border Infrastructure, Technology Integration, and Security 
                              Enhancement

     SEC. 1121. BORDER SECURITY COORDINATION PLAN.

       (a) In General.--The Secretary shall coordinate with 
     Federal, State, local, and tribal authorities on law 
     enforcement, emergency response, and security-related 
     responsibilities with regard to the international border of 
     the United States to develop and implement a plan to ensure 
     that the security of such international border is not 
     compromised--
       (1) when the jurisdiction for providing such security 
     changes from one such authority to another such authority;
       (2) in areas where such jurisdiction is shared by more than 
     one such authority; or
       (3) by one such authority relinquishing such jurisdiction 
     to another such authority pursuant to a memorandum of 
     understanding.
       (b) Elements of Plan.--In developing the plan, the 
     Secretary shall consider methods to--
       (1) coordinate emergency responses;
       (2) improve data-sharing, communications, and technology 
     among the appropriate agencies;
       (3) promote research and development relating to the 
     activities described in paragraphs (1) and (2); and
       (4) combine personnel and resource assets when practicable.
       (c) Report.--Not later than 1 year after implementing the 
     plan developed under subsection (a), the Secretary shall 
     transmit a report to the appropriate congressional committees 
     on the development and implementation of such plan.

     SEC. 1122. BORDER SECURITY ADVISORY COMMITTEE.

       (a) Establishment.--The Secretary is authorized to 
     establish a Border Security Advisory Committee (referred to 
     in this section as the ``Advisory Committee'') to provide 
     advice and recommendations to the Secretary on border 
     security and enforcement issues.
       (b) Composition.--
       (1) In general.--The members of the Advisory Committee 
     shall be appointed by the Secretary and shall include 
     representatives of--
       (A) States that are adjacent to the international border of 
     the United States;
       (B) local law enforcement agencies; community officials, 
     and tribal authorities of such States; and
       (C) other interested parties.
       (2) Membership.--The Advisory Committee shall be comprised 
     of members who represent a broad cross section of 
     perspectives.

     SEC. 1123. PROGRAMS ON THE USE OF TECHNOLOGIES FOR BORDER 
                   SECURITY.

       (a) Aerial Surveillance Technologies Program.--
       (1) In general.--In conjunction with the border 
     surveillance plan developed under section 5201 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 
     (Public Law 108-458), the Secretary, not later than 60 days 
     after the date of enactment of this Act, shall develop and 
     implement a program to fully integrate aerial surveillance 
     technologies to enhance the border security of the United 
     States.
       (2) Assessment and consultation requirements.--In 
     developing the program under this subsection, the Secretary 
     shall--
       (A) consider current and proposed aerial surveillance 
     technologies;
       (B) assess the feasibility and advisability of utilizing 
     such technologies to address border threats, including an 
     assessment of the technologies considered best suited to 
     address respective threats;
       (C) consult with the Secretary of Defense regarding any 
     technologies or equipment, which the Secretary may deploy 
     along the international border of the United States; and
       (D) consult with the Administrator of the Federal Aviation 
     Administration regarding safety, airspace coordination and 
     regulation, and any other issues necessary for implementation 
     of the program.
       (3) Additional requirements.--
       (A) In general.--The program developed under this 
     subsection shall include the utilization of a variety of 
     aerial surveillance technologies in a variety of topographies 
     and areas, including populated and unpopulated areas located 
     on or near the international border of the United States, in 
     order to evaluate, for a range of circumstances--
       (i) the significance of previous experiences with such 
     technologies in border security or critical infrastructure 
     protection;
       (ii) the cost and effectiveness of various technologies for 
     border security, including varying levels of technical 
     complexity; and
       (iii) liability, safety, and privacy concerns relating to 
     the utilization of such technologies for border security.
       (B) Use of unmanned aerial vehicles.--The aerial 
     surveillance technologies utilized in the program shall 
     include unmanned aerial vehicles.
       (4) Continued use of aerial surveillance technologies.--The 
     Secretary may continue the operation of aerial surveillance 
     technologies while assessing the effectiveness of their 
     utilization and until such time the Secretary determines 
     appropriate.
       (5) Report.--
       (A) Requirement.--Not later than 1 year after implementing 
     the program under this subsection, the Secretary shall submit 
     a report on such program to the appropriate congressional 
     committees.
       (B) Content.--The Secretary shall include in the report 
     required by subparagraph (A) a description of the program 
     together with such recommendations as the Secretary finds 
     appropriate for enhancing the program.
       (b) Demonstration Programs.--The Secretary is authorized, 
     as part of the development and implementation of the National 
     Strategy for Border Security, to establish and carry out 
     demonstration programs to strengthen communication, 
     information sharing, technology, security, intelligence 
     benefits, and enforcement activities that will protect the 
     international border of the United States without diminishing 
     international trade and commerce.

     SEC. 1124. COMBATING HUMAN SMUGGLING.

       (a) Requirement for Plan.--The Secretary shall develop and 
     implement a plan to improve coordination between the Bureau 
     of Immigration and Customs Enforcement and the Bureau of 
     Customs and Border Protection of the Department of Homeland 
     Security and any other Federal, State, local, or tribal 
     authorities, as determined appropriate by the Secretary, to 
     improve coordination efforts to combat human smuggling.
       (b) Content.--In developing the plan required by subsection 
     (a), the Secretary shall consider--
       (1) the interoperability of databases utilized to prevent 
     human smuggling;
       (2) adequate and effective personnel training;
       (3) methods and programs to effectively target networks 
     that engage in such smuggling;

[[Page 2276]]

       (4) effective utilization of--
       (A) visas for victims of trafficking and other crimes; and
       (B) investigatory techniques, equipment, and procedures 
     that prevent, detect, and prosecute international money 
     laundering and other operations that are utilized in 
     smuggling;
       (5) joint measures, with the Secretary of State, to enhance 
     intelligence sharing and cooperation with foreign governments 
     whose citizens are preyed on by human smugglers; and
       (6) other measures that the Secretary considers appropriate 
     to combating human smuggling.
       (c) Report.--Not later than 1 year after implementing the 
     plan described in subsection (a), the Secretary shall submit 
     to Congress a report on such plan, including any 
     recommendations for legislative action to improve efforts to 
     combating human smuggling.

     SEC. 1125. SAVINGS CLAUSE.

       Nothing in this subtitle or subtitle A may be construed to 
     provide to any State or local entity any additional authority 
     to enforce Federal immigration laws.

              Subtitle C--International Border Enforcement

     SEC. 1131. NORTH AMERICAN SECURITY INITIATIVE.

       (a) In General.--The Secretary of State shall enhance the 
     mutual security and safety of the United States, Canada, and 
     Mexico by providing a framework for better management, 
     communication, and coordination between the Governments of 
     North America.
       (b) Responsibilities.--In implementing the provisions of 
     this subtitle, the Secretary of State shall carry out all of 
     the activities described in this subtitle.

     SEC. 1132. INFORMATION SHARING AGREEMENTS.

       The Secretary of State, in coordination with the Secretary 
     of Homeland Security and the Government of Mexico, is 
     authorized to negotiate an agreement with Mexico to--
       (1) cooperate in the screening of third-country nationals 
     using Mexico as a transit corridor for entry into the United 
     States; and
       (2) provide technical assistance to support stronger 
     immigration control at the border with Mexico.

     SEC. 1133. IMPROVING THE SECURITY OF MEXICO'S SOUTHERN 
                   BORDER.

       (a) Technical Assistance.--The Secretary of State, in 
     coordination with the Secretary of Homeland Security, the 
     Canadian Department of Foreign Affairs, and the Government of 
     Mexico, shall establish a program to--
       (1) assess the specific needs of the governments of Central 
     American countries in maintaining the security of the borders 
     of such countries;
       (2) use the assessment made under paragraph (1) to 
     determine the financial and technical support needed by the 
     governments of Central American countries from Canada, 
     Mexico, and the United States to meet such needs;
       (3) provide technical assistance to the governments of 
     Central American countries to secure issuance of passports 
     and travel documents by such countries; and
       (4) encourage the governments of Central American countries 
     to--
       (A) control alien smuggling and trafficking;
       (B) prevent the use and manufacture of fraudulent travel 
     documents; and
       (C) share relevant information with Mexico, Canada, and the 
     United States.
       (b) Immigration.--The Secretary of Homeland Security, in 
     consultation with the Secretary of State and appropriate 
     officials of the governments of Central American countries 
     shall provide robust law enforcement assistance to such 
     governments that specifically addresses migratory issues to 
     increase the ability of such governments to dismantle human 
     smuggling organizations and gain tighter control over the 
     border.
       (c) Border Security Between Mexico and Guatemala or 
     Belize.--The Secretary of State, in consultation with the 
     Secretary of Homeland Security, the Government of Mexico, and 
     appropriate officials of the Governments of Guatemala, 
     Belize, and neighboring contiguous countries, shall establish 
     a program to provide needed equipment, technical assistance, 
     and vehicles to manage, regulate, and patrol the 
     international border between Mexico and Guatemala and between 
     Mexico and Belize.
       (d) Tracking Central American Gangs.--The Secretary of 
     State, in coordination with the Secretary of Homeland 
     Security, the Director of the Federal Bureau of 
     Investigation, the Government of Mexico, and appropriate 
     officials of the governments of Central American countries, 
     shall--
       (1) assess the direct and indirect impact on the United 
     States and Central America on deporting violent criminal 
     aliens;
       (2) establish a program and database to track Central 
     American gang activities, focusing on the identification of 
     returning criminal deportees;
       (3) devise an agreed-upon mechanism for notification 
     applied prior to deportation and for support for 
     reintegration of these deportees; and
       (4) devise an agreement to share all relevant information 
     with the appropriate agencies of Mexico and other Central 
     American countries.

               TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

     SEC. 1201. STATE CRIMINAL ALIEN ASSISTANCE PROGRAM 
                   AUTHORIZATION OF APPROPRIATIONS.

       Section 241(i) of the Immigration and Nationality Act (8 
     U.S.C. 1231(i)) is amended by striking paragraphs (5) and (6) 
     and inserting the following:
       ``(5) Authorization of appropriations.--
       ``(A) In general.--There are authorized to be appropriated 
     to carry out this subsection--
       ``(i) such sums as may be necessary for fiscal year 2005;
       ``(ii) $750,000,000 for fiscal year 2006;
       ``(iii) $850,000,000 for fiscal year 2007; and
       ``(iv) $950,000,000 for each of the fiscal years 2008 
     through 2011.
       ``(B) Limitation on use of funds.--Amounts appropriated 
     pursuant to subparagraph (A) that are distributed to a State 
     or political subdivision of a State, including a 
     municipality, may be used only for correctional purposes.''.

     SEC. 1202. REIMBURSEMENT OF STATES FOR INDIRECT COSTS 
                   RELATING TO THE INCARCERATION OF ILLEGAL 
                   ALIENS.

       Section 501 of the Immigration Reform and Control Act of 
     1986 (8 U.S.C. 1365) is amended--
       (1) in subsection (a)--
       (A) by striking ``for the costs'' and inserting the 
     following: ``for--
       ``(1) the costs''; and
       (B) by striking ``such State.'' and inserting the 
     following: ``such State; and
       ``(2) the indirect costs related to the imprisonment 
     described in paragraph (1).''; and
       (2) by striking subsections (c) through (e) and inserting 
     the following:
       ``(c) Manner of Allotment of Reimbursements.--
     Reimbursements under this section shall be allotted in a 
     manner that gives special consideration for any State that--
       ``(1) shares a border with Mexico or Canada; or
       ``(2) includes within the State an area in which a large 
     number of undocumented aliens reside relative to the general 
     population of that area.
       ``(d) Definitions.--As used in this section:
       ``(1) Indirect costs.--The term `indirect costs' includes--
       ``(A) court costs, county attorney costs, detention costs, 
     and criminal proceedings expenditures that do not involve 
     going to trial;
       ``(B) indigent defense costs; and
       ``(C) unsupervised probation costs.
       ``(2) State.--The term `State' has the meaning given such 
     term in section 101(a)(36) of the Immigration and Nationality 
     Act.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated $200,000,000 for each of the 
     fiscal years 2005 through 2011 to carry out subsection 
     (a)(2).''.

     SEC. 1203. REIMBURSEMENT OF STATES FOR PRE-CONVICTION COSTS 
                   RELATING TO THE INCARCERATION OF ILLEGAL 
                   ALIENS.

       Section 241(i)(3)(A) of the Immigration and Nationality Act 
     (8 U.S.C. 1231(i)(3)(a) is amended by inserting ``charged 
     with or'' before ``convicted.''

                TITLE III--ESSENTIAL WORKER VISA PROGRAM

     SEC. 1301. ESSENTIAL WORKERS.

       Section 101(a)(15)(H) of the Immigration and Nationality 
     Act (8 U.S.C. 1101(a)(15)(H)) is amended--
       (1) by striking ``(H) an alien (i)(b)'' and inserting the 
     following:
       ``(H) an alien--
       ``(i)(b)'';
       (2) by striking ``or (ii)(a)'' and inserting the following:
       ``(ii)(a)'';
       (3) by striking ``or (iii)'' and inserting the following:
       ``(iii)''; and
       (4) by adding at the end the following:
       ``(v)(a) subject to section 218A, having residence in a 
     foreign country, which the alien has no intention of 
     abandoning, who is coming temporarily to the United States to 
     initially perform labor or services (other than those 
     occupation classifications covered under the provisions of 
     clause (i)(b) or (ii)(a) or subparagraph (L), (O), (P), or 
     (R)); or.''.

     SEC. 1302. ADMISSION OF ESSENTIAL WORKERS.

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


                 ``ADMISSION OF TEMPORARY H-5A WORKERS

       ``Sec. 218A.  (a) The Secretary of State may grant a 
     temporary visa to a nonimmigrant described in section 
     101(a)(15)(H)(v)(a) who demonstrates an intent to perform 
     labor or services in the United States (other than those 
     occupational classifications covered under the provisions of 
     clause (i)(b) or (ii)(a) of section 101(a)(15)(H) or 
     subparagraph (L), (O), (P), or (R)) of section 101(a)(15).
       ``(b) Requirements for Admission.--In order to be eligible 
     for nonimmigrant status under section 101(a)(15)(H)(v)(a), an 
     alien shall meet the following requirements:
       ``(1) Eligibility to work.--The alien shall establish that 
     the alien is capable of performing the labor or services 
     required for an occupation under section 101(a)(15)(H)(v).

[[Page 2277]]

       ``(2) Evidence of employment.--The alien's evidence of 
     employment shall be provided through the Employment 
     Eligibility Confirmation System established under section 
     274E or in accordance with requirements issued by the 
     Secretary of State, in consultation with the Secretary of 
     Homeland Security. In carrying out this paragraph, the 
     Secretary may consider evidence from employers, employer 
     associations, and labor representatives.
       ``(3) Fee.--The alien shall pay a $500 application fee to 
     apply for the visa in addition to the cost of processing and 
     adjudicating such application. Nothing in this paragraph 
     shall be construed to affect consular procedures for charging 
     reciprocal fees.
       ``(4) Medical examination.--The alien shall undergo a 
     medical examination (including a determination of 
     immunization status) at the alien's expense, that conforms to 
     generally accepted standards of medical practice.
       ``(c) Grounds of Inadmissibility.--
       ``(1) In general.--In determining an alien's admissibility 
     as a nonimmigrant under section 101(a)(15)(H)(v)(a)--
       ``(A) paragraphs (5), (6) (except for subparagraph (E)), 
     (7), (9), and (10)(B) of section 212(a) may be waived for 
     conduct that occurred before the date on which the Secure 
     America and Orderly Immigration Act was introduced;
       ``(B) the Secretary of Homeland Security may not waive--
       ``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of 
     section 212(a)(2) (relating to criminals);
       ``(ii) section 212(a)(3) (relating to security and related 
     grounds); or
       ``(iii) subparagraph (A) or (C) of section 212(a)(10) 
     (relating to polygamists and child abductors);
       ``(C) for conduct that occurred before the date on which 
     the Secure America and Orderly Immigration Act was 
     introduced, the Secretary of Homeland Security may waive the 
     application of any provision of section 212(a) not listed in 
     subparagraph (B) on behalf of an individual alien for 
     humanitarian purposes, to ensure family unity, or when such 
     waiver is otherwise in the public interest; and
       ``(D) nothing in this paragraph shall be construed as 
     affecting the authority of the Secretary of Homeland Security 
     to waive the provisions of section 212(a).
       ``(2) Waiver fine.--An alien who is granted a waiver under 
     subparagraph (1) shall pay a $1,500 fine upon approval of the 
     alien's visa application.
       ``(3) Applicability of other provisions.--Sections 240B(d) 
     and 241(a)(5) shall not apply to an alien who initially seeks 
     admission as a nonimmigrant under section 
     101(a)(15)(H)(v)(a).
       ``(4) Renewal of authorized admission and subsequent 
     admissions.--An alien seeking renewal of authorized admission 
     or subsequent admission as a nonimmigrant under section 
     101(a)(15)(H)(v)(a) shall establish that the alien is not 
     inadmissible under section 212(a).
       ``(d) Period of Authorized Admission.--
       ``(1) Initial period.--The initial period of authorized 
     admission as a nonimmigrant described in section 
     101(a)(15)(H)(v)(a) shall be 3 years.
       ``(2) Renewals.--The alien may seek an extension of the 
     period described in paragraph (1) for 1 additional 3-year 
     period.
       ``(3) Loss of employment.--
       ``(A) In general.--Subject to subsection (c), the period of 
     authorized admission of a nonimmigrant alien under section 
     101(a)(15)(H)(v)(a) shall terminate if the nonimmigrant is 
     unemployed for 45 or more consecutive days.
       ``(B) Return to foreign residence.--Any alien whose period 
     of authorized admission terminates under subparagraph (A) 
     shall be required to return to the country of the alien's 
     nationality or last residence.
       ``(C) Period of visa validity.--Any alien, whose period of 
     authorized admission terminates under subparagraph (A), who 
     returns to the country of the alien's nationality or last 
     residence under subparagraph (B), may reenter the United 
     States on the basis of the same visa to work for an employer, 
     if the alien has complied with the requirements of subsection 
     (b)(1).
       ``(4) Visits outside united states.--
       ``(A) In general.--Under regulations established by the 
     Secretary of Homeland Security, a nonimmigrant alien under 
     section 101(a)(15)(H)(v)(a)--
       ``(i) may travel outside of the United States; and
       ``(ii) may be readmitted without having to obtain a new 
     visa if the period of authorized admission has not expired.
       ``(B) Effect on period of authorized admission.--Time spent 
     outside the United States under subparagraph (A) shall not 
     extend the period of authorized admission in the United 
     States.
       ``(e) Portability.--A nonimmigrant alien described in this 
     section, who was previously issued a visa or otherwise 
     provided nonimmigrant status under section 
     101(a)(15)(H)(v)(a), may accept new employment with a 
     subsequent employer.
       ``(f) Waiver of Rights Prohibited.--A nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) may not be required 
     to waive any rights or protections under the Secure America 
     and Orderly Immigration Act.
       ``(g) Change of Address.--An alien having nonimmigrant 
     status described in section 101(a)(15)(H)(v)(a) shall comply 
     by either electronic or paper notification with the change of 
     address reporting requirements under section 265.
       ``(h) Bar to Future Visas for Violations.--
       ``(1) In general.--Any alien having the nonimmigrant status 
     described in section 101(a)(15)(H)(v)(a) shall not be 
     eligible to renew such nonimmigrant status if the alien 
     willfully violates any material term or condition of such 
     status.
       ``(2) Waiver.--The alien may apply for a waiver of the 
     application of subparagraph (A) for technical violations, 
     inadvertent errors, or violations for which the alien was not 
     at fault.
       ``(i) Collection of Fees.--All fees collected under this 
     section shall be deposited in the Treasury in accordance with 
     section 286(w).''.
       (b) Conforming Amendment Regarding Presumption of 
     Nonimmigrant Status.--Section 214(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1184(b)) is amended by inserting 
     ``(H)(v)(a),'' after ``(H)(i),''.
       (c) Clerical Amendment.--The table of contents for the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by inserting after the item relating to section 218 
     the following:

``Sec. 218A. Admission of temporary H-5A workers.''.

     SEC. 1303. EMPLOYER OBLIGATIONS.

       Employers employing a nonimmigrant described in section 
     101(a)(15)(H)(v)(a) of the Immigration and Nationality Act, 
     as added by section 1301, shall comply with all applicable 
     Federal, State, and local laws, including--
       (1) laws affecting migrant and seasonal agricultural 
     workers; and
       (2) the requirements under section 274E of such Act, as 
     added by section 1402.

     SEC. 1304. PROTECTION FOR WORKERS.

       Section 218A of the Immigration and Nationality Act, as 
     added by section 1302, is amended by adding at the end the 
     following:
       ``(h) Application of Labor and Other Laws.--
       ``(1) Definitions.--As used in this subsection and in 
     subsections (i) through (k):
       ``(A) Employ; employee; employer.--The terms `employ', 
     `employee', and `employer' have the meanings given such terms 
     in section 3 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 203).
       ``(B) Foreign labor contractor.--The term `foreign labor 
     contractor' means any person who for any compensation or 
     other valuable consideration paid or promised to be paid, 
     performs any foreign labor contracting activity.
       ``(C) Foreign labor contracting activity.--The term 
     `foreign labor contracting activity' means recruiting, 
     soliciting, hiring, employing, or furnishing, an individual 
     who resides outside of the United States for employment in 
     the United States as a nonimmigrant alien described in 
     section 101(a)(15)(H)(v)(a).
       ``(2) Coverage.--Notwithstanding any other provision of 
     law--
       ``(A) a nonimmigrant alien described in section 
     101(a)(15)(H)(v)(a) is prohibited from being treated as an 
     independent contractor; and
       ``(B) no person may treat a nonimmigrant alien described in 
     section 101(a)(15)(H)(v)(a) as an independent contractor.
       ``(3) Applicability of laws.--A nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) shall not be denied 
     any right or any remedy under Federal, State, or local labor 
     or employment law that would be applicable to a United States 
     worker employed in a similar position with the employer 
     because of the alien's status as a nonimmigrant worker.
       ``(4) Tax responsibilities.--With respect to each employed 
     nonimmigrant alien described in section 101(a)(15)(H)(v)(a), 
     an employer shall comply with all applicable Federal, State, 
     and local tax and revenue laws.
       ``(5) Nondiscrimination in employment.--An employer shall 
     provide nonimmigrants issued a visa under this section with 
     the same wages, benefits, and working conditions that are 
     provided by the employer to United States workers similarly 
     employed in the same occupation and the same place of 
     employment.
       ``(6) No replacement of striking employees.--An employer 
     may not hire a nonimmigrant alien described in section 
     101(a)(15)(H)(v)(a) as a replacement worker if there is a 
     strike or lockout in the course of a labor dispute in the 
     occupational classification at the place of employment.
       ``(7) Waiver of rights prohibited.--A nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) may not be required 
     to waive any rights or protections under the Secure America 
     and Orderly Immigration Act. Nothing under this provision 
     shall be construed to affect the interpretation of other 
     laws.
       ``(8) No threatening of employees.--It shall be a violation 
     of this section for an employer who has filed a petition 
     under section 203(b) to threaten the alien beneficiary of

[[Page 2278]]

     such a petition with withdrawal of the application, or to 
     withdraw such a petition in retaliation for the beneficiary's 
     exercise of a right protected by the Secure America and 
     Orderly Immigration Act.
       ``(9) Whistleblower protection.--It shall be unlawful for 
     an employer or a labor contractor of a nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) to intimidate, 
     threaten, restrain, coerce, retaliate, discharge, or in any 
     other manner, discriminate against an employee or former 
     employee because the employee or former employee--
       ``(A) discloses information to the employer or any other 
     person that the employee or former employee reasonably 
     believes demonstrates a violation of Secure America and 
     Orderly Immigration Act.
       ``(B) cooperates or seeks to cooperate in an investigation 
     or other proceeding concerning compliance with the 
     requirements of the Secure America and Orderly Immigration 
     Act.
       ``(i) Labor Recruiters.--
       ``(1) In general.--Each employer that engages in foreign 
     labor contracting activity and each foreign labor contractor 
     shall ascertain and disclose to each such worker who is 
     recruited for employment the following information at the 
     time of the worker's recruitment:
       ``(A) The place of employment.
       ``(B) The compensation for the employment.
       ``(C) A description of employment activities.
       ``(D) The period of employment.
       ``(E) Any other employee benefit to be provided and any 
     costs to be charged for each benefit.
       ``(F) Any travel or transportation expenses to be assessed.
       ``(G) The existence of any labor organizing effort, strike, 
     lockout, or other labor dispute at the place of employment.
       ``(H) The existence of any arrangement with any owner, 
     employer, foreign contractor, or its agent where such person 
     receives a commission from the provision of items or services 
     to workers.
       ``(I) The extent to which workers will be compensated 
     through workers' compensation, private insurance, or 
     otherwise for injuries or death, including work related 
     injuries and death, during the period of employment and, if 
     so, the name of the State workers' compensation insurance 
     carrier or the name of the policyholder of the private 
     insurance, the name and the telephone number of each person 
     who must be notified of an injury or death, and the time 
     period within which such notice must be given.
       ``(J) Any education or training to be provided or required, 
     including the nature and cost of such training, who will pay 
     such costs, and whether the training is a condition of 
     employment, continued employment, or future employment.
       ``(K) A statement, in a form specified by the Secretary of 
     Labor, describing the protections of this Act for workers 
     recruited abroad.
       ``(2) False or misleading information.--No foreign labor 
     contractor or employer who engages in foreign labor 
     contracting activity shall knowingly provide material false 
     or misleading information to any worker concerning any matter 
     required to be disclosed in paragraph (1).
       ``(3) Languages.--The information required to be disclosed 
     under paragraph (1) shall be provided in writing in English 
     or, as necessary and reasonable, in the language of the 
     worker being recruited. The Department of Labor shall make 
     forms available in English, Spanish, and other languages, as 
     necessary, which may be used in providing workers with 
     information required under this section.
       ``(4) Fees.--A person conducting a foreign labor 
     contracting activity shall not assess any fee to a worker for 
     such foreign labor contracting activity.
       ``(5) Terms.--No employer or foreign labor contractor 
     shall, without justification, violate the terms of any 
     agreement made by that contractor or employer regarding 
     employment under this program.
       ``(6) Travel costs.--If the foreign labor contractor or 
     employer charges the employee for transportation such 
     transportation costs shall be reasonable.
       ``(7) Other worker protections.--
       ``(A) Notification.--Every 2 years, each employer shall 
     notify the Secretary of Labor of the identity of any foreign 
     labor contractor engaged by the employer in any foreign labor 
     contractor activity for or on behalf of the employer.
       ``(B) Registration of foreign labor contractors.--
       ``(i) In general.--No person shall engage in foreign labor 
     recruiting activity unless such person has a certificate of 
     registration from the Secretary of Labor specifying the 
     activities that such person is authorized to perform. An 
     employer who retains the services of a foreign labor 
     contractor shall only use those foreign labor contractors who 
     are registered under this subparagraph.
       ``(ii) Issuance.--The Secretary shall promulgate 
     regulations to establish an efficient electronic process for 
     the investigation and approval of an application for a 
     certificate of registration of foreign labor contractors not 
     later than 14 days after such application is filed. Such 
     process shall include requirements under paragraphs (1), (4), 
     and (5) of section 1812 of title 29, United States Code, an 
     expeditious means to update registrations and renew 
     certificates and any other requirements the Secretary may 
     prescribe.
       ``(iii) Term.--Unless suspended or revoked, a certificate 
     under this subparagraph shall be valid for 2 years.
       ``(iv) Refusal to issue; revocation; suspension.--In 
     accordance with regulations promulgated by the Secretary of 
     Labor, the Secretary may refuse to issue or renew, or may 
     suspend or revoke, a certificate of registration under this 
     subparagraph. The justification for such refusal, suspension, 
     or revocation may include the following:

       ``(I) The application or holder of the certification has 
     knowingly made a material misrepresentation in the 
     application for such certificate.
       ``(II) The applicant for or holder of the certification is 
     not the real party in interest in the application or 
     certificate of registration and the real party in interest is 
     a person who has been refused issuance or renewal of a 
     certificate, has had a certificate suspended or revoked, or 
     does not qualify for a certificate under this paragraph.
       ``(III) The applicant for or holder of the certification 
     has failed to comply with the Secure America and Orderly 
     Immigration Act.

       ``(C) Remedy for violations.--An employer engaging in 
     foreign labor contracting activity and a foreign labor 
     contractor that violates the provisions of this subsection 
     shall be subject to remedies for foreign labor contractor 
     violations under subsections (j) and (k). If a foreign labor 
     contractor acting as an agent of an employer violates any 
     provision of this subsection, the employer shall also be 
     subject to remedies under subsections (j) and (k). An 
     employer that violates a provision of this subsection 
     relating to employer obligations shall be subject to remedies 
     under this subsections (j) and (k).
       ``(D) Employer notification.--An employer shall notify the 
     Secretary of Labor any time the employer becomes aware of a 
     violation of this subsection by a foreign labor recruiter.
       ``(E) Written agreements.--No foreign labor contractor 
     shall violate the terms of any written agreements made with 
     an employer relating to any contracting activity or worker 
     protection under this subsection.
       ``(F) Bonding requirement.--The Secretary of Labor may 
     require a foreign labor contractor under this subsection to 
     post a bond in an amount sufficient to ensure the protection 
     of individuals recruited by the foreign labor contractor. The 
     Secretary may consider the extent to which the foreign labor 
     contractor has sufficient ties to the United States to 
     adequately enforce this subsection.
       ``(j) Enforcement.--
       ``(1) In general.--The Secretary of Labor shall prescribe 
     regulations for the receipt, investigation, and disposition 
     of complaints by an aggrieved person respecting a violation 
     of this section.
       ``(2) Definition.--As used in this subsection, an 
     `aggrieved person' is a person adversely affected by the 
     alleged violation, including--
       ``(A) a worker whose job, wages, or working conditions are 
     adversely affected by the violation; and
       ``(B) a representative for workers whose jobs, wages, or 
     working conditions are adversely affected by the violation 
     who brings a complaint on behalf of such worker.
       ``(3) Filing deadline.--No investigation or hearing shall 
     be conducted on a complaint concerning a violation under this 
     section unless the complaint was filed not later than 12 
     months after the date of such violation.
       ``(4) Reasonable cause.--The Secretary of Labor shall 
     conduct an investigation under this subsection if there is 
     reasonable cause to believe that a violation of this section 
     has occurred. The process established under this subsection 
     shall provide that, not later than 30 days after a complaint 
     is filed, the Secretary shall determine if there is 
     reasonable cause to find such a violation.
       ``(5) Notice and hearing.--
       ``(A) In general.--Not later than 60 days after the 
     Secretary of Labor makes a determination of reasonable cause 
     under paragraph (4), the Secretary shall issue a notice to 
     the interested parties and offer an opportunity for a hearing 
     on the complaint, in accordance with section 556 of title 5, 
     United States Code.
       ``(B) Complaint.--If the Secretary of Labor, after 
     receiving a complaint under this subsection, does not offer 
     the aggrieved party or organization an opportunity for a 
     hearing under subparagraph (A), the Secretary shall notify 
     the aggrieved party or organization of such determination and 
     the aggrieved party or organization may seek a hearing on the 
     complaint in accordance with such section 556.
       ``(C) Hearing deadline.--Not later than 60 days after the 
     date of a hearing under this paragraph, the Secretary of 
     Labor shall make a finding on the matter in accordance with 
     paragraph (6).
       ``(6) Attorneys' fees.--A complainant who prevails with 
     respect to a claim under this subsection shall be entitled to 
     an award of reasonable attorneys' fees and costs.

[[Page 2279]]

       ``(7) Power of the secretary.--The Secretary may bring an 
     action in any court of competent jurisdiction--
       ``(A) to seek remedial action, including injunctive relief;
       ``(B) to recover the damages described in subsection (k); 
     or
       ``(C) to ensure compliance with terms and conditions 
     described in subsection (i).
       ``(8) Solicitor of labor.--Except as provided in section 
     518(a) of title 28, United States Code, the Solicitor of 
     Labor may appear for and represent the Secretary of Labor in 
     any civil litigation brought under this subsection. All such 
     litigation shall be subject to the direction and control of 
     the Attorney General.
       ``(9) Procedures in addition to other rights of 
     employees.--The rights and remedies provided to workers under 
     this section are in addition to, and not in lieu of, any 
     other contractual or statutory rights and remedies of the 
     workers, and are not intended to alter or affect such rights 
     and remedies.
       ``(k) Penalties.--
       ``(1) In general.--If, after notice and an opportunity for 
     a hearing, the Secretary of Labor finds a violation of 
     subsection (h) or (i), the Secretary may impose 
     administrative remedies and penalties, including--
       ``(A) back wages;
       ``(B) fringe benefits; and
       ``(C) civil monetary penalties.
       ``(2) Civil penalties.--The Secretary of Labor may impose, 
     as a civil penalty--
       ``(A) for a violation of subsection (h)--
       ``(i) a fine in an amount not to exceed $2,000 per 
     violation per affected worker;
       ``(ii) if the violation was willful violation, a fine in an 
     amount not to exceed $5,000 per violation per affected 
     worker;
       ``(iii) if the violation was willful and if in the course 
     of such violation a United States worker was harmed, a fine 
     in an amount not to exceed $25,000 per violation per affected 
     worker; and
       ``(B) for a violation of subsection (i)--
       ``(i) a fine in an amount not less than $500 and not more 
     than $4,000 per violation per affected worker;
       ``(ii) if the violation was willful, a fine in an amount 
     not less than $2,000 and not more than $5,000 per violation 
     per affected worker; and
       ``(iii) if the violation was willful and if in the course 
     of such violation a United States worker was harmed, a fine 
     in an amount not less than $6,000 and not more than $35,000 
     per violation per affected worker.
       ``(3) Use of civil penalties.--All penalties collected 
     under this subsection shall be deposited in the Treasury in 
     accordance with section 286(w).
       ``(4) Criminal penalties.--If a willful and knowing 
     violation of subsection (i) causes extreme physical or 
     financial harm to an individual, the person in violation of 
     such subsection may be imprisoned for not more than 6 months, 
     fined not more than $35,000 fine, or both.''.

     SEC. 1305. MARKET-BASED NUMERICAL LIMITATIONS.

       Section 214(g) of the Immigration and Nationality Act (8 
     U.S.C. 1184(g)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(beginning with fiscal year 1992)'';
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) under section 101(a)(15)(H)(v)(a), may not exceed--
       ``(i) 400,000 for the first fiscal year in which the 
     program is implemented;
       ``(ii) in any subsequent fiscal year--

       ``(I) if the total number of visas allocated for that 
     fiscal year are allotted within the first quarter of that 
     fiscal year, then an additional 20 percent of the allocated 
     number shall be made available immediately and the allocated 
     amount for the following fiscal year shall increase by 20 
     percent of the original allocated amount in the prior fiscal 
     year;
       ``(II) if the total number of visas allocated for that 
     fiscal year are allotted within the second quarter of that 
     fiscal year, then an additional 15 percent of the allocated 
     number shall be made available immediately and the allocated 
     amount for the following fiscal year shall increase by 15 
     percent of the original allocated amount in the prior fiscal 
     year;
       ``(III) if the total number of visas allocated for that 
     fiscal year are allotted within the third quarter of that 
     fiscal year, then an additional 10 percent of the allocated 
     number shall be made available immediately and the allocated 
     amount for the following fiscal year shall increase by 10 
     percent of the original allocated amount in the prior fiscal 
     year;
       ``(IV) if the total number of visas allocated for that 
     fiscal year are allotted within the last quarter of that 
     fiscal year, then the allocated amount for the following 
     fiscal year shall increase by 10 percent of the original 
     allocated amount in the prior fiscal year; and
       ``(V) with the exception of the first subsequent fiscal 
     year to the fiscal year in which the program is implemented, 
     if fewer visas were allotted the previous fiscal year than 
     the number of visas allocated for that year and the reason 
     was not due to processing delays or delays in promulgating 
     regulations, then the allocated amount for the following 
     fiscal year shall decrease by 10 percent of the allocated 
     amount in the prior fiscal year.''; and

       (2) by adding at the end the following:
       ``(9)(A) Of the total number of visas allocated for each 
     fiscal year under paragraph (1)(C)--
       ``(i) 50,000 visas shall be allocated to qualifying 
     counties; and
       ``(ii) any of the visas allocated under clause (i) that are 
     not issued by June 30 of such fiscal year, may be made 
     available to any qualified applicant.
       ``(B) In this paragraph, the term `qualifying county' means 
     any county that--
       ``(i) that is outside a metropolitan statistical area; and
       ``(ii) during the 20-year-period ending on the last day of 
     the calendar year preceding the date of enactment of the 
     Secure America and Orderly Immigration Act, experienced a net 
     out-migration of inhabitants from the county of at least 10 
     percent of the population of the county at the beginning of 
     such period.
       ``(10) In allocating visas under this subsection, the 
     Secretary of State may take any additional measures necessary 
     to deter illegal immigration.''.

     SEC. 1306. ADJUSTMENT TO LAWFUL PERMANENT RESIDENT STATUS.

       Section 245 of the Immigration and Nationality Act (8 
     U.S.C. 1255) is amended by adding at the end the following:
       ``(n)(1) For purposes of adjustment of status under 
     subsection (a), employment-based immigrant visas shall be 
     made available to an alien having nonimmigrant status 
     described in section 101(a)(15)(H)(v)(a) upon the filing of a 
     petition for such a visa--
       ``(A) by the alien's employer; or
       ``(B) by the alien, if the alien has maintained such 
     nonimmigrant status in the United States for a cumulative 
     total of 4 years.
       ``(2) An alien having nonimmigrant status described in 
     section 101(a)(15)(H)(v)(a) may not apply for adjustment of 
     status under this section unless the alien--
       ``(A) is physically present in the United States; and
       ``(B) the alien establishes that the alien--
       ``(i) meets the requirements of section 312; or
       ``(ii) is satisfactorily pursuing a course of study to 
     achieve such an understanding of English and knowledge and 
     understanding of the history and government of the United 
     States.
       ``(3) An alien who demonstrates that the alien meets the 
     requirements of section 312 may be considered to have 
     satisfied the requirements of that section for purposes of 
     becoming naturalized as a citizen of the United States under 
     title III.
       ``(4) Filing a petition under paragraph (1) on behalf of an 
     alien or otherwise seeking permanent residence in the United 
     States for such alien shall not constitute evidence of the 
     alien's ineligibility for nonimmigrant status under section 
     101(a)(15)(H)(v)(a).
       ``(5) The limitation under section 302(d) regarding the 
     period of authorized stay shall not apply to any alien having 
     nonimmigrant status under section 101(a)(15)(H)(v)(a) if--
       ``(A) a labor certification petition filed under section 
     203(b) on behalf of such alien is pending; or
       ``(B) an immigrant visa petition filed under section 204(b) 
     on behalf of such alien is pending.
       ``(6) The Secretary of Homeland Security shall extend the 
     stay of an alien who qualifies for an exemption under 
     paragraph (5) in 1-year increments until a final decision is 
     made on the alien's lawful permanent residence.
       ``(7) Nothing in this subsection shall be construed to 
     prevent an alien having nonimmigrant status described in 
     section 101(a)(15)(H)(v)(a) from filing an application for 
     adjustment of status under this section in accordance with 
     any other provision of law.''.

     SEC. 1307. ESSENTIAL WORKER VISA PROGRAM TASK FORCE.

       (a) Establishment of Task Force.--
       (1) In general.--There is established a task force to be 
     known as the Essential Worker Visa Program Task Force 
     (referred to in this section as the ``Task Force'').
       (2) Purposes.--The purposes of the Task Force are--
       (A) to study the Essential Worker Visa Program (referred to 
     in this section as the ``Program'') established under this 
     title; and
       (B) to make recommendations to Congress with respect to 
     such program.
       (3) Membership.--The Task Force shall be composed of 10 
     members, of whom--
       (A) 1 shall be appointed by the President and shall serve 
     as chairman of the Task Force;
       (B) 1 shall be appointed by the leader of the Democratic 
     Party in the Senate, in consultation with the leader of the 
     Democratic Party in the House of Representatives, and shall 
     serve as vice chairman of the Task Force;
       (C) 2 shall be appointed by the majority leader of the 
     Senate;
       (D) 2 shall be appointed by the minority leader of the 
     Senate;
       (E) 2 shall be appointed by the Speaker of the House of 
     Representatives; and
       (F) 2 shall be appointed by the minority leader of the 
     House of Representatives.
       (4) Qualifications.--
       (A) In general.--Members of the Task Force shall be--

[[Page 2280]]

       (i) individuals with expertise in economics, demography, 
     labor, business, or immigration or other pertinent 
     qualifications or experience; and
       (ii) representative of a broad cross-section of 
     perspectives within the United States, including the public 
     and private sectors and academia;
       (B) Political affiliation.--Not more than 5 members of the 
     Task Force may be members of the same political party.
       (C) Nongovernmental appointees.--An individual appointed to 
     the Task Force may not be an officer or employee of the 
     Federal Government or of any State or local government.
       (5) Deadline for appointment.--All members of the Task 
     Force shall be appointed not later than 6 months after the 
     Program has been implemented.
       (6) Vacancies.--Any vacancy in the Task Force shall not 
     affect its powers, but shall be filled in the same manner in 
     which the original appointment was made.
       (7) Meetings.--
       (A) Initial meeting.--The Task Force shall meet and begin 
     the operations of the Task Force as soon as practicable.
       (B) Subsequent meetings.--After its initial meeting, the 
     Task Force shall meet upon the call of the chairman or a 
     majority of its members.
       (8) Quorum.--Six members of the Task Force shall constitute 
     a quorum.
       (b) Duties.--The Task Force shall examine and make 
     recommendations regarding the Program, including 
     recommendations regarding--
       (1) the development and implementation of the Program;
       (2) the criteria for the admission of temporary workers 
     under the Program;
       (3) the formula for determining the yearly numerical 
     limitations of the Program;
       (4) the impact of the Program on immigration;
       (5) the impact of the Program on the United States 
     workforce and United States businesses; and
       (6) any other matters regarding the Program that the Task 
     Force considers appropriate.
       (c) Information and Assistance From Federal Agencies.--
       (1) Information from federal agencies.--The Task Force may 
     seek directly from any Federal department or agency such 
     information, including suggestions, estimates, and 
     statistics, as the Task Force considers necessary to carry 
     out the provisions of this section. Upon request of the Task 
     Force, the head of such department or agency shall furnish 
     such information to the Task Force.
       (2) Assistance from federal agencies.--The Administrator of 
     General Services shall, on a reimbursable base, provide the 
     Task Force with administrative support and other services for 
     the performance of the Task Force's functions. The 
     departments and agencies of the United States may provide the 
     Task Force with such services, funds, facilities, staff, and 
     other support services as they determine advisable and as 
     authorized by law.
       (d) Reports.--
       (1) Initial report.--Not later than 2 years after the 
     Program has been implemented, the Task Force shall submit a 
     report to Congress, the Secretary of State, the Secretary of 
     Labor, and the Secretary of Homeland Security that contains--
       (A) findings with respect to the duties of the Task Force;
       (B) recommendations for improving the Program; and
       (C) suggestions for legislative or administrative action to 
     implement the Task Force recommendations.
       (2) Final report.--Not later than 4 years after the 
     submission of the initial report under paragraph (1), the 
     Task Force shall submit a final report to Congress, the 
     Secretary of State, the Secretary of Labor, and the Secretary 
     of Homeland Security that contains additional findings, 
     recommendations, and suggestions, as described in paragraph 
     (1).

     SEC. 1308. WILLING WORKER-WILLING EMPLOYER ELECTRONIC JOB 
                   REGISTRY.

       (a) Establishment.--The Secretary of Labor shall direct the 
     coordination and modification of the national system of 
     public labor exchange services (commonly known as ``America's 
     Job Bank'') in existence on the date of enactment of this Act 
     to provide information on essential worker employment 
     opportunities available to United States workers and 
     nonimmigrant workers under section 101(a)(15)(H)(v)(a) of the 
     Immigration and Nationality Act, as added by this Act.
       (b) Recruitment of United States Workers.--Before the 
     completion of evidence of employment for a potential 
     nonimmigrant worker under section 101(a)(15)(H)(v)(a) of the 
     Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(v)(a), an employer shall attest that the 
     employer has posted in the Job Registry for not less than 30 
     days in order to recruit United States workers. An employer 
     shall maintain records for not less than 1 year demonstrating 
     why United States workers who applied were not hired.
       (c) Oversight and Maintenance of Records.--The Secretary of 
     Labor shall maintain electronic job registry records, as 
     established by regulation, for the purpose of audit or 
     investigation.
       (d) Access to Job Registry.--
       (1) Circulation in interstate employment service system.--
     The Secretary of Labor shall ensure that job opportunities 
     advertised on the electronic job registry established under 
     this section are accessible by the State workforce agencies, 
     which may further disseminate job opportunity information to 
     other interested parties.
       (2) Internet.--The Secretary of Labor shall ensure that the 
     Internet-based electronic job registry established or 
     approved under this section may be accessed by workers, 
     employers, labor organizations, and other interested parties.

     SEC. 1309. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     State such sums as may be necessary to carry out this title 
     and the amendments made by this title for the period 
     beginning on the date of enactment of this Act and ending on 
     the last day of the sixth fiscal year beginning after the 
     effective date of the regulations promulgated by the 
     Secretary to implement this title.

                         TITLE IV--ENFORCEMENT

     SEC. 1401. DOCUMENT AND VISA REQUIREMENTS.

       (a) In General.--Section 221(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1201(a)) is amended by adding at 
     the end the following:
       ``(3) Visas and Immigration Related Document 
     Requirements.--
       ``(A) Visas issued by the Secretary of State and 
     immigration related documents issued by the Secretary of 
     State or the Secretary of Homeland Security shall comply with 
     authentication and biometric standards recognized by domestic 
     and international standards organizations.
       ``(B) Such visas and documents shall--
       ``(i) be machine-readable and tamper-resistant;
       ``(ii) use biometric identifiers that are consistent with 
     the requirements of section 303 of the Enhanced Border 
     Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1732), 
     and represent the benefits and status set forth in such 
     section;
       ``(iii) comply with the biometric and document identifying 
     standards established by the International Civil Aviation 
     Organization; and
       ``(iv) be compatible with the United States Visitor and 
     Immigrant Status Indicator Technology and the employment 
     verification system established under section 274E.
       ``(C) The information contained on the visas or immigration 
     related documents described in subparagraph (B) shall 
     include--
       ``(i) the alien's name, date and place of birth, alien 
     registration or visa number, and, if applicable, social 
     security number;
       ``(ii) the alien's citizenship and immigration status in 
     the United States; and
       ``(iii) the date that such alien's authorization to work in 
     the United States expires, if appropriate.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date that is 6 months after the date 
     of enactment of this Act.

     SEC. 1402. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

       (a) In General.--Chapter 8 of title II of the Immigration 
     and Nationality Act (8 U.S.C. 1321 et seq.) is amended by 
     inserting after section 274D the following:


                        ``EMPLOYMENT ELIGIBILITY

       ``Sec. 274E.  (a) Employment Eligibility Confirmation 
     System.--
       ``(1) In general.--The Commissioner of Social Security, in 
     consultation and coordination with the Secretary of Homeland 
     Security, shall establish an Employment Eligibility 
     Confirmation System (referred to in this section as the 
     `System') through which the Commissioner responds to 
     inquiries made by employers who have hired individuals 
     concerning each individual's identity and employment 
     authorization.
       ``(2) Maintenance of records.--The Commissioner shall 
     electronically maintain records by which compliance under the 
     System may be verified.
       ``(3) Objectives of the system.--The System shall--
       ``(A) facilitate the eventual transition for all businesses 
     from the employer verification system established in section 
     274A with the System;
       ``(B) utilize, as a central feature of the System, machine-
     readable documents that contain encrypted electronic 
     information to verify employment eligibility; and
       ``(C) provide for the evidence of employment required under 
     section 218A.
       ``(4) Initial response.--The System shall provide--
       ``(A) confirmation or a tentative nonconfirmation of an 
     individual's identity and employment eligibility not later 
     than 1 working day after the initial inquiry; and
       ``(B) an appropriate code indicating such confirmation or 
     tentative nonconfirmation.
       ``(5) Secondary verification process in case of tentative 
     nonconfirmation.--
       ``(A) Establishment.--For cases of tentative 
     nonconfirmation, the Commissioner of Social Security, in 
     consultation and coordination with the Secretary of Homeland 
     Security, shall establish a secondary verification process. 
     The employer shall make the secondary verification inquiry 
     not later than 10

[[Page 2281]]

     days after receiving a tentative nonconfirmation.
       ``(B) Discrepancies.--If an employee chooses to contest a 
     secondary nonconfirmation, the employer shall provide the 
     employee with a referral letter and instruct the employee to 
     visit an office of the Department of Homeland Security or the 
     Social Security Administration to resolve the discrepancy not 
     later than 10 working days after the receipt of such referral 
     letter in order to obtain confirmation.
       ``(C) Failure to contest.--An individual's failure to 
     contest a confirmation shall not constitute knowledge (as 
     defined in section 274a.1(l) of title 8, Code of Federal 
     Regulations.
       ``(6) Design and operation of system.--The System shall be 
     designed, implemented, and operated--
       ``(A) to maximize its reliability and ease of use 
     consistent with protecting the privacy and security of the 
     underlying information through technical and physical 
     safeguards;
       ``(B) to allow employers to verify that a newly hired 
     individual is authorized to be employed;
       ``(C) to permit individuals to--
       ``(i) view their own records in order to ensure the 
     accuracy of such records; and
       ``(ii) contact the appropriate agency to correct any errors 
     through an expedited process established by the Commissioner 
     of Social Security, in consultation and coordination with the 
     Secretary of Homeland Security; and
       ``(D) to prevent discrimination based on national origin or 
     citizenship status under section 274B.
       ``(7) Unlawful uses of system.--It shall be an unlawful 
     immigration-related employment practice--
       ``(A) for employers or other third parties to use the 
     System selectively or without authorization;
       ``(B) to use the System prior to an offer of employment;
       ``(C) to use the System to exclude certain individuals from 
     consideration for employment as a result of a perceived 
     likelihood that additional verification will be required, 
     beyond what is required for most job applicants;
       ``(D) to use the System to deny certain employment 
     benefits, otherwise interfere with the labor rights of 
     employees, or any other unlawful employment practice; or
       ``(E) to take adverse action against any person, including 
     terminating or suspending an employee who has received a 
     tentative nonconfirmation.
       ``(b) Employment Eligibility Database.--
       ``(1) Requirement.--The Commissioner of Social Security, in 
     consultation and coordination with the Secretary of Homeland 
     Security and other appropriate agencies, shall design, 
     implement, and maintain an Employment Eligibility Database 
     (referred to in this section as the `Database') as described 
     in this subsection.
       ``(2) Data.--The Database shall include, for each 
     individual who is not a citizen or national of the United 
     States, but is authorized or seeking authorization to be 
     employed in the United States, the individual's--
       ``(A) country of origin;
       ``(B) immigration status;
       ``(C) employment eligibility;
       ``(D) occupation;
       ``(E) metropolitan statistical area of employment;
       ``(F) annual compensation paid;
       ``(G) period of employment eligibility;
       ``(H) employment commencement date; and
       ``(I) employment termination date.
       ``(3) Reverification of employment eligibility.--The 
     Commissioner of Social Security shall prescribe, by 
     regulation, a system to annually reverify the employment 
     eligibility of each individual described in this section--
       ``(A) by utilizing the machine-readable documents described 
     in section 221(a)(3); or
       ``(B) if machine-readable documents are not available, by 
     telephonic or electronic communication.
       ``(4) Confidentiality.--
       ``(A) Access to database.--No officer or employee of any 
     agency or department of the United States, other than 
     individuals responsible for the verification of employment 
     eligibility or for the evaluation of the employment 
     verification program at the Social Security Administration, 
     the Department of Homeland Security, and the Department of 
     Labor, may have access to any information contained in the 
     Database.
       ``(B) Protection from unauthorized disclosure.--Information 
     in the Database shall be adequately protected against 
     unauthorized disclosure for other purposes, as provided in 
     regulations established by the Commissioner of Social 
     Security, in consultation with the Secretary of Homeland 
     Security and the Secretary of Labor.
       ``(5) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to design, implement, and maintain the Database.
       ``(c) Gradual Implementation.--The Commissioner of Social 
     Security, in coordination with the Secretary of Homeland 
     Security and the Secretary of Labor shall develop a plan to 
     phase all workers into the Database and phase out the 
     employer verification system established in section 274A over 
     a period of time that the Commissioner determines to be 
     appropriate.
       ``(d) Employer Responsibilities.--Each employer shall--
       ``(1) notify employees and prospective employees of the use 
     of the System and that the System may be used for immigration 
     enforcement purposes;
       ``(2) verify the identification and employment 
     authorization status for newly hired individuals described in 
     section 101(a)(15)(H)(v)(a) not later than 3 days after the 
     date of hire;
       ``(3) use--
       ``(A) a machine-readable document described in subsection 
     (a)(3)(B); or
       ``(B) the telephonic or electronic system to access the 
     Database;
       ``(4) provide, for each employer hired, the occupation, 
     metropolitan statistical area of employment, and annual 
     compensation paid;
       ``(5) retain the code received indicating confirmation or 
     nonconfirmation, for use in investigations described in 
     section 212(n)(2); and
       ``(6) provide a copy of the employment verification receipt 
     to such employees.
       ``(e) Good-Faith Compliance.--
       ``(1) Affirmative defense.--A person or entity that 
     establishes good faith compliance with the requirements of 
     this section with respect to the employment of an individual 
     in the United States has established an affirmative defense 
     that the person or entity has not violated this section.
       ``(2) Limitation.--Paragraph (1) shall not apply if a 
     person or entity engages in an unlawful immigration-related 
     employment practice described in subsection (a)(7).''.
       (b) Interim Directive.--Before the implementation of the 
     Employment Eligibility Confirmation System (referred to in 
     this section as the ``System'') established under section 
     274E of the Immigration and Nationality Act, as added by 
     subsection (a), the Commissioner of Social Security, in 
     coordination with the Secretary of Homeland Security, shall, 
     to the maximum extent practicable, implement an interim 
     system to confirm employment eligibility that is consistent 
     with the provisions of such section.
       (c) Reports.--
       (1) In general.--Not later than 3 months after the last day 
     of the second year and of the third year that the System is 
     in effect, the Comptroller General of the United States shall 
     submit to the Committee on the Judiciary of the Senate and 
     the Committee on the Judiciary of the House of 
     Representatives a report on the System.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include--
       (A) an assessment of the impact of the System on the 
     employment of unauthorized workers;
       (B) an assessment of the accuracy of the Employment 
     Eligibility Database maintained by the Department of Homeland 
     Security and Social Security Administration databases, and 
     timeliness and accuracy of responses from the Department of 
     Homeland Security and the Social Security Administration to 
     employers;
       (C) an assessment of the privacy, confidentiality, and 
     system security of the System;
       (D) assess whether the System is being implemented in a 
     nondiscriminatory manner; and
       (E) include recommendations on whether or not the System 
     should be modified.

     SEC. 1403. IMPROVED ENTRY AND EXIT DATA SYSTEM.

       Section 110 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1365a) is amended--
       (1) by striking ``Attorney General'' each place it appears 
     and inserting ``Secretary of Homeland Security'';
       (2) in subsection (b)--
       (A) in paragraph (1)(C), by striking ``Justice'' and 
     inserting ``Homeland Security'';
       (B) in paragraph (4), by striking ``and'' at the end;
       (C) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(6) collects the biometric machine-readable information 
     from an alien's visa or immigration-related document 
     described in section 221(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1201(a)(3) at the time an alien 
     arrives in the United States and at the time an alien departs 
     from the United States to determine if such alien is 
     entering, or is present in, the United States unlawfully.''; 
     and
       (3) in subsection (f)(1), by striking ``Departments of 
     Justice and State'' and inserting ``Department of Homeland 
     Security and the Department of State''.

     SEC. 1404. DEPARTMENT OF LABOR INVESTIGATIVE AUTHORITIES.

       Section 212(n)(2) of the Immigration and Nationality Act (8 
     U.S.C. 1182(n)(2)) is amended--
       (1) by redesignating subparagraph (H) as subparagraph (J); 
     and
       (2) by inserting after subparagraph (G) the following:
       ``(H)(i) The Secretary of Labor may initiate an 
     investigation of any employer that employs nonimmigrants 
     described in section 101(a)(15)(H)(v)(a) if the Secretary, or 
     the Secretary's designee--

[[Page 2282]]

       ``(I) certifies that reasonable cause exists to believe 
     that the employer is out of compliance with the Secure 
     America and Orderly Immigration Act or section 274E; and
       ``(II) approves the commencement of the investigation.
       ``(ii) In determining whether reasonable cause exists to 
     initiate an investigation under this section, the Secretary 
     shall--
       ``(I) monitor the Willing Worker-Willing Employer 
     Electronic Job Registry;
       ``(II) monitor the Employment Eligibility Confirmation 
     System, taking into consideration whether--
       ``(aa) an employer's submissions to the System generate a 
     high volume of tentative nonconfirmation responses relative 
     to other comparable employers;
       ``(bb) an employer rarely or never screens hired 
     individuals;
       ``(cc) individuals employed by an employer rarely or never 
     pursue a secondary verification process as established in 
     section 274E; or
       ``(dd) any other indicators of illicit, inappropriate or 
     discriminatory use of the System, especially those described 
     in section 274E(a)(6)(D), exist; and
       ``(III) consider any additional evidence that the Secretary 
     determines appropriate.
       ``(iii) Absent other evidence of noncompliance, an 
     investigation under this subparagraph should not be initiated 
     for lack of completeness or obvious inaccuracies by the 
     employer in complying with section 101(a)(15)(H)(v)(a).''.

     SEC. 1405. PROTECTION OF EMPLOYMENT RIGHTS.

       The Secretary and the Secretary of Homeland Security shall 
     establish a process under which a nonimmigrant worker 
     described in clause (ii)(b) or (v)(a) of section 
     101(a)(15)(H) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15)(H)) who files a nonfrivolous complaint 
     regarding a violation of this section and is otherwise 
     eligible to remain and work in the United States may be 
     allowed to seek other appropriate employment in the United 
     States with an employer for a period not to exceed the 
     maximum period of stay authorized for that nonimmigrant 
     classification.

     SEC. 1406. INCREASED FINES FOR PROHIBITED BEHAVIOR.

       Section 274B(g)(2)(B)(iv) of the Immigration and 
     Nationality Act (8 U.S.C. 1324b(g)(2)(B)(iv)) is amended--
       (1) in subclause (I), by striking ``not less than $250 and 
     not more than $2,000'' and inserting ``not less than $500 and 
     not more than $4,000'';
       (2) in subclause (II), by striking ``not less than $2,000 
     and not more than $5,000'' and inserting ``not less than 
     $4,000 and not more than $10,000''; and
       (3) in subclause (III), by striking ``not less than $3,000 
     and not more than $10,000'' and inserting ``not less than 
     $6,000 and not more than $20,000''.

             TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

     SEC. 1501. LABOR MIGRATION FACILITATION PROGRAMS.

       (a) Authority for Program.--
       (1) In general.--The Secretary of State is authorized to 
     enter into an agreement to establish and administer a labor 
     migration facilitation program jointly with the appropriate 
     official of a foreign government whose citizens participate 
     in the temporary worker program authorized under section 
     101(a)(15)(H)(v)(a) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15)(H)(v)(a)).
       (2) Priority.--In establishing programs under subsection 
     (a), the Secretary of State shall place a priority on 
     establishing such programs with foreign governments that have 
     a large number of nationals working as temporary workers in 
     the United States under such section 101(a)(15)(H)(v)(a). The 
     Secretary shall enter into such agreements not later than 3 
     months after the date of enactment of this Act or as soon 
     thereafter as is practicable.
       (3) Elements of program.--A program established under 
     paragraph (1) may provide for--
       (A) the Secretary of State, in conjunction with the 
     Secretary of Homeland Security and the Secretary of Labor, to 
     confer with a foreign government--
       (i) to establish and implement a program to assist 
     temporary workers from such a country to obtain nonimmigrant 
     status under such section 101(a)(15)(H)(v)(a);
       (ii) to establish programs to create economic incentives 
     for aliens to return to their home country;
       (B) the foreign government to monitor the participation of 
     its nationals in such a temporary worker program, including 
     departure from and return to a foreign country;
       (C) the foreign government to develop and promote a 
     reintegration program available to such individuals upon 
     their return from the United States;
       (D) the foreign government to promote or facilitate travel 
     of such individuals between the country of origin and the 
     United States; and
       (E) any other matters that the foreign government and 
     United States find appropriate to enable such individuals to 
     maintain strong ties to their country of origin.

     SEC. 1502. BILATERAL EFFORTS WITH MEXICO TO REDUCE MIGRATION 
                   PRESSURES AND COSTS.

       (a) Findings.--Congress makes the following findings:
       (1) Migration from Mexico to the United States is directly 
     linked to the degree of economic opportunity and the standard 
     of living in Mexico.
       (2) Mexico comprises a prime source of migration to the 
     United States.
       (3) Remittances from Mexican citizens working in the United 
     States reached a record high of nearly $17,000,000,000 in 
     2004.
       (4) Migration patterns may be reduced from Mexico to the 
     United States by addressing the degree of economic 
     opportunity available to Mexican citizens.
       (5) Many Mexican assets are held extra-legally and cannot 
     be readily used as collateral for loans.
       (6) A majority of Mexican businesses are small or medium 
     size with limited access to financial capital.
       (7) These factors constitute a major impediment to broad-
     based economic growth in Mexico.
       (8) Approximately 20 percent of Mexico's population works 
     in agriculture, with the majority of this population working 
     on small farms and few on large commercial enterprises.
       (9) The Partnership for Prosperity is a bilateral 
     initiative launched jointly by the President of the United 
     States and the President of Mexico in 2001, which aims to 
     boost the social and economic standards of Mexican citizens, 
     particularly in regions where economic growth has lagged and 
     emigration has increased.
       (10) The Presidents of Mexico and the United States and the 
     Prime Minister of Canada, at their trilateral summit on March 
     23, 2005, agreed to promote economic growth, competitiveness, 
     and quality of life in the agreement on Security and 
     Prosperity Partnership of North America.
       (b) Sense of Congress Regarding Partnership for 
     Prosperity.--It is the sense of Congress that the United 
     States and Mexico should accelerate the implementation of the 
     Partnership for Prosperity to help generate economic growth 
     and improve the standard of living in Mexico, which will lead 
     to reduced migration, by--
       (1) increasing access for poor and under served populations 
     in Mexico to the financial services sector, including credit 
     unions;
       (2) assisting Mexican efforts to formalize its extra-legal 
     sector, including the issuance of formal land titles, to 
     enable Mexican citizens to use their assets to procure 
     capital;
       (3) facilitating Mexican efforts to establish an effective 
     rural lending system for small- and medium-sized farmers that 
     will--
       (A) provide long term credit to borrowers;
       (B) develop a viable network of regional and local 
     intermediary lending institutions; and
       (C) extend financing for alternative rural economic 
     activities beyond direct agricultural production;
       (4) expanding efforts to reduce the transaction costs of 
     remittance flows in order to increase the pool of savings 
     available to help finance domestic investment in Mexico;
       (5) encouraging Mexican corporations to adopt 
     internationally recognized corporate governance practices, 
     including anti-corruption and transparency principles;
       (6) enhancing Mexican efforts to strengthen governance at 
     all levels, including efforts to improve transparency and 
     accountability, and to eliminate corruption, which is the 
     single biggest obstacle to development;
       (7) assisting the Government of Mexico in implementing all 
     provisions of the Inter-American Convention Against 
     Corruption (ratified by Mexico on May 27, 1997) and urging 
     the Government of Mexico to participate fully in the 
     Convention's formal implementation monitoring mechanism;
       (8) helping the Government of Mexico to strengthen 
     education and training opportunities throughout the country, 
     with a particular emphasis on improving rural education; and
       (9) encouraging the Government of Mexico to create 
     incentives for persons who have migrated to the United States 
     to return to Mexico.
       (c) Sense of Congress Regarding Bilateral Partnership on 
     Health Care.--It is the sense of Congress that the Government 
     of the United States and the Government of Mexico should 
     enter into a partnership to examine uncompensated and 
     burdensome health care costs incurred by the United States 
     due to legal and illegal immigration, including--
       (1) increasing health care access for poor and under served 
     populations in Mexico;
       (2) assisting Mexico in increasing its emergency and trauma 
     health care facilities along the border, with emphasis on 
     expanding prenatal care in the United States-Mexico border 
     region;
       (3) facilitating the return of stable, incapacitated 
     workers temporarily employed in the United States to Mexico 
     in order to receive extended, long-term care in their home 
     country; and
       (4) helping the Government of Mexico to establish a program 
     with the private sector to cover the health care needs of 
     Mexican nationals temporarily employed in the United States.

[[Page 2283]]



              TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

     SEC. 1601. ELIMINATION OF EXISTING BACKLOGS.

       (a) Family-Sponsored Immigrants.--Section 201(c) of the 
     Immigration and Nationality Act (8 U.S.C. 1151(c)) is amended 
     to read as follows:
       ``(c) Worldwide Level of Family-Sponsored Immigrants.--The 
     worldwide level of family-sponsored immigrants under this 
     subsection for a fiscal year is equal to the sum of--
       ``(1) 480,000;
       ``(2) the difference between the maximum number of visas 
     authorized to be issued under this subsection during the 
     previous fiscal year and the number of visas issued during 
     the previous fiscal year; and
       ``(3) the difference between--
       ``(A) the maximum number of visas authorized to be issued 
     under this subsection during fiscal years 2001 through 2005 
     minus the number of visas issued under this subsection during 
     those years; and
       ``(B) the number of visas described in subparagraph (A) 
     that were issued after fiscal year 2005.''.
       (b) Employment-Based Immigrants.--Section 201(d) of the 
     Immigration and Nationality Act (8 U.S.C. 1151(d)) is amended 
     to read as follows:
       ``(d) Worldwide Level of Employment-Based Immigrants.--The 
     worldwide level of employment-based immigrants under this 
     subsection for a fiscal year is equal to the sum of--
       ``(1) 290,000;
       ``(2) the difference between the maximum number of visas 
     authorized to be issued under this subsection during the 
     previous fiscal year and the number of visas issued during 
     the previous fiscal year; and
       ``(3) the difference between--
       ``(A) the maximum number of visas authorized to be issued 
     under this subsection during fiscal years 2001 through 2005 
     and the number of visa numbers issued under this subsection 
     during those years; and
       ``(B) the number of visas described in subparagraph (A) 
     that were issued after fiscal year 2005.''.

     SEC. 1602. COUNTRY LIMITS.

       Section 202(a) of the Immigration and Nationality Act (8 
     U.S.C. 1152(a)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``, (4), and (5)'' and inserting ``and 
     (4)''; and
       (B) by striking ``7 percent (in the case of a single 
     foreign state) or 2 percent'' and inserting ``10 percent (in 
     the case of a single foreign state) or 5 percent''; and
       (2) by striking paragraph (5).

     SEC. 1603. ALLOCATION OF IMMIGRANT VISAS.

       (a) Preference Allocation for Family-Sponsored 
     Immigrants.--Section 203(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1153(a)) is amended to read as 
     follows:
       ``(a) Preference Allocations for Family-Sponsored 
     Immigrants.--Aliens subject to the worldwide level specified 
     in section 201(c) for family-sponsored immigrants shall be 
     allocated visas as follows:
       ``(1) Unmarried sons and daughters of citizens.--Qualified 
     immigrants who are the unmarried sons or daughters of 
     citizens of the United States shall be allocated visas in a 
     quantity not to exceed 10 percent of such worldwide level 
     plus any visas not required for the class specified in 
     paragraph (4).
       ``(2) Spouses and unmarried sons and daughters of permanent 
     resident aliens.--Visas in a quantity not to exceed 50 
     percent of such worldwide level plus any visas not required 
     for the class specified in paragraph (1) shall be allocated 
     to qualified immigrants--
       ``(A) who are the spouses or children of an alien lawfully 
     admitted for permanent residence, which visas shall 
     constitute not less than 77 percent of the visas allocated 
     under this paragraph; or
       ``(B) who are the unmarried sons or daughters of an alien 
     lawfully admitted for permanent residence.
       ``(3) Married sons and daughters of citizens.--Qualified 
     immigrants who are the married sons and daughters of citizens 
     of the United States shall be allocated visas in a quantity 
     not to exceed 10 percent of such worldwide level plus any 
     visas not required for the classes specified in paragraphs 
     (1) and (2).
       ``(4) Brothers and sisters of citizens.--Qualified 
     immigrants who are the brothers or sisters of citizens of the 
     United States who are at least 21 years of age shall be 
     allocated visas in a quantity not to exceed 30 percent of the 
     worldwide level plus any visas not required for the classes 
     specified in paragraphs (1) through (3).''.
       (b) Preference Allocation for Employment-Based 
     Immigrants.--Section 203(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1153(b)) is amended--
       (1) in paragraph (1), by striking ``28.6 percent'' and 
     inserting ``20 percent'';
       (2) in paragraph (2)(A), by striking ``28.6 percent'' and 
     inserting ``20 percent'';
       (3) in paragraph (3)(A)--
       (A) by striking ``28.6 percent'' and inserting ``35 
     percent''; and
       (B) by striking clause (iii);
       (4) by striking paragraph (4);
       (5) by redesignating paragraph (5) as paragraph (4);
       (6) in paragraph (4)(A), as redesignated, by striking ``7.1 
     percent'' and inserting ``5 percent'';
       (7) by inserting after paragraph (4), as redesignated, the 
     following:
       ``(5) Other workers.--Visas shall be made available, in a 
     number not to exceed 30 percent of such worldwide level, plus 
     any visa numbers not required for the classes specified in 
     paragraphs (1) through (4), to qualified immigrants who are 
     capable, at the time of petitioning for classification under 
     this paragraph, of performing unskilled labor that is not of 
     a temporary or seasonal nature, for which qualified workers 
     are determined to be unavailable in the United States, or to 
     nonimmigrants under section 101(a)(15)(H)(v)(a).''; and
       (8) by striking paragraph (6).
       (c) Conforming Amendments.--
       (1) Definition of special immigrant.--Section 101(a)(27)(M) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(27)(M)) is amended by striking ``subject to the 
     numerical limitations of section 203(b)(4),''.
       (2) Repeal of temporary reduction in workers' visas.--
     Section 203(e) of the Nicaraguan Adjustment and Central 
     American Relief Act (8 U.S.C. 1153 note) is repealed.

     SEC. 1604. RELIEF FOR CHILDREN AND WIDOWS.

       (a) In General.--Section 201(b)(2)(A)(i) of the Immigration 
     and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)) is amended by 
     striking ``spouses, and parents of a citizen of the United 
     States'' and inserting ``(and their children who are 
     accompanying or following to join them), the spouses (and 
     their children who are accompanying or following to join 
     them), and the parents of a citizen of the United States (and 
     their children who are accompanying or following to join 
     them)''.
       (b) Petition.--Section 204(a)(1)(A)(ii) of the Immigration 
     and Nationality Act (8 U.S.C. 1154 (a)(1)(A)(ii) is amended 
     by inserting ``or an alien child or alien parent described in 
     the third sentence of section 201(b)(2)(A)(i)'' after 
     ``section 201(b)(2)(A)(i)''.
       (c) Adjustment of Status.--Section 245 of the Immigration 
     and Nationality Act (8 U.S.C. 1255) is amended by adding at 
     the end the following:
       ``(n) Applications for Adjustment of Status by Surviving 
     Spouses, Children, and Parents.--
       ``(1) In general.--Notwithstanding subsections (a) and (c) 
     (except subsection (c)(6)), any alien described in paragraph 
     (2) who applied for adjustment of status prior to the death 
     of the qualifying relative, may have such application 
     adjudicated as if such death had not occurred.
       ``(2) Alien described.--An alien described in this 
     paragraph is an alien who--
       ``(A) is an immediate relative (as defined in section 
     201(b)(2)(A)(i));
       ``(B) is a family-sponsored immigrant (as described in 
     subsection (a) or (d) of section 203);
       ``(C) is a derivative beneficiary of an employment-based 
     immigrant under section 203(b), as described in section 
     203(d); or
       ``(D) is a derivative beneficiary of a diversity immigrant 
     (as described in section 203(c)).''.
       (d) Transition Period.--Notwithstanding a denial of an 
     application for adjustment of status not more than 2 years 
     before the date of enactment of this Act, in the case of an 
     alien whose qualifying relative died before the date of 
     enactment of this Act, such application may be renewed by the 
     alien through a motion to reopen, without fee, filed not 
     later than 1 year after the date of enactment of this Act.

     SEC. 1605. AMENDING THE AFFIDAVIT OF SUPPORT REQUIREMENTS.

       Section 213A of the Immigration and Nationality Act (8 
     U.S.C. 1183a) is amended--
       (1) in subsection (a)(1)(A), by striking ``125'' and 
     inserting ``100''; and
       (2) in subsection (f), by striking ``125'' each place it 
     appears and inserting ``100''.

     SEC. 1606. DISCRETIONARY AUTHORITY.

       Section 212(i) of the Immigration and Nationality Act (8 
     U.S.C. 1182(i)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2)(A) The Secretary of Homeland Security may waive the 
     application of subsection (a)(6)(C)--
       ``(i) in the case of an immigrant who is the spouse, 
     parent, son, or daughter of a United States citizen or of an 
     alien lawfully admitted for permanent residence, if the 
     Secretary of Homeland Security determines that the refusal of 
     admission to the United States of such immigrant alien would 
     result in extreme hardship to the citizen or lawfully 
     resident spouse, child, son, daughter, or parent of such an 
     alien; or
       ``(ii) in the case of an alien granted classification under 
     clause (iii) or (iv) of section 204(a)(1)(A) or clause (ii) 
     or (iii) of section 204(a)(1)(B), the alien demonstrates 
     extreme hardship to the alien or the alien's parent or child 
     if, such parent or child is a United States citizen, a lawful 
     permanent resident, or a qualified alien.
       ``(B) An alien who is granted a waiver under subparagraph 
     (A) shall pay a $2,000 fine.''.

     SEC. 1607. FAMILY UNITY.

       Section 212(a)(9) of the Immigration and Nationality Act (8 
     U.S.C. 1182(a)(9)) is amended--

[[Page 2284]]

       (1) in subparagraph (B)(iii)(I), by striking ``18'' and 
     inserting ``21''; and
       (2) in subparagraph (C)(ii)--
       (A) by redesignating subclauses (1) and (2) as subclauses 
     (I) and (II); and
       (B) in subclause (II), as redesignated, by redesignating 
     items (A), (B), (C), and (D) as items (aa), (bb), (cc), and 
     (dd); and
       (3) by adding at the end the following:
       ``(D) Waiver.--
       ``(i) In general.--The Secretary may waive the application 
     of subparagraphs (B) and (C) for an alien who is a 
     beneficiary of a petition filed under sections 201 and 203 if 
     such petition was filed on or before the date of introduction 
     of Secure America and Orderly Immigration Act.
       ``(ii) Fine.--An alien who is granted a waiver under clause 
     (i) shall pay a $2,000 fine.''.

                     TITLE VII--H-5B NONIMMIGRANTS

     SEC. 1701. H-5B NONIMMIGRANTS.

       (a) In General.--Chapter 5 of title II of the Immigration 
     and Nationality Act (8 U.S.C. 1255 et seq.) is amended by 
     adding after section 250 the following:


                          ``H-5B NONIMMIGRANTS

       ``Sec. 250A.  (a) In General.--The Secretary of Homeland 
     Security shall adjust the status of an alien to that of a 
     nonimmigrant under section 101(a)(15)(H)(v)(b) if the alien--
       ``(1) submits an application for such adjustment; and
       ``(2) meets the requirements of this section.
       ``(b) Presence in the United States.--The alien shall 
     establish that the alien--
       ``(1) was present in the United States before the date on 
     which the Secure America and Orderly Immigration Act was 
     introduced, and has been continuously in the United States 
     since such date; and
       ``(2) was not legally present in the United States on the 
     date on which the Secure America and Orderly Immigration Act 
     was introduced under any classification set forth in section 
     101(a)(15).
       ``(c) Spouses and Children.--Notwithstanding any other 
     provision of law, the Secretary of Homeland Security shall, 
     if the person is otherwise eligible under subsection (b)--
       ``(1) adjust the status to that of a nonimmigrant under 
     section 101(a)(15)(H)(v)(b) for, or provide a nonimmigrant 
     visa to, the spouse or child of an alien who is provided 
     nonimmigrant status under section 101(a)(15)(H)(v)(b); or
       ``(2) adjust the status to that of a nonimmigrant under 
     section 101(a)(15)(H)(v)(b) for an alien who, before the date 
     on which the Secure America and Orderly Immigration Act was 
     introduced in Congress, was the spouse or child of an alien 
     who is provided nonimmigrant status under section 
     101(a)(15)(H)(v)(b), or is eligible for such status, if--
       ``(A) the termination of the qualifying relationship was 
     connected to domestic violence; and
       ``(B) the spouse or child has been battered or subjected to 
     extreme cruelty by the spouse or parent alien who is provided 
     nonimmigrant status under section 101(a)(15)(H)(v)(b).
       ``(d) Other Criteria.--
       ``(1) In general.--An alien may be granted nonimmigrant 
     status under section 101(a)(15)(H)(v)(b), or granted status 
     as the spouse or child of an alien eligible for such status 
     under subsection (c), if the alien establishes that the 
     alien--
       ``(A) is not inadmissible to the United States under 
     section 212(a), except as provided in paragraph (2); or
       ``(B) has not ordered, incited, assisted, or otherwise 
     participated in the persecution of any person on account of 
     race, religion, nationality, membership in a particular 
     social group, or political opinion.
       ``(2) Grounds of inadmissibility.--In determining an 
     alien's admissibility under paragraph (1)(A)--
       ``(A) paragraphs (5), (6)(A), (6)(B), (6)(C), (6)(F), 
     (6)(G), (7), (9), and (10)(B) of section 212(a) shall not 
     apply for conduct that occurred before the date on which the 
     Secure America and Orderly Immigration Act was introduced;
       ``(B) the Secretary of Homeland Security may not waive--
       ``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of 
     section 212(a)(2) (relating to criminals);
       ``(ii) section 212(a)(3) (relating to security and related 
     grounds); or
       ``(iii) subparagraph (A) or (C) of section 212(a)(10) 
     (relating to polygamists and child abductors);
       ``(C) for conduct that occurred before the date on which 
     the Secure America and Orderly Immigration Act was 
     introduced, the Secretary of Homeland Security may waive the 
     application of any provision of section 212(a) not listed in 
     subparagraph (B) on behalf of an individual alien for 
     humanitarian purposes, to ensure family unity, or when such 
     waiver is otherwise in the public interest; and
       ``(D) nothing in this paragraph shall be construed as 
     affecting the authority of the Secretary of Homeland Security 
     other than under this paragraph to waive the provisions of 
     section 212(a).
       ``(3) Applicability of other provisions.--Sections 240B(d) 
     and 241(a)(5) shall not apply to an alien who is applying for 
     adjustment of status in accordance with this title for 
     conduct that occurred before the date on which the Secure 
     America and Orderly Immigration Act was introduced.
       ``(e) Employment.--
       ``(1) In general.--The Secretary of Homeland Security may 
     not adjust the status of an alien to that of a nonimmigrant 
     under section 101(a)(15)(H)(v)(b) unless the alien 
     establishes that the alien--
       ``(A) was employed in the United States, whether full time, 
     part time, seasonally, or self-employed, before the date on 
     which the Secure America and Orderly Immigration Act was 
     introduced; and
       ``(B) has been employed in the United States since that 
     date.
       ``(2) Evidence of employment.--
       ``(A) Conclusive documents.--An alien may conclusively 
     establish employment status in compliance with paragraph (1) 
     by submitting to the Secretary of Homeland Security records 
     demonstrating such employment maintained by--
       ``(i) the Social Security Administration, Internal Revenue 
     Service, or by any other Federal, State, or local government 
     agency;
       ``(ii) an employer; or
       ``(iii) a labor union, day labor center, or an organization 
     that assists workers in matters related to employment.
       ``(B) Other documents.--An alien who is unable to submit a 
     document described in clauses (i) through (iii) of 
     subparagraph (A) may satisfy the requirement in paragraph (1) 
     by submitting to the Secretary at least 2 other types of 
     reliable documents that provide evidence of employment, 
     including--
       ``(i) bank records;
       ``(ii) business records;
       ``(iii) sworn affidavits from nonrelatives who have direct 
     knowledge of the alien's work; or
       ``(iv) remittance records.
       ``(3) Intent of congress.--It is the intent of Congress 
     that the requirement in this subsection be interpreted and 
     implemented in a manner that recognizes and takes into 
     account the difficulties encountered by aliens in obtaining 
     evidence of employment due to the undocumented status of the 
     alien.
       ``(4) Burden of proof.--An alien described in paragraph (1) 
     who is applying for adjustment of status under this section 
     has the burden of proving by a preponderance of the evidence 
     that the alien has satisfied the requirements of this 
     subsection. An alien may meet such burden of proof by 
     producing sufficient evidence to demonstrate such employment 
     as a matter of reasonable inference.
       ``(f) Special Rules for Minors and Individuals Who Entered 
     as Minors.--The employment requirements under this section 
     shall not apply to any alien under 21 years of age.
       ``(g) Education Permitted.--An alien may satisfy the 
     employment requirements under this section, in whole or in 
     part, by full-time attendance at--
       ``(1) an institution of higher education (as defined in 
     section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001)); or
       ``(2) a secondary school (as defined in section 9101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801)).
       ``(h) Security and Law Enforcement Background Checks.--
       ``(1) Submission of fingerprints.--An alien may not be 
     granted nonimmigrant status under section 
     101(a)(15)(H)(v)(b), or granted status as the spouse or child 
     of an alien eligible for such status under subsection (c), 
     unless the alien submits fingerprints in accordance with 
     procedures established by the Secretary of Homeland Security.
       ``(2) Background checks.--The Secretary of Homeland 
     Security shall utilize fingerprints and other data provided 
     by the alien to conduct a background check of such alien 
     relating to criminal, national security, or other law 
     enforcement actions that would render the alien ineligible 
     for adjustment of status as described in this section.
       ``(3) Expeditious processing.--The background checks 
     required under paragraph (2) shall be conducted as 
     expeditiously as possible.
       ``(i) Period of Authorized Stay and Application Fee and 
     Fine.--
       ``(1) Period of authorized stay.--
       ``(A) In general.--The period of authorized stay for a 
     nonimmigrant described in section 101(a)(15)(H)(v)(b) shall 
     be 6 years.
       ``(B) Limitation.--The Secretary of Homeland Security may 
     not authorize a change from such nonimmigrant classification 
     to any other immigrant or nonimmigrant classification until 
     the termination of the 6-year period described in 
     subparagraph (A). The Secretary may only extend such period 
     to accommodate the processing of an application for 
     adjustment of status under section 245B.
       ``(2) Application fee.--The Secretary of Homeland Security 
     shall impose a fee for filing an application for adjustment 
     of status under this section. Such fee shall be sufficient to 
     cover the administrative and other expenses incurred in 
     connection with the review of such applications.
       ``(3) Fines.--
       ``(A) In general.--In addition to the fee required under 
     paragraph (2), the Secretary of Homeland Security may accept 
     an application for adjustment of status under this section 
     only if the alien pays a $1,000 fine.

[[Page 2285]]

       ``(B) Exception.--Fines paid under this paragraph shall not 
     be required from an alien under the age of 21.
       ``(4) Collection of fees and fines.--All fees and fines 
     collected under this section shall be deposited in the 
     Treasury in accordance with section 286(w).
       ``(j) Treatment of Applicants.--
       ``(1) In general.--An alien who files an application under 
     this section, including the alien's spouse or child--
       ``(A) shall be granted employment authorization pending 
     final adjudication of the alien's application for adjustment 
     of status;
       ``(B) shall be granted permission to travel abroad;
       ``(C) may not be detained, determined inadmissible or 
     deportable, or removed pending final adjudication of the 
     alien's application for adjustment of status, unless the 
     alien, through conduct or criminal conviction, becomes 
     ineligible for such adjustment of status; and
       ``(D) may not be considered an unauthorized alien (as 
     defined in section 274A(h)(3)) until employment authorization 
     under subparagraph (A) is denied.
       ``(2) Before application period.--If an alien is 
     apprehended after the date of enactment of this section, but 
     before the promulgation of regulations pursuant to this 
     section, and the alien can establish prima facie eligibility 
     as a nonimmigrant under section 101(a)(15)(H)(v)(b), the 
     Secretary of Homeland Security shall provide the alien with a 
     reasonable opportunity, after promulgation of regulations, to 
     file an application for adjustment.
       ``(3) During certain proceedings.--Notwithstanding any 
     provision of this Act, an alien who is in removal proceedings 
     shall have an opportunity to apply for adjustment of status 
     under this title unless a final administrative determination 
     has been made.
       ``(4) Relationships of application to certain orders.--An 
     alien who is present in the United States and has been 
     ordered excluded, deported, removed, or ordered to depart 
     voluntarily from the United States under any provision of 
     this Act may, notwithstanding such order, apply for 
     adjustment of status in accordance with this section. Such an 
     alien shall not be required to file a separate motion to 
     reopen, reconsider, or vacate the exclusion, deportation, 
     removal, or voluntary departure order. If the Secretary of 
     Homeland Security grants the application, the Secretary shall 
     cancel such order. If the Secretary of Homeland Security 
     renders a final administrative decision to deny the 
     application, such order shall be effective and enforceable to 
     the same extent as if the application had not been made.
       ``(k) Administrative and Judicial Review.--
       ``(1) Administrative review.--
       ``(A) Single level of administrative appellate review.--The 
     Secretary of Homeland Security shall establish an appellate 
     authority within the United States Citizenship and 
     Immigration Services to provide for a single level of 
     administrative appellate review of a determination respecting 
     an application for adjustment of status under this section.
       ``(B) Standard for review.--Administrative appellate review 
     referred to in subparagraph (A) shall be based solely upon 
     the administrative record established at the time of the 
     determination on the application and upon the presentation of 
     additional or newly discovered evidence during the time of 
     the pending appeal.
       ``(2) Judicial review.--
       ``(A) In general.--There shall be judicial review in the 
     Federal courts of appeal of the denial of an application for 
     adjustment of status under this section. Notwithstanding any 
     other provision of law, the standard for review of such a 
     denial shall be governed by subparagraph (B).
       ``(B) Standard for judicial review.--Judicial review of a 
     denial of an application under this section shall be based 
     solely upon the administrative record established at the time 
     of the review. The findings of fact and other determinations 
     contained in the 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.
       ``(C) Jurisdiction of courts.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, the district courts of the United States shall have 
     jurisdiction over any cause or claim arising from a pattern 
     or practice of the Secretary of Homeland Security in the 
     operation or implementation of this section that is 
     arbitrary, capricious, or otherwise contrary to law, and may 
     order any appropriate relief.
       ``(ii) Remedies.--A district court may order any 
     appropriate relief under clause (i) if the court determines 
     that resolution of such cause or claim will serve judicial 
     and administrative efficiency or that a remedy would 
     otherwise not be reasonably available or practicable.
       ``(3) Stay of removal.--Aliens seeking administrative or 
     judicial review under this subsection shall not be removed 
     from the United States until a final decision is rendered 
     establishing ineligibility under this section.
       ``(l) Confidentiality of Information.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, no Federal agency or bureau, nor any officer, 
     employee, or agent of such agency or bureau, may--
       ``(A) use the information furnished by the applicant 
     pursuant to an application filed under this section for any 
     purpose other than to make a determination on the 
     application;
       ``(B) make any publication through which the information 
     furnished by any particular applicant can be identified; or
       ``(C) permit anyone other than the sworn officers and 
     employees of such agency or bureau to examine individual 
     applications.
       ``(2) Required disclosures.--The Secretary of Homeland 
     Security shall provide the information furnished pursuant to 
     an application filed under this section, and any other 
     information derived from such furnished information, to a 
     duly recognized law enforcement entity in connection with a 
     criminal investigation or prosecution or a national security 
     investigation or prosecution, in each instance about an 
     individual suspect or group of suspects, when such 
     information is requested in writing by such entity.
       ``(3) Criminal penalty.--Any person who knowingly uses, 
     publishes, or permits information to be examined in violation 
     of this subsection shall be fined not more than $10,000.
       ``(m) Penalties for False Statements in Applications.--
       ``(1) Criminal penalty.--
       ``(A) Violation.--It shall be unlawful for any person--
       ``(i) to file or assist in filing an application for 
     adjustment of status under this section and knowingly and 
     willfully falsify, misrepresent, conceal, or cover up a 
     material fact or make any false, fictitious, or fraudulent 
     statements or representations, or make or use any false 
     writing or document knowing the same to contain any false, 
     fictitious, or fraudulent statement or entry; or
       ``(ii) to create or supply a false writing or document for 
     use in making such an application.
       ``(B) Penalty.--Any person who violates subparagraph (A) 
     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).
       ``(3) Exception.--Notwithstanding paragraphs (1) and (2), 
     any alien or other entity (including an employer or union) 
     that submits an employment record that contains incorrect 
     data that the alien used in order to obtain such employment 
     before the date on which the Secure America and Orderly 
     Immigration Act is introduced, shall not, on that ground, be 
     determined to have violated this section.''.
       (b) Clerical Amendment.--The table of contents for the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by inserting after the item relating to section 250 
     the following:

``Sec. 250A. H-5B nonimmigrants.''.

     SEC. 1702. ADJUSTMENT OF STATUS FOR H-5B NONIMMIGRANTS.

       (a) In General.--Chapter 5 of title II of the Immigration 
     and Nationality Act (8 U.S.C. 1255 et seq.) is amended by 
     inserting after section 245A the following:


 ``ADJUSTMENT OF STATUS OF FORMER H-5B NONIMMIGRANT TO THAT OF PERSON 
                ADMITTED FOR LAWFUL PERMANENT RESIDENCE

       ``Sec. 245B.  (a) Requirements.--The Secretary shall adjust 
     the status of an alien from nonimmigrant status under section 
     101(a)(15)(H)(v)(b) to that of an alien lawfully admitted for 
     permanent residence under this section if the alien satisfies 
     the following requirements:
       ``(1) Completion of employment or education requirement.--
     The alien establishes that the alien has been employed in the 
     United States, either full time, part time, seasonally, or 
     self-employed, or has met the education requirements of 
     subsection (f) or (g) of section 250A during the period 
     required by section 250A(e).
       ``(2) Rulemaking.--The Secretary shall establish 
     regulations for the timely filing and processing of 
     applications for adjustment of status for nonimmigrants under 
     section 101(a)(15)(H)(v)(b).
       ``(3) Application and fee.--The alien who applies for 
     adjustment of status under this section shall pay the 
     following:
       ``(A) Application fee.--An alien who files an application 
     under section 245B of the Immigration and Nationality Act, 
     shall pay an application fee, set by the Secretary.
       ``(B) Additional fine.--Before the adjudication of an 
     application for adjustment of status filed under this 
     section, an alien who is at least 21 years of age shall pay a 
     fine of $1,000.
       ``(4) Admissible under immigration laws.--The alien 
     establishes that the alien is not inadmissible under section 
     212(a), except for any provision of that section that is not 
     applicable or waived under section 250A(d)(2).
       ``(5) Medical examination.--The alien shall undergo, at the 
     alien's expense, an appropriate medical examination 
     (including a determination of immunization status) that 
     conforms to generally accepted professional standards of 
     medical practice.

[[Page 2286]]

       ``(6) Payment of income taxes.--
       ``(A) In general.--Not later than the date on which status 
     is adjusted under this section, the alien shall establish the 
     payment of all Federal income taxes owed for employment 
     during the period of employment required by section 250A(e) 
     by establishing that--
       ``(i) no such tax liability exists;
       ``(ii) all outstanding liabilities have been met; or
       ``(iii) the alien has entered into an agreement for payment 
     of all outstanding liabilities with the Internal Revenue 
     Service.
       ``(B) IRS cooperation.--The Commissioner of Internal 
     Revenue shall provide documentation to an alien upon request 
     to establish the payment of all income taxes required by this 
     paragraph.
       ``(7) Basic citizenship skills.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the alien shall establish that the alien--
       ``(i) meets the requirements of section 312; or
       ``(ii) is satisfactorily pursuing a course of study to 
     achieve such an understanding of English and knowledge and 
     understanding of the history and government of the United 
     States.
       ``(B) Relation to naturalization examination.--An alien who 
     demonstrates that the alien meets the requirements of section 
     312 may be considered to have satisfied the requirements of 
     that section for purposes of becoming naturalized as a 
     citizen of the United States under title III.
       ``(8) Security and law enforcement background checks.--The 
     Secretary shall conduct a security and law enforcement 
     background check in accordance with procedures described in 
     section 250A(h).
       ``(9) Military selective service.--The alien shall 
     establish that if the alien is within the age period required 
     under the Military Selective Service Act (50 U.S.C. App. 451 
     et seq.), that such alien has registered under that Act.
       ``(b) Treatment of Spouses and Children.--
       ``(1) Adjustment of status.--Notwithstanding any other 
     provision of law, the Secretary of Homeland Security shall--
       ``(A) adjust the status to that of a lawful permanent 
     resident under this section, or provide an immigrant visa to 
     the spouse or child of an alien who adjusts status to that of 
     a permanent resident under this section; or
       ``(B) adjust the status to that of a lawful permanent 
     resident under this section for an alien who was the spouse 
     or child of an alien who adjusts status or is eligible to 
     adjust status to that of a permanent resident under section 
     245B in accordance with subsection (a), if--
       ``(i) the termination of the qualifying relationship was 
     connected to domestic violence; and
       ``(ii) the spouse or child has been battered or subjected 
     to extreme cruelty by the spouse or parent who adjusts status 
     to that of a permanent resident under this section.
       ``(2) Application of other law.--In acting on applications 
     filed under this subsection with respect to aliens who have 
     been battered or subjected to extreme cruelty, the Secretary 
     of Homeland Security shall apply the provisions of section 
     204(a)(1)(J) and the protections, prohibitions, and penalties 
     under section 384 of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1367).
       ``(c) Judicial Review; Confidentiality; Penalties.--
     Subsections (n), (o), and (p) of section 250A shall apply to 
     this section.''.
       (b) Clerical Amendment.--The table of contents for the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by inserting after the item relating to section 245A 
     the following:

``Sec. 245B. Adjustment of status of former H-5B nonimmigrant to that 
              of person admitted for lawful permanent residence.''.

     SEC. 1703. ALIENS NOT SUBJECT TO DIRECT NUMERICAL 
                   LIMITATIONS.

       Section 201(b)(1) of the Immigration and Nationality Act (8 
     U.S.C. 1151(b)(1)) is amended--
       (1) in subparagraph (A), by striking ``subparagraph (A) or 
     (B) of''; and
       (2) by adding at the end the following:
       ``(F) Aliens whose status is adjusted from the status 
     described in section 101(a)(15)(H)(v)(b).''.

     SEC. 1704. EMPLOYER PROTECTIONS.

       (a) Immigration Status of Alien.--Employers of aliens 
     applying for adjustment of status under section 245B or 250A 
     of the Immigration and Nationality Act, as added by this 
     title, shall not be subject to civil and criminal tax 
     liability relating directly to the employment of such alien 
     prior to such alien receiving employment authorization under 
     this title.
       (b) Provision of Employment Records.--Employers that 
     provide unauthorized aliens with copies of employment records 
     or other evidence of employment pursuant to an application 
     for adjustment of status under section 245B or 250A of the 
     Immigration and Nationality Act or any other application or 
     petition pursuant to any other immigration law, shall not be 
     subject to civil and criminal liability under section 274A of 
     such Act for employing such unauthorized aliens.
       (c) Applicability of Other Law.--Nothing in this section 
     may be used to shield an employer from liability under 
     section 274B of the Immigration and Nationality Act (8 U.S.C. 
     1324b) or any other labor or employment law.

     SEC. 1705. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Homeland Security such sums as may be 
     necessary to carry out this title and the amendments made by 
     this title.
       (b) Availability of Funds.--Funds appropriated pursuant 
     subsection (a) shall remain available until expended.
       (c) Sense of Congress.--It is the sense of Congress that 
     funds authorized to be appropriated under subsection (a) 
     should be directly appropriated so as to facilitate the 
     orderly and timely commencement of the processing of 
     applications filed under sections 245B and 250A of the 
     Immigration and Nationality Act, as added by this Act.

            TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

     SEC. 1801. RIGHT TO QUALIFIED REPRESENTATION.

       Section 292 of the Immigration and Nationality Act (8 
     U.S.C. 1362) is amended to read as follows:


       ``RIGHT TO QUALIFIED REPRESENTATION IN IMMIGRATION MATTERS

       ``Sec. 292.  (a) Authorized Representatives in Immigration 
     Matters.--Only the following individuals are authorized to 
     represent an individual in an immigration matter before any 
     Federal agency or entity:
       ``(1) An attorney.
       ``(2) A law student who is enrolled in an accredited law 
     school, or a graduate of an accredited law school who is not 
     admitted to the bar, if--
       ``(A) the law student or graduate is appearing at the 
     request of the individual to be represented;
       ``(B) in the case of a law student, the law student has 
     filed a statement that the law student is participating, 
     under the direct supervision of a faculty member, attorney, 
     or accredited representative, in a legal aid program or 
     clinic conducted by a law school or nonprofit organization, 
     and that the law student is appearing without direct or 
     indirect remuneration from the individual the law student 
     represents;
       ``(C) in the case of a graduate, the graduate has filed a 
     statement that the graduate is appearing under the 
     supervision of an attorney or accredited representative and 
     that the graduate is appearing without direct or indirect 
     remuneration from the individual the graduate represents; and
       ``(D) the law student's or graduate's appearance is--
       ``(i) permitted by the official before whom the law student 
     or graduate wishes to appear; and
       ``(ii) accompanied by the supervising faculty member, 
     attorney, or accredited representative, to the extent 
     required by such official.
       ``(3) Any reputable individual, if--
       ``(A) the individual is appearing on an individual case 
     basis, at the request of the individual to be represented;
       ``(B) the individual is appearing without direct or 
     indirect remuneration and the individual files a written 
     declaration to that effect, except as described in 
     subparagraph (D);
       ``(C) the individual has a pre-existing relationship or 
     connection with the individual entitled to representation, 
     such as a relative, neighbor, clergyman, business associate, 
     or personal friend, except that this requirement may be 
     waived, as a matter of administrative discretion, in cases 
     where adequate representation would not otherwise be 
     available; and
       ``(D) if making a personal appearance on behalf of another 
     individual, the appearance is permitted by the official 
     before whom the individual wishes to appear, except that such 
     permission shall not be granted with respect to any 
     individual who regularly engages in immigration and 
     naturalization practice or preparation, or holds himself or 
     herself out to the public as qualified to do so.
       ``(4) An individual representing a recognized organization 
     (as described in subsection (f)) who has been approved to 
     serve as an accredited representative by the Board of 
     Immigration Appeals under subsection (f)(2).
       ``(5) An accredited official, in the United States, of the 
     government to which an alien owes allegiance, if the official 
     appears solely in his or her official capacity and with the 
     consent of the person to be represented.
       ``(6) An individual who is licensed to practice law and is 
     in good standing in a court of general jurisdiction of the 
     country in which the individual resides and who is engaged in 
     such practice, if the person represents persons only in 
     matters outside the United States and that the official 
     before whom such person wishes to appear allows such 
     representation, as a matter of discretion.
       ``(7) An attorney, or an organization represented by an 
     attorney, may appear, on a case-by-case basis, as amicus 
     curiae, if the Board of Immigration Appeals grants such 
     permission and the public interest will be served by such 
     appearance.
       ``(b) Former Employees.--No individual previously employed 
     by the Department of

[[Page 2287]]

     Justice, Department of State, Department of Labor, or 
     Department of Homeland Security may be permitted to act as an 
     authorized representative under this section, if such 
     authorization would violate any other applicable provision of 
     Federal law or regulation. In addition, any application for 
     such authorization must disclose any prior employment by or 
     contract with such agencies for services of any nature.
       ``(c) Advertising.--Only an attorney or an individual 
     approved under subsection (f)(2) as an accredited 
     representative may advertise or otherwise hold themselves out 
     as being able to provide representation in an immigration 
     matter. This provision shall in no way be deemed to diminish 
     any Federal or State law to regulate, control, or enforce 
     laws regarding such advertisement, solicitation, or offer of 
     representation.
       ``(d) Removal Proceedings.--In any proceeding for the 
     removal of an individual from the United States and in any 
     appeal proceedings from such proceeding, the individual shall 
     have the privilege, as the individual shall choose, of being 
     represented (at no expense to the Government) by an 
     individual described in subsection (a). Representation by an 
     individual other than a person described in subsection (a) 
     may cause the representative to be subject to civil penalties 
     or such other penalties as may be applicable.
       ``(e) Benefits Filings.--In any filing or submission for an 
     immigration related benefit or a determination related to the 
     immigration status of an individual made to the Department of 
     Homeland Security, the Department of Labor, or the Department 
     of State, the individual shall have the privilege, as the 
     individual shall choose, of being represented (at no expense 
     to the Government) by an individual described in subsection 
     (a). Representation by an individual other than an individual 
     described in subsection (a) is cause for the representative 
     to be subject to civil or criminal penalties, as may be 
     applicable.
       ``(f) Recognized Organizations and Accredited 
     Representatives.--
       ``(1) Recognized organizations.--
       ``(A) In general.--The Board of Immigration Appeals may 
     determine that a person is a recognized organization if such 
     person--
       ``(i) is a nonprofit religious, charitable, social service, 
     or similar organization established in the United States 
     that--

       ``(I) is recognized by the Board of Immigration Appeals; 
     and
       ``(II) is authorized to designate a representative to 
     appear in an immigration matter before the Department of 
     Homeland Security or the Executive Office for Immigration 
     Review of the Department of Justice; and

       ``(ii) demonstrates to the Board that such person--

       ``(I) makes only nominal charges and assesses no excessive 
     membership dues for individuals given assistance; and
       ``(II) has at its disposal adequate knowledge, information, 
     and experience.

       ``(B) Bonding.--The Board, in its discretion, may impose a 
     bond requirement on new organizations seeking recognition.
       ``(C) Reporting obligations.--Recognized organizations 
     shall promptly notify the Board when the organization no 
     longer meets the requirements for recognition or when an 
     accredited representative employed by the recognized 
     organization ceases to be employed by the recognized 
     organization.
       ``(2) Accredited representatives.--The Board of Immigration 
     Appeals shall approve any qualified individual designated by 
     a recognized organization to serve as an accredited 
     representative. Such individual must be employed by the 
     recognized organization and must meet all requirements set 
     forth in this section and in the accompanying regulations to 
     be authorized to represent individuals in an immigration 
     matter. Accredited representatives, through their recognized 
     organizations, must certify their continuing eligibility for 
     accreditation every 3 years with the Board of Immigration 
     Appeals. Accredited representatives who fail to comply with 
     these requirements shall not have authority to represent 
     persons in an immigration matter for the recognized 
     organization.
       ``(g) Prohibited Acts.--An individual, other than an 
     individual authorized to represent an individual under this 
     section, may not--
       ``(1) directly or indirectly provide or offer 
     representation regarding an immigration matter for 
     compensation or contribution;
       ``(2) advertise or solicit representation in an immigration 
     matter;
       ``(3) retain any compensation provided for a prohibited act 
     described in paragraph (1) or (2), regardless of whether any 
     petition, application, or other document was filed with any 
     government agency or entity and regardless of whether a 
     petition, application, or other document was prepared or 
     represented to have been prepared by such individual;
       ``(4) represent directly or indirectly that the individual 
     is an attorney or supervised by or affiliated with an 
     attorney, when such representation is false; or
       ``(5) violate any applicable civil or criminal statute or 
     regulation of a State regarding the provision of 
     representation by providing or offering to provide 
     immigration or immigration-related assistance referenced in 
     this subsection.
       ``(h) Civil Enforcement.--
       ``(1) In general.--Any person, or any entity acting for the 
     interests of itself, its members, or the general public 
     (including a Federal law enforcement official or agency or 
     law enforcement official or agency of any State or political 
     subdivision of a State), that has reason to believe that any 
     person is being or has been injured by reason of a violation 
     of subsection (g) may commence a civil action in any court of 
     competent jurisdiction.
       ``(2) Remedies.--
       ``(A) Damages.--In any civil action brought under this 
     subsection, if the court finds that the defendant has 
     violated subsection (g), it shall award actual damages, plus 
     the greater of--
       ``(i) an amount treble the amount of actual damages; or
       ``(ii) $1,000 per violation.
       ``(B) Injunctive relief.--The court may award appropriate 
     injunctive relief, including temporary, preliminary, or 
     permanent injunctive relief, and restitution. Injunctive 
     relief may include, where appropriate, an order temporarily 
     or permanently enjoining the defendant from providing any 
     service to any person in any immigration matter. The court 
     may make such orders or judgments, including the appointment 
     of a receiver, as may be necessary to prevent the commission 
     of any act described in subsection (g).
       ``(C) Attorney's fees.--The court shall also grant a 
     prevailing plaintiff reasonable attorney's fees and costs, 
     including expert witness fees.
       ``(D) Civil penalties.--The court may also assess a civil 
     penalty not exceeding $50,000 for a first violation, and not 
     exceeding $100,000 for subsequent violations.
       ``(E) Cumulative remedies.--Unless otherwise expressly 
     provided, the remedies or penalties provided under this 
     paragraph are cumulative to each other and to the remedies or 
     penalties available under all other Federal laws or laws of 
     the jurisdiction where the violation occurred.
       ``(3) Nonpreemption.--Nothing in this subsection shall be 
     construed to preempt any other private right of action or any 
     right of action pursuant to the laws of any jurisdiction.
       ``(4) Discovery.--Information obtained through discovery in 
     a civil action under this subsection shall not be used in any 
     criminal action. Upon the request of any party to a civil 
     action under this subsection, any part of the court file that 
     makes reference to information discovered in a civil action 
     under this subsection may be sealed.
       ``(i) Nonpreemption of More Protective State and Local 
     Laws.--The provisions of this section supersede laws, 
     regulations, and municipal ordinances of any State only to 
     the extent such laws, regulations, and municipal ordinances 
     impede the application of any provision of this section. Any 
     State or political subdivision of a State may impose 
     requirements supplementing those imposed by this section.
       ``(j) Definitions.--As used in this section--
       ``(1) the term `attorney' means a person who--
       ``(A) is a member in good standing of the bar of the 
     highest court of a State; and
       ``(B) is not under any order of any court suspending, 
     enjoining, restraining, disbarring, or otherwise restricting 
     such person in the practice of law;
       ``(2) the term `compensation' means money, property, labor, 
     promise of payment, or any other consideration provided 
     directly or indirectly to an individual
       ``(3) the term `immigration matter' means any proceeding, 
     filing, or action affecting the immigration or citizenship 
     status of any person, which arises under any immigration or 
     nationality law, Executive order, Presidential proclamation, 
     or action of any Federal agency;
       ``(4) the term `representation', when used with respect to 
     the representation of a person, includes--
       ``(A) the appearance, either in person or through the 
     preparation or filing of any brief or other document, paper, 
     application, or petition on behalf of another person or 
     client, before any Federal agency or officer; and
       ``(B) the study of the facts of a case and the applicable 
     laws, coupled with the giving of advice and auxiliary 
     activities, including the incidental preparation of papers; 
     and
       ``(5) the term `State' includes a State or an outlying 
     possession of the United States.''.

     SEC. 1802. PROTECTION OF WITNESS TESTIMONY.

       (a) Definition.--Section 101(a)(15)(U)(i) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(i)) is 
     amended--
       (1) by inserting in subclause (I) after the phrase ``clause 
     (iii)'' the following: ``or has suffered substantial 
     financial, physical, or mental harm as the result of a 
     prohibited act described in section 292;''
       (2) by inserting in subclause (II) after the phrase 
     ``clause (iii)'' the following: ``or section 292'';
       (3) by inserting in subclause (III) after the phrase 
     ``clause (iii)'' the following: ``or section 292''; and
       (4) by inserting in subclause (IV) after the phrase 
     ``clause (iii)'' the following: ``or section 292''.
       (b) Admission of Nonimmigrants.--Section 214(p) of the 
     Immigration and Nationality Act of (8 U.S.C. 1184(p)) is 
     amended--

[[Page 2288]]

       (1) in paragraph (1), by inserting ``or section 274E'' 
     after ``section 101(a)(15)(U)(iii)'' each place it appears; 
     and
       (2) in paragraph (2)(A), by striking ``10,000'' and 
     inserting ``15,000''.

                      TITLE IX--CIVICS INTEGRATION

     SEC. 1901. FUNDING FOR THE OFFICE OF CITIZENSHIP.

       (a) Authorization.--The Secretary of Homeland Security, 
     acting through the Director of the Bureau of Citizenship and 
     Immigration Services, is authorized to establish the United 
     States Citizenship Foundation (referred to in this section as 
     the ``Foundation''), an organization duly incorporated in the 
     District of Columbia, exclusively for charitable and 
     educational purposes to support the functions of the Office 
     of Citizenship (as described in section 451(f)(2) of the 
     Homeland Security Act of 2002 (6 U.S.C. 271(f)(2)).
       (b) Gifts.--
       (1) To foundation.--The Foundation may solicit, accept, and 
     make gifts of money and other property in accordance with 
     section 501(c)(3) of the Internal Revenue Code of 1986.
       (2) From foundation.--The Office of Citizenship may accept 
     gifts from the Foundation to support the functions of the 
     Office.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the mission of the Office of Citizenship.

     SEC. 1902. CIVICS INTEGRATION GRANT PROGRAM.

       (a) In General.--The Secretary of Homeland Security shall 
     establish a competitive grant program to fund--
       (1) efforts by entities certified by the Office of 
     Citizenship to provide civics and English as a second 
     language courses; or
       (2) other activities approved by the Secretary to promote 
     civics and English as a second language.
       (b) Acceptance of Gifts.--The Secretary may accept and use 
     gifts from the United States Citizenship Foundation for 
     grants under this section.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

                TITLE X--PROMOTING ACCESS TO HEALTH CARE

     SEC. 2001. FEDERAL REIMBURSEMENT OF EMERGENCY HEALTH SERVICES 
                   FURNISHED TO UNDOCUMENTED ALIENS.

       Section 1011 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (42 U.S.C. 1395dd 
     note) is amended--
       (1) by striking ``2008'' and inserting ``2011''; and
       (2) in subsection (c)(5), by adding at the end the 
     following:
       ``(D) Nonimmigrants described in section 101(a)(15)(H)(v) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(v)''.

     SEC. 2002. PROHIBITION AGAINST OFFSET OF CERTAIN MEDICARE AND 
                   MEDICAID PAYMENTS.

       Payments made under section 1011 of the Medicare 
     Prescription Drug, Improvement, and Modernization Act of 2003 
     (42 U.S.C. 1395dd note)--
       (1) shall not be considered ``third party coverage'' for 
     the purposes of section 1923 of the Social Security Act (42 
     U.S.C. 1396r-4); and
       (2) shall not impact payments made under such section of 
     the Social Security Act.

     SEC. 2003. PROHIBITION AGAINST DISCRIMINATION AGAINST ALIENS 
                   ON THE BASIS OF EMPLOYMENT IN HOSPITAL-BASED 
                   VERSUS NONHOSPITAL-BASED SITES.

       Section 214(l)(1)(C) of the Immigrant and Nationality Act 
     (8 U.S.C. 1184(l)(1)(C) is amended--
       (1) in clause (i), by striking ``and'' at the end; and
       (2) by adding at the end the following:
       ``(iii) such interested Federal agency or interested State 
     agency, in determining which aliens will be eligible for such 
     waivers, does not utilize selection criteria, other than as 
     described in this subsection, that discriminate on the basis 
     of the alien's employment in a hospital-based versus 
     nonhospital-based facility or organization; and''.

     SEC. 2004. BINATIONAL PUBLIC HEALTH INFRASTRUCTURE AND HEALTH 
                   INSURANCE.

       (a) Study.--
       (1) In general.--The Secretary of Health and Human Services 
     shall contract with the Institute of Medicine of the National 
     Academies (referred to in this section as the ``Institute'') 
     to study binational public health infrastructure and health 
     insurance efforts.
       (2) Input.--In conducting the study under paragraph (1), 
     the Institute shall solicit input from border health experts 
     and health insurance companies.
       (b) Report.--
       (1) In general.--Not later than 1 year after the date on 
     which the Secretary of Health and Human Services enters into 
     a contract under subsection (a), the Institute shall submit a 
     report concerning the study conducted under subsection (a) to 
     the Secretary of Health and Human Services and the 
     appropriate committees of Congress.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include the recommendations of the Institute on ways to 
     expand or improve binational public health infrastructure and 
     health insurance efforts.

                        TITLE XI--MISCELLANEOUS

     SEC. 2101. SUBMISSION TO CONGRESS OF INFORMATION REGARDING H-
                   5A NONIMMIGRANTS.

       (a) Ensuring Accurate Count.--The Secretary of State and 
     the Secretary of Homeland Security shall maintain an accurate 
     count of the number of aliens subject to the numerical 
     limitations under section 214(g)(1)(C) of the Immigration and 
     Nationality Act (8 U.S.C. 1184(g)(1)(C)) who are issued visas 
     or otherwise provided nonimmigrant status.
       (b) Provision of Information.--
       (1) Quarterly notification.--Beginning with the first 
     fiscal year after regulations are promulgated to implement 
     this Act, the Secretary of State and the Secretary of 
     Homeland Security shall submit quarterly reports to the 
     Committee on the Judiciary of the Senate and the Committee on 
     the Judiciary of the House of Representatives containing the 
     numbers of aliens who were issued visas or otherwise provided 
     nonimmigrant status under section 101(a)(15)(H)(v)(a) of the 
     Immigrant and Nationality Act (8 U.S.C. 1101(a)(15)(H)(v)(a)) 
     during the preceding 3-month period.
       (2) Annual submission.--Beginning with the first fiscal 
     year after regulations are promulgated to implement this Act, 
     the Secretary of Homeland Security shall submit annual 
     reports to the Committee on the Judiciary of the Senate and 
     the Committee on the Judiciary of the House of 
     Representatives, containing information on the countries of 
     origin and occupations of, geographic area of employment in 
     the United States, and compensation paid to, aliens who were 
     issued visas or otherwise provided nonimmigrant status under 
     such section 101(a)(15)(H)(v)(a). The Secretary shall compile 
     such reports based on the data reported by employers to the 
     Employment Eligibility Confirmation System established in 
     section 402.

     SEC. 2102. H-5 NONIMMIGRANT PETITIONER ACCOUNT.

       Section 286 of the Immigration and Nationality Act (8 
     U.S.C. 1356) is amended by adding at the end the following:
       ``(w)(1) There is established in the general fund of the 
     Treasury of the United States an account, which shall be 
     known as the `H-5 Nonimmigrant Petitioner Account'.
       ``(2) There shall be deposited as offsetting receipts into 
     the H-5 Nonimmigrant Petitioners Account--
       ``(A) all fees collected under section 218A; and
       ``(B) all fines collected under section 212(n)(2)(I).
       ``(3) Of the fees and fines deposited into the H-5 
     Nonimmigrant Petitioner Account--
       ``(A) 53 percent shall remain available to the Secretary of 
     Homeland Security for efforts related to the adjudication and 
     implementation of the H-5 visa programs described in sections 
     221(a) and 250A and any other efforts necessary to carry out 
     the provisions of the Secure America and Orderly Immigration 
     Act and the amendments made by such Act, of which the 
     Secretary shall allocate--
       ``(i) 10 percent shall remain available to the Secretary of 
     Homeland Security for the border security efforts described 
     in title I of the Secure America and Orderly Immigration Act.
       ``(ii) not more than 1 percent to promote public awareness 
     of the H-5 visa program, to protect migrants from fraud, and 
     to combat the unauthorized practice of law described in title 
     III of the Secure America and Orderly Immigration Act;
       ``(iii) not more than 1 percent to the Office of 
     Citizenship to promote civics integration activities 
     described in section 901 of the Secure America and Orderly 
     Immigration Act; and
       ``(iv) 2 percent for the Civics Integration Grant Program 
     under section 902 of the Secure America and Orderly 
     Immigration Act.
       ``(B) 15 percent shall remain available to the Secretary of 
     Labor for the enforcement of labor standards in those 
     geographic and occupational areas in which H-5A visa holders 
     are likely to be employed and for other enforcement efforts 
     under the Secure America and Orderly Immigration Act;
       ``(C) 15 percent shall remain available to the Commissioner 
     of Social Security for the creation and maintenance of the 
     Employment Eligibility Confirmation System described in 
     section 402 of the Secure America and Orderly Immigration 
     Act;
       ``(D) 15 percent shall remain available to the Secretary of 
     State to carry out any necessary provisions of the Secure 
     America and Orderly Immigration Act; and
       ``(E) 2 percent shall remain available to the Secretary of 
     Health and Human Services for the reimbursement of hospitals 
     serving individuals working under programs established in 
     this Act.''.

     SEC. 2103. ANTI-DISCRIMINATION PROTECTIONS.

       Section 274B(a)(3)(B) of the Immigration and Nationality 
     Act (8 U.S.C. 1324b(a)(3)(B)) is amended to read as follows:
       ``(B) is an alien who is--
       ``(i) lawfully admitted for permanent residence;

[[Page 2289]]

       ``(ii) granted the status of an alien lawfully admitted for 
     temporary residence under section 210(a) or 245(a)(1);
       ``(iii) admitted as a refugee under section 207;
       ``(iv) granted asylum under section 208; or
       ``(v) granted the status of nonimmigrant under section 
     101(a)(15)(H)(v).''.

     SEC. 2104. WOMEN AND CHILDREN AT RISK OF HARM.

       (a) Certain Children and Women at Risk of Harm.--Section 
     101(a)(27) of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(27)) is amended--
       (1) in subparagraph (L), by inserting a semicolon at the 
     end;
       (2) in subparagraph (M), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(N) subject to subsection (j), an immigrant who is not 
     present in the United States--
       ``(i) who is--

       ``(I) referred to a consular, immigration, or other 
     designated official by a United States Government agency, an 
     international organization, or recognized nongovernmental 
     entity designated by the Secretary of State for purposes of 
     such referrals; and
       ``(II) determined by such official to be a minor under 18 
     years of age (as determined under subsection (j)(5))--

       ``(aa) for whom no parent or legal guardian is able to 
     provide adequate care;
       ``(bb) who faces a credible fear of harm related to his or 
     her age;
       ``(cc) who lacks adequate protection from such harm; and
       ``(dd) for whom it has been determined to be in his or her 
     best interests to be admitted to the United States; or
       ``(ii) who is--

       ``(I) referred to a consular or immigration official by a 
     United States Government agency, an international 
     organization or recognized nongovernmental entity designated 
     by the Secretary of State for purposes of such referrals; and
       ``(II) determined by such official to be a female who has--

       ``(aa) a credible fear of harm related to her sex; and
       ``(bb) a lack of adequate protection from such harm.''.
       (b) Statutory Construction.--Section 101 of the Immigration 
     and Nationality Act (8 U.S.C. 1101) is amended by adding at 
     the end the following:
       ``(j)(1) No natural parent or prior adoptive parent of any 
     alien provided special immigrant status under subsection 
     (a)(27)(N)(i) shall thereafter, by virtue of such parentage, 
     be accorded any right, privilege, or status under this Act.
       ``(2)(A) No alien who qualifies for a special immigrant 
     visa under subsection (a)(27)(N)(ii) may apply for derivative 
     status or petition for any spouse who is represented by the 
     alien as missing, deceased, or the source of harm at the time 
     of the alien's application and admission. The Secretary of 
     Homeland Security may waive this requirement for an alien who 
     demonstrates that the alien's representations regarding the 
     spouse were bona fide.
       ``(B) An alien who qualifies for a special immigrant visa 
     under subsection (a)(27)(N) may apply for derivative status 
     or petition for any sibling under the age of 18 years or 
     children under the age of 18 years of any such alien, if 
     accompanying or following to join the alien. For purposes of 
     this subparagraph, a determination of age shall be made using 
     the age of the alien on the date the petition is filed with 
     the Department of Homeland Security.
       ``(3) An alien who qualifies for a special immigrant visa 
     under subsection (a)(27)(N) shall be treated in the same 
     manner as a refugee solely for purposes of section 412.
       ``(4) The provisions of paragraphs (4), (5), and (7)(A) of 
     section 212(a) shall not be applicable to any alien seeking 
     admission to the United States under subsection (a)(27)(N), 
     and the Secretary of Homeland Security may waive any other 
     provision of such section (other than paragraph (2)(C) or 
     subparagraph (A), (B), (C), or (E) of paragraph (3)) with 
     respect to such an alien for humanitarian purposes, to assure 
     family unity, or when it is otherwise in the public interest. 
     Any such waiver by the Secretary of Homeland Security shall 
     be in writing and shall be granted only on an individual 
     basis following an investigation. The Secretary of Homeland 
     Security shall provide for the annual reporting to Congress 
     of the number of waivers granted under this paragraph in the 
     previous fiscal year and a summary of the reasons for 
     granting such waivers.
       ``(5) For purposes of subsection (a)(27)(N)(i)(II), a 
     determination of age shall be made using the age of the alien 
     on the date on which the alien was referred to the consular, 
     immigration, or other designated official.
       ``(6) The Secretary of Homeland Security shall waive any 
     application fee for a special immigrant visa for an alien 
     described in section 101(a)(27)(N).''.
       (c) Allocation of Special Immigrant Visas.--Section 
     203(b)(4) of the Immigration Nationality Act (8 U.S.C. 
     1153(b)(4)) is amended by striking ``(A) or (B) thereof'' and 
     inserting ``(A), (B), or (N) of such section''.
       (d) Expedited Process.--Not later than 45 days after the 
     date of referral to a consular, immigration, or other 
     designated official as described in section 101(a)(27)(N) of 
     the Immigration and Nationality Act, as added by subsection 
     (a), special immigrant status shall be adjudicated and, if 
     granted, the alien shall be--
       (1) paroled to the United States pursuant to section 
     212(d)(5) of that Act (8 U.S.C. 1182(d)(5)); and
       (2) allowed to apply for adjustment of status to permanent 
     residence under section 245 of that Act (8 U.S.C. 1255) not 
     later than 1 year after the alien's arrival in the United 
     States.
       (e) Requirement Prior to Entry Into the Untied States.--
       (1) Database search.--An alien may not be admitted to the 
     United States under this section or an amendment made by this 
     section until the Secretary of Homeland Security has ensured 
     that a search of each database maintained by an agency or 
     department of the United States has been conducted to 
     determine whether such alien is ineligible to be admitted to 
     the Untied States on criminal, security, or related grounds.
       (2) Cooperation and schedule.--The Secretary of Homeland 
     Security and the head of each appropriate agency or 
     department of the United States shall work cooperatively to 
     ensure that each database search required by paragraph (1) is 
     completed not later than 45 days after the date on which an 
     alien files a petition seeking a special immigration visa 
     under section 101(a)(27)(N) of the Immigration and 
     Nationality Act, as added by subsection (a).
       (f) Requirement After Entry Into the United States.--
       (1) Requirement to submit fingerprints.--
       (A) In general.--Not later than 30 days after the date that 
     an alien enters the United States under this section or an 
     amendment made by this section, the alien shall be 
     fingerprinted and submit to the Secretary of Homeland 
     Security such fingerprints and any other personal biometric 
     data required by the Secretary.
       (B) Other requirements.--The Secretary of Homeland Security 
     may prescribe regulations that permit fingerprints submitted 
     by an alien under section 262 of the Immigration and 
     Nationality Act (8 U.S.C. 1302) or any other provision of law 
     to satisfy the requirement to submit fingerprints under 
     subparagraph (A).
       (2) Database search.--The Secretary of Homeland Security 
     shall ensure that a search of each database that contains 
     fingerprints that is maintained by an agency or department of 
     the United States be conducted to determine whether such 
     alien is ineligible for an adjustment of status under any 
     provision of the Immigration and Nationality Act (8 U.S.C. 
     1101 et seq.) on criminal, security, or related grounds.
       (3) Cooperation and schedule.--The Secretary of Homeland 
     Security and the head of each appropriate agency or 
     department of the United States shall work cooperatively to 
     ensure that each database search required under paragraph (2) 
     is completed not later than 180 days after the date on which 
     the alien enters the United States.
       (4) Administrative and judicial review.--
       (A) Administrative review.--An alien who is admitted to the 
     United States under this section or an amendment made by this 
     section who is determined to be ineligible for an adjustment 
     of status pursuant to section 212 of the Immigration and 
     Nationality Act (8 U.S.C. 1182) may appeal such a 
     determination through the Administrative Appeals Office of 
     the Bureau of Citizenship and Immigration Services of the 
     Department of Homeland Security. The Secretary of Homeland 
     Security shall ensure that a determination on such appeal is 
     made not later than 60 days after the date on which the 
     appeal is filed.
       (B) Judicial review.--Nothing in this section, or in an 
     amendment made by this section, may preclude application of 
     section 242(a)(2)(B) of the Immigration and Nationality Act 
     (8 U.S.C. 1252(a)(2)(B)).
       (g) Report to Congress.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary of Homeland 
     Security shall report to the Committee on the Judiciary of 
     the Senate and the Committee on the Judiciary of the House of 
     Representatives on the progress of the implementation of this 
     section and the amendments made by this section, including--
       (1) data related to the implementation of this section and 
     the amendments made by this section;
       (2) data regarding the number of placements of females and 
     children who faces a credible fear of harm as referred to in 
     section 101(a)(27)(N) of the Immigration and Nationality Act, 
     as added by subsection (a); and
       (3) any other information that the Secretary of Homeland 
     Security determines to be appropriate.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section and the amendments made by this section.

     SEC. 2105. EXPANSION OF S VISA.

       (a) Expansion of S Visa Classification.--Section 
     101(a)(15)(S) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15)(S)) is amended--

[[Page 2290]]

       (1) in clause (i)--
       (A) by striking ``Attorney General'' each place that term 
     appears and inserting ``Secretary of Homeland Security''; and
       (B) by striking ``or'' at the end; and
       (2) in clause (ii)--
       (A) by striking ``Attorney General'' and inserting 
     ``Secretary of Homeland Security''; and
       (B) by striking ``1956,'' and all that follows through 
     ``the alien;'' and inserting the following: ``1956; or
       ``(iii) who the Secretary of Homeland Security and the 
     Secretary of State, in consultation with the Director of 
     Central Intelligence, jointly determine--
       ``(I) is in possession of critical reliable information 
     concerning the activities of governments or organizations, or 
     their agents, representatives, or officials, with respect to 
     weapons of mass destruction and related delivery systems, if 
     such governments or organizations are at risk of developing, 
     selling, or transferring such weapons or related delivery 
     systems; and
       ``(II) is willing to supply or has supplied, fully and in 
     good faith, information described in subclause (I) to 
     appropriate persons within the United States Government;

     and, if the Secretary of Homeland Security (or with respect 
     to clause (ii), the Secretary of State and the Secretary of 
     Homeland Security jointly) considers it to be appropriate, 
     the spouse, married and unmarried sons and daughters, and 
     parents of an alien described in clause (i), (ii), or (iii) 
     if accompanying, or following to join, the alien;''.
       (b) Numerical Limitation.--Section 214(k)(1) of the 
     Immigration and Nationality Act (8 U.S.C. 1184(k)(1)) is 
     amended to read as follows:
       ``(1) The number of aliens who may be provided a visa as 
     nonimmigrants under section 101(a)(15)(S) in any fiscal year 
     may not exceed 3,500.''.

     SEC. 2106. VOLUNTEERS.

       It is not a violation of clauses (ii), (iii), or (iv) of 
     subparagraph (A) for a religious denomination described in 
     section 101(a)(27)(C)(i) or an affiliated religious 
     organization described in section 101(a)(27)(C)(ii)(III), or 
     their agents or officers, to encourage, invite, call, allow, 
     or enable an alien, who is already present in the United 
     States in violation of law to carry on the violation 
     described in section 101(a)(27)(C)(ii)(I), as a volunteer who 
     is not compensated as an employee, notwithstanding the 
     provision of room, board, travel, and other basic living 
     expenses.

                                 ______
                                 
  SA 181. Mr. KENNEDY submitted an amendment intended to be proposed to 
amendment SA 144 submitted by Mr. Sessions and intended to be proposed 
to the amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the 
bill H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide 
for an increase in the Federal minimum wage; which was ordered to lie 
on the table; as follows:

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

                     DIVISION B--IMMIGRATION REFORM

     SECTION 1001. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Secure America and Orderly Immigration Act''.
       (b) Table of Contents.--The table of contents for this 
     division is as follows:

                     DIVISION B--IMMIGRATION REFORM

Sec. 1001. Short title; table of contents.
Sec. 1002. Findings.

                        TITLE I--BORDER SECURITY

Sec. 1101. Definitions.

             Subtitle A--Border Security Strategic Planning

Sec. 1111. National Strategy for Border Security.
Sec. 1112. Reports to Congress.
Sec. 1113. Authorization of appropriations.

Subtitle B--Border Infrastructure, Technology Integration, and Security 
                              Enhancement

Sec. 1121. Border security coordination plan.
Sec. 1122. Border security advisory committee.
Sec. 1123. Programs on the use of technologies for border security.
Sec. 1124. Combating human smuggling.
Sec. 1125. Savings clause.

              Subtitle C--International Border Enforcement

Sec. 1131. North American Security Initiative.
Sec. 1132. Information sharing agreements.
Sec. 1133. Improving the security of Mexico's southern border.

               TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

Sec. 1201. State criminal alien assistance program authorization of 
              appropriations.
Sec. 1202. Reimbursement of States for indirect costs relating to the 
              incarceration of illegal aliens.
Sec. 1203. Reimbursement of States for pre-conviction costs relating to 
              the incarceration of illegal aliens.

                TITLE III--ESSENTIAL WORKER VISA PROGRAM

Sec. 1301. Essential workers.
Sec. 1302. Admission of essential workers.
Sec. 1303. Employer obligations.
Sec. 1304. Protection for workers.
Sec. 1305. Market-based numerical limitations.
Sec. 1306. Adjustment to lawful permanent resident status.
Sec. 1307. Essential Worker Visa Program Task Force.
Sec. 1308. Willing worker-willing employer electronic job registry.
Sec. 1309. Authorization of appropriations.

                         TITLE IV--ENFORCEMENT

Sec. 1401. Document and visa requirements.
Sec. 1402. Employment Eligibility Confirmation System.
Sec. 1403. Improved entry and exit data system.
Sec. 1404. Department of labor investigative authorities.
Sec. 1405. Protection of employment rights.
Sec. 1406. Increased fines for prohibited behavior.

             TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

Sec. 1501. Labor migration facilitation programs.
Sec. 1502. Bilateral efforts with Mexico to reduce migration pressures 
              and costs.

              TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

Sec. 1601. Elimination of existing backlogs.
Sec. 1602. Country limits.
Sec. 1603. Allocation of immigrant visas.
Sec. 1604. Relief for children and widows.
Sec. 1605. Amending the affidavit of support requirements.
Sec. 1606. Discretionary authority.
Sec. 1607. Family unity.

                     TITLE VII--H-5B NONIMMIGRANTS

Sec. 1701. H-5B nonimmigrants.
Sec. 1702. Adjustment of status for H-5B nonimmigrants.
Sec. 1703. Aliens not subject to direct numerical limitations.
Sec. 1704. Employer protections.
Sec. 1705. Authorization of appropriations.

            TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

Sec. 1801. Right to qualified representation.
Sec. 1802. Protection of witness testimony.

                      TITLE IX--CIVICS INTEGRATION

Sec. 1901. Funding for the Office of Citizenship.
Sec. 1902. Civics integration grant program.

                TITLE X--PROMOTING ACCESS TO HEALTH CARE

Sec. 2001. Federal reimbursement of emergency health services furnished 
              to undocumented aliens.
Sec. 2002. Prohibition against offset of certain medicare and medicaid 
              payments.
Sec. 2003. Prohibition against discrimination against aliens on the 
              basis of employment in hospital-based versus nonhospital-
              based sites.
Sec. 2004. Binational public health infrastructure and health 
              insurance.

                        TITLE XI--MISCELLANEOUS

Sec. 2101. Submission to congress of information regarding H-5A 
              nonimmigrants.
Sec. 2102. H-5 nonimmigrant petitioner account.
Sec. 2103. Anti-discrimination protections.
Sec. 2104. Women and children at risk of harm.
Sec. 2105. Expansion of S visa.
Sec. 2106. Volunteers.

     SEC. 1002. FINDINGS.

       Congress makes the following findings:
       (1) The Government of the United States has an obligation 
     to its citizens to secure its borders and ensure the rule of 
     law in its communities.
       (2) The Government of the United States must strengthen 
     international border security efforts by dedicating adequate 
     and significant resources for technology, personnel, and 
     training for border region enforcement.
       (3) Federal immigration policies must adhere to the United 
     States tradition as a nation of immigrants and reaffirm this 
     Nation's commitment to family unity, economic opportunity, 
     and humane treatment.
       (4) Immigrants have contributed significantly to the 
     strength and economic prosperity of the United States and 
     action must be taken to ensure their fair treatment by 
     employers and protection against fraud and abuse.
       (5) Current immigration laws and the enforcement of such 
     laws are ineffective and do not serve the people of the 
     United States, the national security interests of the United 
     States, or the economic prosperity of the United States.
       (6) The United States cannot effectively carry out its 
     national security policies unless the United States 
     identifies undocumented immigrants and encourages them to 
     come forward and participate legally in the economy of the 
     United States.
       (7) Illegal immigration fosters other illegal activity, 
     including human smuggling, trafficking, and document fraud, 
     all of which undermine the national security interests of the 
     United States.

[[Page 2291]]

       (8) Illegal immigration burdens States and local 
     communities with hundreds of millions of dollars in 
     uncompensated expenses for law enforcement, health care, and 
     other essential services.
       (9) Illegal immigration creates an underclass of workers 
     who are vulnerable to fraud and exploitation.
       (10) Fixing the broken immigration system requires a 
     comprehensive approach that provides for adequate legal 
     channels for immigration and strong enforcement of 
     immigration laws which will serve the economic, social, and 
     security interests of the United States.
       (11) Foreign governments, particularly those that share an 
     international border with the United States, must play a 
     critical role in securing international borders and deterring 
     illegal entry of foreign nationals into the United States.
       (12) Federal immigration policy should foster economic 
     growth by allowing willing workers to be matched with willing 
     employers when no United States worker is available to take a 
     job.
       (13) Immigration reform is a key component to achieving 
     effective enforcement and will allow for the best use of 
     security and enforcement resources to be focused on the 
     greatest risks.
       (14) Comprehensive immigration reform and strong 
     enforcement of immigration laws will encourage legal 
     immigration, deter illegal immigration, and promote the 
     economic and national security interests of the United 
     States.

                        TITLE I--BORDER SECURITY

     SEC. 1101. DEFINITIONS.

       In this title:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (B) the Committee on the Judiciary of the Senate;
       (C) the Committee on Homeland Security of the House of 
     Representatives; and
       (D) the Committee on the Judiciary of the House of 
     Representatives.
       (2) International border of the united states.--The term 
     ``international border of the United States'' means the 
     international border between the United States and Canada and 
     the international border between the United States and 
     Mexico, including points of entry along such international 
     borders.
       (3) Secretary.--Except as otherwise provided, the term 
     ``Secretary'' means the Secretary of Homeland Security.
       (4) Security plan.--The term ``security plan'' means a 
     security plan developed as part of the National Strategy for 
     Border Security set forth under section 111(a) for the Border 
     Patrol and the field offices of the Bureau of Customs and 
     Border Protection of the Department of Homeland Security that 
     has responsibility for the security of any portion of the 
     international border of the United States.

             Subtitle A--Border Security Strategic Planning

     SEC. 1111. NATIONAL STRATEGY FOR BORDER SECURITY.

       (a) In General.--In conjunction with strategic homeland 
     security planning efforts, the Secretary shall develop, 
     implement, and update, as needed, a National Strategy for 
     Border Security that includes a security plan for the Border 
     Patrol and the field offices of the Bureau of Customs and 
     Border Protection of the Department of Homeland Security that 
     has responsibility for the security of any portion of the 
     international border of the United States.
       (b) Contents.--The National Strategy for Border Security 
     shall include--
       (1) the identification and evaluation of the points of 
     entry and all portions of the international border of the 
     United States that, in the interests of national security and 
     enforcement, must be protected from illegal transit;
       (2) a description of the most appropriate, practical, and 
     cost-effective means of defending the international border of 
     the United States against threats to security and illegal 
     transit, including intelligence capacities, technology, 
     equipment, personnel, and training needed to address security 
     vulnerabilities within the United States for the Border 
     Patrol and the field offices of the Bureau of Customs and 
     Border Protection that have responsibility for any portion of 
     the international border of the United States;
       (3) risk-based priorities for assuring border security and 
     realistic deadlines for addressing security and enforcement 
     needs identified in paragraphs (1) and (2);
       (4) a strategic plan that sets out agreed upon roles and 
     missions of Federal, State, regional, local, and tribal 
     authorities, including appropriate coordination among such 
     authorities, to enable security enforcement and border lands 
     management to be carried out in an efficient and effective 
     manner;
       (5) a prioritization of research and development objectives 
     to enhance the security of the international border of the 
     United States and enforcement needs to promote such security 
     consistent with the provisions of subtitle B;
       (6) an update of the 2001 Port of Entry Infrastructure 
     Assessment Study conducted by the United States Customs 
     Service, in consultation with the General Services 
     Administration;
       (7) strategic interior enforcement coordination plans with 
     personnel of Immigration and Customs Enforcement;
       (8) strategic enforcement coordination plans with overseas 
     personnel of the Department of Homeland Security and the 
     Department of State to end human smuggling and trafficking 
     activities;
       (9) any other infrastructure or security plan or report 
     that the Secretary determines appropriate for inclusion;
       (10) the identification of low-risk travelers and how such 
     identification would facilitate cross-border travel; and
       (11) ways to ensure that the trade and commerce of the 
     United States is not diminished by efforts, activities, and 
     programs aimed at securing the homeland.
       (c) Priority of National Strategy.--The National Strategy 
     for Border Security shall be the governing document for 
     Federal security and enforcement efforts related to securing 
     the international border of the United States.

     SEC. 1112. REPORTS TO CONGRESS.

       (a) National Strategy.--
       (1) Initial submission.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary shall submit the 
     National Strategy for Border Security, including each 
     security plan, to the appropriate congressional committees. 
     Such plans shall include estimated costs of implementation 
     and training from a fiscal and personnel perspective and a 
     cost-benefit analysis of any technological security 
     implementations.
       (2) Subsequent submissions.--After the submission required 
     under paragraph (1), the Secretary shall submit to the 
     appropriate congressional committees any revisions to the 
     National Strategy for Border Security, including any 
     revisions to a security plan, not less frequently than April 
     1 of each odd-numbered year. The plan shall include estimated 
     costs for implementation and training and a cost-benefit 
     analysis of technological security implementations that take 
     place during the time frame under evaluation.
       (b) Periodic Progress Reports.--
       (1) Requirement for report.--Each year, in conjunction with 
     the submission of the budget to Congress under section 
     1105(a) of title 31, United States Code, the Secretary shall 
     submit to the appropriate congressional committees an 
     assessment of the progress made on implementing the National 
     Strategy for Border Security, including each security plan.
       (2) Content.--Each progress report submitted under this 
     subsection shall include any recommendations for improving 
     and implementing the National Strategy for Border Security, 
     including any recommendations for improving and implementing 
     a security plan.
       (c) Classified Material.--
       (1) In general.--Any material included in the National 
     Strategy for Border Security, including each security plan, 
     that includes information that is properly classified under 
     criteria established by Executive order shall be submitted to 
     the appropriate congressional committees in a classified 
     form.
       (2) Unclassified version.--As appropriate, an unclassified 
     version of the material described in paragraph (1) shall be 
     provided to the appropriate congressional committees.

     SEC. 1113. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary 
     such sums as may be necessary to carry out this subtitle for 
     each of the 5 fiscal years beginning with the fiscal year 
     after the fiscal year in which this Act was enacted.

Subtitle B--Border Infrastructure, Technology Integration, and Security 
                              Enhancement

     SEC. 1121. BORDER SECURITY COORDINATION PLAN.

       (a) In General.--The Secretary shall coordinate with 
     Federal, State, local, and tribal authorities on law 
     enforcement, emergency response, and security-related 
     responsibilities with regard to the international border of 
     the United States to develop and implement a plan to ensure 
     that the security of such international border is not 
     compromised--
       (1) when the jurisdiction for providing such security 
     changes from one such authority to another such authority;
       (2) in areas where such jurisdiction is shared by more than 
     one such authority; or
       (3) by one such authority relinquishing such jurisdiction 
     to another such authority pursuant to a memorandum of 
     understanding.
       (b) Elements of Plan.--In developing the plan, the 
     Secretary shall consider methods to--
       (1) coordinate emergency responses;
       (2) improve data-sharing, communications, and technology 
     among the appropriate agencies;
       (3) promote research and development relating to the 
     activities described in paragraphs (1) and (2); and
       (4) combine personnel and resource assets when practicable.
       (c) Report.--Not later than 1 year after implementing the 
     plan developed under subsection (a), the Secretary shall 
     transmit a

[[Page 2292]]

     report to the appropriate congressional committees on the 
     development and implementation of such plan.

     SEC. 1122. BORDER SECURITY ADVISORY COMMITTEE.

       (a) Establishment.--The Secretary is authorized to 
     establish a Border Security Advisory Committee (referred to 
     in this section as the ``Advisory Committee'') to provide 
     advice and recommendations to the Secretary on border 
     security and enforcement issues.
       (b) Composition.--
       (1) In general.--The members of the Advisory Committee 
     shall be appointed by the Secretary and shall include 
     representatives of--
       (A) States that are adjacent to the international border of 
     the United States;
       (B) local law enforcement agencies; community officials, 
     and tribal authorities of such States; and
       (C) other interested parties.
       (2) Membership.--The Advisory Committee shall be comprised 
     of members who represent a broad cross section of 
     perspectives.

     SEC. 1123. PROGRAMS ON THE USE OF TECHNOLOGIES FOR BORDER 
                   SECURITY.

       (a) Aerial Surveillance Technologies Program.--
       (1) In general.--In conjunction with the border 
     surveillance plan developed under section 5201 of the 
     Intelligence Reform and Terrorism Prevention Act of 2004 
     (Public Law 108-458), the Secretary, not later than 60 days 
     after the date of enactment of this Act, shall develop and 
     implement a program to fully integrate aerial surveillance 
     technologies to enhance the border security of the United 
     States.
       (2) Assessment and consultation requirements.--In 
     developing the program under this subsection, the Secretary 
     shall--
       (A) consider current and proposed aerial surveillance 
     technologies;
       (B) assess the feasibility and advisability of utilizing 
     such technologies to address border threats, including an 
     assessment of the technologies considered best suited to 
     address respective threats;
       (C) consult with the Secretary of Defense regarding any 
     technologies or equipment, which the Secretary may deploy 
     along the international border of the United States; and
       (D) consult with the Administrator of the Federal Aviation 
     Administration regarding safety, airspace coordination and 
     regulation, and any other issues necessary for implementation 
     of the program.
       (3) Additional requirements.--
       (A) In general.--The program developed under this 
     subsection shall include the utilization of a variety of 
     aerial surveillance technologies in a variety of topographies 
     and areas, including populated and unpopulated areas located 
     on or near the international border of the United States, in 
     order to evaluate, for a range of circumstances--
       (i) the significance of previous experiences with such 
     technologies in border security or critical infrastructure 
     protection;
       (ii) the cost and effectiveness of various technologies for 
     border security, including varying levels of technical 
     complexity; and
       (iii) liability, safety, and privacy concerns relating to 
     the utilization of such technologies for border security.
       (B) Use of unmanned aerial vehicles.--The aerial 
     surveillance technologies utilized in the program shall 
     include unmanned aerial vehicles.
       (4) Continued use of aerial surveillance technologies.--The 
     Secretary may continue the operation of aerial surveillance 
     technologies while assessing the effectiveness of their 
     utilization and until such time the Secretary determines 
     appropriate.
       (5) Report.--
       (A) Requirement.--Not later than 1 year after implementing 
     the program under this subsection, the Secretary shall submit 
     a report on such program to the appropriate congressional 
     committees.
       (B) Content.--The Secretary shall include in the report 
     required by subparagraph (A) a description of the program 
     together with such recommendations as the Secretary finds 
     appropriate for enhancing the program.
       (b) Demonstration Programs.--The Secretary is authorized, 
     as part of the development and implementation of the National 
     Strategy for Border Security, to establish and carry out 
     demonstration programs to strengthen communication, 
     information sharing, technology, security, intelligence 
     benefits, and enforcement activities that will protect the 
     international border of the United States without diminishing 
     international trade and commerce.

     SEC. 1124. COMBATING HUMAN SMUGGLING.

       (a) Requirement for Plan.--The Secretary shall develop and 
     implement a plan to improve coordination between the Bureau 
     of Immigration and Customs Enforcement and the Bureau of 
     Customs and Border Protection of the Department of Homeland 
     Security and any other Federal, State, local, or tribal 
     authorities, as determined appropriate by the Secretary, to 
     improve coordination efforts to combat human smuggling.
       (b) Content.--In developing the plan required by subsection 
     (a), the Secretary shall consider--
       (1) the interoperability of databases utilized to prevent 
     human smuggling;
       (2) adequate and effective personnel training;
       (3) methods and programs to effectively target networks 
     that engage in such smuggling;
       (4) effective utilization of--
       (A) visas for victims of trafficking and other crimes; and
       (B) investigatory techniques, equipment, and procedures 
     that prevent, detect, and prosecute international money 
     laundering and other operations that are utilized in 
     smuggling;
       (5) joint measures, with the Secretary of State, to enhance 
     intelligence sharing and cooperation with foreign governments 
     whose citizens are preyed on by human smugglers; and
       (6) other measures that the Secretary considers appropriate 
     to combating human smuggling.
       (c) Report.--Not later than 1 year after implementing the 
     plan described in subsection (a), the Secretary shall submit 
     to Congress a report on such plan, including any 
     recommendations for legislative action to improve efforts to 
     combating human smuggling.

     SEC. 1125. SAVINGS CLAUSE.

       Nothing in this subtitle or subtitle A may be construed to 
     provide to any State or local entity any additional authority 
     to enforce Federal immigration laws.

              Subtitle C--International Border Enforcement

     SEC. 1131. NORTH AMERICAN SECURITY INITIATIVE.

       (a) In General.--The Secretary of State shall enhance the 
     mutual security and safety of the United States, Canada, and 
     Mexico by providing a framework for better management, 
     communication, and coordination between the Governments of 
     North America.
       (b) Responsibilities.--In implementing the provisions of 
     this subtitle, the Secretary of State shall carry out all of 
     the activities described in this subtitle.

     SEC. 1132. INFORMATION SHARING AGREEMENTS.

       The Secretary of State, in coordination with the Secretary 
     of Homeland Security and the Government of Mexico, is 
     authorized to negotiate an agreement with Mexico to--
       (1) cooperate in the screening of third-country nationals 
     using Mexico as a transit corridor for entry into the United 
     States; and
       (2) provide technical assistance to support stronger 
     immigration control at the border with Mexico.

     SEC. 1133. IMPROVING THE SECURITY OF MEXICO'S SOUTHERN 
                   BORDER.

       (a) Technical Assistance.--The Secretary of State, in 
     coordination with the Secretary of Homeland Security, the 
     Canadian Department of Foreign Affairs, and the Government of 
     Mexico, shall establish a program to--
       (1) assess the specific needs of the governments of Central 
     American countries in maintaining the security of the borders 
     of such countries;
       (2) use the assessment made under paragraph (1) to 
     determine the financial and technical support needed by the 
     governments of Central American countries from Canada, 
     Mexico, and the United States to meet such needs;
       (3) provide technical assistance to the governments of 
     Central American countries to secure issuance of passports 
     and travel documents by such countries; and
       (4) encourage the governments of Central American countries 
     to--
       (A) control alien smuggling and trafficking;
       (B) prevent the use and manufacture of fraudulent travel 
     documents; and
       (C) share relevant information with Mexico, Canada, and the 
     United States.
       (b) Immigration.--The Secretary of Homeland Security, in 
     consultation with the Secretary of State and appropriate 
     officials of the governments of Central American countries 
     shall provide robust law enforcement assistance to such 
     governments that specifically addresses migratory issues to 
     increase the ability of such governments to dismantle human 
     smuggling organizations and gain tighter control over the 
     border.
       (c) Border Security Between Mexico and Guatemala or 
     Belize.--The Secretary of State, in consultation with the 
     Secretary of Homeland Security, the Government of Mexico, and 
     appropriate officials of the Governments of Guatemala, 
     Belize, and neighboring contiguous countries, shall establish 
     a program to provide needed equipment, technical assistance, 
     and vehicles to manage, regulate, and patrol the 
     international border between Mexico and Guatemala and between 
     Mexico and Belize.
       (d) Tracking Central American Gangs.--The Secretary of 
     State, in coordination with the Secretary of Homeland 
     Security, the Director of the Federal Bureau of 
     Investigation, the Government of Mexico, and appropriate 
     officials of the governments of Central American countries, 
     shall--
       (1) assess the direct and indirect impact on the United 
     States and Central America on deporting violent criminal 
     aliens;
       (2) establish a program and database to track Central 
     American gang activities, focusing on the identification of 
     returning criminal deportees;
       (3) devise an agreed-upon mechanism for notification 
     applied prior to deportation and for support for 
     reintegration of these deportees; and

[[Page 2293]]

       (4) devise an agreement to share all relevant information 
     with the appropriate agencies of Mexico and other Central 
     American countries.

               TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

     SEC. 1201. STATE CRIMINAL ALIEN ASSISTANCE PROGRAM 
                   AUTHORIZATION OF APPROPRIATIONS.

       Section 241(i) of the Immigration and Nationality Act (8 
     U.S.C. 1231(i)) is amended by striking paragraphs (5) and (6) 
     and inserting the following:
       ``(5) Authorization of appropriations.--
       ``(A) In general.--There are authorized to be appropriated 
     to carry out this subsection--
       ``(i) such sums as may be necessary for fiscal year 2005;
       ``(ii) $750,000,000 for fiscal year 2006;
       ``(iii) $850,000,000 for fiscal year 2007; and
       ``(iv) $950,000,000 for each of the fiscal years 2008 
     through 2011.
       ``(B) Limitation on use of funds.--Amounts appropriated 
     pursuant to subparagraph (A) that are distributed to a State 
     or political subdivision of a State, including a 
     municipality, may be used only for correctional purposes.''.

     SEC. 1202. REIMBURSEMENT OF STATES FOR INDIRECT COSTS 
                   RELATING TO THE INCARCERATION OF ILLEGAL 
                   ALIENS.

       Section 501 of the Immigration Reform and Control Act of 
     1986 (8 U.S.C. 1365) is amended--
       (1) in subsection (a)--
       (A) by striking ``for the costs'' and inserting the 
     following: ``for--
       ``(1) the costs''; and
       (B) by striking ``such State.'' and inserting the 
     following: ``such State; and
       ``(2) the indirect costs related to the imprisonment 
     described in paragraph (1).''; and
       (2) by striking subsections (c) through (e) and inserting 
     the following:
       ``(c) Manner of Allotment of Reimbursements.--
     Reimbursements under this section shall be allotted in a 
     manner that gives special consideration for any State that--
       ``(1) shares a border with Mexico or Canada; or
       ``(2) includes within the State an area in which a large 
     number of undocumented aliens reside relative to the general 
     population of that area.
       ``(d) Definitions.--As used in this section:
       ``(1) Indirect costs.--The term `indirect costs' includes--
       ``(A) court costs, county attorney costs, detention costs, 
     and criminal proceedings expenditures that do not involve 
     going to trial;
       ``(B) indigent defense costs; and
       ``(C) unsupervised probation costs.
       ``(2) State.--The term `State' has the meaning given such 
     term in section 101(a)(36) of the Immigration and Nationality 
     Act.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated $200,000,000 for each of the 
     fiscal years 2005 through 2011 to carry out subsection 
     (a)(2).''.

     SEC. 1203. REIMBURSEMENT OF STATES FOR PRE-CONVICTION COSTS 
                   RELATING TO THE INCARCERATION OF ILLEGAL 
                   ALIENS.

       Section 241(i)(3)(A) of the Immigration and Nationality Act 
     (8 U.S.C. 1231(i)(3)(a) is amended by inserting ``charged 
     with or'' before ``convicted.''

                TITLE III--ESSENTIAL WORKER VISA PROGRAM

     SEC. 1301. ESSENTIAL WORKERS.

       Section 101(a)(15)(H) of the Immigration and Nationality 
     Act (8 U.S.C. 1101(a)(15)(H)) is amended--
       (1) by striking ``(H) an alien (i)(b)'' and inserting the 
     following:
       ``(H) an alien--
       ``(i)(b)'';
       (2) by striking ``or (ii)(a)'' and inserting the following:
       ``(ii)(a)'';
       (3) by striking ``or (iii)'' and inserting the following:
       ``(iii)''; and
       (4) by adding at the end the following:
       ``(v)(a) subject to section 218A, having residence in a 
     foreign country, which the alien has no intention of 
     abandoning, who is coming temporarily to the United States to 
     initially perform labor or services (other than those 
     occupation classifications covered under the provisions of 
     clause (i)(b) or (ii)(a) or subparagraph (L), (O), (P), or 
     (R)); or.''.

     SEC. 1302. ADMISSION OF ESSENTIAL WORKERS.

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


                 ``ADMISSION OF TEMPORARY H-5A WORKERS

       ``Sec. 218A.  (a) The Secretary of State may grant a 
     temporary visa to a nonimmigrant described in section 
     101(a)(15)(H)(v)(a) who demonstrates an intent to perform 
     labor or services in the United States (other than those 
     occupational classifications covered under the provisions of 
     clause (i)(b) or (ii)(a) of section 101(a)(15)(H) or 
     subparagraph (L), (O), (P), or (R)) of section 101(a)(15).
       ``(b) Requirements for Admission.--In order to be eligible 
     for nonimmigrant status under section 101(a)(15)(H)(v)(a), an 
     alien shall meet the following requirements:
       ``(1) Eligibility to work.--The alien shall establish that 
     the alien is capable of performing the labor or services 
     required for an occupation under section 101(a)(15)(H)(v).
       ``(2) Evidence of employment.--The alien's evidence of 
     employment shall be provided through the Employment 
     Eligibility Confirmation System established under section 
     274E or in accordance with requirements issued by the 
     Secretary of State, in consultation with the Secretary of 
     Homeland Security. In carrying out this paragraph, the 
     Secretary may consider evidence from employers, employer 
     associations, and labor representatives.
       ``(3) Fee.--The alien shall pay a $500 application fee to 
     apply for the visa in addition to the cost of processing and 
     adjudicating such application. Nothing in this paragraph 
     shall be construed to affect consular procedures for charging 
     reciprocal fees.
       ``(4) Medical examination.--The alien shall undergo a 
     medical examination (including a determination of 
     immunization status) at the alien's expense, that conforms to 
     generally accepted standards of medical practice.
       ``(c) Grounds of Inadmissibility.--
       ``(1) In general.--In determining an alien's admissibility 
     as a nonimmigrant under section 101(a)(15)(H)(v)(a)--
       ``(A) paragraphs (5), (6) (except for subparagraph (E)), 
     (7), (9), and (10)(B) of section 212(a) may be waived for 
     conduct that occurred before the date on which the Secure 
     America and Orderly Immigration Act was introduced;
       ``(B) the Secretary of Homeland Security may not waive--
       ``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of 
     section 212(a)(2) (relating to criminals);
       ``(ii) section 212(a)(3) (relating to security and related 
     grounds); or
       ``(iii) subparagraph (A) or (C) of section 212(a)(10) 
     (relating to polygamists and child abductors);
       ``(C) for conduct that occurred before the date on which 
     the Secure America and Orderly Immigration Act was 
     introduced, the Secretary of Homeland Security may waive the 
     application of any provision of section 212(a) not listed in 
     subparagraph (B) on behalf of an individual alien for 
     humanitarian purposes, to ensure family unity, or when such 
     waiver is otherwise in the public interest; and
       ``(D) nothing in this paragraph shall be construed as 
     affecting the authority of the Secretary of Homeland Security 
     to waive the provisions of section 212(a).
       ``(2) Waiver fine.--An alien who is granted a waiver under 
     subparagraph (1) shall pay a $1,500 fine upon approval of the 
     alien's visa application.
       ``(3) Applicability of other provisions.--Sections 240B(d) 
     and 241(a)(5) shall not apply to an alien who initially seeks 
     admission as a nonimmigrant under section 
     101(a)(15)(H)(v)(a).
       ``(4) Renewal of authorized admission and subsequent 
     admissions.--An alien seeking renewal of authorized admission 
     or subsequent admission as a nonimmigrant under section 
     101(a)(15)(H)(v)(a) shall establish that the alien is not 
     inadmissible under section 212(a).
       ``(d) Period of Authorized Admission.--
       ``(1) Initial period.--The initial period of authorized 
     admission as a nonimmigrant described in section 
     101(a)(15)(H)(v)(a) shall be 3 years.
       ``(2) Renewals.--The alien may seek an extension of the 
     period described in paragraph (1) for 1 additional 3-year 
     period.
       ``(3) Loss of employment.--
       ``(A) In general.--Subject to subsection (c), the period of 
     authorized admission of a nonimmigrant alien under section 
     101(a)(15)(H)(v)(a) shall terminate if the nonimmigrant is 
     unemployed for 45 or more consecutive days.
       ``(B) Return to foreign residence.--Any alien whose period 
     of authorized admission terminates under subparagraph (A) 
     shall be required to return to the country of the alien's 
     nationality or last residence.
       ``(C) Period of visa validity.--Any alien, whose period of 
     authorized admission terminates under subparagraph (A), who 
     returns to the country of the alien's nationality or last 
     residence under subparagraph (B), may reenter the United 
     States on the basis of the same visa to work for an employer, 
     if the alien has complied with the requirements of subsection 
     (b)(1).
       ``(4) Visits outside united states.--
       ``(A) In general.--Under regulations established by the 
     Secretary of Homeland Security, a nonimmigrant alien under 
     section 101(a)(15)(H)(v)(a)--
       ``(i) may travel outside of the United States; and
       ``(ii) may be readmitted without having to obtain a new 
     visa if the period of authorized admission has not expired.
       ``(B) Effect on period of authorized admission.--Time spent 
     outside the United States under subparagraph (A) shall not 
     extend the period of authorized admission in the United 
     States.
       ``(e) Portability.--A nonimmigrant alien described in this 
     section, who was previously issued a visa or otherwise 
     provided nonimmigrant status under section 
     101(a)(15)(H)(v)(a), may accept new employment with a 
     subsequent employer.
       ``(f) Waiver of Rights Prohibited.--A nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) may not be required 
     to waive any rights or protections under the

[[Page 2294]]

     Secure America and Orderly Immigration Act.
       ``(g) Change of Address.--An alien having nonimmigrant 
     status described in section 101(a)(15)(H)(v)(a) shall comply 
     by either electronic or paper notification with the change of 
     address reporting requirements under section 265.
       ``(h) Bar to Future Visas for Violations.--
       ``(1) In general.--Any alien having the nonimmigrant status 
     described in section 101(a)(15)(H)(v)(a) shall not be 
     eligible to renew such nonimmigrant status if the alien 
     willfully violates any material term or condition of such 
     status.
       ``(2) Waiver.--The alien may apply for a waiver of the 
     application of subparagraph (A) for technical violations, 
     inadvertent errors, or violations for which the alien was not 
     at fault.
       ``(i) Collection of Fees.--All fees collected under this 
     section shall be deposited in the Treasury in accordance with 
     section 286(w).''.
       (b) Conforming Amendment Regarding Presumption of 
     Nonimmigrant Status.--Section 214(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1184(b)) is amended by inserting 
     ``(H)(v)(a),'' after ``(H)(i),''.
       (c) Clerical Amendment.--The table of contents for the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by inserting after the item relating to section 218 
     the following:

``Sec. 218A. Admission of temporary H-5A workers.''.

     SEC. 1303. EMPLOYER OBLIGATIONS.

       Employers employing a nonimmigrant described in section 
     101(a)(15)(H)(v)(a) of the Immigration and Nationality Act, 
     as added by section 1301, shall comply with all applicable 
     Federal, State, and local laws, including--
       (1) laws affecting migrant and seasonal agricultural 
     workers; and
       (2) the requirements under section 274E of such Act, as 
     added by section 1402.

     SEC. 1304. PROTECTION FOR WORKERS.

       Section 218A of the Immigration and Nationality Act, as 
     added by section 1302, is amended by adding at the end the 
     following:
       ``(h) Application of Labor and Other Laws.--
       ``(1) Definitions.--As used in this subsection and in 
     subsections (i) through (k):
       ``(A) Employ; employee; employer.--The terms `employ', 
     `employee', and `employer' have the meanings given such terms 
     in section 3 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 203).
       ``(B) Foreign labor contractor.--The term `foreign labor 
     contractor' means any person who for any compensation or 
     other valuable consideration paid or promised to be paid, 
     performs any foreign labor contracting activity.
       ``(C) Foreign labor contracting activity.--The term 
     `foreign labor contracting activity' means recruiting, 
     soliciting, hiring, employing, or furnishing, an individual 
     who resides outside of the United States for employment in 
     the United States as a nonimmigrant alien described in 
     section 101(a)(15)(H)(v)(a).
       ``(2) Coverage.--Notwithstanding any other provision of 
     law--
       ``(A) a nonimmigrant alien described in section 
     101(a)(15)(H)(v)(a) is prohibited from being treated as an 
     independent contractor; and
       ``(B) no person may treat a nonimmigrant alien described in 
     section 101(a)(15)(H)(v)(a) as an independent contractor.
       ``(3) Applicability of laws.--A nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) shall not be denied 
     any right or any remedy under Federal, State, or local labor 
     or employment law that would be applicable to a United States 
     worker employed in a similar position with the employer 
     because of the alien's status as a nonimmigrant worker.
       ``(4) Tax responsibilities.--With respect to each employed 
     nonimmigrant alien described in section 101(a)(15)(H)(v)(a), 
     an employer shall comply with all applicable Federal, State, 
     and local tax and revenue laws.
       ``(5) Nondiscrimination in employment.--An employer shall 
     provide nonimmigrants issued a visa under this section with 
     the same wages, benefits, and working conditions that are 
     provided by the employer to United States workers similarly 
     employed in the same occupation and the same place of 
     employment.
       ``(6) No replacement of striking employees.--An employer 
     may not hire a nonimmigrant alien described in section 
     101(a)(15)(H)(v)(a) as a replacement worker if there is a 
     strike or lockout in the course of a labor dispute in the 
     occupational classification at the place of employment.
       ``(7) Waiver of rights prohibited.--A nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) may not be required 
     to waive any rights or protections under the Secure America 
     and Orderly Immigration Act. Nothing under this provision 
     shall be construed to affect the interpretation of other 
     laws.
       ``(8) No threatening of employees.--It shall be a violation 
     of this section for an employer who has filed a petition 
     under section 203(b) to threaten the alien beneficiary of 
     such a petition with withdrawal of the application, or to 
     withdraw such a petition in retaliation for the beneficiary's 
     exercise of a right protected by the Secure America and 
     Orderly Immigration Act.
       ``(9) Whistleblower protection.--It shall be unlawful for 
     an employer or a labor contractor of a nonimmigrant alien 
     described in section 101(a)(15)(H)(v)(a) to intimidate, 
     threaten, restrain, coerce, retaliate, discharge, or in any 
     other manner, discriminate against an employee or former 
     employee because the employee or former employee--
       ``(A) discloses information to the employer or any other 
     person that the employee or former employee reasonably 
     believes demonstrates a violation of Secure America and 
     Orderly Immigration Act.
       ``(B) cooperates or seeks to cooperate in an investigation 
     or other proceeding concerning compliance with the 
     requirements of the Secure America and Orderly Immigration 
     Act.
       ``(i) Labor Recruiters.--
       ``(1) In general.--Each employer that engages in foreign 
     labor contracting activity and each foreign labor contractor 
     shall ascertain and disclose to each such worker who is 
     recruited for employment the following information at the 
     time of the worker's recruitment:
       ``(A) The place of employment.
       ``(B) The compensation for the employment.
       ``(C) A description of employment activities.
       ``(D) The period of employment.
       ``(E) Any other employee benefit to be provided and any 
     costs to be charged for each benefit.
       ``(F) Any travel or transportation expenses to be assessed.
       ``(G) The existence of any labor organizing effort, strike, 
     lockout, or other labor dispute at the place of employment.
       ``(H) The existence of any arrangement with any owner, 
     employer, foreign contractor, or its agent where such person 
     receives a commission from the provision of items or services 
     to workers.
       ``(I) The extent to which workers will be compensated 
     through workers' compensation, private insurance, or 
     otherwise for injuries or death, including work related 
     injuries and death, during the period of employment and, if 
     so, the name of the State workers' compensation insurance 
     carrier or the name of the policyholder of the private 
     insurance, the name and the telephone number of each person 
     who must be notified of an injury or death, and the time 
     period within which such notice must be given.
       ``(J) Any education or training to be provided or required, 
     including the nature and cost of such training, who will pay 
     such costs, and whether the training is a condition of 
     employment, continued employment, or future employment.
       ``(K) A statement, in a form specified by the Secretary of 
     Labor, describing the protections of this Act for workers 
     recruited abroad.
       ``(2) False or misleading information.--No foreign labor 
     contractor or employer who engages in foreign labor 
     contracting activity shall knowingly provide material false 
     or misleading information to any worker concerning any matter 
     required to be disclosed in paragraph (1).
       ``(3) Languages.--The information required to be disclosed 
     under paragraph (1) shall be provided in writing in English 
     or, as necessary and reasonable, in the language of the 
     worker being recruited. The Department of Labor shall make 
     forms available in English, Spanish, and other languages, as 
     necessary, which may be used in providing workers with 
     information required under this section.
       ``(4) Fees.--A person conducting a foreign labor 
     contracting activity shall not assess any fee to a worker for 
     such foreign labor contracting activity.
       ``(5) Terms.--No employer or foreign labor contractor 
     shall, without justification, violate the terms of any 
     agreement made by that contractor or employer regarding 
     employment under this program.
       ``(6) Travel costs.--If the foreign labor contractor or 
     employer charges the employee for transportation such 
     transportation costs shall be reasonable.
       ``(7) Other worker protections.--
       ``(A) Notification.--Every 2 years, each employer shall 
     notify the Secretary of Labor of the identity of any foreign 
     labor contractor engaged by the employer in any foreign labor 
     contractor activity for or on behalf of the employer.
       ``(B) Registration of foreign labor contractors.--
       ``(i) In general.--No person shall engage in foreign labor 
     recruiting activity unless such person has a certificate of 
     registration from the Secretary of Labor specifying the 
     activities that such person is authorized to perform. An 
     employer who retains the services of a foreign labor 
     contractor shall only use those foreign labor contractors who 
     are registered under this subparagraph.
       ``(ii) Issuance.--The Secretary shall promulgate 
     regulations to establish an efficient electronic process for 
     the investigation and approval of an application for a 
     certificate of registration of foreign labor contractors not 
     later than 14 days after such application is filed. Such 
     process shall include requirements under paragraphs (1), (4), 
     and (5) of section 1812 of title 29, United States Code,

[[Page 2295]]

     an expeditious means to update registrations and renew 
     certificates and any other requirements the Secretary may 
     prescribe.
       ``(iii) Term.--Unless suspended or revoked, a certificate 
     under this subparagraph shall be valid for 2 years.
       ``(iv) Refusal to issue; revocation; suspension.--In 
     accordance with regulations promulgated by the Secretary of 
     Labor, the Secretary may refuse to issue or renew, or may 
     suspend or revoke, a certificate of registration under this 
     subparagraph. The justification for such refusal, suspension, 
     or revocation may include the following:

       ``(I) The application or holder of the certification has 
     knowingly made a material misrepresentation in the 
     application for such certificate.
       ``(II) The applicant for or holder of the certification is 
     not the real party in interest in the application or 
     certificate of registration and the real party in interest is 
     a person who has been refused issuance or renewal of a 
     certificate, has had a certificate suspended or revoked, or 
     does not qualify for a certificate under this paragraph.
       ``(III) The applicant for or holder of the certification 
     has failed to comply with the Secure America and Orderly 
     Immigration Act.

       ``(C) Remedy for violations.--An employer engaging in 
     foreign labor contracting activity and a foreign labor 
     contractor that violates the provisions of this subsection 
     shall be subject to remedies for foreign labor contractor 
     violations under subsections (j) and (k). If a foreign labor 
     contractor acting as an agent of an employer violates any 
     provision of this subsection, the employer shall also be 
     subject to remedies under subsections (j) and (k). An 
     employer that violates a provision of this subsection 
     relating to employer obligations shall be subject to remedies 
     under this subsections (j) and (k).
       ``(D) Employer notification.--An employer shall notify the 
     Secretary of Labor any time the employer becomes aware of a 
     violation of this subsection by a foreign labor recruiter.
       ``(E) Written agreements.--No foreign labor contractor 
     shall violate the terms of any written agreements made with 
     an employer relating to any contracting activity or worker 
     protection under this subsection.
       ``(F) Bonding requirement.--The Secretary of Labor may 
     require a foreign labor contractor under this subsection to 
     post a bond in an amount sufficient to ensure the protection 
     of individuals recruited by the foreign labor contractor. The 
     Secretary may consider the extent to which the foreign labor 
     contractor has sufficient ties to the United States to 
     adequately enforce this subsection.
       ``(j) Enforcement.--
       ``(1) In general.--The Secretary of Labor shall prescribe 
     regulations for the receipt, investigation, and disposition 
     of complaints by an aggrieved person respecting a violation 
     of this section.
       ``(2) Definition.--As used in this subsection, an 
     `aggrieved person' is a person adversely affected by the 
     alleged violation, including--
       ``(A) a worker whose job, wages, or working conditions are 
     adversely affected by the violation; and
       ``(B) a representative for workers whose jobs, wages, or 
     working conditions are adversely affected by the violation 
     who brings a complaint on behalf of such worker.
       ``(3) Filing deadline.--No investigation or hearing shall 
     be conducted on a complaint concerning a violation under this 
     section unless the complaint was filed not later than 12 
     months after the date of such violation.
       ``(4) Reasonable cause.--The Secretary of Labor shall 
     conduct an investigation under this subsection if there is 
     reasonable cause to believe that a violation of this section 
     has occurred. The process established under this subsection 
     shall provide that, not later than 30 days after a complaint 
     is filed, the Secretary shall determine if there is 
     reasonable cause to find such a violation.
       ``(5) Notice and hearing.--
       ``(A) In general.--Not later than 60 days after the 
     Secretary of Labor makes a determination of reasonable cause 
     under paragraph (4), the Secretary shall issue a notice to 
     the interested parties and offer an opportunity for a hearing 
     on the complaint, in accordance with section 556 of title 5, 
     United States Code.
       ``(B) Complaint.--If the Secretary of Labor, after 
     receiving a complaint under this subsection, does not offer 
     the aggrieved party or organization an opportunity for a 
     hearing under subparagraph (A), the Secretary shall notify 
     the aggrieved party or organization of such determination and 
     the aggrieved party or organization may seek a hearing on the 
     complaint in accordance with such section 556.
       ``(C) Hearing deadline.--Not later than 60 days after the 
     date of a hearing under this paragraph, the Secretary of 
     Labor shall make a finding on the matter in accordance with 
     paragraph (6).
       ``(6) Attorneys' fees.--A complainant who prevails with 
     respect to a claim under this subsection shall be entitled to 
     an award of reasonable attorneys' fees and costs.
       ``(7) Power of the secretary.--The Secretary may bring an 
     action in any court of competent jurisdiction--
       ``(A) to seek remedial action, including injunctive relief;
       ``(B) to recover the damages described in subsection (k); 
     or
       ``(C) to ensure compliance with terms and conditions 
     described in subsection (i).
       ``(8) Solicitor of labor.--Except as provided in section 
     518(a) of title 28, United States Code, the Solicitor of 
     Labor may appear for and represent the Secretary of Labor in 
     any civil litigation brought under this subsection. All such 
     litigation shall be subject to the direction and control of 
     the Attorney General.
       ``(9) Procedures in addition to other rights of 
     employees.--The rights and remedies provided to workers under 
     this section are in addition to, and not in lieu of, any 
     other contractual or statutory rights and remedies of the 
     workers, and are not intended to alter or affect such rights 
     and remedies.
       ``(k) Penalties.--
       ``(1) In general.--If, after notice and an opportunity for 
     a hearing, the Secretary of Labor finds a violation of 
     subsection (h) or (i), the Secretary may impose 
     administrative remedies and penalties, including--
       ``(A) back wages;
       ``(B) fringe benefits; and
       ``(C) civil monetary penalties.
       ``(2) Civil penalties.--The Secretary of Labor may impose, 
     as a civil penalty--
       ``(A) for a violation of subsection (h)--
       ``(i) a fine in an amount not to exceed $2,000 per 
     violation per affected worker;
       ``(ii) if the violation was willful violation, a fine in an 
     amount not to exceed $5,000 per violation per affected 
     worker;
       ``(iii) if the violation was willful and if in the course 
     of such violation a United States worker was harmed, a fine 
     in an amount not to exceed $25,000 per violation per affected 
     worker; and
       ``(B) for a violation of subsection (i)--
       ``(i) a fine in an amount not less than $500 and not more 
     than $4,000 per violation per affected worker;
       ``(ii) if the violation was willful, a fine in an amount 
     not less than $2,000 and not more than $5,000 per violation 
     per affected worker; and
       ``(iii) if the violation was willful and if in the course 
     of such violation a United States worker was harmed, a fine 
     in an amount not less than $6,000 and not more than $35,000 
     per violation per affected worker.
       ``(3) Use of civil penalties.--All penalties collected 
     under this subsection shall be deposited in the Treasury in 
     accordance with section 286(w).
       ``(4) Criminal penalties.--If a willful and knowing 
     violation of subsection (i) causes extreme physical or 
     financial harm to an individual, the person in violation of 
     such subsection may be imprisoned for not more than 6 months, 
     fined not more than $35,000 fine, or both.''.

     SEC. 1305. MARKET-BASED NUMERICAL LIMITATIONS.

       Section 214(g) of the Immigration and Nationality Act (8 
     U.S.C. 1184(g)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(beginning with fiscal year 1992)'';
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) under section 101(a)(15)(H)(v)(a), may not exceed--
       ``(i) 400,000 for the first fiscal year in which the 
     program is implemented;
       ``(ii) in any subsequent fiscal year--

       ``(I) if the total number of visas allocated for that 
     fiscal year are allotted within the first quarter of that 
     fiscal year, then an additional 20 percent of the allocated 
     number shall be made available immediately and the allocated 
     amount for the following fiscal year shall increase by 20 
     percent of the original allocated amount in the prior fiscal 
     year;
       ``(II) if the total number of visas allocated for that 
     fiscal year are allotted within the second quarter of that 
     fiscal year, then an additional 15 percent of the allocated 
     number shall be made available immediately and the allocated 
     amount for the following fiscal year shall increase by 15 
     percent of the original allocated amount in the prior fiscal 
     year;
       ``(III) if the total number of visas allocated for that 
     fiscal year are allotted within the third quarter of that 
     fiscal year, then an additional 10 percent of the allocated 
     number shall be made available immediately and the allocated 
     amount for the following fiscal year shall increase by 10 
     percent of the original allocated amount in the prior fiscal 
     year;

       ``(IV) if the total number of visas allocated for that 
     fiscal year are allotted within the last quarter of that 
     fiscal year, then the allocated amount for the following 
     fiscal year shall increase by 10 percent of the original 
     allocated amount in the prior fiscal year; and
       ``(V) with the exception of the first subsequent fiscal 
     year to the fiscal year in which the program is implemented, 
     if fewer visas were allotted the previous fiscal year than 
     the number of visas allocated for that year and the reason 
     was not due to processing delays or delays in promulgating 
     regulations, then the allocated amount for the following 
     fiscal year shall decrease by 10 percent of the allocated 
     amount in the prior fiscal year.''; and

       (2) by adding at the end the following:

[[Page 2296]]

       ``(9)(A) Of the total number of visas allocated for each 
     fiscal year under paragraph (1)(C)--
       ``(i) 50,000 visas shall be allocated to qualifying 
     counties; and
       ``(ii) any of the visas allocated under clause (i) that are 
     not issued by June 30 of such fiscal year, may be made 
     available to any qualified applicant.
       ``(B) In this paragraph, the term `qualifying county' means 
     any county that--
       ``(i) that is outside a metropolitan statistical area; and
       ``(ii) during the 20-year-period ending on the last day of 
     the calendar year preceding the date of enactment of the 
     Secure America and Orderly Immigration Act, experienced a net 
     out-migration of inhabitants from the county of at least 10 
     percent of the population of the county at the beginning of 
     such period.
       ``(10) In allocating visas under this subsection, the 
     Secretary of State may take any additional measures necessary 
     to deter illegal immigration.''.

     SEC. 1306. ADJUSTMENT TO LAWFUL PERMANENT RESIDENT STATUS.

       Section 245 of the Immigration and Nationality Act (8 
     U.S.C. 1255) is amended by adding at the end the following:
       ``(n)(1) For purposes of adjustment of status under 
     subsection (a), employment-based immigrant visas shall be 
     made available to an alien having nonimmigrant status 
     described in section 101(a)(15)(H)(v)(a) upon the filing of a 
     petition for such a visa--
       ``(A) by the alien's employer; or
       ``(B) by the alien, if the alien has maintained such 
     nonimmigrant status in the United States for a cumulative 
     total of 4 years.
       ``(2) An alien having nonimmigrant status described in 
     section 101(a)(15)(H)(v)(a) may not apply for adjustment of 
     status under this section unless the alien--
       ``(A) is physically present in the United States; and
       ``(B) the alien establishes that the alien--
       ``(i) meets the requirements of section 312; or
       ``(ii) is satisfactorily pursuing a course of study to 
     achieve such an understanding of English and knowledge and 
     understanding of the history and government of the United 
     States.
       ``(3) An alien who demonstrates that the alien meets the 
     requirements of section 312 may be considered to have 
     satisfied the requirements of that section for purposes of 
     becoming naturalized as a citizen of the United States under 
     title III.
       ``(4) Filing a petition under paragraph (1) on behalf of an 
     alien or otherwise seeking permanent residence in the United 
     States for such alien shall not constitute evidence of the 
     alien's ineligibility for nonimmigrant status under section 
     101(a)(15)(H)(v)(a).
       ``(5) The limitation under section 302(d) regarding the 
     period of authorized stay shall not apply to any alien having 
     nonimmigrant status under section 101(a)(15)(H)(v)(a) if--
       ``(A) a labor certification petition filed under section 
     203(b) on behalf of such alien is pending; or
       ``(B) an immigrant visa petition filed under section 204(b) 
     on behalf of such alien is pending.
       ``(6) The Secretary of Homeland Security shall extend the 
     stay of an alien who qualifies for an exemption under 
     paragraph (5) in 1-year increments until a final decision is 
     made on the alien's lawful permanent residence.
       ``(7) Nothing in this subsection shall be construed to 
     prevent an alien having nonimmigrant status described in 
     section 101(a)(15)(H)(v)(a) from filing an application for 
     adjustment of status under this section in accordance with 
     any other provision of law.''.

     SEC. 1307. ESSENTIAL WORKER VISA PROGRAM TASK FORCE.

       (a) Establishment of Task Force.--
       (1) In general.--There is established a task force to be 
     known as the Essential Worker Visa Program Task Force 
     (referred to in this section as the ``Task Force'').
       (2) Purposes.--The purposes of the Task Force are--
       (A) to study the Essential Worker Visa Program (referred to 
     in this section as the ``Program'') established under this 
     title; and
       (B) to make recommendations to Congress with respect to 
     such program.
       (3) Membership.--The Task Force shall be composed of 10 
     members, of whom--
       (A) 1 shall be appointed by the President and shall serve 
     as chairman of the Task Force;
       (B) 1 shall be appointed by the leader of the Democratic 
     Party in the Senate, in consultation with the leader of the 
     Democratic Party in the House of Representatives, and shall 
     serve as vice chairman of the Task Force;
       (C) 2 shall be appointed by the majority leader of the 
     Senate;
       (D) 2 shall be appointed by the minority leader of the 
     Senate;
       (E) 2 shall be appointed by the Speaker of the House of 
     Representatives; and
       (F) 2 shall be appointed by the minority leader of the 
     House of Representatives.
       (4) Qualifications.--
       (A) In general.--Members of the Task Force shall be--
       (i) individuals with expertise in economics, demography, 
     labor, business, or immigration or other pertinent 
     qualifications or experience; and
       (ii) representative of a broad cross-section of 
     perspectives within the United States, including the public 
     and private sectors and academia;
       (B) Political affiliation.--Not more than 5 members of the 
     Task Force may be members of the same political party.
       (C) Nongovernmental appointees.--An individual appointed to 
     the Task Force may not be an officer or employee of the 
     Federal Government or of any State or local government.
       (5) Deadline for appointment.--All members of the Task 
     Force shall be appointed not later than 6 months after the 
     Program has been implemented.
       (6) Vacancies.--Any vacancy in the Task Force shall not 
     affect its powers, but shall be filled in the same manner in 
     which the original appointment was made.
       (7) Meetings.--
       (A) Initial meeting.--The Task Force shall meet and begin 
     the operations of the Task Force as soon as practicable.
       (B) Subsequent meetings.--After its initial meeting, the 
     Task Force shall meet upon the call of the chairman or a 
     majority of its members.
       (8) Quorum.--Six members of the Task Force shall constitute 
     a quorum.
       (b) Duties.--The Task Force shall examine and make 
     recommendations regarding the Program, including 
     recommendations regarding--
       (1) the development and implementation of the Program;
       (2) the criteria for the admission of temporary workers 
     under the Program;
       (3) the formula for determining the yearly numerical 
     limitations of the Program;
       (4) the impact of the Program on immigration;
       (5) the impact of the Program on the United States 
     workforce and United States businesses; and
       (6) any other matters regarding the Program that the Task 
     Force considers appropriate.
       (c) Information and Assistance From Federal Agencies.--
       (1) Information from federal agencies.--The Task Force may 
     seek directly from any Federal department or agency such 
     information, including suggestions, estimates, and 
     statistics, as the Task Force considers necessary to carry 
     out the provisions of this section. Upon request of the Task 
     Force, the head of such department or agency shall furnish 
     such information to the Task Force.
       (2) Assistance from federal agencies.--The Administrator of 
     General Services shall, on a reimbursable base, provide the 
     Task Force with administrative support and other services for 
     the performance of the Task Force's functions. The 
     departments and agencies of the United States may provide the 
     Task Force with such services, funds, facilities, staff, and 
     other support services as they determine advisable and as 
     authorized by law.
       (d) Reports.--
       (1) Initial report.--Not later than 2 years after the 
     Program has been implemented, the Task Force shall submit a 
     report to Congress, the Secretary of State, the Secretary of 
     Labor, and the Secretary of Homeland Security that contains--
       (A) findings with respect to the duties of the Task Force;
       (B) recommendations for improving the Program; and
       (C) suggestions for legislative or administrative action to 
     implement the Task Force recommendations.
       (2) Final report.--Not later than 4 years after the 
     submission of the initial report under paragraph (1), the 
     Task Force shall submit a final report to Congress, the 
     Secretary of State, the Secretary of Labor, and the Secretary 
     of Homeland Security that contains additional findings, 
     recommendations, and suggestions, as described in paragraph 
     (1).

     SEC. 1308. WILLING WORKER-WILLING EMPLOYER ELECTRONIC JOB 
                   REGISTRY.

       (a) Establishment.--The Secretary of Labor shall direct the 
     coordination and modification of the national system of 
     public labor exchange services (commonly known as ``America's 
     Job Bank'') in existence on the date of enactment of this Act 
     to provide information on essential worker employment 
     opportunities available to United States workers and 
     nonimmigrant workers under section 101(a)(15)(H)(v)(a) of the 
     Immigration and Nationality Act, as added by this Act.
       (b) Recruitment of United States Workers.--Before the 
     completion of evidence of employment for a potential 
     nonimmigrant worker under section 101(a)(15)(H)(v)(a) of the 
     Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(v)(a), an employer shall attest that the 
     employer has posted in the Job Registry for not less than 30 
     days in order to recruit United States workers. An employer 
     shall maintain records for not less than 1 year demonstrating 
     why United States workers who applied were not hired.
       (c) Oversight and Maintenance of Records.--The Secretary of 
     Labor shall maintain electronic job registry records, as 
     established by regulation, for the purpose of audit or 
     investigation.

[[Page 2297]]

       (d) Access to Job Registry.--
       (1) Circulation in interstate employment service system.--
     The Secretary of Labor shall ensure that job opportunities 
     advertised on the electronic job registry established under 
     this section are accessible by the State workforce agencies, 
     which may further disseminate job opportunity information to 
     other interested parties.
       (2) Internet.--The Secretary of Labor shall ensure that the 
     Internet-based electronic job registry established or 
     approved under this section may be accessed by workers, 
     employers, labor organizations, and other interested parties.

     SEC. 1309. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     State such sums as may be necessary to carry out this title 
     and the amendments made by this title for the period 
     beginning on the date of enactment of this Act and ending on 
     the last day of the sixth fiscal year beginning after the 
     effective date of the regulations promulgated by the 
     Secretary to implement this title.

                         TITLE IV--ENFORCEMENT

     SEC. 1401. DOCUMENT AND VISA REQUIREMENTS.

       (a) In General.--Section 221(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1201(a)) is amended by adding at 
     the end the following:
       ``(3) Visas and Immigration Related Document 
     Requirements.--
       ``(A) Visas issued by the Secretary of State and 
     immigration related documents issued by the Secretary of 
     State or the Secretary of Homeland Security shall comply with 
     authentication and biometric standards recognized by domestic 
     and international standards organizations.
       ``(B) Such visas and documents shall--
       ``(i) be machine-readable and tamper-resistant;
       ``(ii) use biometric identifiers that are consistent with 
     the requirements of section 303 of the Enhanced Border 
     Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1732), 
     and represent the benefits and status set forth in such 
     section;
       ``(iii) comply with the biometric and document identifying 
     standards established by the International Civil Aviation 
     Organization; and
       ``(iv) be compatible with the United States Visitor and 
     Immigrant Status Indicator Technology and the employment 
     verification system established under section 274E.
       ``(C) The information contained on the visas or immigration 
     related documents described in subparagraph (B) shall 
     include--
       ``(i) the alien's name, date and place of birth, alien 
     registration or visa number, and, if applicable, social 
     security number;
       ``(ii) the alien's citizenship and immigration status in 
     the United States; and
       ``(iii) the date that such alien's authorization to work in 
     the United States expires, if appropriate.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date that is 6 months after the date 
     of enactment of this Act.

     SEC. 1402. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

       (a) In General.--Chapter 8 of title II of the Immigration 
     and Nationality Act (8 U.S.C. 1321 et seq.) is amended by 
     inserting after section 274D the following:


                        ``EMPLOYMENT ELIGIBILITY

       ``Sec. 274E.  (a) Employment Eligibility Confirmation 
     System.--
       ``(1) In general.--The Commissioner of Social Security, in 
     consultation and coordination with the Secretary of Homeland 
     Security, shall establish an Employment Eligibility 
     Confirmation System (referred to in this section as the 
     `System') through which the Commissioner responds to 
     inquiries made by employers who have hired individuals 
     concerning each individual's identity and employment 
     authorization.
       ``(2) Maintenance of records.--The Commissioner shall 
     electronically maintain records by which compliance under the 
     System may be verified.
       ``(3) Objectives of the system.--The System shall--
       ``(A) facilitate the eventual transition for all businesses 
     from the employer verification system established in section 
     274A with the System;
       ``(B) utilize, as a central feature of the System, machine-
     readable documents that contain encrypted electronic 
     information to verify employment eligibility; and
       ``(C) provide for the evidence of employment required under 
     section 218A.
       ``(4) Initial response.--The System shall provide--
       ``(A) confirmation or a tentative nonconfirmation of an 
     individual's identity and employment eligibility not later 
     than 1 working day after the initial inquiry; and
       ``(B) an appropriate code indicating such confirmation or 
     tentative nonconfirmation.
       ``(5) Secondary verification process in case of tentative 
     nonconfirmation.--
       ``(A) Establishment.--For cases of tentative 
     nonconfirmation, the Commissioner of Social Security, in 
     consultation and coordination with the Secretary of Homeland 
     Security, shall establish a secondary verification process. 
     The employer shall make the secondary verification inquiry 
     not later than 10 days after receiving a tentative 
     nonconfirmation.
       ``(B) Discrepancies.--If an employee chooses to contest a 
     secondary nonconfirmation, the employer shall provide the 
     employee with a referral letter and instruct the employee to 
     visit an office of the Department of Homeland Security or the 
     Social Security Administration to resolve the discrepancy not 
     later than 10 working days after the receipt of such referral 
     letter in order to obtain confirmation.
       ``(C) Failure to contest.--An individual's failure to 
     contest a confirmation shall not constitute knowledge (as 
     defined in section 274a.1(l) of title 8, Code of Federal 
     Regulations.
       ``(6) Design and operation of system.--The System shall be 
     designed, implemented, and operated--
       ``(A) to maximize its reliability and ease of use 
     consistent with protecting the privacy and security of the 
     underlying information through technical and physical 
     safeguards;
       ``(B) to allow employers to verify that a newly hired 
     individual is authorized to be employed;
       ``(C) to permit individuals to--
       ``(i) view their own records in order to ensure the 
     accuracy of such records; and
       ``(ii) contact the appropriate agency to correct any errors 
     through an expedited process established by the Commissioner 
     of Social Security, in consultation and coordination with the 
     Secretary of Homeland Security; and
       ``(D) to prevent discrimination based on national origin or 
     citizenship status under section 274B.
       ``(7) Unlawful uses of system.--It shall be an unlawful 
     immigration-related employment practice--
       ``(A) for employers or other third parties to use the 
     System selectively or without authorization;
       ``(B) to use the System prior to an offer of employment;
       ``(C) to use the System to exclude certain individuals from 
     consideration for employment as a result of a perceived 
     likelihood that additional verification will be required, 
     beyond what is required for most job applicants;
       ``(D) to use the System to deny certain employment 
     benefits, otherwise interfere with the labor rights of 
     employees, or any other unlawful employment practice; or
       ``(E) to take adverse action against any person, including 
     terminating or suspending an employee who has received a 
     tentative nonconfirmation.
       ``(b) Employment Eligibility Database.--
       ``(1) Requirement.--The Commissioner of Social Security, in 
     consultation and coordination with the Secretary of Homeland 
     Security and other appropriate agencies, shall design, 
     implement, and maintain an Employment Eligibility Database 
     (referred to in this section as the `Database') as described 
     in this subsection.
       ``(2) Data.--The Database shall include, for each 
     individual who is not a citizen or national of the United 
     States, but is authorized or seeking authorization to be 
     employed in the United States, the individual's--
       ``(A) country of origin;
       ``(B) immigration status;
       ``(C) employment eligibility;
       ``(D) occupation;
       ``(E) metropolitan statistical area of employment;
       ``(F) annual compensation paid;
       ``(G) period of employment eligibility;
       ``(H) employment commencement date; and
       ``(I) employment termination date.
       ``(3) Reverification of employment eligibility.--The 
     Commissioner of Social Security shall prescribe, by 
     regulation, a system to annually reverify the employment 
     eligibility of each individual described in this section--
       ``(A) by utilizing the machine-readable documents described 
     in section 221(a)(3); or
       ``(B) if machine-readable documents are not available, by 
     telephonic or electronic communication.
       ``(4) Confidentiality.--
       ``(A) Access to database.--No officer or employee of any 
     agency or department of the United States, other than 
     individuals responsible for the verification of employment 
     eligibility or for the evaluation of the employment 
     verification program at the Social Security Administration, 
     the Department of Homeland Security, and the Department of 
     Labor, may have access to any information contained in the 
     Database.
       ``(B) Protection from unauthorized disclosure.--Information 
     in the Database shall be adequately protected against 
     unauthorized disclosure for other purposes, as provided in 
     regulations established by the Commissioner of Social 
     Security, in consultation with the Secretary of Homeland 
     Security and the Secretary of Labor.
       ``(5) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to design, implement, and maintain the Database.
       ``(c) Gradual Implementation.--The Commissioner of Social 
     Security, in coordination with the Secretary of Homeland 
     Security and the Secretary of Labor shall develop a plan to 
     phase all workers into the Database and phase out the 
     employer verification system established in section 274A over 
     a period

[[Page 2298]]

     of time that the Commissioner determines to be appropriate.
       ``(d) Employer Responsibilities.--Each employer shall--
       ``(1) notify employees and prospective employees of the use 
     of the System and that the System may be used for immigration 
     enforcement purposes;
       ``(2) verify the identification and employment 
     authorization status for newly hired individuals described in 
     section 101(a)(15)(H)(v)(a) not later than 3 days after the 
     date of hire;
       ``(3) use--
       ``(A) a machine-readable document described in subsection 
     (a)(3)(B); or
       ``(B) the telephonic or electronic system to access the 
     Database;
       ``(4) provide, for each employer hired, the occupation, 
     metropolitan statistical area of employment, and annual 
     compensation paid;
       ``(5) retain the code received indicating confirmation or 
     nonconfirmation, for use in investigations described in 
     section 212(n)(2); and
       ``(6) provide a copy of the employment verification receipt 
     to such employees.
       ``(e) Good-Faith Compliance.--
       ``(1) Affirmative defense.--A person or entity that 
     establishes good faith compliance with the requirements of 
     this section with respect to the employment of an individual 
     in the United States has established an affirmative defense 
     that the person or entity has not violated this section.
       ``(2) Limitation.--Paragraph (1) shall not apply if a 
     person or entity engages in an unlawful immigration-related 
     employment practice described in subsection (a)(7).''.
       (b) Interim Directive.--Before the implementation of the 
     Employment Eligibility Confirmation System (referred to in 
     this section as the ``System'') established under section 
     274E of the Immigration and Nationality Act, as added by 
     subsection (a), the Commissioner of Social Security, in 
     coordination with the Secretary of Homeland Security, shall, 
     to the maximum extent practicable, implement an interim 
     system to confirm employment eligibility that is consistent 
     with the provisions of such section.
       (c) Reports.--
       (1) In general.--Not later than 3 months after the last day 
     of the second year and of the third year that the System is 
     in effect, the Comptroller General of the United States shall 
     submit to the Committee on the Judiciary of the Senate and 
     the Committee on the Judiciary of the House of 
     Representatives a report on the System.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include--
       (A) an assessment of the impact of the System on the 
     employment of unauthorized workers;
       (B) an assessment of the accuracy of the Employment 
     Eligibility Database maintained by the Department of Homeland 
     Security and Social Security Administration databases, and 
     timeliness and accuracy of responses from the Department of 
     Homeland Security and the Social Security Administration to 
     employers;
       (C) an assessment of the privacy, confidentiality, and 
     system security of the System;
       (D) assess whether the System is being implemented in a 
     nondiscriminatory manner; and
       (E) include recommendations on whether or not the System 
     should be modified.

     SEC. 1403. IMPROVED ENTRY AND EXIT DATA SYSTEM.

       Section 110 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1365a) is amended--
       (1) by striking ``Attorney General'' each place it appears 
     and inserting ``Secretary of Homeland Security'';
       (2) in subsection (b)--
       (A) in paragraph (1)(C), by striking ``Justice'' and 
     inserting ``Homeland Security'';
       (B) in paragraph (4), by striking ``and'' at the end;
       (C) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(6) collects the biometric machine-readable information 
     from an alien's visa or immigration-related document 
     described in section 221(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1201(a)(3) at the time an alien 
     arrives in the United States and at the time an alien departs 
     from the United States to determine if such alien is 
     entering, or is present in, the United States unlawfully.''; 
     and
       (3) in subsection (f)(1), by striking ``Departments of 
     Justice and State'' and inserting ``Department of Homeland 
     Security and the Department of State''.

     SEC. 1404. DEPARTMENT OF LABOR INVESTIGATIVE AUTHORITIES.

       Section 212(n)(2) of the Immigration and Nationality Act (8 
     U.S.C. 1182(n)(2)) is amended--
       (1) by redesignating subparagraph (H) as subparagraph (J); 
     and
       (2) by inserting after subparagraph (G) the following:
       ``(H)(i) The Secretary of Labor may initiate an 
     investigation of any employer that employs nonimmigrants 
     described in section 101(a)(15)(H)(v)(a) if the Secretary, or 
     the Secretary's designee--
       ``(I) certifies that reasonable cause exists to believe 
     that the employer is out of compliance with the Secure 
     America and Orderly Immigration Act or section 274E; and
       ``(II) approves the commencement of the investigation.
       ``(ii) In determining whether reasonable cause exists to 
     initiate an investigation under this section, the Secretary 
     shall--
       ``(I) monitor the Willing Worker-Willing Employer 
     Electronic Job Registry;
       ``(II) monitor the Employment Eligibility Confirmation 
     System, taking into consideration whether--
       ``(aa) an employer's submissions to the System generate a 
     high volume of tentative nonconfirmation responses relative 
     to other comparable employers;
       ``(bb) an employer rarely or never screens hired 
     individuals;
       ``(cc) individuals employed by an employer rarely or never 
     pursue a secondary verification process as established in 
     section 274E; or
       ``(dd) any other indicators of illicit, inappropriate or 
     discriminatory use of the System, especially those described 
     in section 274E(a)(6)(D), exist; and
       ``(III) consider any additional evidence that the Secretary 
     determines appropriate.
       ``(iii) Absent other evidence of noncompliance, an 
     investigation under this subparagraph should not be initiated 
     for lack of completeness or obvious inaccuracies by the 
     employer in complying with section 101(a)(15)(H)(v)(a).''.

     SEC. 1405. PROTECTION OF EMPLOYMENT RIGHTS.

       The Secretary and the Secretary of Homeland Security shall 
     establish a process under which a nonimmigrant worker 
     described in clause (ii)(b) or (v)(a) of section 
     101(a)(15)(H) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15)(H)) who files a nonfrivolous complaint 
     regarding a violation of this section and is otherwise 
     eligible to remain and work in the United States may be 
     allowed to seek other appropriate employment in the United 
     States with an employer for a period not to exceed the 
     maximum period of stay authorized for that nonimmigrant 
     classification.

     SEC. 1406. INCREASED FINES FOR PROHIBITED BEHAVIOR.

       Section 274B(g)(2)(B)(iv) of the Immigration and 
     Nationality Act (8 U.S.C. 1324b(g)(2)(B)(iv)) is amended--
       (1) in subclause (I), by striking ``not less than $250 and 
     not more than $2,000'' and inserting ``not less than $500 and 
     not more than $4,000'';
       (2) in subclause (II), by striking ``not less than $2,000 
     and not more than $5,000'' and inserting ``not less than 
     $4,000 and not more than $10,000''; and
       (3) in subclause (III), by striking ``not less than $3,000 
     and not more than $10,000'' and inserting ``not less than 
     $6,000 and not more than $20,000''.

             TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

     SEC. 1501. LABOR MIGRATION FACILITATION PROGRAMS.

       (a) Authority for Program.--
       (1) In general.--The Secretary of State is authorized to 
     enter into an agreement to establish and administer a labor 
     migration facilitation program jointly with the appropriate 
     official of a foreign government whose citizens participate 
     in the temporary worker program authorized under section 
     101(a)(15)(H)(v)(a) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15)(H)(v)(a)).
       (2) Priority.--In establishing programs under subsection 
     (a), the Secretary of State shall place a priority on 
     establishing such programs with foreign governments that have 
     a large number of nationals working as temporary workers in 
     the United States under such section 101(a)(15)(H)(v)(a). The 
     Secretary shall enter into such agreements not later than 3 
     months after the date of enactment of this Act or as soon 
     thereafter as is practicable.
       (3) Elements of program.--A program established under 
     paragraph (1) may provide for--
       (A) the Secretary of State, in conjunction with the 
     Secretary of Homeland Security and the Secretary of Labor, to 
     confer with a foreign government--
       (i) to establish and implement a program to assist 
     temporary workers from such a country to obtain nonimmigrant 
     status under such section 101(a)(15)(H)(v)(a);
       (ii) to establish programs to create economic incentives 
     for aliens to return to their home country;
       (B) the foreign government to monitor the participation of 
     its nationals in such a temporary worker program, including 
     departure from and return to a foreign country;
       (C) the foreign government to develop and promote a 
     reintegration program available to such individuals upon 
     their return from the United States;
       (D) the foreign government to promote or facilitate travel 
     of such individuals between the country of origin and the 
     United States; and
       (E) any other matters that the foreign government and 
     United States find appropriate to enable such individuals to 
     maintain strong ties to their country of origin.

     SEC. 1502. BILATERAL EFFORTS WITH MEXICO TO REDUCE MIGRATION 
                   PRESSURES AND COSTS.

       (a) Findings.--Congress makes the following findings:

[[Page 2299]]

       (1) Migration from Mexico to the United States is directly 
     linked to the degree of economic opportunity and the standard 
     of living in Mexico.
       (2) Mexico comprises a prime source of migration to the 
     United States.
       (3) Remittances from Mexican citizens working in the United 
     States reached a record high of nearly $17,000,000,000 in 
     2004.
       (4) Migration patterns may be reduced from Mexico to the 
     United States by addressing the degree of economic 
     opportunity available to Mexican citizens.
       (5) Many Mexican assets are held extra-legally and cannot 
     be readily used as collateral for loans.
       (6) A majority of Mexican businesses are small or medium 
     size with limited access to financial capital.
       (7) These factors constitute a major impediment to broad-
     based economic growth in Mexico.
       (8) Approximately 20 percent of Mexico's population works 
     in agriculture, with the majority of this population working 
     on small farms and few on large commercial enterprises.
       (9) The Partnership for Prosperity is a bilateral 
     initiative launched jointly by the President of the United 
     States and the President of Mexico in 2001, which aims to 
     boost the social and economic standards of Mexican citizens, 
     particularly in regions where economic growth has lagged and 
     emigration has increased.
       (10) The Presidents of Mexico and the United States and the 
     Prime Minister of Canada, at their trilateral summit on March 
     23, 2005, agreed to promote economic growth, competitiveness, 
     and quality of life in the agreement on Security and 
     Prosperity Partnership of North America.
       (b) Sense of Congress Regarding Partnership for 
     Prosperity.--It is the sense of Congress that the United 
     States and Mexico should accelerate the implementation of the 
     Partnership for Prosperity to help generate economic growth 
     and improve the standard of living in Mexico, which will lead 
     to reduced migration, by--
       (1) increasing access for poor and under served populations 
     in Mexico to the financial services sector, including credit 
     unions;
       (2) assisting Mexican efforts to formalize its extra-legal 
     sector, including the issuance of formal land titles, to 
     enable Mexican citizens to use their assets to procure 
     capital;
       (3) facilitating Mexican efforts to establish an effective 
     rural lending system for small- and medium-sized farmers that 
     will--
       (A) provide long term credit to borrowers;
       (B) develop a viable network of regional and local 
     intermediary lending institutions; and
       (C) extend financing for alternative rural economic 
     activities beyond direct agricultural production;
       (4) expanding efforts to reduce the transaction costs of 
     remittance flows in order to increase the pool of savings 
     available to help finance domestic investment in Mexico;
       (5) encouraging Mexican corporations to adopt 
     internationally recognized corporate governance practices, 
     including anti-corruption and transparency principles;
       (6) enhancing Mexican efforts to strengthen governance at 
     all levels, including efforts to improve transparency and 
     accountability, and to eliminate corruption, which is the 
     single biggest obstacle to development;
       (7) assisting the Government of Mexico in implementing all 
     provisions of the Inter-American Convention Against 
     Corruption (ratified by Mexico on May 27, 1997) and urging 
     the Government of Mexico to participate fully in the 
     Convention's formal implementation monitoring mechanism;
       (8) helping the Government of Mexico to strengthen 
     education and training opportunities throughout the country, 
     with a particular emphasis on improving rural education; and
       (9) encouraging the Government of Mexico to create 
     incentives for persons who have migrated to the United States 
     to return to Mexico.
       (c) Sense of Congress Regarding Bilateral Partnership on 
     Health Care.--It is the sense of Congress that the Government 
     of the United States and the Government of Mexico should 
     enter into a partnership to examine uncompensated and 
     burdensome health care costs incurred by the United States 
     due to legal and illegal immigration, including--
       (1) increasing health care access for poor and under served 
     populations in Mexico;
       (2) assisting Mexico in increasing its emergency and trauma 
     health care facilities along the border, with emphasis on 
     expanding prenatal care in the United States-Mexico border 
     region;
       (3) facilitating the return of stable, incapacitated 
     workers temporarily employed in the United States to Mexico 
     in order to receive extended, long-term care in their home 
     country; and
       (4) helping the Government of Mexico to establish a program 
     with the private sector to cover the health care needs of 
     Mexican nationals temporarily employed in the United States.

              TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

     SEC. 1601. ELIMINATION OF EXISTING BACKLOGS.

       (a) Family-Sponsored Immigrants.--Section 201(c) of the 
     Immigration and Nationality Act (8 U.S.C. 1151(c)) is amended 
     to read as follows:
       ``(c) Worldwide Level of Family-Sponsored Immigrants.--The 
     worldwide level of family-sponsored immigrants under this 
     subsection for a fiscal year is equal to the sum of--
       ``(1) 480,000;
       ``(2) the difference between the maximum number of visas 
     authorized to be issued under this subsection during the 
     previous fiscal year and the number of visas issued during 
     the previous fiscal year; and
       ``(3) the difference between--
       ``(A) the maximum number of visas authorized to be issued 
     under this subsection during fiscal years 2001 through 2005 
     minus the number of visas issued under this subsection during 
     those years; and
       ``(B) the number of visas described in subparagraph (A) 
     that were issued after fiscal year 2005.''.
       (b) Employment-Based Immigrants.--Section 201(d) of the 
     Immigration and Nationality Act (8 U.S.C. 1151(d)) is amended 
     to read as follows:
       ``(d) Worldwide Level of Employment-Based Immigrants.--The 
     worldwide level of employment-based immigrants under this 
     subsection for a fiscal year is equal to the sum of--
       ``(1) 290,000;
       ``(2) the difference between the maximum number of visas 
     authorized to be issued under this subsection during the 
     previous fiscal year and the number of visas issued during 
     the previous fiscal year; and
       ``(3) the difference between--
       ``(A) the maximum number of visas authorized to be issued 
     under this subsection during fiscal years 2001 through 2005 
     and the number of visa numbers issued under this subsection 
     during those years; and
       ``(B) the number of visas described in subparagraph (A) 
     that were issued after fiscal year 2005.''.

     SEC. 1602. COUNTRY LIMITS.

       Section 202(a) of the Immigration and Nationality Act (8 
     U.S.C. 1152(a)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``, (4), and (5)'' and inserting ``and 
     (4)''; and
       (B) by striking ``7 percent (in the case of a single 
     foreign state) or 2 percent'' and inserting ``10 percent (in 
     the case of a single foreign state) or 5 percent''; and
       (2) by striking paragraph (5).

     SEC. 1603. ALLOCATION OF IMMIGRANT VISAS.

       (a) Preference Allocation for Family-Sponsored 
     Immigrants.--Section 203(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1153(a)) is amended to read as 
     follows:
       ``(a) Preference Allocations for Family-Sponsored 
     Immigrants.--Aliens subject to the worldwide level specified 
     in section 201(c) for family-sponsored immigrants shall be 
     allocated visas as follows:
       ``(1) Unmarried sons and daughters of citizens.--Qualified 
     immigrants who are the unmarried sons or daughters of 
     citizens of the United States shall be allocated visas in a 
     quantity not to exceed 10 percent of such worldwide level 
     plus any visas not required for the class specified in 
     paragraph (4).
       ``(2) Spouses and unmarried sons and daughters of permanent 
     resident aliens.--Visas in a quantity not to exceed 50 
     percent of such worldwide level plus any visas not required 
     for the class specified in paragraph (1) shall be allocated 
     to qualified immigrants--
       ``(A) who are the spouses or children of an alien lawfully 
     admitted for permanent residence, which visas shall 
     constitute not less than 77 percent of the visas allocated 
     under this paragraph; or
       ``(B) who are the unmarried sons or daughters of an alien 
     lawfully admitted for permanent residence.
       ``(3) Married sons and daughters of citizens.--Qualified 
     immigrants who are the married sons and daughters of citizens 
     of the United States shall be allocated visas in a quantity 
     not to exceed 10 percent of such worldwide level plus any 
     visas not required for the classes specified in paragraphs 
     (1) and (2).
       ``(4) Brothers and sisters of citizens.--Qualified 
     immigrants who are the brothers or sisters of citizens of the 
     United States who are at least 21 years of age shall be 
     allocated visas in a quantity not to exceed 30 percent of the 
     worldwide level plus any visas not required for the classes 
     specified in paragraphs (1) through (3).''.
       (b) Preference Allocation for Employment-Based 
     Immigrants.--Section 203(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1153(b)) is amended--
       (1) in paragraph (1), by striking ``28.6 percent'' and 
     inserting ``20 percent'';
       (2) in paragraph (2)(A), by striking ``28.6 percent'' and 
     inserting ``20 percent'';
       (3) in paragraph (3)(A)--
       (A) by striking ``28.6 percent'' and inserting ``35 
     percent''; and
       (B) by striking clause (iii);
       (4) by striking paragraph (4);
       (5) by redesignating paragraph (5) as paragraph (4);
       (6) in paragraph (4)(A), as redesignated, by striking ``7.1 
     percent'' and inserting ``5 percent'';
       (7) by inserting after paragraph (4), as redesignated, the 
     following:

[[Page 2300]]

       ``(5) Other workers.--Visas shall be made available, in a 
     number not to exceed 30 percent of such worldwide level, plus 
     any visa numbers not required for the classes specified in 
     paragraphs (1) through (4), to qualified immigrants who are 
     capable, at the time of petitioning for classification under 
     this paragraph, of performing unskilled labor that is not of 
     a temporary or seasonal nature, for which qualified workers 
     are determined to be unavailable in the United States, or to 
     nonimmigrants under section 101(a)(15)(H)(v)(a).''; and
       (8) by striking paragraph (6).
       (c) Conforming Amendments.--
       (1) Definition of special immigrant.--Section 101(a)(27)(M) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(27)(M)) is amended by striking ``subject to the 
     numerical limitations of section 203(b)(4),''.
       (2) Repeal of temporary reduction in workers' visas.--
     Section 203(e) of the Nicaraguan Adjustment and Central 
     American Relief Act (8 U.S.C. 1153 note) is repealed.

     SEC. 1604. RELIEF FOR CHILDREN AND WIDOWS.

       (a) In General.--Section 201(b)(2)(A)(i) of the Immigration 
     and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)) is amended by 
     striking ``spouses, and parents of a citizen of the United 
     States'' and inserting ``(and their children who are 
     accompanying or following to join them), the spouses (and 
     their children who are accompanying or following to join 
     them), and the parents of a citizen of the United States (and 
     their children who are accompanying or following to join 
     them)''.
       (b) Petition.--Section 204(a)(1)(A)(ii) of the Immigration 
     and Nationality Act (8 U.S.C. 1154 (a)(1)(A)(ii) is amended 
     by inserting ``or an alien child or alien parent described in 
     the third sentence of section 201(b)(2)(A)(i)'' after 
     ``section 201(b)(2)(A)(i)''.
       (c) Adjustment of Status.--Section 245 of the Immigration 
     and Nationality Act (8 U.S.C. 1255) is amended by adding at 
     the end the following:
       ``(n) Applications for Adjustment of Status by Surviving 
     Spouses, Children, and Parents.--
       ``(1) In general.--Notwithstanding subsections (a) and (c) 
     (except subsection (c)(6)), any alien described in paragraph 
     (2) who applied for adjustment of status prior to the death 
     of the qualifying relative, may have such application 
     adjudicated as if such death had not occurred.
       ``(2) Alien described.--An alien described in this 
     paragraph is an alien who--
       ``(A) is an immediate relative (as defined in section 
     201(b)(2)(A)(i));
       ``(B) is a family-sponsored immigrant (as described in 
     subsection (a) or (d) of section 203);
       ``(C) is a derivative beneficiary of an employment-based 
     immigrant under section 203(b), as described in section 
     203(d); or
       ``(D) is a derivative beneficiary of a diversity immigrant 
     (as described in section 203(c)).''.
       (d) Transition Period.--Notwithstanding a denial of an 
     application for adjustment of status not more than 2 years 
     before the date of enactment of this Act, in the case of an 
     alien whose qualifying relative died before the date of 
     enactment of this Act, such application may be renewed by the 
     alien through a motion to reopen, without fee, filed not 
     later than 1 year after the date of enactment of this Act.

     SEC. 1605. AMENDING THE AFFIDAVIT OF SUPPORT REQUIREMENTS.

       Section 213A of the Immigration and Nationality Act (8 
     U.S.C. 1183a) is amended--
       (1) in subsection (a)(1)(A), by striking ``125'' and 
     inserting ``100''; and
       (2) in subsection (f), by striking ``125'' each place it 
     appears and inserting ``100''.

     SEC. 1606. DISCRETIONARY AUTHORITY.

       Section 212(i) of the Immigration and Nationality Act (8 
     U.S.C. 1182(i)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2)(A) The Secretary of Homeland Security may waive the 
     application of subsection (a)(6)(C)--
       ``(i) in the case of an immigrant who is the spouse, 
     parent, son, or daughter of a United States citizen or of an 
     alien lawfully admitted for permanent residence, if the 
     Secretary of Homeland Security determines that the refusal of 
     admission to the United States of such immigrant alien would 
     result in extreme hardship to the citizen or lawfully 
     resident spouse, child, son, daughter, or parent of such an 
     alien; or
       ``(ii) in the case of an alien granted classification under 
     clause (iii) or (iv) of section 204(a)(1)(A) or clause (ii) 
     or (iii) of section 204(a)(1)(B), the alien demonstrates 
     extreme hardship to the alien or the alien's parent or child 
     if, such parent or child is a United States citizen, a lawful 
     permanent resident, or a qualified alien.
       ``(B) An alien who is granted a waiver under subparagraph 
     (A) shall pay a $2,000 fine.''.

     SEC. 1607. FAMILY UNITY.

       Section 212(a)(9) of the Immigration and Nationality Act (8 
     U.S.C. 1182(a)(9)) is amended--
       (1) in subparagraph (B)(iii)(I), by striking ``18'' and 
     inserting ``21''; and
       (2) in subparagraph (C)(ii)--
       (A) by redesignating subclauses (1) and (2) as subclauses 
     (I) and (II); and
       (B) in subclause (II), as redesignated, by redesignating 
     items (A), (B), (C), and (D) as items (aa), (bb), (cc), and 
     (dd); and
       (3) by adding at the end the following:
       ``(D) Waiver.--
       ``(i) In general.--The Secretary may waive the application 
     of subparagraphs (B) and (C) for an alien who is a 
     beneficiary of a petition filed under sections 201 and 203 if 
     such petition was filed on or before the date of introduction 
     of Secure America and Orderly Immigration Act.
       ``(ii) Fine.--An alien who is granted a waiver under clause 
     (i) shall pay a $2,000 fine.''.

                     TITLE VII--H-5B NONIMMIGRANTS

     SEC. 1701. H-5B NONIMMIGRANTS.

       (a) In General.--Chapter 5 of title II of the Immigration 
     and Nationality Act (8 U.S.C. 1255 et seq.) is amended by 
     adding after section 250 the following:


                          ``H-5B NONIMMIGRANTS

       ``Sec. 250A.  (a) In General.--The Secretary of Homeland 
     Security shall adjust the status of an alien to that of a 
     nonimmigrant under section 101(a)(15)(H)(v)(b) if the alien--
       ``(1) submits an application for such adjustment; and
       ``(2) meets the requirements of this section.
       ``(b) Presence in the United States.--The alien shall 
     establish that the alien--
       ``(1) was present in the United States before the date on 
     which the Secure America and Orderly Immigration Act was 
     introduced, and has been continuously in the United States 
     since such date; and
       ``(2) was not legally present in the United States on the 
     date on which the Secure America and Orderly Immigration Act 
     was introduced under any classification set forth in section 
     101(a)(15).
       ``(c) Spouses and Children.--Notwithstanding any other 
     provision of law, the Secretary of Homeland Security shall, 
     if the person is otherwise eligible under subsection (b)--
       ``(1) adjust the status to that of a nonimmigrant under 
     section 101(a)(15)(H)(v)(b) for, or provide a nonimmigrant 
     visa to, the spouse or child of an alien who is provided 
     nonimmigrant status under section 101(a)(15)(H)(v)(b); or
       ``(2) adjust the status to that of a nonimmigrant under 
     section 101(a)(15)(H)(v)(b) for an alien who, before the date 
     on which the Secure America and Orderly Immigration Act was 
     introduced in Congress, was the spouse or child of an alien 
     who is provided nonimmigrant status under section 
     101(a)(15)(H)(v)(b), or is eligible for such status, if--
       ``(A) the termination of the qualifying relationship was 
     connected to domestic violence; and
       ``(B) the spouse or child has been battered or subjected to 
     extreme cruelty by the spouse or parent alien who is provided 
     nonimmigrant status under section 101(a)(15)(H)(v)(b).
       ``(d) Other Criteria.--
       ``(1) In general.--An alien may be granted nonimmigrant 
     status under section 101(a)(15)(H)(v)(b), or granted status 
     as the spouse or child of an alien eligible for such status 
     under subsection (c), if the alien establishes that the 
     alien--
       ``(A) is not inadmissible to the United States under 
     section 212(a), except as provided in paragraph (2); or
       ``(B) has not ordered, incited, assisted, or otherwise 
     participated in the persecution of any person on account of 
     race, religion, nationality, membership in a particular 
     social group, or political opinion.
       ``(2) Grounds of inadmissibility.--In determining an 
     alien's admissibility under paragraph (1)(A)--
       ``(A) paragraphs (5), (6)(A), (6)(B), (6)(C), (6)(F), 
     (6)(G), (7), (9), and (10)(B) of section 212(a) shall not 
     apply for conduct that occurred before the date on which the 
     Secure America and Orderly Immigration Act was introduced;
       ``(B) the Secretary of Homeland Security may not waive--
       ``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of 
     section 212(a)(2) (relating to criminals);
       ``(ii) section 212(a)(3) (relating to security and related 
     grounds); or
       ``(iii) subparagraph (A) or (C) of section 212(a)(10) 
     (relating to polygamists and child abductors);
       ``(C) for conduct that occurred before the date on which 
     the Secure America and Orderly Immigration Act was 
     introduced, the Secretary of Homeland Security may waive the 
     application of any provision of section 212(a) not listed in 
     subparagraph (B) on behalf of an individual alien for 
     humanitarian purposes, to ensure family unity, or when such 
     waiver is otherwise in the public interest; and
       ``(D) nothing in this paragraph shall be construed as 
     affecting the authority of the Secretary of Homeland Security 
     other than under this paragraph to waive the provisions of 
     section 212(a).
       ``(3) Applicability of other provisions.--Sections 240B(d) 
     and 241(a)(5) shall not apply to an alien who is applying for 
     adjustment of status in accordance with this title for 
     conduct that occurred before the date on which the Secure 
     America and Orderly Immigration Act was introduced.

[[Page 2301]]

       ``(e) Employment.--
       ``(1) In general.--The Secretary of Homeland Security may 
     not adjust the status of an alien to that of a nonimmigrant 
     under section 101(a)(15)(H)(v)(b) unless the alien 
     establishes that the alien--
       ``(A) was employed in the United States, whether full time, 
     part time, seasonally, or self-employed, before the date on 
     which the Secure America and Orderly Immigration Act was 
     introduced; and
       ``(B) has been employed in the United States since that 
     date.
       ``(2) Evidence of employment.--
       ``(A) Conclusive documents.--An alien may conclusively 
     establish employment status in compliance with paragraph (1) 
     by submitting to the Secretary of Homeland Security records 
     demonstrating such employment maintained by--
       ``(i) the Social Security Administration, Internal Revenue 
     Service, or by any other Federal, State, or local government 
     agency;
       ``(ii) an employer; or
       ``(iii) a labor union, day labor center, or an organization 
     that assists workers in matters related to employment.
       ``(B) Other documents.--An alien who is unable to submit a 
     document described in clauses (i) through (iii) of 
     subparagraph (A) may satisfy the requirement in paragraph (1) 
     by submitting to the Secretary at least 2 other types of 
     reliable documents that provide evidence of employment, 
     including--
       ``(i) bank records;
       ``(ii) business records;
       ``(iii) sworn affidavits from nonrelatives who have direct 
     knowledge of the alien's work; or
       ``(iv) remittance records.
       ``(3) Intent of congress.--It is the intent of Congress 
     that the requirement in this subsection be interpreted and 
     implemented in a manner that recognizes and takes into 
     account the difficulties encountered by aliens in obtaining 
     evidence of employment due to the undocumented status of the 
     alien.
       ``(4) Burden of proof.--An alien described in paragraph (1) 
     who is applying for adjustment of status under this section 
     has the burden of proving by a preponderance of the evidence 
     that the alien has satisfied the requirements of this 
     subsection. An alien may meet such burden of proof by 
     producing sufficient evidence to demonstrate such employment 
     as a matter of reasonable inference.
       ``(f) Special Rules for Minors and Individuals Who Entered 
     as Minors.--The employment requirements under this section 
     shall not apply to any alien under 21 years of age.
       ``(g) Education Permitted.--An alien may satisfy the 
     employment requirements under this section, in whole or in 
     part, by full-time attendance at--
       ``(1) an institution of higher education (as defined in 
     section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001)); or
       ``(2) a secondary school (as defined in section 9101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801)).
       ``(h) Security and Law Enforcement Background Checks.--
       ``(1) Submission of fingerprints.--An alien may not be 
     granted nonimmigrant status under section 
     101(a)(15)(H)(v)(b), or granted status as the spouse or child 
     of an alien eligible for such status under subsection (c), 
     unless the alien submits fingerprints in accordance with 
     procedures established by the Secretary of Homeland Security.
       ``(2) Background checks.--The Secretary of Homeland 
     Security shall utilize fingerprints and other data provided 
     by the alien to conduct a background check of such alien 
     relating to criminal, national security, or other law 
     enforcement actions that would render the alien ineligible 
     for adjustment of status as described in this section.
       ``(3) Expeditious processing.--The background checks 
     required under paragraph (2) shall be conducted as 
     expeditiously as possible.
       ``(i) Period of Authorized Stay and Application Fee and 
     Fine.--
       ``(1) Period of authorized stay.--
       ``(A) In general.--The period of authorized stay for a 
     nonimmigrant described in section 101(a)(15)(H)(v)(b) shall 
     be 6 years.
       ``(B) Limitation.--The Secretary of Homeland Security may 
     not authorize a change from such nonimmigrant classification 
     to any other immigrant or nonimmigrant classification until 
     the termination of the 6-year period described in 
     subparagraph (A). The Secretary may only extend such period 
     to accommodate the processing of an application for 
     adjustment of status under section 245B.
       ``(2) Application fee.--The Secretary of Homeland Security 
     shall impose a fee for filing an application for adjustment 
     of status under this section. Such fee shall be sufficient to 
     cover the administrative and other expenses incurred in 
     connection with the review of such applications.
       ``(3) Fines.--
       ``(A) In general.--In addition to the fee required under 
     paragraph (2), the Secretary of Homeland Security may accept 
     an application for adjustment of status under this section 
     only if the alien pays a $1,000 fine.
       ``(B) Exception.--Fines paid under this paragraph shall not 
     be required from an alien under the age of 21.
       ``(4) Collection of fees and fines.--All fees and fines 
     collected under this section shall be deposited in the 
     Treasury in accordance with section 286(w).
       ``(j) Treatment of Applicants.--
       ``(1) In general.--An alien who files an application under 
     this section, including the alien's spouse or child--
       ``(A) shall be granted employment authorization pending 
     final adjudication of the alien's application for adjustment 
     of status;
       ``(B) shall be granted permission to travel abroad;
       ``(C) may not be detained, determined inadmissible or 
     deportable, or removed pending final adjudication of the 
     alien's application for adjustment of status, unless the 
     alien, through conduct or criminal conviction, becomes 
     ineligible for such adjustment of status; and
       ``(D) may not be considered an unauthorized alien (as 
     defined in section 274A(h)(3)) until employment authorization 
     under subparagraph (A) is denied.
       ``(2) Before application period.--If an alien is 
     apprehended after the date of enactment of this section, but 
     before the promulgation of regulations pursuant to this 
     section, and the alien can establish prima facie eligibility 
     as a nonimmigrant under section 101(a)(15)(H)(v)(b), the 
     Secretary of Homeland Security shall provide the alien with a 
     reasonable opportunity, after promulgation of regulations, to 
     file an application for adjustment.
       ``(3) During certain proceedings.--Notwithstanding any 
     provision of this Act, an alien who is in removal proceedings 
     shall have an opportunity to apply for adjustment of status 
     under this title unless a final administrative determination 
     has been made.
       ``(4) Relationships of application to certain orders.--An 
     alien who is present in the United States and has been 
     ordered excluded, deported, removed, or ordered to depart 
     voluntarily from the United States under any provision of 
     this Act may, notwithstanding such order, apply for 
     adjustment of status in accordance with this section. Such an 
     alien shall not be required to file a separate motion to 
     reopen, reconsider, or vacate the exclusion, deportation, 
     removal, or voluntary departure order. If the Secretary of 
     Homeland Security grants the application, the Secretary shall 
     cancel such order. If the Secretary of Homeland Security 
     renders a final administrative decision to deny the 
     application, such order shall be effective and enforceable to 
     the same extent as if the application had not been made.
       ``(k) Administrative and Judicial Review.--
       ``(1) Administrative review.--
       ``(A) Single level of administrative appellate review.--The 
     Secretary of Homeland Security shall establish an appellate 
     authority within the United States Citizenship and 
     Immigration Services to provide for a single level of 
     administrative appellate review of a determination respecting 
     an application for adjustment of status under this section.
       ``(B) Standard for review.--Administrative appellate review 
     referred to in subparagraph (A) shall be based solely upon 
     the administrative record established at the time of the 
     determination on the application and upon the presentation of 
     additional or newly discovered evidence during the time of 
     the pending appeal.
       ``(2) Judicial review.--
       ``(A) In general.--There shall be judicial review in the 
     Federal courts of appeal of the denial of an application for 
     adjustment of status under this section. Notwithstanding any 
     other provision of law, the standard for review of such a 
     denial shall be governed by subparagraph (B).
       ``(B) Standard for judicial review.--Judicial review of a 
     denial of an application under this section shall be based 
     solely upon the administrative record established at the time 
     of the review. The findings of fact and other determinations 
     contained in the 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.
       ``(C) Jurisdiction of courts.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, the district courts of the United States shall have 
     jurisdiction over any cause or claim arising from a pattern 
     or practice of the Secretary of Homeland Security in the 
     operation or implementation of this section that is 
     arbitrary, capricious, or otherwise contrary to law, and may 
     order any appropriate relief.
       ``(ii) Remedies.--A district court may order any 
     appropriate relief under clause (i) if the court determines 
     that resolution of such cause or claim will serve judicial 
     and administrative efficiency or that a remedy would 
     otherwise not be reasonably available or practicable.
       ``(3) Stay of removal.--Aliens seeking administrative or 
     judicial review under this subsection shall not be removed 
     from the United States until a final decision is rendered 
     establishing ineligibility under this section.
       ``(l) Confidentiality of Information.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, no Federal agency or bureau, nor any officer, 
     employee, or agent of such agency or bureau, may--

[[Page 2302]]

       ``(A) use the information furnished by the applicant 
     pursuant to an application filed under this section for any 
     purpose other than to make a determination on the 
     application;
       ``(B) make any publication through which the information 
     furnished by any particular applicant can be identified; or
       ``(C) permit anyone other than the sworn officers and 
     employees of such agency or bureau to examine individual 
     applications.
       ``(2) Required disclosures.--The Secretary of Homeland 
     Security shall provide the information furnished pursuant to 
     an application filed under this section, and any other 
     information derived from such furnished information, to a 
     duly recognized law enforcement entity in connection with a 
     criminal investigation or prosecution or a national security 
     investigation or prosecution, in each instance about an 
     individual suspect or group of suspects, when such 
     information is requested in writing by such entity.
       ``(3) Criminal penalty.--Any person who knowingly uses, 
     publishes, or permits information to be examined in violation 
     of this subsection shall be fined not more than $10,000.
       ``(m) Penalties for False Statements in Applications.--
       ``(1) Criminal penalty.--
       ``(A) Violation.--It shall be unlawful for any person--
       ``(i) to file or assist in filing an application for 
     adjustment of status under this section and knowingly and 
     willfully falsify, misrepresent, conceal, or cover up a 
     material fact or make any false, fictitious, or fraudulent 
     statements or representations, or make or use any false 
     writing or document knowing the same to contain any false, 
     fictitious, or fraudulent statement or entry; or
       ``(ii) to create or supply a false writing or document for 
     use in making such an application.
       ``(B) Penalty.--Any person who violates subparagraph (A) 
     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).
       ``(3) Exception.--Notwithstanding paragraphs (1) and (2), 
     any alien or other entity (including an employer or union) 
     that submits an employment record that contains incorrect 
     data that the alien used in order to obtain such employment 
     before the date on which the Secure America and Orderly 
     Immigration Act is introduced, shall not, on that ground, be 
     determined to have violated this section.''.
       (b) Clerical Amendment.--The table of contents for the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by inserting after the item relating to section 250 
     the following:

``Sec. 250A. H-5B nonimmigrants.''.

     SEC. 1702. ADJUSTMENT OF STATUS FOR H-5B NONIMMIGRANTS.

       (a) In General.--Chapter 5 of title II of the Immigration 
     and Nationality Act (8 U.S.C. 1255 et seq.) is amended by 
     inserting after section 245A the following:


 ``ADJUSTMENT OF STATUS OF FORMER H-5B NONIMMIGRANT TO THAT OF PERSON 
                ADMITTED FOR LAWFUL PERMANENT RESIDENCE

       ``Sec. 245B.  (a) Requirements.--The Secretary shall adjust 
     the status of an alien from nonimmigrant status under section 
     101(a)(15)(H)(v)(b) to that of an alien lawfully admitted for 
     permanent residence under this section if the alien satisfies 
     the following requirements:
       ``(1) Completion of employment or education requirement.--
     The alien establishes that the alien has been employed in the 
     United States, either full time, part time, seasonally, or 
     self-employed, or has met the education requirements of 
     subsection (f) or (g) of section 250A during the period 
     required by section 250A(e).
       ``(2) Rulemaking.--The Secretary shall establish 
     regulations for the timely filing and processing of 
     applications for adjustment of status for nonimmigrants under 
     section 101(a)(15)(H)(v)(b).
       ``(3) Application and fee.--The alien who applies for 
     adjustment of status under this section shall pay the 
     following:
       ``(A) Application fee.--An alien who files an application 
     under section 245B of the Immigration and Nationality Act, 
     shall pay an application fee, set by the Secretary.
       ``(B) Additional fine.--Before the adjudication of an 
     application for adjustment of status filed under this 
     section, an alien who is at least 21 years of age shall pay a 
     fine of $1,000.
       ``(4) Admissible under immigration laws.--The alien 
     establishes that the alien is not inadmissible under section 
     212(a), except for any provision of that section that is not 
     applicable or waived under section 250A(d)(2).
       ``(5) Medical examination.--The alien shall undergo, at the 
     alien's expense, an appropriate medical examination 
     (including a determination of immunization status) that 
     conforms to generally accepted professional standards of 
     medical practice.
       ``(6) Payment of income taxes.--
       ``(A) In general.--Not later than the date on which status 
     is adjusted under this section, the alien shall establish the 
     payment of all Federal income taxes owed for employment 
     during the period of employment required by section 250A(e) 
     by establishing that--
       ``(i) no such tax liability exists;
       ``(ii) all outstanding liabilities have been met; or
       ``(iii) the alien has entered into an agreement for payment 
     of all outstanding liabilities with the Internal Revenue 
     Service.
       ``(B) IRS cooperation.--The Commissioner of Internal 
     Revenue shall provide documentation to an alien upon request 
     to establish the payment of all income taxes required by this 
     paragraph.
       ``(7) Basic citizenship skills.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the alien shall establish that the alien--
       ``(i) meets the requirements of section 312; or
       ``(ii) is satisfactorily pursuing a course of study to 
     achieve such an understanding of English and knowledge and 
     understanding of the history and government of the United 
     States.
       ``(B) Relation to naturalization examination.--An alien who 
     demonstrates that the alien meets the requirements of section 
     312 may be considered to have satisfied the requirements of 
     that section for purposes of becoming naturalized as a 
     citizen of the United States under title III.
       ``(8) Security and law enforcement background checks.--The 
     Secretary shall conduct a security and law enforcement 
     background check in accordance with procedures described in 
     section 250A(h).
       ``(9) Military selective service.--The alien shall 
     establish that if the alien is within the age period required 
     under the Military Selective Service Act (50 U.S.C. App. 451 
     et seq.), that such alien has registered under that Act.
       ``(b) Treatment of Spouses and Children.--
       ``(1) Adjustment of status.--Notwithstanding any other 
     provision of law, the Secretary of Homeland Security shall--
       ``(A) adjust the status to that of a lawful permanent 
     resident under this section, or provide an immigrant visa to 
     the spouse or child of an alien who adjusts status to that of 
     a permanent resident under this section; or
       ``(B) adjust the status to that of a lawful permanent 
     resident under this section for an alien who was the spouse 
     or child of an alien who adjusts status or is eligible to 
     adjust status to that of a permanent resident under section 
     245B in accordance with subsection (a), if--
       ``(i) the termination of the qualifying relationship was 
     connected to domestic violence; and
       ``(ii) the spouse or child has been battered or subjected 
     to extreme cruelty by the spouse or parent who adjusts status 
     to that of a permanent resident under this section.
       ``(2) Application of other law.--In acting on applications 
     filed under this subsection with respect to aliens who have 
     been battered or subjected to extreme cruelty, the Secretary 
     of Homeland Security shall apply the provisions of section 
     204(a)(1)(J) and the protections, prohibitions, and penalties 
     under section 384 of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1367).
       ``(c) Judicial Review; Confidentiality; Penalties.--
     Subsections (n), (o), and (p) of section 250A shall apply to 
     this section.''.
       (b) Clerical Amendment.--The table of contents for the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is 
     amended by inserting after the item relating to section 245A 
     the following:

``Sec. 245B. Adjustment of status of former H-5B nonimmigrant to that 
              of person admitted for lawful permanent residence.''.

     SEC. 1703. ALIENS NOT SUBJECT TO DIRECT NUMERICAL 
                   LIMITATIONS.

       Section 201(b)(1) of the Immigration and Nationality Act (8 
     U.S.C. 1151(b)(1)) is amended--
       (1) in subparagraph (A), by striking ``subparagraph (A) or 
     (B) of''; and
       (2) by adding at the end the following:
       ``(F) Aliens whose status is adjusted from the status 
     described in section 101(a)(15)(H)(v)(b).''.

     SEC. 1704. EMPLOYER PROTECTIONS.

       (a) Immigration Status of Alien.--Employers of aliens 
     applying for adjustment of status under section 245B or 250A 
     of the Immigration and Nationality Act, as added by this 
     title, shall not be subject to civil and criminal tax 
     liability relating directly to the employment of such alien 
     prior to such alien receiving employment authorization under 
     this title.
       (b) Provision of Employment Records.--Employers that 
     provide unauthorized aliens with copies of employment records 
     or other evidence of employment pursuant to an application 
     for adjustment of status under section 245B or 250A of the 
     Immigration and Nationality Act or any other application or 
     petition pursuant to any other immigration law, shall not be 
     subject to civil and criminal liability under section 274A of 
     such Act for employing such unauthorized aliens.
       (c) Applicability of Other Law.--Nothing in this section 
     may be used to shield an employer from liability under 
     section 274B of

[[Page 2303]]

     the Immigration and Nationality Act (8 U.S.C. 1324b) or any 
     other labor or employment law.

     SEC. 1705. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Homeland Security such sums as may be 
     necessary to carry out this title and the amendments made by 
     this title.
       (b) Availability of Funds.--Funds appropriated pursuant 
     subsection (a) shall remain available until expended.
       (c) Sense of Congress.--It is the sense of Congress that 
     funds authorized to be appropriated under subsection (a) 
     should be directly appropriated so as to facilitate the 
     orderly and timely commencement of the processing of 
     applications filed under sections 245B and 250A of the 
     Immigration and Nationality Act, as added by this Act.

            TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

     SEC. 1801. RIGHT TO QUALIFIED REPRESENTATION.

       Section 292 of the Immigration and Nationality Act (8 
     U.S.C. 1362) is amended to read as follows:


       ``RIGHT TO QUALIFIED REPRESENTATION IN IMMIGRATION MATTERS

       ``Sec. 292.  (a) Authorized Representatives in Immigration 
     Matters.--Only the following individuals are authorized to 
     represent an individual in an immigration matter before any 
     Federal agency or entity:
       ``(1) An attorney.
       ``(2) A law student who is enrolled in an accredited law 
     school, or a graduate of an accredited law school who is not 
     admitted to the bar, if--
       ``(A) the law student or graduate is appearing at the 
     request of the individual to be represented;
       ``(B) in the case of a law student, the law student has 
     filed a statement that the law student is participating, 
     under the direct supervision of a faculty member, attorney, 
     or accredited representative, in a legal aid program or 
     clinic conducted by a law school or nonprofit organization, 
     and that the law student is appearing without direct or 
     indirect remuneration from the individual the law student 
     represents;
       ``(C) in the case of a graduate, the graduate has filed a 
     statement that the graduate is appearing under the 
     supervision of an attorney or accredited representative and 
     that the graduate is appearing without direct or indirect 
     remuneration from the individual the graduate represents; and
       ``(D) the law student's or graduate's appearance is--
       ``(i) permitted by the official before whom the law student 
     or graduate wishes to appear; and
       ``(ii) accompanied by the supervising faculty member, 
     attorney, or accredited representative, to the extent 
     required by such official.
       ``(3) Any reputable individual, if--
       ``(A) the individual is appearing on an individual case 
     basis, at the request of the individual to be represented;
       ``(B) the individual is appearing without direct or 
     indirect remuneration and the individual files a written 
     declaration to that effect, except as described in 
     subparagraph (D);
       ``(C) the individual has a pre-existing relationship or 
     connection with the individual entitled to representation, 
     such as a relative, neighbor, clergyman, business associate, 
     or personal friend, except that this requirement may be 
     waived, as a matter of administrative discretion, in cases 
     where adequate representation would not otherwise be 
     available; and
       ``(D) if making a personal appearance on behalf of another 
     individual, the appearance is permitted by the official 
     before whom the individual wishes to appear, except that such 
     permission shall not be granted with respect to any 
     individual who regularly engages in immigration and 
     naturalization practice or preparation, or holds himself or 
     herself out to the public as qualified to do so.
       ``(4) An individual representing a recognized organization 
     (as described in subsection (f)) who has been approved to 
     serve as an accredited representative by the Board of 
     Immigration Appeals under subsection (f)(2).
       ``(5) An accredited official, in the United States, of the 
     government to which an alien owes allegiance, if the official 
     appears solely in his or her official capacity and with the 
     consent of the person to be represented.
       ``(6) An individual who is licensed to practice law and is 
     in good standing in a court of general jurisdiction of the 
     country in which the individual resides and who is engaged in 
     such practice, if the person represents persons only in 
     matters outside the United States and that the official 
     before whom such person wishes to appear allows such 
     representation, as a matter of discretion.
       ``(7) An attorney, or an organization represented by an 
     attorney, may appear, on a case-by-case basis, as amicus 
     curiae, if the Board of Immigration Appeals grants such 
     permission and the public interest will be served by such 
     appearance.
       ``(b) Former Employees.--No individual previously employed 
     by the Department of Justice, Department of State, Department 
     of Labor, or Department of Homeland Security may be permitted 
     to act as an authorized representative under this section, if 
     such authorization would violate any other applicable 
     provision of Federal law or regulation. In addition, any 
     application for such authorization must disclose any prior 
     employment by or contract with such agencies for services of 
     any nature.
       ``(c) Advertising.--Only an attorney or an individual 
     approved under subsection (f)(2) as an accredited 
     representative may advertise or otherwise hold themselves out 
     as being able to provide representation in an immigration 
     matter. This provision shall in no way be deemed to diminish 
     any Federal or State law to regulate, control, or enforce 
     laws regarding such advertisement, solicitation, or offer of 
     representation.
       ``(d) Removal Proceedings.--In any proceeding for the 
     removal of an individual from the United States and in any 
     appeal proceedings from such proceeding, the individual shall 
     have the privilege, as the individual shall choose, of being 
     represented (at no expense to the Government) by an 
     individual described in subsection (a). Representation by an 
     individual other than a person described in subsection (a) 
     may cause the representative to be subject to civil penalties 
     or such other penalties as may be applicable.
       ``(e) Benefits Filings.--In any filing or submission for an 
     immigration related benefit or a determination related to the 
     immigration status of an individual made to the Department of 
     Homeland Security, the Department of Labor, or the Department 
     of State, the individual shall have the privilege, as the 
     individual shall choose, of being represented (at no expense 
     to the Government) by an individual described in subsection 
     (a). Representation by an individual other than an individual 
     described in subsection (a) is cause for the representative 
     to be subject to civil or criminal penalties, as may be 
     applicable.
       ``(f) Recognized Organizations and Accredited 
     Representatives.--
       ``(1) Recognized organizations.--
       ``(A) In general.--The Board of Immigration Appeals may 
     determine that a person is a recognized organization if such 
     person--
       ``(i) is a nonprofit religious, charitable, social service, 
     or similar organization established in the United States 
     that--

       ``(I) is recognized by the Board of Immigration Appeals; 
     and
       ``(II) is authorized to designate a representative to 
     appear in an immigration matter before the Department of 
     Homeland Security or the Executive Office for Immigration 
     Review of the Department of Justice; and

       ``(ii) demonstrates to the Board that such person--

       ``(I) makes only nominal charges and assesses no excessive 
     membership dues for individuals given assistance; and
       ``(II) has at its disposal adequate knowledge, information, 
     and experience.

       ``(B) Bonding.--The Board, in its discretion, may impose a 
     bond requirement on new organizations seeking recognition.
       ``(C) Reporting obligations.--Recognized organizations 
     shall promptly notify the Board when the organization no 
     longer meets the requirements for recognition or when an 
     accredited representative employed by the recognized 
     organization ceases to be employed by the recognized 
     organization.
       ``(2) Accredited representatives.--The Board of Immigration 
     Appeals shall approve any qualified individual designated by 
     a recognized organization to serve as an accredited 
     representative. Such individual must be employed by the 
     recognized organization and must meet all requirements set 
     forth in this section and in the accompanying regulations to 
     be authorized to represent individuals in an immigration 
     matter. Accredited representatives, through their recognized 
     organizations, must certify their continuing eligibility for 
     accreditation every 3 years with the Board of Immigration 
     Appeals. Accredited representatives who fail to comply with 
     these requirements shall not have authority to represent 
     persons in an immigration matter for the recognized 
     organization.
       ``(g) Prohibited Acts.--An individual, other than an 
     individual authorized to represent an individual under this 
     section, may not--
       ``(1) directly or indirectly provide or offer 
     representation regarding an immigration matter for 
     compensation or contribution;
       ``(2) advertise or solicit representation in an immigration 
     matter;
       ``(3) retain any compensation provided for a prohibited act 
     described in paragraph (1) or (2), regardless of whether any 
     petition, application, or other document was filed with any 
     government agency or entity and regardless of whether a 
     petition, application, or other document was prepared or 
     represented to have been prepared by such individual;
       ``(4) represent directly or indirectly that the individual 
     is an attorney or supervised by or affiliated with an 
     attorney, when such representation is false; or
       ``(5) violate any applicable civil or criminal statute or 
     regulation of a State regarding the provision of 
     representation by providing or offering to provide 
     immigration or immigration-related assistance referenced in 
     this subsection.
       ``(h) Civil Enforcement.--

[[Page 2304]]

       ``(1) In general.--Any person, or any entity acting for the 
     interests of itself, its members, or the general public 
     (including a Federal law enforcement official or agency or 
     law enforcement official or agency of any State or political 
     subdivision of a State), that has reason to believe that any 
     person is being or has been injured by reason of a violation 
     of subsection (g) may commence a civil action in any court of 
     competent jurisdiction.
       ``(2) Remedies.--
       ``(A) Damages.--In any civil action brought under this 
     subsection, if the court finds that the defendant has 
     violated subsection (g), it shall award actual damages, plus 
     the greater of--
       ``(i) an amount treble the amount of actual damages; or
       ``(ii) $1,000 per violation.
       ``(B) Injunctive relief.--The court may award appropriate 
     injunctive relief, including temporary, preliminary, or 
     permanent injunctive relief, and restitution. Injunctive 
     relief may include, where appropriate, an order temporarily 
     or permanently enjoining the defendant from providing any 
     service to any person in any immigration matter. The court 
     may make such orders or judgments, including the appointment 
     of a receiver, as may be necessary to prevent the commission 
     of any act described in subsection (g).
       ``(C) Attorney's fees.--The court shall also grant a 
     prevailing plaintiff reasonable attorney's fees and costs, 
     including expert witness fees.
       ``(D) Civil penalties.--The court may also assess a civil 
     penalty not exceeding $50,000 for a first violation, and not 
     exceeding $100,000 for subsequent violations.
       ``(E) Cumulative remedies.--Unless otherwise expressly 
     provided, the remedies or penalties provided under this 
     paragraph are cumulative to each other and to the remedies or 
     penalties available under all other Federal laws or laws of 
     the jurisdiction where the violation occurred.
       ``(3) Nonpreemption.--Nothing in this subsection shall be 
     construed to preempt any other private right of action or any 
     right of action pursuant to the laws of any jurisdiction.
       ``(4) Discovery.--Information obtained through discovery in 
     a civil action under this subsection shall not be used in any 
     criminal action. Upon the request of any party to a civil 
     action under this subsection, any part of the court file that 
     makes reference to information discovered in a civil action 
     under this subsection may be sealed.
       ``(i) Nonpreemption of More Protective State and Local 
     Laws.--The provisions of this section supersede laws, 
     regulations, and municipal ordinances of any State only to 
     the extent such laws, regulations, and municipal ordinances 
     impede the application of any provision of this section. Any 
     State or political subdivision of a State may impose 
     requirements supplementing those imposed by this section.
       ``(j) Definitions.--As used in this section--
       ``(1) the term `attorney' means a person who--
       ``(A) is a member in good standing of the bar of the 
     highest court of a State; and
       ``(B) is not under any order of any court suspending, 
     enjoining, restraining, disbarring, or otherwise restricting 
     such person in the practice of law;
       ``(2) the term `compensation' means money, property, labor, 
     promise of payment, or any other consideration provided 
     directly or indirectly to an individual
       ``(3) the term `immigration matter' means any proceeding, 
     filing, or action affecting the immigration or citizenship 
     status of any person, which arises under any immigration or 
     nationality law, Executive order, Presidential proclamation, 
     or action of any Federal agency;
       ``(4) the term `representation', when used with respect to 
     the representation of a person, includes--
       ``(A) the appearance, either in person or through the 
     preparation or filing of any brief or other document, paper, 
     application, or petition on behalf of another person or 
     client, before any Federal agency or officer; and
       ``(B) the study of the facts of a case and the applicable 
     laws, coupled with the giving of advice and auxiliary 
     activities, including the incidental preparation of papers; 
     and
       ``(5) the term `State' includes a State or an outlying 
     possession of the United States.''.

     SEC. 1802. PROTECTION OF WITNESS TESTIMONY.

       (a) Definition.--Section 101(a)(15)(U)(i) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(i)) is 
     amended--
       (1) by inserting in subclause (I) after the phrase ``clause 
     (iii)'' the following: ``or has suffered substantial 
     financial, physical, or mental harm as the result of a 
     prohibited act described in section 292;''
       (2) by inserting in subclause (II) after the phrase 
     ``clause (iii)'' the following: ``or section 292'';
       (3) by inserting in subclause (III) after the phrase 
     ``clause (iii)'' the following: ``or section 292''; and
       (4) by inserting in subclause (IV) after the phrase 
     ``clause (iii)'' the following: ``or section 292''.
       (b) Admission of Nonimmigrants.--Section 214(p) of the 
     Immigration and Nationality Act of (8 U.S.C. 1184(p)) is 
     amended--
       (1) in paragraph (1), by inserting ``or section 274E'' 
     after ``section 101(a)(15)(U)(iii)'' each place it appears; 
     and
       (2) in paragraph (2)(A), by striking ``10,000'' and 
     inserting ``15,000''.

                      TITLE IX--CIVICS INTEGRATION

     SEC. 1901. FUNDING FOR THE OFFICE OF CITIZENSHIP.

       (a) Authorization.--The Secretary of Homeland Security, 
     acting through the Director of the Bureau of Citizenship and 
     Immigration Services, is authorized to establish the United 
     States Citizenship Foundation (referred to in this section as 
     the ``Foundation''), an organization duly incorporated in the 
     District of Columbia, exclusively for charitable and 
     educational purposes to support the functions of the Office 
     of Citizenship (as described in section 451(f)(2) of the 
     Homeland Security Act of 2002 (6 U.S.C. 271(f)(2)).
       (b) Gifts.--
       (1) To foundation.--The Foundation may solicit, accept, and 
     make gifts of money and other property in accordance with 
     section 501(c)(3) of the Internal Revenue Code of 1986.
       (2) From foundation.--The Office of Citizenship may accept 
     gifts from the Foundation to support the functions of the 
     Office.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the mission of the Office of Citizenship.

     SEC. 1902. CIVICS INTEGRATION GRANT PROGRAM.

       (a) In General.--The Secretary of Homeland Security shall 
     establish a competitive grant program to fund--
       (1) efforts by entities certified by the Office of 
     Citizenship to provide civics and English as a second 
     language courses; or
       (2) other activities approved by the Secretary to promote 
     civics and English as a second language.
       (b) Acceptance of Gifts.--The Secretary may accept and use 
     gifts from the United States Citizenship Foundation for 
     grants under this section.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

                TITLE X--PROMOTING ACCESS TO HEALTH CARE

     SEC. 2001. FEDERAL REIMBURSEMENT OF EMERGENCY HEALTH SERVICES 
                   FURNISHED TO UNDOCUMENTED ALIENS.

       Section 1011 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (42 U.S.C. 1395dd 
     note) is amended--
       (1) by striking ``2008'' and inserting ``2011''; and
       (2) in subsection (c)(5), by adding at the end the 
     following:
       ``(D) Nonimmigrants described in section 101(a)(15)(H)(v) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(15)(H)(v)''.

     SEC. 2002. PROHIBITION AGAINST OFFSET OF CERTAIN MEDICARE AND 
                   MEDICAID PAYMENTS.

       Payments made under section 1011 of the Medicare 
     Prescription Drug, Improvement, and Modernization Act of 2003 
     (42 U.S.C. 1395dd note)--
       (1) shall not be considered ``third party coverage'' for 
     the purposes of section 1923 of the Social Security Act (42 
     U.S.C. 1396r-4); and
       (2) shall not impact payments made under such section of 
     the Social Security Act.

     SEC. 2003. PROHIBITION AGAINST DISCRIMINATION AGAINST ALIENS 
                   ON THE BASIS OF EMPLOYMENT IN HOSPITAL-BASED 
                   VERSUS NONHOSPITAL-BASED SITES.

       Section 214(l)(1)(C) of the Immigrant and Nationality Act 
     (8 U.S.C. 1184(l)(1)(C) is amended--
       (1) in clause (i), by striking ``and'' at the end; and
       (2) by adding at the end the following:
       ``(iii) such interested Federal agency or interested State 
     agency, in determining which aliens will be eligible for such 
     waivers, does not utilize selection criteria, other than as 
     described in this subsection, that discriminate on the basis 
     of the alien's employment in a hospital-based versus 
     nonhospital-based facility or organization; and''.

     SEC. 2004. BINATIONAL PUBLIC HEALTH INFRASTRUCTURE AND HEALTH 
                   INSURANCE.

       (a) Study.--
       (1) In general.--The Secretary of Health and Human Services 
     shall contract with the Institute of Medicine of the National 
     Academies (referred to in this section as the ``Institute'') 
     to study binational public health infrastructure and health 
     insurance efforts.
       (2) Input.--In conducting the study under paragraph (1), 
     the Institute shall solicit input from border health experts 
     and health insurance companies.
       (b) Report.--
       (1) In general.--Not later than 1 year after the date on 
     which the Secretary of Health and Human Services enters into 
     a contract under subsection (a), the Institute shall submit a 
     report concerning the study conducted under subsection (a) to 
     the Secretary of Health and Human Services and the 
     appropriate committees of Congress.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include the recommendations of the Institute on ways to 
     expand or improve binational public health infrastructure and 
     health insurance efforts.

[[Page 2305]]



                        TITLE XI--MISCELLANEOUS

     SEC. 2101. SUBMISSION TO CONGRESS OF INFORMATION REGARDING H-
                   5A NONIMMIGRANTS.

       (a) Ensuring Accurate Count.--The Secretary of State and 
     the Secretary of Homeland Security shall maintain an accurate 
     count of the number of aliens subject to the numerical 
     limitations under section 214(g)(1)(C) of the Immigration and 
     Nationality Act (8 U.S.C. 1184(g)(1)(C)) who are issued visas 
     or otherwise provided nonimmigrant status.
       (b) Provision of Information.--
       (1) Quarterly notification.--Beginning with the first 
     fiscal year after regulations are promulgated to implement 
     this Act, the Secretary of State and the Secretary of 
     Homeland Security shall submit quarterly reports to the 
     Committee on the Judiciary of the Senate and the Committee on 
     the Judiciary of the House of Representatives containing the 
     numbers of aliens who were issued visas or otherwise provided 
     nonimmigrant status under section 101(a)(15)(H)(v)(a) of the 
     Immigrant and Nationality Act (8 U.S.C. 1101(a)(15)(H)(v)(a)) 
     during the preceding 3-month period.
       (2) Annual submission.--Beginning with the first fiscal 
     year after regulations are promulgated to implement this Act, 
     the Secretary of Homeland Security shall submit annual 
     reports to the Committee on the Judiciary of the Senate and 
     the Committee on the Judiciary of the House of 
     Representatives, containing information on the countries of 
     origin and occupations of, geographic area of employment in 
     the United States, and compensation paid to, aliens who were 
     issued visas or otherwise provided nonimmigrant status under 
     such section 101(a)(15)(H)(v)(a). The Secretary shall compile 
     such reports based on the data reported by employers to the 
     Employment Eligibility Confirmation System established in 
     section 402.

     SEC. 2102. H-5 NONIMMIGRANT PETITIONER ACCOUNT.

       Section 286 of the Immigration and Nationality Act (8 
     U.S.C. 1356) is amended by adding at the end the following:
       ``(w)(1) There is established in the general fund of the 
     Treasury of the United States an account, which shall be 
     known as the `H-5 Nonimmigrant Petitioner Account'.
       ``(2) There shall be deposited as offsetting receipts into 
     the H-5 Nonimmigrant Petitioners Account--
       ``(A) all fees collected under section 218A; and
       ``(B) all fines collected under section 212(n)(2)(I).
       ``(3) Of the fees and fines deposited into the H-5 
     Nonimmigrant Petitioner Account--
       ``(A) 53 percent shall remain available to the Secretary of 
     Homeland Security for efforts related to the adjudication and 
     implementation of the H-5 visa programs described in sections 
     221(a) and 250A and any other efforts necessary to carry out 
     the provisions of the Secure America and Orderly Immigration 
     Act and the amendments made by such Act, of which the 
     Secretary shall allocate--
       ``(i) 10 percent shall remain available to the Secretary of 
     Homeland Security for the border security efforts described 
     in title I of the Secure America and Orderly Immigration Act.
       ``(ii) not more than 1 percent to promote public awareness 
     of the H-5 visa program, to protect migrants from fraud, and 
     to combat the unauthorized practice of law described in title 
     III of the Secure America and Orderly Immigration Act;
       ``(iii) not more than 1 percent to the Office of 
     Citizenship to promote civics integration activities 
     described in section 901 of the Secure America and Orderly 
     Immigration Act; and
       ``(iv) 2 percent for the Civics Integration Grant Program 
     under section 902 of the Secure America and Orderly 
     Immigration Act.
       ``(B) 15 percent shall remain available to the Secretary of 
     Labor for the enforcement of labor standards in those 
     geographic and occupational areas in which H-5A visa holders 
     are likely to be employed and for other enforcement efforts 
     under the Secure America and Orderly Immigration Act;
       ``(C) 15 percent shall remain available to the Commissioner 
     of Social Security for the creation and maintenance of the 
     Employment Eligibility Confirmation System described in 
     section 402 of the Secure America and Orderly Immigration 
     Act;
       ``(D) 15 percent shall remain available to the Secretary of 
     State to carry out any necessary provisions of the Secure 
     America and Orderly Immigration Act; and
       ``(E) 2 percent shall remain available to the Secretary of 
     Health and Human Services for the reimbursement of hospitals 
     serving individuals working under programs established in 
     this Act.''.

     SEC. 2103. ANTI-DISCRIMINATION PROTECTIONS.

       Section 274B(a)(3)(B) of the Immigration and Nationality 
     Act (8 U.S.C. 1324b(a)(3)(B)) is amended to read as follows:
       ``(B) is an alien who is--
       ``(i) lawfully admitted for permanent residence;
       ``(ii) granted the status of an alien lawfully admitted for 
     temporary residence under section 210(a) or 245(a)(1);
       ``(iii) admitted as a refugee under section 207;
       ``(iv) granted asylum under section 208; or
       ``(v) granted the status of nonimmigrant under section 
     101(a)(15)(H)(v).''.

     SEC. 2104. WOMEN AND CHILDREN AT RISK OF HARM.

       (a) Certain Children and Women at Risk of Harm.--Section 
     101(a)(27) of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(27)) is amended--
       (1) in subparagraph (L), by inserting a semicolon at the 
     end;
       (2) in subparagraph (M), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(N) subject to subsection (j), an immigrant who is not 
     present in the United States--
       ``(i) who is--

       ``(I) referred to a consular, immigration, or other 
     designated official by a United States Government agency, an 
     international organization, or recognized nongovernmental 
     entity designated by the Secretary of State for purposes of 
     such referrals; and
       ``(II) determined by such official to be a minor under 18 
     years of age (as determined under subsection (j)(5))--

       ``(aa) for whom no parent or legal guardian is able to 
     provide adequate care;
       ``(bb) who faces a credible fear of harm related to his or 
     her age;
       ``(cc) who lacks adequate protection from such harm; and
       ``(dd) for whom it has been determined to be in his or her 
     best interests to be admitted to the United States; or
       ``(ii) who is--

       ``(I) referred to a consular or immigration official by a 
     United States Government agency, an international 
     organization or recognized nongovernmental entity designated 
     by the Secretary of State for purposes of such referrals; and
       ``(II) determined by such official to be a female who has--

       ``(aa) a credible fear of harm related to her sex; and
       ``(bb) a lack of adequate protection from such harm.''.
       (b) Statutory Construction.--Section 101 of the Immigration 
     and Nationality Act (8 U.S.C. 1101) is amended by adding at 
     the end the following:
       ``(j)(1) No natural parent or prior adoptive parent of any 
     alien provided special immigrant status under subsection 
     (a)(27)(N)(i) shall thereafter, by virtue of such parentage, 
     be accorded any right, privilege, or status under this Act.
       ``(2)(A) No alien who qualifies for a special immigrant 
     visa under subsection (a)(27)(N)(ii) may apply for derivative 
     status or petition for any spouse who is represented by the 
     alien as missing, deceased, or the source of harm at the time 
     of the alien's application and admission. The Secretary of 
     Homeland Security may waive this requirement for an alien who 
     demonstrates that the alien's representations regarding the 
     spouse were bona fide.
       ``(B) An alien who qualifies for a special immigrant visa 
     under subsection (a)(27)(N) may apply for derivative status 
     or petition for any sibling under the age of 18 years or 
     children under the age of 18 years of any such alien, if 
     accompanying or following to join the alien. For purposes of 
     this subparagraph, a determination of age shall be made using 
     the age of the alien on the date the petition is filed with 
     the Department of Homeland Security.
       ``(3) An alien who qualifies for a special immigrant visa 
     under subsection (a)(27)(N) shall be treated in the same 
     manner as a refugee solely for purposes of section 412.
       ``(4) The provisions of paragraphs (4), (5), and (7)(A) of 
     section 212(a) shall not be applicable to any alien seeking 
     admission to the United States under subsection (a)(27)(N), 
     and the Secretary of Homeland Security may waive any other 
     provision of such section (other than paragraph (2)(C) or 
     subparagraph (A), (B), (C), or (E) of paragraph (3)) with 
     respect to such an alien for humanitarian purposes, to assure 
     family unity, or when it is otherwise in the public interest. 
     Any such waiver by the Secretary of Homeland Security shall 
     be in writing and shall be granted only on an individual 
     basis following an investigation. The Secretary of Homeland 
     Security shall provide for the annual reporting to Congress 
     of the number of waivers granted under this paragraph in the 
     previous fiscal year and a summary of the reasons for 
     granting such waivers.
       ``(5) For purposes of subsection (a)(27)(N)(i)(II), a 
     determination of age shall be made using the age of the alien 
     on the date on which the alien was referred to the consular, 
     immigration, or other designated official.
       ``(6) The Secretary of Homeland Security shall waive any 
     application fee for a special immigrant visa for an alien 
     described in section 101(a)(27)(N).''.
       (c) Allocation of Special Immigrant Visas.--Section 
     203(b)(4) of the Immigration Nationality Act (8 U.S.C. 
     1153(b)(4)) is amended by striking ``(A) or (B) thereof'' and 
     inserting ``(A), (B), or (N) of such section''.
       (d) Expedited Process.--Not later than 45 days after the 
     date of referral to a consular, immigration, or other 
     designated official as described in section 101(a)(27)(N) of 
     the Immigration and Nationality Act, as added by subsection 
     (a), special immigrant status shall be adjudicated and, if 
     granted, the alien shall be--

[[Page 2306]]

       (1) paroled to the United States pursuant to section 
     212(d)(5) of that Act (8 U.S.C. 1182(d)(5)); and
       (2) allowed to apply for adjustment of status to permanent 
     residence under section 245 of that Act (8 U.S.C. 1255) not 
     later than 1 year after the alien's arrival in the United 
     States.
       (e) Requirement Prior to Entry Into the Untied States.--
       (1) Database search.--An alien may not be admitted to the 
     United States under this section or an amendment made by this 
     section until the Secretary of Homeland Security has ensured 
     that a search of each database maintained by an agency or 
     department of the United States has been conducted to 
     determine whether such alien is ineligible to be admitted to 
     the Untied States on criminal, security, or related grounds.
       (2) Cooperation and schedule.--The Secretary of Homeland 
     Security and the head of each appropriate agency or 
     department of the United States shall work cooperatively to 
     ensure that each database search required by paragraph (1) is 
     completed not later than 45 days after the date on which an 
     alien files a petition seeking a special immigration visa 
     under section 101(a)(27)(N) of the Immigration and 
     Nationality Act, as added by subsection (a).
       (f) Requirement After Entry Into the United States.--
       (1) Requirement to submit fingerprints.--
       (A) In general.--Not later than 30 days after the date that 
     an alien enters the United States under this section or an 
     amendment made by this section, the alien shall be 
     fingerprinted and submit to the Secretary of Homeland 
     Security such fingerprints and any other personal biometric 
     data required by the Secretary.
       (B) Other requirements.--The Secretary of Homeland Security 
     may prescribe regulations that permit fingerprints submitted 
     by an alien under section 262 of the Immigration and 
     Nationality Act (8 U.S.C. 1302) or any other provision of law 
     to satisfy the requirement to submit fingerprints under 
     subparagraph (A).
       (2) Database search.--The Secretary of Homeland Security 
     shall ensure that a search of each database that contains 
     fingerprints that is maintained by an agency or department of 
     the United States be conducted to determine whether such 
     alien is ineligible for an adjustment of status under any 
     provision of the Immigration and Nationality Act (8 U.S.C. 
     1101 et seq.) on criminal, security, or related grounds.
       (3) Cooperation and schedule.--The Secretary of Homeland 
     Security and the head of each appropriate agency or 
     department of the United States shall work cooperatively to 
     ensure that each database search required under paragraph (2) 
     is completed not later than 180 days after the date on which 
     the alien enters the United States.
       (4) Administrative and judicial review.--
       (A) Administrative review.--An alien who is admitted to the 
     United States under this section or an amendment made by this 
     section who is determined to be ineligible for an adjustment 
     of status pursuant to section 212 of the Immigration and 
     Nationality Act (8 U.S.C. 1182) may appeal such a 
     determination through the Administrative Appeals Office of 
     the Bureau of Citizenship and Immigration Services of the 
     Department of Homeland Security. The Secretary of Homeland 
     Security shall ensure that a determination on such appeal is 
     made not later than 60 days after the date on which the 
     appeal is filed.
       (B) Judicial review.--Nothing in this section, or in an 
     amendment made by this section, may preclude application of 
     section 242(a)(2)(B) of the Immigration and Nationality Act 
     (8 U.S.C. 1252(a)(2)(B)).
       (g) Report to Congress.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary of Homeland 
     Security shall report to the Committee on the Judiciary of 
     the Senate and the Committee on the Judiciary of the House of 
     Representatives on the progress of the implementation of this 
     section and the amendments made by this section, including--
       (1) data related to the implementation of this section and 
     the amendments made by this section;
       (2) data regarding the number of placements of females and 
     children who faces a credible fear of harm as referred to in 
     section 101(a)(27)(N) of the Immigration and Nationality Act, 
     as added by subsection (a); and
       (3) any other information that the Secretary of Homeland 
     Security determines to be appropriate.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section and the amendments made by this section.

     SEC. 2105. EXPANSION OF S VISA.

       (a) Expansion of S Visa Classification.--Section 
     101(a)(15)(S) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15)(S)) is amended--
       (1) in clause (i)--
       (A) by striking ``Attorney General'' each place that term 
     appears and inserting ``Secretary of Homeland Security''; and
       (B) by striking ``or'' at the end; and
       (2) in clause (ii)--
       (A) by striking ``Attorney General'' and inserting 
     ``Secretary of Homeland Security''; and
       (B) by striking ``1956,'' and all that follows through 
     ``the alien;'' and inserting the following: ``1956; or
       ``(iii) who the Secretary of Homeland Security and the 
     Secretary of State, in consultation with the Director of 
     Central Intelligence, jointly determine--
       ``(I) is in possession of critical reliable information 
     concerning the activities of governments or organizations, or 
     their agents, representatives, or officials, with respect to 
     weapons of mass destruction and related delivery systems, if 
     such governments or organizations are at risk of developing, 
     selling, or transferring such weapons or related delivery 
     systems; and
       ``(II) is willing to supply or has supplied, fully and in 
     good faith, information described in subclause (I) to 
     appropriate persons within the United States Government;

     and, if the Secretary of Homeland Security (or with respect 
     to clause (ii), the Secretary of State and the Secretary of 
     Homeland Security jointly) considers it to be appropriate, 
     the spouse, married and unmarried sons and daughters, and 
     parents of an alien described in clause (i), (ii), or (iii) 
     if accompanying, or following to join, the alien;''.
       (b) Numerical Limitation.--Section 214(k)(1) of the 
     Immigration and Nationality Act (8 U.S.C. 1184(k)(1)) is 
     amended to read as follows:
       ``(1) The number of aliens who may be provided a visa as 
     nonimmigrants under section 101(a)(15)(S) in any fiscal year 
     may not exceed 3,500.''.

     SEC. 2106. VOLUNTEERS.

       It is not a violation of clauses (ii), (iii), or (iv) of 
     subparagraph (A) for a religious denomination described in 
     section 101(a)(27)(C)(i) or an affiliated religious 
     organization described in section 101(a)(27)(C)(ii)(III), or 
     their agents or officers, to encourage, invite, call, allow, 
     or enable an alien, who is already present in the United 
     States in violation of law to carry on the violation 
     described in section 101(a)(27)(C)(ii)(I), as a volunteer who 
     is not compensated as an employee, notwithstanding the 
     provision of room, board, travel, and other basic living 
     expenses.
                                 ______
                                 
  SA 182. Mrs. HUTCHISON (for herself, Mr. Cornyn, and Mr. Voinovich) 
submitted an amendment intended to be proposed to amendment SA 100 
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the 
Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. MODIFICATIONS TO THE SPECIAL FUNDING RULES OF THE 
                   PENSION PROTECTION ACT OF 2006.

       (a) Modification of the Interest Rate for the Special 
     Funding Rules of the Pension Protection Act of 2006.--
       (1) Interest rate.--Section 402 (a)(2) of the Pension 
     Protection Act of 2006 is amended by inserting ``and by 
     using, in determining the funding target for each of the 10 
     plan years during such period, an interest rate of 8.25 
     percent (rather than the segment rates calculated on the 
     basis of the corporate bond yield curve)'' after ``such plan 
     year''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the provisions of the 
     Pension Protection Act of 2006 to which such amendment 
     relates.
       (b) Technical Amendments.--
       (1) In general.--Section 402 of the Pension Protection Act 
     of 2006 is amended--
       (A) in subsection (d)(1), by adding at the end the 
     following new subparagraph:
       ``(D) Special rule for plans years not beginning on 1st day 
     of month.--For purposes of applying subparagraph (A), a plan 
     year beginning during the 4-day period immediately preceding 
     2006 or 2007 shall be treated as beginning in 2006 or 2007, 
     as the case may be.'', and
       (B) in subsection (i)(1), by striking ``December 28, 2007'' 
     and inserting ``January 1, 2008''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the provisions of the 
     Pension Protection Act of 2006 to which such amendments 
     relate. If an employer filed an election under section 402 of 
     the Pension Protection Act of 2006 before January 1, 2007, 
     the employer may, during the 60-day beginning on the date of 
     the enactment of this Act, modify the election to reflect the 
     amendments made by this subsection.

                                 ______
                                 
  SA 183. Mrs. HUTCHISON (for herself, Mr. Cornyn, and Mr. Voinovich) 
submitted an amendment intended to be proposed to amendment SA 100 
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the 
Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

[[Page 2307]]



     SEC. __. MODIFICATION OF THE INTEREST RATE FOR THE SPECIAL 
                   FUNDING RULES OF THE PENSION PROTECTION ACT OF 
                   2006.

       (a) Interest Rate.--Section 402 (a)(2) of the Pension 
     Protection Act of 2006 is amended by inserting ``and by 
     using, in determining the funding target for each of the 10 
     plan years during such period, an interest rate of 8.25 
     percent (rather than the segment rates calculated on the 
     basis of the corporate bond yield curve)'' after ``such plan 
     year''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the provisions of the 
     Pension Protection Act of 2006 to which such amendment 
     relates.

                                 ______
                                 
  SA 184. Mrs. HUTCHISON (for herself, Mr. Cornyn, Mr. Voinovich, and 
Mr. Brown) submitted an amendment intended to be proposed to amendment 
SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to 
amend the Fair Labor Standards Act of 1938 to provide for an increase 
in the Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. TECHNICAL AMENDMENTS TO THE SPECIAL FUNDING RULES OF 
                   THE PENSION PROTECTION ACT OF 2006.

       (a) Technical Amendments.--Section 402 of the Pension 
     Protection Act of 2006 is amended--
       (1) in subsection (d)(1), by adding at the end the 
     following new subparagraph:
       ``(D) Special rule for plans years not beginning on 1st day 
     of month.--For purposes of applying subparagraph (A), a plan 
     year beginning during the 4-day period immediately preceding 
     2006 or 2007 shall be treated as beginning in 2006 or 2007, 
     as the case may be.'', and
       (2) in subsection (i)(1), by striking ``December 28, 2007'' 
     and inserting ``January 1, 2008''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Pension Protection Act of 2006 to which such amendments 
     relate. If an employer filed an election under section 402 of 
     the Pension Protection Act of 2006 before January 1, 2007, 
     the employer may, during the 60-day beginning on the date of 
     the enactment of this Act, modify the election to reflect the 
     amendments made by this section.

                                 ______
                                 
  SA 185. Mr. CHAMBLISS submitted an amendment intended to be proposed 
to amendment SA 118 submitted by Mr. Chambliss (for himself, Mr. 
Isakson, and Mr. Burr) and intended to be proposed to the bill H.R. 2, 
to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

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

     SEC. __. WAGES FOR AGRICULTURAL WORKERS.

       Section (6)(a)(5) of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 206(a)(5)) is amended to read as follows:
       ``(5) if such employee is employed in agriculture, not less 
     than the greater of--
       ``(A) the minimum wage rate in effect under paragraph (1) 
     after December 31, 1977; or
       ``(B) the prevailing wage established by the Occupational 
     Employment Statistics program, or other wage survey, 
     conducted by the Bureau of Labor Statistics in the county of 
     intended employment, for entry level workers who are employed 
     in agriculture in the area of work to be performed.''.

                                 ______
                                 
  SA 186. Mr. CHAMBLISS submitted an amendment intended to be proposed 
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, add the following new section:

     SEC. __. WAGES FOR AGRICULTURAL WORKERS.

       Section (6)(a)(5) of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 206(a)(5)) is amended to read as follows:
       ``(5) if such employee is employed to provide agriculture 
     labor or services--
       ``(A) not less than the minimum wage rate in effect under 
     paragraph (1) after December 31, 1977; or
       ``(B) pursuant to the provisions of section 218 of the 
     Immigration and Nationality Act (8 U.S.C. 1188), not less 
     than the greater of--
       ``(i) the minimum wage rate in effect under paragraph (1) 
     after December 31, 1977; or
       ``(ii) the prevailing wage established by the Occupational 
     Employment Statistics program, or other wage survey, 
     conducted by the Bureau of Labor Statistics in the county of 
     intended employment, for entry level workers who are employed 
     in agriculture in the area of the work to be performed.''.
                                 ______
                                 
  SA 187. Mr. KERRY (for himself, Ms. Snowe, Mr. Sununu, Ms. Landrieu, 
and Mr. Lieberman) submitted an amendment intended to be proposed to 
amendment SA 112 submitted by Mr. Sununu to the amendment SA 100 
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the 
Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; as follows:

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

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

       (a) In General.--Section 29 of the Small Business Act (15 
     U.S.C. 656) is amended by adding at the end the following:
       ``(m) Continued Funding for Centers.--
       ``(1) In general.--A nonprofit organization described in 
     paragraph (2) shall be eligible to receive, subject to 
     paragraph (3), a 3-year grant under this subsection.
       ``(2) Applicability.--A nonprofit organization described in 
     this paragraph is a nonprofit organization that has received 
     funding under subsection (b) or (l).
       ``(3) Application and approval criteria.--
       ``(A) Criteria.--Subject to subparagraph (B), the 
     Administrator shall develop and publish criteria for the 
     consideration and approval of applications by nonprofit 
     organizations under this subsection.
       ``(B) Contents.--Except as otherwise provided in this 
     subsection, the conditions for participation in the grant 
     program under this subsection shall be the same as the 
     conditions for participation in the program under subsection 
     (l), as in effect on the date of enactment of this Act.
       ``(C) Notification.--Not later than 60 days after the date 
     of the deadline to submit applications for each fiscal year, 
     the Administrator shall approve or deny any application under 
     this subsection and notify the applicant for each such 
     application.
       ``(4) Award of grants.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Administrator shall make a grant for the 
     Federal share of the cost of activities described in the 
     application to each applicant approved under this subsection.
       ``(B) Amount.--A grant under this subsection shall be for 
     not more than $150,000, for each year of that grant.
       ``(C) Federal share.--The Federal share under this 
     subsection shall be not more than 50 percent.
       ``(D) Priority.--In allocating funds made available for 
     grants under this section, the Administrator shall give 
     applications under this subsection or subsection (l) priority 
     over first-time applications under subsection (b).
       ``(5) Renewal.--
       ``(A) In general.--The Administrator may renew a grant 
     under this subsection for additional 3-year periods, if the 
     nonprofit organization submits an application for such 
     renewal at such time, in such manner, and accompanied by such 
     information as the Administrator may establish.
       ``(B) Unlimited renewals.--There shall be no limitation on 
     the number of times a grant may be renewed under subparagraph 
     (A).
       ``(n) Privacy Requirements.--
       ``(1) In general.--A women's business center may not 
     disclose the name, address, or telephone number of any 
     individual or small business concern receiving assistance 
     under this section without the consent of such individual or 
     small business concern, unless--
       ``(A) the Administrator is ordered to make such a 
     disclosure by a court in any civil or criminal enforcement 
     action initiated by a Federal or State agency; or
       ``(B) the Administrator considers such a disclosure to be 
     necessary for the purpose of conducting a financial audit of 
     a women's business center, but a disclosure under this 
     subparagraph shall be limited to the information necessary 
     for such audit.
       ``(2) Administration use of information.--This subsection 
     shall not--
       ``(A) restrict Administration access to program activity 
     data; or
       ``(B) prevent the Administration from using client 
     information (other than the information described in 
     subparagraph (A)) to conduct client surveys.
       ``(3) Regulations.--The Administrator shall issue 
     regulations to establish standards for requiring disclosures 
     during a financial audit under paragraph (1)(B).''.
       (b) Repeal.--Section 29(l) of the Small Business Act (15 
     U.S.C. 656(l)) is repealed effective October 1 of the first 
     full fiscal year after the date of enactment of this Act.
       (c) Transitional Rule.--Notwithstanding any other provision 
     of law, a grant or cooperative agreement that was awarded 
     under subsection (l) of section 29 of the Small Business Act 
     (15 U.S.C. 656), on or before the day before the date 
     described in subsection (b) of this section, shall remain in 
     full force and effect under the terms, and for the duration, 
     of such grant or agreement.
                                 ______
                                 
  SA 188. Mr. OBAMA submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       On page 15, line 3, strike ``2001.''.'' and insert ``2001, 
     or

[[Page 2308]]

       ``(iii) receiving services for the homeless (as defined in 
     section 103(a) of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11302(a)) through the Department of Veterans 
     Affairs, the Department of Housing and Urban Development, or 
     grant recipients of either at anytime during the 12-month 
     period ending on the hiring date.''.
                                 ______
                                 
  SA 189. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 141 submitted by Mr. Sessions and intended to be 
proposed to the bill H.R. 2, to amend the Fair Labor Standards Act of 
1938 to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       On page 3, line 21, insert ``not'' after ``and''.
                                 ______
                                 
  SA 190. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 142 submitted by Mr. Sessions and intended to be 
proposed to the amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) 
to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 to 
provide for an increase in the Federal minimum wage; which was ordered 
to lie on the table; as follows:

       On page 3, line 21, insert ``not'' after ``and''.
                                 ______
                                 
  SA 191. Ms. COLLINS (for herself and Mr. Warner) submitted an 
amendment intended to be proposed by her to the bill H.R. 2, to amend 
the Fair Labor Standards Act of 1938 to provide for an increase in the 
Federal minimum wage; which was ordered to lie on the table; as 
follows:

       At the appropriate place insert the following:

     SEC. ___. EXPANSION OF ABOVE-THE-LINE DEDUCTION FOR CERTAIN 
                   EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL 
                   TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) 
     (relating to certain trade and business deductions of 
     employees) is amended to read as follows:
       ``(D) Certain expenses of elementary and secondary school 
     teachers.--The deductions allowed by section 162 which 
     consist of expenses, not in excess of $400, paid or incurred 
     by an eligible educator--
       ``(i) by reason of the participation of the educator in 
     professional development courses related to the curriculum 
     and academic subjects in which the educator provides 
     instruction or to the students for which the educator 
     provides instruction, and
       ``(ii) in connection with books, supplies (other than 
     nonathletic supplies for courses of instruction in health or 
     physical education), computer equipment (including related 
     software and services) and other equipment, and supplementary 
     materials used by the eligible educator in the classroom.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

                                 ______
                                 
  SA 192. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       On page 15, after line 24, insert the following:

     SEC. 205. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR 
                   HURRICANE KATRINA EMPLOYEES HIRED BY SMALL 
                   BUSINESSES.

       (a) In General.--Section 201(b)(1) of the Katrina Emergency 
     Tax Relief Act of 2005 (Public Law 109-73) is amended by 
     striking ``who is hired during the 2-year period'' and all 
     that follows and inserting ``who--
       ``(A) is hired during the 2-year period beginning on such 
     date for a position the principal place of employment which 
     is located in the core disaster area, or
       ``(B) is hired--
       ``(i) during the 3-year period beginning on such date for a 
     position the principal place of employment which is located 
     in the core disaster area, and
       ``(ii) by an employer who has no more than 100 employees on 
     the date such individual is hired, and''.
       (b) Effective Date.--The amendment made by this section 
     take effect as if included in section 201 of the Katrina 
     Emergency Tax Relief Act of 2005.

                                 ______
                                 
  SA 193. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       On page 4, between lines 8 and 9, insert the following:

     SEC. 202. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED 
                   SECTION 179 GULF OPPORTUNITY ZONE PROPERTY.

       Paragraph (2) of section 1400N(e) (relating to qualified 
     section 179 Gulf Opportunity Zone property) is amended--
       (1) by striking ``this subsection, the term'' and inserting 
     ``this subsection--
       ``(A) In general.--The term'', and
       (2) by adding at the end the following new subparagraph:
       ``(B) Extension for certain property.--In the case of 
     property substantially all of the use of which is in one or 
     more specified portions of the GO Zone (as defined by 
     subsection (d)(6)), such term shall include section 179 
     property (as so defined) which is described in subsection 
     (d)(2), determined--
       ``(i) without regard to subsection (d)(6), and
       ``(ii) by substituting `2008' for `2007' in subparagraph 
     (A)(v) thereof.''.

                                 ______
                                 
  SA 194. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place insert the following:

     SEC. __. REDUCTION IN INCOME TAX WITHHOLDING DEPOSITS TO 
                   REFLECT FICA PAYROLL TAX CREDIT FOR CERTAIN 
                   EMPLOYERS LOCATED IN SPECIFIED PORTIONS OF THE 
                   GO ZONE DURING 2007.

       (a) General Rule.--In the case of any applicable calendar 
     quarter--
       (1) the aggregate amount of required income tax deposits of 
     an eligible employer for the calendar quarter following the 
     applicable calendar quarter shall be reduced by the payroll 
     tax credit equivalent amount for the applicable calendar 
     quarter, and
       (2) the amount of any deduction allowable to the eligible 
     employer under chapter 1 of the Internal Revenue Code of 1986 
     for taxes paid under section 3111 of such Code with respect 
     to employment during the applicable calendar quarter shall be 
     reduced by such payroll tax credit equivalent amount.

     For purposes of the Internal Revenue Code of 1986, an 
     eligible employer shall be treated as having paid, and an 
     eligible employee shall be treated as having received, any 
     wages or compensation deducted and withheld but not deposited 
     by reason of paragraph (1).
       (b) Carryovers of Unused Amounts.--If the payroll tax 
     credit equivalent amount for any applicable calendar quarter 
     exceeds the required income tax deposits for the following 
     calendar quarter--
       (1) such excess shall be added to the payroll tax credit 
     equivalent amount for the next applicable calendar quarter, 
     and
       (2) in the case of the last applicable calendar quarter, 
     such excess shall be used to reduce required income tax 
     deposits for any succeeding calendar quarter until such 
     excess is used.
       (c) Payroll Tax Credit Equivalent Amount.--For purposes of 
     this section--
       (1) In general.--The term ``payroll tax credit equivalent 
     amount'' means, with respect to any applicable calendar 
     quarter, an amount equal to 7.65 percent of the aggregate 
     amount of wages or compensation--
       (A) paid or incurred by the eligible employer with respect 
     to employment of eligible employees during the applicable 
     calendar quarter, and
       (B) subject to the tax imposed by section 3111 of the 
     Internal Revenue Code of 1986.
       (2) Trade or business requirement.--A rule similar to the 
     rule of section 51(f) of such Code shall apply for purposes 
     of this section.
       (3) Limitation on wages subject to credit.--For purposes of 
     this subsection, only wages and compensation of an eligible 
     employee in an applicable calendar quarter, when added to 
     such wages and compensation for any preceding applicable 
     calendar quarter, not exceeding $15,000 shall be taken into 
     account with respect to such employee.
       (d) Eligible Employer; Eligible Employee.--For purposes of 
     this section--
       (1) Eligible employer.--
       (A) In general.--The term ``eligible employer'' means any 
     employer which conducts an active trade or business in any 
     specified portion of the GO Zone and employs not more than 
     100 full-time employees on the date of the enactment of this 
     Act.
       (B) Specified portion of the go zone.--The term ``specified 
     portion of the GO Zone'' means any portion of the GO Zone (as 
     defined in section 1400M(1) of the Internal Revenue Code of 
     1986) which is in any county or parish which is identified by 
     the Secretary of the Treasury as being a county or parish in 
     which hurricanes occurring during 2005 damaged (in the 
     aggregate) more than 60 percent of the housing units in such 
     county or parish which were occupied (determined according to 
     the 2000 Census).
       (2) Eligible employee.--The term ``eligible employee'' 
     means with respect to an eligible employer an employee whose 
     principal place of employment with such eligible employer is 
     in a specified portion of the GO Zone. Such term shall not 
     include an employee described in section 401(c)(1)(A).

[[Page 2309]]

       (e) Applicable Calendar Quarter.--For purposes of this 
     section, the term ``applicable calendar quarter'' means any 
     of the 4 calendar quarters beginning in 2007.
       (f) Special Rules.--For purposes of this section--
       (1) Required income tax deposits.--The term ``required 
     income tax deposits'' means deposits an eligible employer is 
     required to make under section 6302 of the Internal Revenue 
     Code of 1986 of taxes such employer is required to deduct and 
     withhold under section 3402 of such Code.
       (2) Aggregation rules.--Rules similar to the rules of 
     subsections (a) and (b) of section 52 of the Internal Revenue 
     Code of 1986 shall apply.
       (3) Employers not on quarterly system.--The Secretary of 
     the Treasury shall prescribe rules for the application of 
     this section in the case of an eligible employer whose 
     required income tax deposits are not made on a quarterly 
     basis.
       (4) Adjustments for certain acquisitions, etc.--Under 
     regulations prescribed by the Secretary--
       (A) Acquisitions.--If, after December 31, 2006, an employer 
     acquires the major portion of a trade or business of another 
     person (hereafter in this paragraph referred to as the 
     ``predecessor'') or the major portion of a separate unit of a 
     trade or business of a predecessor, then, for purposes of 
     applying this section for any calendar quarter ending after 
     such acquisition, the amount of wages or compensation deemed 
     paid by the employer during periods before such acquisition 
     shall be increased by so much of such wages or compensation 
     paid by the predecessor with respect to the acquired trade or 
     business as is attributable to the portion of such trade or 
     business acquired by the employer.
       (B) Dispositions.--If, after December 31, 2006--
       (i) an employer disposes of the major portion of any trade 
     or business of the employer or the major portion of a 
     separate unit of a trade or business of the employer in a 
     transaction to which paragraph (1) applies, and
       (ii) the employer furnishes the acquiring person such 
     information as is necessary for the application of 
     subparagraph (A),

     then, for purposes of applying this section for any calendar 
     quarter ending after such disposition, the amount of wages or 
     compensation deemed paid by the employer during periods 
     before such disposition shall be decreased by so much of such 
     wages as is attributable to such trade or business or 
     separate unit.
       (5) Other rules.--
       (A) Government employers.--This section shall not apply if 
     the employer is the Government of the United States, the 
     government of any State or political subdivision of the 
     State, or any agency or instrumentality of any such 
     government.
       (B) Treatment of other entities.--Rules similar to the 
     rules of subsections (d) and (e) of section 52 of such Code 
     shall apply for purposes of this section.
                                 ______
                                 
  SA 195. Mr. BURR (for himself, Mr. DeMint, and Mr. Coburn) submitted 
an amendment intended to be proposed to amendment SA 100 proposed by 
Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor 
Standards Act of 1938 to provide for an increase in the Federal minimum 
wage; which was ordered to lie on the table; as follows:

       At the end of section 102, add the following:
       (c) Exception in the Case of Provision of Health 
     Benefits.--Notwithstanding the amendment made by subsection 
     (a), an employer to which such amendment applies shall have 
     the option to--
       (1) increase the minimum wage paid to employees as required 
     under such amendment; or
       (2) provide such employees with health care benefits that 
     are equal (in terms of the monetary amount expended by the 
     employer for such benefits) to the monetary amount by which 
     the minimum wage is to be increased pursuant to such 
     amendment.
                                 ______
                                 
  SA 196. Mr. GRASSLEY submitted an amendment intended to be proposed 
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       Strike section 102 of the amendment and insert the 
     following:

     SEC. 102. MINIMUM WAGE FOR TERRITORIES AND POSSESSIONS.

       (a) Minimum Wage for Territories and Possessions.--The Fair 
     Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) is 
     amended--
       (1) in section 6, by adding at the end the following:
       ``(h) Territories and Possessions.--
       ``(1) In general.--Subject to subsection (a)(2), each 
     employer of an employee employed in any territory or 
     possession of the United States shall pay to such employee, 
     in lieu of the rate or rates provided by subsection (a)(1) or 
     (b), not less than the rate calculated under subsection (b) 
     as of the day after the date that an increase in the minimum 
     wage rate under subsection (a)(1) takes effect.
       ``(2) Minimum wage rate.--The applicable rate described in 
     paragraph (1) shall be the greater of--
       ``(A) the minimum wage rate in effect in the territory or 
     possession in which the employee is employed on the date of 
     enactment of the Fair Minimum Wage Act of 2007; or
       ``(B) the product of--
       ``(i) the rate in effect under subsection (a)(1); 
     multiplied by
       ``(ii) the quotient of--

       ``(I) the average annual wage in the territory or 
     possession, as determined by the Social Security 
     Administration based on the W-2 forms furnished under section 
     6051 of the Internal Revenue Code of 1986 to individuals 
     employed in the territory or possession for the third prior 
     calendar year; divided by
       ``(II) the average annual wage in the United States (not 
     including the territories or possessions of the United 
     States, but including the District of Columbia), as 
     determined by the Social Security Administration based on the 
     W-2 forms furnished under section 6051 of the Internal 
     Revenue Code of 1986 to individuals employed in the United 
     States (as so defined) for the third prior calendar year.

       ``(3) Rule of construction.--Nothing in this subsection 
     shall be construed to prohibit any territory or possession of 
     the United States from establishing a minimum wage higher 
     than the minimum wage required under this subsection.''; and
       (2) in section 13(f), by inserting ``the Northern Mariana 
     Islands,'' after ``Guam,''.
       (b) Abolishing the Special Wage Board for American Samoa.--
     The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) 
     is amended--
       (1) by repealing sections 5, 8, and 10;
       (2) in section 6(a)--
       (A) by striking paragraph (3); and
       (B) by redesignating paragraphs (4) and (5) as paragraphs 
     (3) and (4), respectively; and
       (3) in section 13--
       (A) by striking subsection (e); and
       (B) by redesignating subsections (f) (as amended in 
     subsection (a)(2)) and (g) as subsections (e) and (f), 
     respectively.
       (c) Conforming Amendments.--The Fair Labor Standards Act of 
     1938 (29 U.S.C. 201 et seq.) is amended--
       (1) in section 6--
       (A) in subsection (b), by striking ``(a)(5)'' and inserting 
     ``(a)(4)''; and
       (B) in paragraphs (1) and (2) of subsection (e), by 
     striking ``and (f)'' each place the term occurs and inserting 
     ``and (e)'';
       (2) in section 13(c)(1)(a), by striking ``6(a)(5)'' and 
     inserting ``6(a)(4)'';
       (3) in section 14(b)(2), by striking ``6(a)(5)'' and 
     inserting ``6(a)(4)'';
       (4) in section 16(d), by striking ``13(f)'' and inserting 
     ``13(e)''; and
       (5) in section 18(b), by striking ``13(f)'' and inserting 
     ``13(e)''.
                                 ______
                                 
  SA 197. Mr. GRASSLEY submitted an amendment intended to be proposed 
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       Strike section 102 of the amendment and insert the 
     following:

     SEC. 102. MINIMUM WAGE FOR TERRITORIES AND POSSESSIONS.

       (a) In General.--Notwithstanding any provision of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), section 
     6 of such Act shall apply to employees employed in each 
     territory or possession of the United States in the same 
     manner as such section applies to employees employed in the 
     several States of the United States, except that in lieu of 
     the rate or rates provided by subsection (a)(1) or (b) of 
     section 6 of such Act, the applicable rate for such employees 
     shall be the rate calculated under subsection (b) as of the 
     day after the date that an increase in the minimum wage rate 
     under such section 6(a)(1) takes effect.
       (b) Minimum Wage Rate.--The applicable rate for employees 
     employed in each territory or possession of the United States 
     shall be the greater of--
       (1) the minimum wage rate in effect in the territory or 
     possession on the date of enactment of this Act; or
       (2) the product of--
       (A) the rate in effect under section 6(a)(1) of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)); multiplied 
     by
       (B) the quotient of--
       (i) the average annual wage in the territory or possession, 
     as determined by the Social Security Administration based on 
     the W-2 forms furnished under section 6051 of the Internal 
     Revenue Code of 1986 to individuals employed in the territory 
     or possession for the third prior calendar year; and
       (ii) the average annual wage in the United States (not 
     including the territories or possessions of the United 
     States, but including the District of Columbia), as 
     determined by the Social Security Administration based on the 
     W-2 forms furnished under section 6051 of the Internal 
     Revenue Code of 1986 to individuals employed in the United 
     States (as so defined) for the third prior calendar year.

[[Page 2310]]

       (c) Rule of Construction.--Nothing in this section shall be 
     construed to prohibit any territory or possession of the 
     United States from establishing a minimum wage higher than 
     the minimum wage required under this section.

                                 ______
                                 
  SA 198. Mr. COLEMAN submitted an amendment intended to be proposed to 
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 
2, to amend the Fair Labor Standards Act of 1938 to provide for an 
increase in the Federal minimum wage; which was ordered to lie on the 
table; as follows:

       At the appropriate place insert the following:

     SEC. ___. DESIGNATION OF OVERPAYMENTS TO SUPPORT RESERVISTS 
                   AND NATIONAL GUARD MEMBERS.

       (a) Designation.--Subchapter A of chapter 61 is amended by 
     adding at the end the following new part:

 ``PART IX--DESIGNATION OF OVERPAYMENTS TO RESERVE INCOME REPLACEMENT 
                                PROGRAM

``Sec. 6097. Designation.

     ``SEC. 6097. DESIGNATION.

       ``(a) In General.--In the case of an individual, with 
     respect to each taxpayer's return for the taxable year of the 
     tax imposed by chapter 1, such taxpayer may designate that a 
     specified portion (not less than $1) of any overpayment of 
     tax for such taxable year be paid over to the Reserve Income 
     Replacement Program (RIRP) under section 910 of title 37, 
     United States Code.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made with respect to any taxable year 
     only at the time of filing the return of the tax imposed by 
     chapter 1 for such taxable year. Such designation shall be 
     made in such manner as the Secretary prescribes by 
     regulations except that such designation shall be made either 
     on the first page of the return or on the page bearing the 
     taxpayer's signature.
       ``(c) Overpayments Treated as Refunded.--For purposes of 
     this title, any portion of an overpayment of tax designated 
     under subsection (a) shall be treated as--
       ``(1) being refunded to the taxpayer as of the last date 
     prescribed for filing the return of tax imposed by chapter 1 
     (determined without regard to extensions) or, if later, the 
     date the return is filed, and
       ``(2) a contribution made by such taxpayer on such date to 
     the United States.''.
       (b) Transfers to Reserve Income Replacement Program.--The 
     Secretary of the Treasury shall, from time to time, transfer 
     to the Reserve Income Replacement Program (RIRP) under 
     section 910 of title 37, United States Code, the amounts 
     designated under section 6097 of the Internal Revenue Code of 
     1986, under regulations jointly prescribed by the Secretary 
     of the Treasury and the Secretary of Defense.
       (c) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 61 is amended by adding at the end the following 
     new item:

 ``Part IX. Designation of Overpayments to Reserve Income Replacement 
                              Program.''.

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

                                 ______
                                 
  SA 199. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938 
to provide for an increase in the Federal minimum wage; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                TITLE __--SMALL BUSINESS HEALTH COVERAGE

     SEC. _01. SHORT TITLE; PURPOSES.

       (a) Short Title.--This title may be cited as the ``Health 
     Insurance Marketplace Modernization and Affordability Act of 
     2007''.
       (b) Purposes.--It is the purpose of this Act to--
       (1) make more affordable health insurance options available 
     to small businesses, working families, and all Americans;
       (2) assure effective State regulatory protection of the 
     interests of health insurance consumers; and
       (3) create a more efficient and affordable health insurance 
     marketplace through collaborative development of uniform 
     regulatory standards.

                Subtitle A--Small Business Health Plans

     SEC. _11. RULES GOVERNING SMALL BUSINESS HEALTH PLANS.

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

         ``PART 8--RULES GOVERNING SMALL BUSINESS HEALTH PLANS

     ``SEC. 801. SMALL BUSINESS HEALTH PLANS.

       ``(a) In General.--For purposes of this part, the term 
     `small business health plan' means a fully insured group 
     health plan whose sponsor is (or is deemed under this part to 
     be) described in subsection (b).
       ``(b) Sponsorship.--The sponsor of a group health plan is 
     described in this subsection if such sponsor--
       ``(1) is organized and maintained in good faith, with a 
     constitution and bylaws specifically stating its purpose and 
     providing for periodic meetings on at least an annual basis, 
     as a bona fide trade association, a bona fide industry 
     association (including a rural electric cooperative 
     association or a rural telephone cooperative association), a 
     bona fide professional association, or a bona fide chamber of 
     commerce (or similar bona fide business association, 
     including a corporation or similar organization that operates 
     on a cooperative basis (within the meaning of section 1381 of 
     the Internal Revenue Code of 1986)), for substantial purposes 
     other than that of obtaining medical care;
       ``(2) is established as a permanent entity which receives 
     the active support of its members and requires for membership 
     payment on a periodic basis of dues or payments necessary to 
     maintain eligibility for membership;
       ``(3) does not condition membership, such dues or payments, 
     or coverage under the plan on the basis of health status-
     related factors with respect to the employees of its members 
     (or affiliated members), or the dependents of such employees, 
     and does not condition such dues or payments on the basis of 
     group health plan participation; and
       ``(4) does not condition membership on the basis of a 
     minimum group size.
     Any sponsor consisting of an association of entities which 
     meet the requirements of paragraphs (1), (2), (3), and (4) 
     shall be deemed to be a sponsor described in this subsection.

     ``SEC. 802. CERTIFICATION OF SMALL BUSINESS HEALTH PLANS.

       ``(a) In General.--Not later than 6 months after the date 
     of enactment of this part, the applicable authority shall 
     prescribe by interim final rule a procedure under which the 
     applicable authority shall certify small business health 
     plans which apply for certification as meeting the 
     requirements of this part.
       ``(b) Requirements Applicable to Certified Plans.--A small 
     business health plan with respect to which certification 
     under this part is in effect shall meet the applicable 
     requirements of this part, effective on the date of 
     certification (or, if later, on the date on which the plan is 
     to commence operations).
       ``(c) Requirements for Continued Certification.--The 
     applicable authority may provide by regulation for continued 
     certification of small business health plans under this part. 
     Such regulation shall provide for the revocation of a 
     certification if the applicable authority finds that the 
     small business health plan involved is failing to comply with 
     the requirements of this part.
       ``(d) Expedited and Deemed Certification.--
       ``(1) In general.--If the Secretary fails to act on an 
     application for certification under this section within 90 
     days of receipt of such application, the applying small 
     business health plan shall be deemed certified until such 
     time as the Secretary may deny for cause the application for 
     certification.
       ``(2) Civil penalty.--The Secretary may assess a civil 
     penalty against the board of trustees and plan sponsor 
     (jointly and severally) of a small business health plan that 
     is deemed certified under paragraph (1) of up to $500,000 in 
     the event the Secretary determines that the application for 
     certification of such small business health plan was 
     willfully or with gross negligence incomplete or inaccurate.

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

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

       ``(I) General rule.--Except as provided in subclauses (II) 
     and (III), no such member is

[[Page 2311]]

     an owner, officer, director, or employee of, or partner in, a 
     contract administrator or other service provider to the plan.
       ``(II) Limited exception for providers of services solely 
     on behalf of the sponsor.--Officers or employees of a sponsor 
     which is a service provider (other than a contract 
     administrator) to the plan may be members of the board if 
     they constitute not more than 25 percent of the membership of 
     the board and they do not provide services to the plan other 
     than on behalf of the sponsor.
       ``(III) Treatment of providers of medical care.--In the 
     case of a sponsor which is an association whose membership 
     consists primarily of providers of medical care, subclause 
     (I) shall not apply in the case of any service provider 
     described in subclause (I) who is a provider of medical care 
     under the plan.

       ``(iii) Certain plans excluded.--Clause (i) shall not apply 
     to a small business health plan which is in existence on the 
     date of the enactment of the Health Insurance Marketplace 
     Modernization and Affordability Act of 2006.
       ``(B) Sole authority.--The board has sole authority under 
     the plan to approve applications for participation in the 
     plan and to contract with insurers.
       ``(c) Treatment of Franchise Networks.--In the case of a 
     group health plan which is established and maintained by a 
     franchiser for a franchise network consisting of its 
     franchisees--
       ``(1) the requirements of subsection (a) and section 801(a) 
     shall be deemed met if such requirements would otherwise be 
     met if the franchiser were deemed to be the sponsor referred 
     to in section 801(b), such network were deemed to be an 
     association described in section 801(b), and each franchisee 
     were deemed to be a member (of the association and the 
     sponsor) referred to in section 801(b); and
       ``(2) the requirements of section 804(a)(1) shall be deemed 
     met.

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

     ``SEC. 804. PARTICIPATION AND COVERAGE REQUIREMENTS.

       ``(a) Covered Employers and Individuals.--The requirements 
     of this subsection are met with respect to a small business 
     health plan if, under the terms of the plan--
       ``(1) each participating employer must be--
       ``(A) a member of the sponsor;
       ``(B) the sponsor; or
       ``(C) an affiliated member of the sponsor, except that, in 
     the case of a sponsor which is a professional association or 
     other individual-based association, if at least one of the 
     officers, directors, or employees of an employer, or at least 
     one of the individuals who are partners in an employer and 
     who actively participates in the business, is a member or 
     such an affiliated member of the sponsor, participating 
     employers may also include such employer; and
       ``(2) all individuals commencing coverage under the plan 
     after certification under this part must be--
       ``(A) active or retired owners (including self-employed 
     individuals), officers, directors, or employees of, or 
     partners in, participating employers; or
       ``(B) the dependents of individuals described in 
     subparagraph (A).
       ``(b) Individual Market Unaffected.--The requirements of 
     this subsection are met with respect to a small business 
     health plan if, under the terms of the plan, no participating 
     employer may provide health insurance coverage in the 
     individual market for any employee not covered under the plan 
     which is similar to the coverage contemporaneously provided 
     to employees of the employer under the plan, if such 
     exclusion of the employee from coverage under the plan is 
     based on a health status-related factor with respect to the 
     employee and such employee would, but for such exclusion on 
     such basis, be eligible for coverage under the plan.
       ``(c) Prohibition of Discrimination Against Employers and 
     Employees Eligible to Participate.--The requirements of this 
     subsection are met with respect to a small business health 
     plan if--
       ``(1) under the terms of the plan, all employers meeting 
     the preceding requirements of this section are eligible to 
     qualify as participating employers for all geographically 
     available coverage options, unless, in the case of any such 
     employer, participation or contribution requirements of the 
     type referred to in section 2711 of the Public Health Service 
     Act are not met;
       ``(2) information regarding all coverage options available 
     under the plan is made readily available to any employer 
     eligible to participate; and
       ``(3) the applicable requirements of sections 701, 702, and 
     703 are met with respect to the plan.

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

       ``(a) In General.--The requirements of this section are met 
     with respect to a small business health plan if the following 
     requirements are met:
       ``(1) Contents of governing instruments.--
       ``(A) In general.--The instruments governing the plan 
     include a written instrument, meeting the requirements of an 
     instrument required under section 402(a)(1), which--
       ``(i) provides that the board of trustees serves as the 
     named fiduciary required for plans under section 402(a)(1) 
     and serves in the capacity of a plan administrator (referred 
     to in section 3(16)(A)); and
       ``(ii) provides that the sponsor of the plan is to serve as 
     plan sponsor (referred to in section 3(16)(B)).
       ``(B) Description of material provisions.--The terms of the 
     health insurance coverage (including the terms of any 
     individual certificates that may be offered to individuals in 
     connection with such coverage) describe the material benefit 
     and rating, and other provisions set forth in this section 
     and such material provisions are included in the summary plan 
     description.
       ``(2) Contribution rates must be nondiscriminatory.--
       ``(A) In general.--The contribution rates for any 
     participating small employer shall not vary on the basis of 
     any health status-related factor in relation to employees of 
     such employer or their beneficiaries and shall not vary on 
     the basis of the type of business or industry in which such 
     employer is engaged.
       ``(B) Effect of title.--Nothing in this title or any other 
     provision of law shall be construed to preclude a health 
     insurance issuer offering health insurance coverage in 
     connection with a small business health plan, and at the 
     request of such small business health plan, from--
       ``(i) setting contribution rates for the small business 
     health plan based on the claims experience of the plan so 
     long as any variation in such rates complies with the 
     requirements of clause (ii), except that small business 
     health plans shall not be subject to paragraphs (1)(A) and 
     (3) of section 2911(b) of the Public Health Service Act; or
       ``(ii) varying contribution rates for participating 
     employers in a small business health plan in a State to the 
     extent that such rates could vary using the same methodology 
     employed in such State for regulating small group premium 
     rates, subject to the terms of part I of subtitle A of title 
     XXIX of the Public Health Service Act (relating to rating 
     requirements), as added by title II of the Health Insurance 
     Marketplace Modernization and Affordability Act of 2006.
       ``(3) Exceptions regarding self-employed and large 
     employers.--
       ``(A) Self employed.--
       ``(i) In general.--Small business health plans with 
     participating employers who are self-employed individuals 
     (and their dependents) shall enroll such self-employed 
     participating employers in accordance with rating rules that 
     do not violate the rating rules for self-employed individuals 
     in the State in which such self-employed participating 
     employers are located.
       ``(ii) Guarantee issue.--Small business health plans with 
     participating employers who are self-employed individuals 
     (and their dependents) may decline to guarantee issue to such 
     participating employers in States in which guarantee issue is 
     not otherwise required for the self-employed in that State.
       ``(B) Large employers.--Small business health plans with 
     participating employers that are larger than small employers 
     (as defined in section 808(a)(10)) shall enroll such large 
     participating employers in accordance with rating rules that 
     do not violate the rating rules for large employers in the 
     State in which such large participating employers are 
     located.
       ``(4) Regulatory requirements.--Such other requirements as 
     the applicable authority determines are necessary to carry 
     out the purposes of this part, which shall be prescribed by 
     the applicable authority by regulation.
       ``(b) Ability of Small Business Health Plans to Design 
     Benefit Options.--Nothing in this part or any provision of 
     State law (as defined in section 514(c)(1)) shall be 
     construed to preclude a small business health plan or a 
     health insurance issuer offering health insurance coverage in 
     connection with a small business health plan from exercising 
     its sole discretion in selecting the specific benefits and 
     services consisting of medical care to be included as 
     benefits under such plan or coverage, except that such 
     benefits and services must meet the terms and specifications 
     of part II of subtitle A of title XXIX of the Public Health 
     Service Act (relating to lower cost plans), as added by title 
     II of the Health Insurance Marketplace Modernization and 
     Affordability Act of 2006.
       ``(c) Domicile and Non-Domicile States.--
       ``(1) Domicile state.--Coverage shall be issued to a small 
     business health plan in the State in which the sponsor's 
     principal place of business is located.
       ``(2) Non-domicile states.--With respect to a State (other 
     than the domicile State) in which participating employers of 
     a small business health plan are located but in which the 
     insurer of the small business health plan in the domicile 
     State is not yet licensed, the following shall apply:
       ``(A) Temporary preemption.--If, upon the expiration of the 
     90-day period following the submission of a licensure 
     application by such insurer (that includes a certified copy 
     of an approved licensure application as submitted by such 
     insurer in the domicile State) to such State, such State has 
     not approved or denied such application, such State's health 
     insurance licensure laws shall be temporarily preempted and 
     the insurer shall be

[[Page 2312]]

     permitted to operate in such State, subject to the following 
     terms:
       ``(i) Application of non-domicile state law.--Except with 
     respect to licensure and with respect to the terms of 
     subtitle A of title XXIX of the Public Health Service Act 
     (relating to rating and benefits as added by the Health 
     Insurance Marketplace Modernization and Affordability Act of 
     2006), the laws and authority of the non-domicile State shall 
     remain in full force and effect.
       ``(ii) Revocation of preemption.--The preemption of a non-
     domicile State's health insurance licensure laws pursuant to 
     this subparagraph, shall be terminated upon the occurrence of 
     either of the following:

       ``(I) Approval or denial of application.--The approval of 
     denial of an insurer's licensure application, following the 
     laws and regulations of the non-domicile State with respect 
     to licensure.
       ``(II) Determination of material violation.--A 
     determination by a non-domicile State that an insurer 
     operating in a non-domicile State pursuant to the preemption 
     provided for in this subparagraph is in material violation of 
     the insurance laws (other than licensure and with respect to 
     the terms of subtitle A of title XXIX of the Public Health 
     Service Act (relating to rating and benefits added by the 
     Health Insurance Marketplace Modernization and Affordability 
     Act of 2006)) of such State.

       ``(B) No prohibition on promotion.--Nothing in this 
     paragraph shall be construed to prohibit a small business 
     health plan or an insurer from promoting coverage prior to 
     the expiration of the 90-day period provided for in 
     subparagraph (A), except that no enrollment or collection of 
     contributions shall occur before the expiration of such 90-
     day period.
       ``(C) Licensure.--Except with respect to the application of 
     the temporary preemption provision of this paragraph, nothing 
     in this part shall be construed to limit the requirement that 
     insurers issuing coverage to small business health plans 
     shall be licensed in each State in which the small business 
     health plans operate.
       ``(D) Servicing by licensed insurers.--Notwithstanding 
     subparagraph (C), the requirements of this subsection may 
     also be satisfied if the participating employers of a small 
     business health plan are serviced by a licensed insurer in 
     that State, even where such insurer is not the insurer of 
     such small business health plan in the State in which such 
     small business health plan is domiciled.

     ``SEC. 806. REQUIREMENTS FOR APPLICATION AND RELATED 
                   REQUIREMENTS.

       ``(a) Filing Fee.--Under the procedure prescribed pursuant 
     to section 802(a), a small business health plan shall pay to 
     the applicable authority at the time of filing an application 
     for certification under this part a filing fee in the amount 
     of $5,000, which shall be available in the case of the 
     Secretary, to the extent provided in appropriation Acts, for 
     the sole purpose of administering the certification 
     procedures applicable with respect to small business health 
     plans.
       ``(b) Information to Be Included in Application for 
     Certification.--An application for certification under this 
     part meets the requirements of this section only if it 
     includes, in a manner and form which shall be prescribed by 
     the applicable authority by regulation, at least the 
     following information:
       ``(1) Identifying information.--The names and addresses 
     of--
       ``(A) the sponsor; and
       ``(B) the members of the board of trustees of the plan.
       ``(2) States in which plan intends to do business.--The 
     States in which participants and beneficiaries under the plan 
     are to be located and the number of them expected to be 
     located in each such State.
       ``(3) Bonding requirements.--Evidence provided by the board 
     of trustees that the bonding requirements of section 412 will 
     be met as of the date of the application or (if later) 
     commencement of operations.
       ``(4) Plan documents.--A copy of the documents governing 
     the plan (including any bylaws and trust agreements), the 
     summary plan description, and other material describing the 
     benefits that will be provided to participants and 
     beneficiaries under the plan.
       ``(5) Agreements with service providers.--A copy of any 
     agreements between the plan, health insurance issuer, and 
     contract administrators and other service providers.
       ``(c) Filing Notice of Certification With States.--A 
     certification granted under this part to a small business 
     health plan shall not be effective unless written notice of 
     such certification is filed with the applicable State 
     authority of each State in which the small business health 
     plans operate.
       ``(d) Notice of Material Changes.--In the case of any small 
     business health plan certified under this part, descriptions 
     of material changes in any information which was required to 
     be submitted with the application for the certification under 
     this part shall be filed in such form and manner as shall be 
     prescribed by the applicable authority by regulation. The 
     applicable authority may require by regulation prior notice 
     of material changes with respect to specified matters which 
     might serve as the basis for suspension or revocation of the 
     certification.

     ``SEC. 807. NOTICE REQUIREMENTS FOR VOLUNTARY TERMINATION.

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

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

     ``SEC. 808. DEFINITIONS AND RULES OF CONSTRUCTION.

       ``(a) Definitions.--For purposes of this part--
       ``(1) Affiliated member.--The term `affiliated member' 
     means, in connection with a sponsor--
       ``(A) a person who is otherwise eligible to be a member of 
     the sponsor but who elects an affiliated status with the 
     sponsor, or
       ``(B) in the case of a sponsor with members which consist 
     of associations, a person who is a member or employee of any 
     such association and elects an affiliated status with the 
     sponsor.
       ``(2) Applicable authority.--The term `applicable 
     authority' means the Secretary of Labor, except that, in 
     connection with any exercise of the Secretary's authority 
     with respect to which the Secretary is required under section 
     506(d) to consult with a State, such term means the 
     Secretary, in consultation with such State.
       ``(3) Applicable state authority.--The term `applicable 
     State authority' means, with respect to a health insurance 
     issuer in a State, the State insurance commissioner or 
     official or officials designated by the State to enforce the 
     requirements of title XXVII of the Public Health Service Act 
     for the State involved with respect to such issuer.
       ``(4) Group health plan.--The term `group health plan' has 
     the meaning provided in section 733(a)(1) (after applying 
     subsection (b) of this section).
       ``(5) Health insurance coverage.--The term `health 
     insurance coverage' has the meaning provided in section 
     733(b)(1), except that such term shall not include excepted 
     benefits (as defined in section 733(c)).
       ``(6) Health insurance issuer.--The term `health insurance 
     issuer' has the meaning provided in section 733(b)(2).
       ``(7) Individual market.--
       ``(A) In general.--The term `individual market' means the 
     market for health insurance coverage offered to individuals 
     other than in connection with a group health plan.
       ``(B) Treatment of very small groups.--
       ``(i) In general.--Subject to clause (ii), such term 
     includes coverage offered in connection with a group health 
     plan that has fewer than 2 participants as current employees 
     or participants described in section 732(d)(3) on the first 
     day of the plan year.
       ``(ii) State exception.--Clause (i) shall not apply in the 
     case of health insurance coverage offered in a State if such 
     State regulates the coverage described in such clause in the 
     same manner and to the same extent as coverage in the small 
     group market (as defined in section 2791(e)(5) of the Public 
     Health Service Act) is regulated by such State.
       ``(8) Medical care.--The term `medical care' has the 
     meaning provided in section 733(a)(2).
       ``(9) Participating employer.--The term `participating 
     employer' means, in connection with a small business health 
     plan, any employer, if any individual who is an employee of 
     such employer, a partner in such employer, or a self-employed 
     individual who is such employer (or any dependent, as defined 
     under the terms of the plan, of such individual) is or was 
     covered under such plan in connection with the status of such 
     individual as such an employee, partner, or self-employed 
     individual in relation to the plan.
       ``(10) Small employer.--The term `small employer' means, in 
     connection with a group health plan with respect to a plan 
     year, a small employer as defined in section 2791(e)(4).
       ``(11) Trade association and professional association.--The 
     terms `trade association' and `professional association' mean 
     an entity that meets the requirements of section 1.501(c)(6)-
     1 of title 26, Code of Federal Regulations (as in effect on 
     the date of enactment of this Act).
       ``(b) Rule of Construction.--For purposes of determining 
     whether a plan, fund, or program is an employee welfare 
     benefit plan which is a small business health plan, and for 
     purposes of applying this title in connection with such plan, 
     fund, or program so determined to be such an employee welfare 
     benefit plan--
       ``(1) in the case of a partnership, the term `employer' (as 
     defined in section 3(5)) includes the partnership in relation 
     to the partners, and the term `employee' (as defined

[[Page 2313]]

     in section 3(6)) includes any partner in relation to the 
     partnership; and
       ``(2) in the case of a self-employed individual, the term 
     `employer' (as defined in section 3(5)) and the term 
     `employee' (as defined in section 3(6)) shall include such 
     individual.
       ``(c) Renewal.--Notwithstanding any provision of law to the 
     contrary, a participating employer in a small business health 
     plan shall not be deemed to be a plan sponsor in applying 
     requirements relating to coverage renewal.
       ``(d) Health Savings Accounts.--Nothing in this part shall 
     be construed to inhibit the development of health savings 
     accounts pursuant to section 223 of the Internal Revenue Code 
     of 1986.''.
       (b) Conforming Amendments to Preemption Rules.--
       (1) Section 514(b)(6) of such Act (29 U.S.C. 1144(b)(6)) is 
     amended by adding at the end the following new subparagraph:
       ``(E) The preceding subparagraphs of this paragraph do not 
     apply with respect to any State law in the case of a small 
     business health plan which is certified under part 8.''.
       (2) Section 514 of such Act (29 U.S.C. 1144) is amended--
       (A) in subsection (b)(4), by striking ``Subsection (a)'' 
     and inserting ``Subsections (a) and (d)'';
       (B) in subsection (b)(5), by striking ``subsection (a)'' in 
     subparagraph (A) and inserting ``subsection (a) of this 
     section and subsections (a)(2)(B) and (b) of section 805'', 
     and by striking ``subsection (a)'' in subparagraph (B) and 
     inserting ``subsection (a) of this section or subsection 
     (a)(2)(B) or (b) of section 805'';
       (C) by redesignating subsection (d) as subsection (e); and
       (D) by inserting after subsection (c) the following new 
     subsection:
       ``(d)(1) Except as provided in subsection (b)(4), the 
     provisions of this title shall supersede any and all State 
     laws insofar as they may now or hereafter preclude a health 
     insurance issuer from offering health insurance coverage in 
     connection with a small business health plan which is 
     certified under part 8.
       ``(2) In any case in which health insurance coverage of any 
     policy type is offered under a small business health plan 
     certified under part 8 to a participating employer operating 
     in such State, the provisions of this title shall supersede 
     any and all laws of such State insofar as they may establish 
     rating and benefit requirements that would otherwise apply to 
     such coverage, provided the requirements of subtitle A of 
     title XXIX of the Public Health Service Act (as added by 
     title II of the Health Insurance Marketplace Modernization 
     and Affordability Act of 2006) (concerning health plan rating 
     and benefits) are met.''.
       (c) Plan Sponsor.--Section 3(16)(B) of such Act (29 U.S.C. 
     102(16)(B)) is amended by adding at the end the following new 
     sentence: ``Such term also includes a person serving as the 
     sponsor of a small business health plan under part 8.''.
       (d) Savings Clause.--Section 731(c) of such Act is amended 
     by inserting ``or part 8'' after ``this part''.
       (e) Clerical Amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 is 
     amended by inserting after the item relating to section 734 
     the following new items:

         ``Part 8--Rules Governing Small Business Health Plans

``801. Small business health plans.
``802. Certification of small business health plans.
``803. Requirements relating to sponsors and boards of trustees.
``804. Participation and coverage requirements.
``805. Other requirements relating to plan documents, contribution 
              rates, and benefit options.
``806. Requirements for application and related requirements.
``807. Notice requirements for voluntary termination.
``808. Definitions and rules of construction.''.

     SEC. _12. COOPERATION BETWEEN FEDERAL AND STATE AUTHORITIES.

       Section 506 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1136) is amended by adding at the end the 
     following new subsection:
       ``(d) Consultation With States With Respect to Small 
     Business Health Plans.--
       ``(1) Agreements with states.--The Secretary shall consult 
     with the State recognized under paragraph (2) with respect to 
     a small business health plan regarding the exercise of--
       ``(A) the Secretary's authority under sections 502 and 504 
     to enforce the requirements for certification under part 8; 
     and
       ``(B) the Secretary's authority to certify small business 
     health plans under part 8 in accordance with regulations of 
     the Secretary applicable to certification under part 8.
       ``(2) Recognition of domicile state.--In carrying out 
     paragraph (1), the Secretary shall ensure that only one State 
     will be recognized, with respect to any particular small 
     business health plan, as the State with which consultation is 
     required. In carrying out this paragraph such State shall be 
     the domicile State, as defined in section 805(c).''.

     SEC. _13. EFFECTIVE DATE AND TRANSITIONAL AND OTHER RULES.

       (a) Effective Date.--The amendments made by this subtitle 
     shall take effect 12 months after the date of the enactment 
     of this Act. The Secretary of Labor shall first issue all 
     regulations necessary to carry out the amendments made by 
     this subtitle within 6 months after the date of the enactment 
     of this Act.
       (b) Treatment of Certain Existing Health Benefits 
     Programs.--
       (1) In general.--In any case in which, as of the date of 
     the enactment of this Act, an arrangement is maintained in a 
     State for the purpose of providing benefits consisting of 
     medical care for the employees and beneficiaries of its 
     participating employers, at least 200 participating employers 
     make contributions to such arrangement, such arrangement has 
     been in existence for at least 10 years, and such arrangement 
     is licensed under the laws of one or more States to provide 
     such benefits to its participating employers, upon the filing 
     with the applicable authority (as defined in section 
     808(a)(2) of the Employee Retirement Income Security Act of 
     1974 (as amended by this subtitle)) by the arrangement of an 
     application for certification of the arrangement under part 8 
     of subtitle B of title I of such Act--
       (A) such arrangement shall be deemed to be a group health 
     plan for purposes of title I of such Act;
       (B) the requirements of sections 801(a) and 803(a) of the 
     Employee Retirement Income Security Act of 1974 shall be 
     deemed met with respect to such arrangement;
       (C) the requirements of section 803(b) of such Act shall be 
     deemed met, if the arrangement is operated by a board of 
     trustees which--
       (i) is elected by the participating employers, with each 
     employer having one vote; and
       (ii) has complete fiscal control over the arrangement and 
     which is responsible for all operations of the arrangement;
       (D) the requirements of section 804(a) of such Act shall be 
     deemed met with respect to such arrangement; and
       (E) the arrangement may be certified by any applicable 
     authority with respect to its operations in any State only if 
     it operates in such State on the date of certification.

     The provisions of this subsection shall cease to apply with 
     respect to any such arrangement at such time after the date 
     of the enactment of this Act as the applicable requirements 
     of this subsection are not met with respect to such 
     arrangement or at such time that the arrangement provides 
     coverage to participants and beneficiaries in any State other 
     than the States in which coverage is provided on such date of 
     enactment.
       (2) Definitions.--For purposes of this subsection, the 
     terms ``group health plan'', ``medical care'', and 
     ``participating employer'' shall have the meanings provided 
     in section 808 of the Employee Retirement Income Security Act 
     of 1974, except that the reference in paragraph (7) of such 
     section to an ``small business health plan'' shall be deemed 
     a reference to an arrangement referred to in this subsection.

                       Subtitle B--Market Relief

     SEC. _021. MARKET RELIEF.

       The Public Health Service Act (42 U.S.C. 201 et seq.) is 
     amended by adding at the end the following:

     ``TITLE XXIX--HEALTH CARE INSURANCE MARKETPLACE MODERNIZATION

     ``SEC. 2901. GENERAL INSURANCE DEFINITIONS.

       ``In this title, the terms `health insurance coverage', 
     `health insurance issuer', `group health plan', and 
     `individual health insurance' shall have the meanings given 
     such terms in section 2791.

                      ``Subtitle A--Market Relief

                     ``PART I--RATING REQUIREMENTS

     ``SEC. 2911. DEFINITIONS.

       ``(a) General Definitions.--In this part:
       ``(1) Adopting state.--The term `adopting State' means a 
     State that, with respect to the small group market, has 
     enacted either the Model Small Group Rating Rules or, if 
     applicable to such State, the Transitional Model Small Group 
     Rating Rules, each in their entirety and as the exclusive 
     laws of the State that relate to rating in the small group 
     insurance market.
       ``(2) Applicable state authority.--The term `applicable 
     State authority' means, with respect to a health insurance 
     issuer in a State, the State insurance commissioner or 
     official or officials designated by the State to enforce the 
     insurance laws of such State.
       ``(3) Base premium rate.--The term `base premium rate' 
     means, for each class of business with respect to a rating 
     period, the lowest premium rate charged or that could have 
     been charged under a rating system for that class of business 
     by the small employer carrier to small employers with similar 
     case characteristics for health benefit plans with the same 
     or similar coverage
       ``(4) Eligible insurer.--The term `eligible insurer' means 
     a health insurance issuer that is licensed in a State and 
     that--
       ``(A) notifies the Secretary, not later than 30 days prior 
     to the offering of coverage described in this subparagraph, 
     that the issuer intends to offer health insurance coverage

[[Page 2314]]

     consistent with the Model Small Group Rating Rules or, as 
     applicable, transitional small group rating rules in a State;
       ``(B) notifies the insurance department of a nonadopting 
     State (or other State agency), not later than 30 days prior 
     to the offering of coverage described in this subparagraph, 
     that the issuer intends to offer small group health insurance 
     coverage in that State consistent with the Model Small Group 
     Rating Rules, and provides with such notice a copy of any 
     insurance policy that it intends to offer in the State, its 
     most recent annual and quarterly financial reports, and any 
     other information required to be filed with the insurance 
     department of the State (or other State agency); and
       ``(C) includes in the terms of the health insurance 
     coverage offered in nonadopting States (including in the 
     terms of any individual certificates that may be offered to 
     individuals in connection with such group health coverage) 
     and filed with the State pursuant to subparagraph (B), a 
     description in the insurer's contract of the Model Small 
     Group Rating Rules and an affirmation that such Rules are 
     included in the terms of such contract.
       ``(5) Health insurance coverage.--The term `health 
     insurance coverage' means any coverage issued in the small 
     group health insurance market, except that such term shall 
     not include excepted benefits (as defined in section 
     2791(c)).
       ``(6) Index rate.--The term `index rate' means for each 
     class of business with respect to the rating period for small 
     employers with similar case characteristics, the arithmetic 
     average of the applicable base premium rate and the 
     corresponding highest premium rate.
       ``(7)  Model small group rating rules.--The term ` Model 
     Small Group Rating Rules' means the rules set forth in 
     subsection (b).
       ``(8) Nonadopting state.--The term `nonadopting State' 
     means a State that is not an adopting State.
       ``(9) Small group insurance market.--The term `small group 
     insurance market' shall have the meaning given the term 
     `small group market' in section 2791(e)(5).
       ``(10) State law.--The term `State law' means all laws, 
     decisions, rules, regulations, or other State actions 
     (including actions by a State agency) having the effect of 
     law, of any State.
       ``(b) Definition Relating to Model Small Group Rating 
     Rules.--The term `Model Small Group Rating Rules' means 
     adapted rating rules drawn from the Adopted Small Employer 
     Health Insurance Availability Model Act of 1993 of the 
     National Association of Insurance Commissioners consisting of 
     the following:
       ``(1) Premium rates.--Premium rates for health benefit 
     plans to which this title applies shall be subject to the 
     following provisions relating to premiums:
       ``(A) Index rate.--The index rate for a rating period for 
     any class of business shall not exceed the index rate for any 
     other class of business by more than 20 percent.
       ``(B) Class of businesses.--With respect to a class of 
     business, the premium rates charged during a rating period to 
     small employers with similar case characteristics for the 
     same or similar coverage or the rates that could be charged 
     to such employers under the rating system for that class of 
     business, shall not vary from the index rate by more than 25 
     percent of the index rate under subparagraph (A).
       ``(C) Increases for new rating periods.--The percentage 
     increase in the premium rate charged to a small employer for 
     a new rating period may not exceed the sum of the following:
       ``(i) The percentage change in the new business premium 
     rate measured from the first day of the prior rating period 
     to the first day of the new rating period. In the case of a 
     health benefit plan into which the small employer carrier is 
     no longer enrolling new small employers, the small employer 
     carrier shall use the percentage change in the base premium 
     rate, except that such change shall not exceed, on a 
     percentage basis, the change in the new business premium rate 
     for the most similar health benefit plan into which the small 
     employer carrier is actively enrolling new small employers.
       ``(ii) Any adjustment, not to exceed 15 percent annually 
     and adjusted pro rata for rating periods of less then 1 year, 
     due to the claim experience, health status or duration of 
     coverage of the employees or dependents of the small employer 
     as determined from the small employer carrier's rate manual 
     for the class of business involved.
       ``(iii) Any adjustment due to change in coverage or change 
     in the case characteristics of the small employer as 
     determined from the small employer carrier's rate manual for 
     the class of business.
       ``(D) Uniform application of adjustments.--Adjustments in 
     premium rates for claim experience, health status, or 
     duration of coverage shall not be charged to individual 
     employees or dependents. Any such adjustment shall be applied 
     uniformly to the rates charged for all employees and 
     dependents of the small employer.
       ``(E) Use of industry as a case characteristic.--A small 
     employer carrier may utilize industry as a case 
     characteristic in establishing premium rates, so long as the 
     highest rate factor associated with any industry 
     classification does not exceed the lowest rate factor 
     associated with any industry classification by more than 15 
     percent.
       ``(F) Consistent application of factors.--Small employer 
     carriers shall apply rating factors, including case 
     characteristics, consistently with respect to all small 
     employers in a class of business. Rating factors shall 
     produce premiums for identical groups which differ only by 
     the amounts attributable to plan design and do not reflect 
     differences due to the nature of the groups assumed to select 
     particular health benefit plans.
       ``(G) Treatment of plans as having same rating period.--A 
     small employer carrier shall treat all health benefit plans 
     issued or renewed in the same calendar month as having the 
     same rating period.
       ``(H) Restricted network provisions.--For purposes of this 
     subsection, a health benefit plan that contains a restricted 
     network provision shall not be considered similar coverage to 
     a health benefit plan that does not contain a similar 
     provision if the restriction of benefits to network providers 
     results in substantial differences in claims costs.
       ``(I) Prohibition on use of certain case characteristics.--
     The small employer carrier shall not use case characteristics 
     other than age, gender, industry, geographic area, family 
     composition, group size, and participation in wellness 
     programs without prior approval of the applicable State 
     authority.
       ``(J) Require compliance.--Premium rates for small business 
     health benefit plans shall comply with the requirements of 
     this subsection notwithstanding any assessments paid or 
     payable by a small employer carrier as required by a State's 
     small employer carrier reinsurance program.
       ``(2) Establishment of separate class of business.--Subject 
     to paragraph (3), a small employer carrier may establish a 
     separate class of business only to reflect substantial 
     differences in expected claims experience or administrative 
     costs related to the following:
       ``(A) The small employer carrier uses more than one type of 
     system for the marketing and sale of health benefit plans to 
     small employers.
       ``(B) The small employer carrier has acquired a class of 
     business from another small employer carrier.
       ``(C) The small employer carrier provides coverage to one 
     or more association groups that meet the requirements of this 
     title.
       ``(3) Limitation.--A small employer carrier may establish 
     up to 9 separate classes of business under paragraph (2), 
     excluding those classes of business related to association 
     groups under this title.
       ``(4) Additional groupings.--The applicable State authority 
     may approve the establishment of additional distinct 
     groupings by small employer carriers upon the submission of 
     an application to the applicable State authority and a 
     finding by the applicable State authority that such action 
     would enhance the efficiency and fairness of the small 
     employer insurance marketplace.
       ``(5) Limitation on transfers.--A small employer carrier 
     shall not transfer a small employer involuntarily into or out 
     of a class of business. A small employer carrier shall not 
     offer to transfer a small employer into or out of a class of 
     business unless such offer is made to transfer all small 
     employers in the class of business without regard to case 
     characteristics, claim experience, health status or duration 
     of coverage since issue.
       ``(6) Suspension of the rules.--The applicable State 
     authority may suspend, for a specified period, the 
     application of paragraph (1) to the premium rates applicable 
     to one or more small employers included within a class of 
     business of a small employer carrier for one or more rating 
     periods upon a filing by the small employer carrier and a 
     finding by the applicable State authority either that the 
     suspension is reasonable when considering the financial 
     condition of the small employer carrier or that the 
     suspension would enhance the efficiency and fairness of the 
     marketplace for small employer health insurance.

     ``SEC. 2912. RATING RULES.

       ``(a) Implementation of Model Small Group Rating Rules.--
     Not later than 6 months after the enactment of this title, 
     the Secretary shall promulgate regulations implementing the 
     Model Small Group Rating Rules pursuant to section 2911(b).
       ``(b) Transitional Model Small Group Rating Rules.--
       ``(1) In general.--Not later than 6 months after the date 
     of enactment of this title and to the extent necessary to 
     provide for a graduated transition to the Model Small Group 
     Rating Rules, the Secretary, in consultation with the NAIC, 
     shall promulgate Transitional Model Small Group Rating Rules 
     in accordance with this subsection, which shall be applicable 
     with respect to certain non-adopting States for a period of 
     not to exceed 5 years from the date of the promulgation of 
     the Model Small Group Rating Rules pursuant to subsection 
     (a). After the expiration of such 5-year period, the 
     transitional model small group rating rules shall expire, and 
     the Model Small Group Rating Rules shall then apply with 
     respect to all non-adopting States pursuant to the provisions 
     of this part.
       ``(2) Premium variation during transition.--

[[Page 2315]]

       ``(A) Transition states.--During the transition period 
     described in paragraph (1), small group health insurance 
     coverage offered in a non-adopting State that had in place 
     premium rating band requirements or premium limits that 
     varied by less than 12.5 percent from the index rate within a 
     class of business on the date of enactment of this title, 
     shall not be subject to the premium variation provision of 
     section 2911(b)(1) of the Model Small Group Rating Rules and 
     shall instead be subject to the Transitional Model Small 
     Group Rating Rules as promulgated by the Secretary pursuant 
     to paragraph (1).
       ``(B) Non-transition states.--During the transition period 
     described in paragraph (1), and thereafter, small group 
     health insurance coverage offered in a non-adopting State 
     that had in place premium rating band requirements or premium 
     limits that varied by more than 12.5 percent from the index 
     rate within a class of business on the date of enactment of 
     this title, shall not be subject to the Transitional Model 
     Small Group Rating Rules as promulgated by the Secretary 
     pursuant to paragraph (1), and instead shall be subject to 
     the Model Small Group Rating Rules effective beginning with 
     the first plan year or calendar year following the 
     promulgation of such Rules, at the election of the eligible 
     insurer.
       ``(3) Transitioning of old business.--In developing the 
     transitional model small group rating rules under paragraph 
     (1), the Secretary shall, after consultation with the 
     National Association of Insurance Commissioners and 
     representatives of insurers operating in the small group 
     health insurance market, promulgate special transition 
     standards and timelines with respect to independent rating 
     classes for old and new business, to the extent reasonably 
     necessary to protect health insurance consumers and to ensure 
     a stable and fair transition for old and new market entrants.
       ``(4) Other transitional authority.--In developing the 
     Transitional Model Small Group Rating Rules under paragraph 
     (1), the Secretary shall provide for the application of the 
     Transitional Model Small Group Rating Rules in transition 
     States as the Secretary may determine necessary for a an 
     effective transition.
       ``(c) Market Re-Entry.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a health insurance issuer that has voluntarily withdrawn 
     from providing coverage in the small group market prior to 
     the date of enactment of the Health Insurance Marketplace 
     Modernization and Affordability Act of 2006 shall not be 
     excluded from re-entering such market on a date that is more 
     than 180 days after such date of enactment.
       ``(2) Termination.--The provision of this subsection shall 
     terminate on the date that is 24 months after the date of 
     enactment of the Health Insurance Marketplace Modernization 
     and Affordability Act of 2006.

     ``SEC. 2913. APPLICATION AND PREEMPTION.

       ``(a) Superseding of State Law.--
       ``(1) In general.--This part shall supersede any and all 
     State laws of a non-adopting State insofar as such State laws 
     (whether enacted prior to or after the date of enactment of 
     this subtitle) relate to rating in the small group insurance 
     market as applied to an eligible insurer, or small group 
     health insurance coverage issued by an eligible insurer, 
     including with respect to coverage issued to a small employer 
     through a small business health plan, in a State.
       ``(2) Nonadopting states.--This part shall supersede any 
     and all State laws of a nonadopting State insofar as such 
     State laws (whether enacted prior to or after the date of 
     enactment of this subtitle)--
       ``(A) prohibit an eligible insurer from offering, 
     marketing, or implementing small group health insurance 
     coverage consistent with the Model Small Group Rating Rules 
     or transitional model small group rating rules; or
       ``(B) have the effect of retaliating against or otherwise 
     punishing in any respect an eligible insurer for offering, 
     marketing, or implementing small group health insurance 
     coverage consistent with the Model Small Group Rating Rules 
     or transitional model small group rating rules.
       ``(b) Savings Clause and Construction.--
       ``(1) Nonapplication to adopting states.--Subsection (a) 
     shall not apply with respect to adopting states.
       ``(2) Nonapplication to certain insurers.--Subsection (a) 
     shall not apply with respect to insurers that do not qualify 
     as eligible insurers that offer small group health insurance 
     coverage in a nonadopting State.
       ``(3) Nonapplication where obtaining relief under state 
     law.--Subsection (a)(1) shall not supercede any State law in 
     a nonadopting State to the extent necessary to permit 
     individuals or the insurance department of the State (or 
     other State agency) to obtain relief under State law to 
     require an eligible insurer to comply with the Model Small 
     Group Rating Rules or transitional model small group rating 
     rules.
       ``(4) No effect on preemption.--In no case shall this part 
     be construed to limit or affect in any manner the preemptive 
     scope of sections 502 and 514 of the Employee Retirement 
     Income Security Act of 1974. In no case shall this part be 
     construed to create any cause of action under Federal or 
     State law or enlarge or affect any remedy available under the 
     Employee Retirement Income Security Act of 1974
       ``(c) Effective Date.--This section shall apply, at the 
     election of the eligible insurer, beginning in the first plan 
     year or the first calendar year following the issuance of the 
     final rules by the Secretary under the Model Small Group 
     Rating Rules or, as applicable, the Transitional Model Small 
     Group Rating Rules, but in no event earlier than the date 
     that is 12 months after the date of enactment of this title.

     ``SEC. 2914. CIVIL ACTIONS AND JURISDICTION.

       ``(a) In General.--The courts of the United States shall 
     have exclusive jurisdiction over civil actions involving the 
     interpretation of this part.
       ``(b) Actions.--An eligible insurer may bring an action in 
     the district courts of the United States for injunctive or 
     other equitable relief against any officials or agents of a 
     nonadopting State in connection with any conduct or action, 
     or proposed conduct or action, by such officials or agents 
     which violates, or which would if undertaken violate, section 
     2913.
       ``(c) Direct Filing in Court of Appeals.--At the election 
     of the eligible insurer, an action may be brought under 
     subsection (b) directly in the United States Court of Appeals 
     for the circuit in which the nonadopting State is located by 
     the filing of a petition for review in such Court.
       ``(d) Expedited Review.--
       ``(1) District court.--In the case of an action brought in 
     a district court of the United States under subsection (b), 
     such court shall complete such action, including the issuance 
     of a judgment, prior to the end of the 120-day period 
     beginning on the date on which such action is filed, unless 
     all parties to such proceeding agree to an extension of such 
     period.
       ``(2) Court of appeals.--In the case of an action brought 
     directly in a United States Court of Appeal under subsection 
     (c), or in the case of an appeal of an action brought in a 
     district court under subsection (b), such Court shall 
     complete all action on the petition, including the issuance 
     of a judgment, prior to the end of the 60-day period 
     beginning on the date on which such petition is filed with 
     the Court, unless all parties to such proceeding agree to an 
     extension of such period.
       ``(e) Standard of Review.--A court in an action filed under 
     this section, shall render a judgment based on a review of 
     the merits of all questions presented in such action and 
     shall not defer to any conduct or action, or proposed conduct 
     or action, of a nonadopting State.

     ``SEC. 2915. ONGOING REVIEW.

       ``Not later than 5 years after the date on which the Model 
     Small Group Rating Rules are issued under this part, and 
     every 5 years thereafter, the Secretary, in consultation with 
     the National Association of Insurance Commissioners, shall 
     prepare and submit to the appropriate committees of Congress 
     a report that assesses the effect of the Model Small Group 
     Rating Rules on access, cost, and market functioning in the 
     small group market. Such report may, if the Secretary, in 
     consultation with the National Association of Insurance 
     Commissioners, determines such is appropriate for improving 
     access, costs, and market functioning, contain legislative 
     proposals for recommended modification to such Model Small 
     Group Rating Rules.

                      ``PART II--AFFORDABLE PLANS

     ``SEC. 2921. DEFINITIONS.

       ``In this part:
       ``(1) Adopting state.--The term `adopting State' means a 
     State that has enacted a law providing that small group and 
     large group health insurers in such State may offer and sell 
     products in accordance with the List of Required Benefits and 
     the Terms of Application as provided for in section 2922(b).
       ``(2) Eligible insurer.--The term `eligible insurer' means 
     a health insurance issuer that is licensed in a nonadopting 
     State and that--
       ``(A) notifies the Secretary, not later than 30 days prior 
     to the offering of coverage described in this subparagraph, 
     that the issuer intends to offer health insurance coverage 
     consistent with the List of Required Benefits and Terms of 
     Application in a nonadopting State;
       ``(B) notifies the insurance department of a nonadopting 
     State (or other applicable State agency), not later than 30 
     days prior to the offering of coverage described in this 
     subparagraph, that the issuer intends to offer health 
     insurance coverage in that State consistent with the List of 
     Required Benefits and Terms of Application, and provides with 
     such notice a copy of any insurance policy that it intends to 
     offer in the State, its most recent annual and quarterly 
     financial reports, and any other information required to be 
     filed with the insurance department of the State (or other 
     State agency) by the Secretary in regulations; and
       ``(C) includes in the terms of the health insurance 
     coverage offered in nonadopting States (including in the 
     terms of any individual certificates that may be offered to 
     individuals in connection with such group health coverage) 
     and filed with the State pursuant to subparagraph (B), a 
     description in the insurer's contract of the List of Required 
     Benefits and a description of the

[[Page 2316]]

     Terms of Application, including a description of the benefits 
     to be provided, and that adherence to such standards is 
     included as a term of such contract.
       ``(3) Health insurance coverage.--The term `health 
     insurance coverage' means any coverage issued in the small 
     group or large group health insurance markets, including with 
     respect to small business health plans, except that such term 
     shall not include excepted benefits (as defined in section 
     2791(c)).
       ``(4) List of required benefits.--The term `List of 
     Required Benefits' means the List issued under section 
     2922(a).
       ``(5) Nonadopting state.--The term `nonadopting State' 
     means a State that is not an adopting State.
       ``(6) State law.--The term `State law' means all laws, 
     decisions, rules, regulations, or other State actions 
     (including actions by a State agency) having the effect of 
     law, of any State.
       ``(7) State provider freedom of choice law.--The term 
     `State provider freedom of choice law' means a State law 
     requiring that a health insurance issuer, with respect to 
     health insurance coverage, not discriminate with respect to 
     participation, reimbursement, or indemnification as to any 
     provider who is acting within the scope of the provider's 
     license or certification under applicable State law.
       ``(8) Terms of application.--The term `Terms of 
     Application' means terms provided under section 2922(a).

     ``SEC. 2922. OFFERING AFFORDABLE PLANS.

       ``(a) List of Required Benefits.--Not later than 3 months 
     after the date of enactment of this title, the Secretary, in 
     consultation with the National Association of Insurance 
     Commissioners, shall issue by interim final rule a list (to 
     be known as the `List of Required Benefits') of covered 
     benefits, services, or categories of providers that are 
     required to be provided by health insurance issuers, in each 
     of the small group and large group markets, in at least 26 
     States as a result of the application of State covered 
     benefit, service, and category of provider mandate laws. With 
     respect to plans sold to or through small business health 
     plans, the List of Required Benefits applicable to the small 
     group market shall apply.
       ``(b) Terms of Application.--
       ``(1) State with mandates.--With respect to a State that 
     has a covered benefit, service, or category of provider 
     mandate in effect that is covered under the List of Required 
     Benefits under subsection (a), such State mandate shall, 
     subject to paragraph (3) (concerning uniform application), 
     apply to a coverage plan or plan in, as applicable, the small 
     group or large group market or through a small business 
     health plan in such State.
       ``(2) States without mandates.--With respect to a State 
     that does not have a covered benefit, service, or category of 
     provider mandate in effect that is covered under the List of 
     Required Benefits under subsection (a), such mandate shall 
     not apply, as applicable, to a coverage plan or plan in the 
     small group or large group market or through a small business 
     health plan in such State.
       ``(3) Uniform application of laws.--
       ``(A) In general.--With respect to a State described in 
     paragraph (1), in applying a covered benefit, service, or 
     category of provider mandate that is on the List of Required 
     Benefits under subsection (a) the State shall permit a 
     coverage plan or plan offered in the small group or large 
     group market or through a small business health plan in such 
     State to apply such benefit, service, or category of provider 
     coverage in a manner consistent with the manner in which such 
     coverage is applied under one of the three most heavily 
     subscribed national health plans offered under the Federal 
     Employee Health Benefits Program under chapter 89 of title 5, 
     United States Code (as determined by the Secretary in 
     consultation with the Director of the Office of Personnel 
     Management), and consistent with the Publication of Benefit 
     Applications under subsection (c). In the event a covered 
     benefit, service, or category of provider appearing in the 
     List of Required Benefits is not offered in one of the three 
     most heavily subscribed national health plans offered under 
     the Federal Employees Health Benefits Program, such covered 
     benefit, service, or category of provider requirement shall 
     be applied in a manner consistent with the manner in which 
     such coverage is offered in the remaining most heavily 
     subscribed plan of the remaining Federal Employees Health 
     Benefits Program plans, as determined by the Secretary, in 
     consultation with the Director of the Office of Personnel 
     Management.
       ``(B) Exception regarding state provider freedom of choice 
     laws.--Notwithstanding subparagraph (A), in the event a 
     category of provider mandate is included in the List of 
     Covered Benefits, any State Provider Freedom of Choice Law 
     (as defined in section 2921(7)) that is in effect in any 
     State in which such category of provider mandate is in effect 
     shall not be preempted, with respect to that category of 
     provider, by this part.
       ``(c) Publication of Benefits Applications.--Not later than 
     3 months after the date of enactment of this title, and on 
     the first day of every calendar year thereafter, the 
     Secretary, in consultation with the Director of the Office of 
     Personnel Management, shall publish in the Federal Register a 
     description of such covered benefits, services, and 
     categories of providers covered in that calendar year by each 
     of the three most heavily subscribed nationally available 
     Federal Employee Health Benefits Plan options which are also 
     included on the List of Required Benefits.
       ``(d) Effective Dates.--
       ``(1) Small business health plans.--With respect to health 
     insurance provided to participating employers of small 
     business health plans, the requirements of this part 
     (concerning lower cost plans) shall apply beginning on the 
     date that is 12 months after the date of enactment of this 
     title.
       ``(2) Non-association coverage.--With respect to health 
     insurance provided to groups or individuals other than 
     participating employers of small business health plans, the 
     requirements of this part shall apply beginning on the date 
     that is 15 months after the date of enactment of this title.
       ``(e) Updating of List of Required Benefits.--Not later 
     than 2 years after the date on which the list of required 
     benefits is issued under subsection (a), and every 2 years 
     thereafter, the Secretary, in consultation with the National 
     Association of Insurance Commissioners, shall update the list 
     based on changes in the laws and regulations of the States. 
     The Secretary shall issue the updated list by regulation, and 
     such updated list shall be effective upon the first plan year 
     following the issuance of such regulation.

     ``SEC. 2923. APPLICATION AND PREEMPTION.

       ``(a) Superceding of State Law.--
       ``(1) In general.--This part shall supersede any and all 
     State laws insofar as such laws relate to mandates relating 
     to covered benefits, services, or categories of provider in 
     the health insurance market as applied to an eligible 
     insurer, or health insurance coverage issued by an eligible 
     insurer, including with respect to coverage issued to a small 
     business health plan, in a nonadopting State.
       ``(2) Nonadopting states.--This part shall supersede any 
     and all State laws of a nonadopting State (whether enacted 
     prior to or after the date of enactment of this title) 
     insofar as such laws--
       ``(A) prohibit an eligible insurer from offering, 
     marketing, or implementing health insurance coverage 
     consistent with the Benefit Choice Standards, as provided for 
     in section 2922(a); or
       ``(B) have the effect of retaliating against or otherwise 
     punishing in any respect an eligible insurer for offering, 
     marketing, or implementing health insurance coverage 
     consistent with the Benefit Choice Standards.
       ``(b) Savings Clause and Construction.--
       ``(1) Nonapplication to adopting states.--Subsection (a) 
     shall not apply with respect to adopting States.
       ``(2) Nonapplication to certain insurers.--Subsection (a) 
     shall not apply with respect to insurers that do not qualify 
     as eligible insurers who offer health insurance coverage in a 
     nonadopting State.
       ``(3) Nonapplication where obtaining relief under state 
     law.--Subsection (a)(1) shall not supercede any State law of 
     a nonadopting State to the extent necessary to permit 
     individuals or the insurance department of the State (or 
     other State agency) to obtain relief under State law to 
     require an eligible insurer to comply with the Benefit Choice 
     Standards.
       ``(4) No effect on preemption.--In no case shall this part 
     be construed to limit or affect in any manner the preemptive 
     scope of sections 502 and 514 of the Employee Retirement 
     Income Security Act of 1974. In no case shall this part be 
     construed to create any cause of action under Federal or 
     State law or enlarge or affect any remedy available under the 
     Employee Retirement Income Security Act of 1974

     ``SEC. 2924. CIVIL ACTIONS AND JURISDICTION.

       ``(a) In General.--The courts of the United States shall 
     have exclusive jurisdiction over civil actions involving the 
     interpretation of this part.
       ``(b) Actions.--An eligible insurer may bring an action in 
     the district courts of the United States for injunctive or 
     other equitable relief against any officials or agents of a 
     nonadopting State in connection with any conduct or action, 
     or proposed conduct or action, by such officials or agents 
     which violates, or which would if undertaken violate, section 
     2923.
       ``(c) Direct Filing in Court of Appeals.--At the election 
     of the eligible insurer, an action may be brought under 
     subsection (b) directly in the United States Court of Appeals 
     for the circuit in which the nonadopting State is located by 
     the filing of a petition for review in such Court.
       ``(d) Expedited Review.--
       ``(1) District court.--In the case of an action brought in 
     a district court of the United States under subsection (b), 
     such court shall complete such action, including the issuance 
     of a judgment, prior to the end of the 120-day period 
     beginning on the date on which such action is filed, unless 
     all parties to such proceeding agree to an extension of such 
     period.
       ``(2) Court of appeals.--In the case of an action brought 
     directly in a United States Court of Appeal under subsection 
     (c), or in the case of an appeal of an action brought in a 
     district court under subsection (b), such Court shall 
     complete all action on the petition, including the issuance 
     of a judgment,

[[Page 2317]]

     prior to the end of the 60-day period beginning on the date 
     on which such petition is filed with the Court, unless all 
     parties to such proceeding agree to an extension of such 
     period.
       ``(e) Standard of Review.--A court in an action filed under 
     this section, shall render a judgment based on a review of 
     the merits of all questions presented in such action and 
     shall not defer to any conduct or action, or proposed conduct 
     or action, of a nonadopting State.

     ``SEC. 2925. RULES OF CONSTRUCTION.

       ``(a) In General.--Notwithstanding any other provision of 
     Federal or State law, a health insurance issuer in an 
     adopting State or an eligible insurer in a non-adopting State 
     may amend its existing policies to be consistent with the 
     terms of this subtitle (concerning rating and benefits).
       ``(b) Health Savings Accounts.--Nothing in this subtitle 
     shall be construed to inhibit the development of health 
     savings accounts pursuant to section 223 of the Internal 
     Revenue Code of 1986.''.

        Subtitle C--Harmonization of Health Insurance Standards

     SEC. _31. HEALTH INSURANCE STANDARDS HARMONIZATION.

       Title XXIX of the Public Health Service Act (as added by 
     section _21) is amended by adding at the end the following:

                 ``Subtitle B--Standards Harmonization

     ``SEC. 2931. DEFINITIONS.

       ``In this subtitle:
       ``(1) Adopting state.--The term `adopting State' means a 
     State that has enacted the harmonized standards adopted under 
     this subtitle in their entirety and as the exclusive laws of 
     the State that relate to the harmonized standards.
       ``(2) Eligible insurer.--The term `eligible insurer' means 
     a health insurance issuer that is licensed in a nonadopting 
     State and that--
       ``(A) notifies the Secretary, not later than 30 days prior 
     to the offering of coverage described in this subparagraph, 
     that the issuer intends to offer health insurance coverage 
     consistent with the harmonized standards in a nonadopting 
     State;
       ``(B) notifies the insurance department of a nonadopting 
     State (or other State agency), not later than 30 days prior 
     to the offering of coverage described in this subparagraph, 
     that the issuer intends to offer health insurance coverage in 
     that State consistent with the harmonized standards published 
     pursuant to section 2932(d), and provides with such notice a 
     copy of any insurance policy that it intends to offer in the 
     State, its most recent annual and quarterly financial 
     reports, and any other information required to be filed with 
     the insurance department of the State (or other State agency) 
     by the Secretary in regulations; and
       ``(C) includes in the terms of the health insurance 
     coverage offered in nonadopting States (including in the 
     terms of any individual certificates that may be offered to 
     individuals in connection with such health coverage) and 
     filed with the State pursuant to subparagraph (B), a 
     description of the harmonized standards published pursuant to 
     section 2932(g)(2) and an affirmation that such standards are 
     a term of the contract.
       ``(3) Harmonized standards.--The term `harmonized 
     standards' means the standards certified by the Secretary 
     under section 2932(d).
       ``(4) Health insurance coverage.--The term `health 
     insurance coverage' means any coverage issued in the health 
     insurance market, except that such term shall not include 
     excepted benefits (as defined in section 2791(c).
       ``(5) Nonadopting state.--The term `nonadopting State' 
     means a State that fails to enact, within 18 months of the 
     date on which the Secretary certifies the harmonized 
     standards under this subtitle, the harmonized standards in 
     their entirety and as the exclusive laws of the State that 
     relate to the harmonized standards.
       ``(6) State law.--The term `State law' means all laws, 
     decisions, rules, regulations, or other State actions 
     (including actions by a State agency) having the effect of 
     law, of any State.

     ``SEC. 2932. HARMONIZED STANDARDS.

       ``(a) Board.--
       ``(1) Establishment.--Not later than 3 months after the 
     date of enactment of this title, the Secretary, in 
     consultation with the NAIC, shall establish the Health 
     Insurance Consensus Standards Board (referred to in this 
     subtitle as the `Board') to develop recommendations that 
     harmonize inconsistent State health insurance laws in 
     accordance with the procedures described in subsection (b).
       ``(2) Composition.--
       ``(A) In general.--The Board shall be composed of the 
     following voting members to be appointed by the Secretary 
     after considering the recommendations of professional 
     organizations representing the entities and constituencies 
     described in this paragraph:
       ``(i) Four State insurance commissioners as recommended by 
     the National Association of Insurance Commissioners, of which 
     2 shall be Democrats and 2 shall be Republicans, and of which 
     one shall be designated as the chairperson and one shall be 
     designated as the vice chairperson.
       ``(ii) Four representatives of State government, two of 
     which shall be governors of States and two of which shall be 
     State legislators, and two of which shall be Democrats and 
     two of which shall be Republicans.
       ``(iii) Four representatives of health insurers, of which 
     one shall represent insurers that offer coverage in the small 
     group market, one shall represent insurers that offer 
     coverage in the large group market, one shall represent 
     insurers that offer coverage in the individual market, and 
     one shall represent carriers operating in a regional market.
       ``(iv) Two representatives of insurance agents and brokers.
       ``(v) Two independent representatives of the American 
     Academy of Actuaries who have familiarity with the actuarial 
     methods applicable to health insurance.
       ``(B) Ex officio member.--A representative of the Secretary 
     shall serve as an ex officio member of the Board.
       ``(3) Advisory panel.--The Secretary shall establish an 
     advisory panel to provide advice to the Board, and shall 
     appoint its members after considering the recommendations of 
     professional organizations representing the entities and 
     constituencies identified in this paragraph:
       ``(A) Two representatives of small business health plans.
       ``(B) Two representatives of employers, of which one shall 
     represent small employers and one shall represent large 
     employers.
       ``(C) Two representatives of consumer organizations.
       ``(D) Two representatives of health care providers.
       ``(4) Qualifications.--The membership of the Board shall 
     include individuals with national recognition for their 
     expertise in health finance and economics, actuarial science, 
     health plans, providers of health services, and other related 
     fields, who provide a mix of different professionals, broad 
     geographic representation, and a balance between urban and 
     rural representatives.
       ``(5) Ethical disclosure.--The Secretary shall establish a 
     system for public disclosure by members of the Board of 
     financial and other potential conflicts of interest relating 
     to such members. Members of the Board shall be treated as 
     employees of Congress for purposes of applying title I of the 
     Ethics in Government Act of 1978 (Public Law 95-521).
       ``(6) Director and staff.--Subject to such review as the 
     Secretary deems necessary to assure the efficient 
     administration of the Board, the chair and vice-chair of the 
     Board may--
       ``(A) employ and fix the compensation of an Executive 
     Director (subject to the approval of the Comptroller General) 
     and such other personnel as may be necessary to carry out its 
     duties (without regard to the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service);
       ``(B) seek such assistance and support as may be required 
     in the performance of its duties from appropriate Federal 
     departments and agencies;
       ``(C) enter into contracts or make other arrangements, as 
     may be necessary for the conduct of the work of the Board 
     (without regard to section 3709 of the Revised Statutes (41 
     U.S.C. 5));
       ``(D) make advance, progress, and other payments which 
     relate to the work of the Board;
       ``(E) provide transportation and subsistence for persons 
     serving without compensation; and
       ``(F) prescribe such rules as it deems necessary with 
     respect to the internal organization and operation of the 
     Board.
       ``(7) Terms.--The members of the Board shall serve for the 
     duration of the Board. Vacancies in the Board shall be filled 
     as needed in a manner consistent with the composition 
     described in paragraph (2).
       ``(b) Development of Harmonized Standards.--
       ``(1) In general.--In accordance with the process described 
     in subsection (c), the Board shall identify and recommend 
     nationally harmonized standards for each of the following 
     process categories:
       ``(A) Form filing and rate filing.--Form and rate filing 
     standards shall be established which promote speed to market 
     and include the following defined areas for States that 
     require such filings:
       ``(i) Procedures for form and rate filing pursuant to a 
     streamlined administrative filing process.
       ``(ii) Timeframes for filings to be reviewed by a State if 
     review is required before they are deemed approved.
       ``(iii) Timeframes for an eligible insurer to respond to 
     State requests following its review.
       ``(iv) A process for an eligible insurer to self-certify.
       ``(v) State development of form and rate filing templates 
     that include only non-preempted State law and Federal law 
     requirements for eligible insurers with timely updates.
       ``(vi) Procedures for the resubmission of forms and rates.
       ``(vii) Disapproval rationale of a form or rate filing 
     based on material omissions or violations of non-preempted 
     State law or Federal law with violations cited and explained.

[[Page 2318]]

       ``(viii) For States that may require a hearing, a rationale 
     for hearings based on violations of non-preempted State law 
     or insurer requests.
       ``(B) Market conduct review.--Market conduct review 
     standards shall be developed which provide for the following:
       ``(i) Mandatory participation in national databases.
       ``(ii) The confidentiality of examination materials.
       ``(iii) The identification of the State agency with primary 
     responsibility for examinations.
       ``(iv) Consultation and verification of complaint data with 
     the eligible insurer prior to State actions.
       ``(v) Consistency of reporting requirements with the 
     recordkeeping and administrative practices of the eligible 
     insurer.
       ``(vi) Examinations that seek to correct material errors 
     and harmful business practices rather than infrequent errors.
       ``(vii) Transparency and publishing of the State's 
     examination standards.
       ``(viii) Coordination of market conduct analysis.
       ``(ix) Coordination and nonduplication between State 
     examinations of the same eligible insurer.
       ``(x) Rationale and protocols to be met before a full 
     examination is conducted.
       ``(xi) Requirements on examiners prior to beginning 
     examinations such as budget planning and work plans.
       ``(xii) Consideration of methods to limit examiners' fees 
     such as caps, competitive bidding, or other alternatives.
       ``(xiii) Reasonable fines and penalties for material errors 
     and harmful business practices.
       ``(C) Prompt payment of claims.--The Board shall establish 
     prompt payment standards for eligible insurers based on 
     standards similar to those applicable to the Social Security 
     Act as set forth in section 1842(c)(2) of such Act (42 U.S.C. 
     1395u(c)(2)). Such prompt payment standards shall be 
     consistent with the timing and notice requirements of the 
     claims procedure rules to be specified under subparagraph 
     (D), and shall include appropriate exceptions such as for 
     fraud, nonpayment of premiums, or late submission of claims.
       ``(D) Internal review.--The Board shall establish standards 
     for claims procedures for eligible insurers that are 
     consistent with the requirements relating to initial claims 
     for benefits and appeals of claims for benefits under the 
     Employee Retirement Income Security Act of 1974 as set forth 
     in section 503 of such Act (29 U.S.C. 1133) and the 
     regulations thereunder.
       ``(2) Recommendations.--The Board shall recommend 
     harmonized standards for each element of the categories 
     described in subparagraph (A) through (D) of paragraph (1) 
     within each such market. Notwithstanding the previous 
     sentence, the Board shall not recommend any harmonized 
     standards that disrupt, expand, or duplicate the benefit, 
     service, or provider mandate standards provided in the 
     Benefit Choice Standards pursuant to section 2922(a).
       ``(c) Process for Identifying Harmonized Standards.--
       ``(1) In general.--The Board shall develop recommendations 
     to harmonize inconsistent State insurance laws with respect 
     to each of the process categories described in subparagraphs 
     (A) through (D) of subsection (b)(1).
       ``(2) Requirements.--In adopting standards under this 
     section, the Board shall consider the following:
       ``(A) Any model acts or regulations of the National 
     Association of Insurance Commissioners in each of the process 
     categories described in subparagraphs (A) through (D) of 
     subsection (b)(1).
       ``(B) Substantially similar standards followed by a 
     plurality of States, as reflected in existing State laws, 
     relating to the specific process categories described in 
     subparagraphs (A) through (D) of subsection (b)(1).
       ``(C) Any Federal law requirement related to specific 
     process categories described in subparagraphs (A) through (D) 
     of subsection (b)(1).
       ``(D) In the case of the adoption of any standard that 
     differs substantially from those referred to in subparagraphs 
     (A), (B), or (C), the Board shall provide evidence to the 
     Secretary that such standard is necessary to protect health 
     insurance consumers or promote speed to market or 
     administrative efficiency.
       ``(E) The criteria specified in clauses (i) through (iii) 
     of subsection (d)(2)(B).
       ``(d) Recommendations and Certification by Secretary.--
       ``(1) Recommendations.--Not later than 18 months after the 
     date on which all members of the Board are selected under 
     subsection (a), the Board shall recommend to the Secretary 
     the certification of the harmonized standards identified 
     pursuant to subsection (c).
       ``(2) Certification.--
       ``(A) In general.--Not later than 120 days after receipt of 
     the Board's recommendations under paragraph (1), the 
     Secretary shall certify the recommended harmonized standards 
     as provided for in subparagraph (B), and issue such standards 
     in the form of an interim final regulation.
       ``(B) Certification process.--The Secretary shall establish 
     a process for certifying the recommended harmonized standard, 
     by category, as recommended by the Board under this section. 
     Such process shall--
       ``(i) ensure that the certified standards for a particular 
     process area achieve regulatory harmonization with respect to 
     health plans on a national basis;
       ``(ii) ensure that the approved standards are the minimum 
     necessary, with regard to substance and quantity of 
     requirements, to protect health insurance consumers and 
     maintain a competitive regulatory environment; and
       ``(iii) ensure that the approved standards will not limit 
     the range of group health plan designs and insurance 
     products, such as catastrophic coverage only plans, health 
     savings accounts, and health maintenance organizations, that 
     might otherwise be available to consumers.
       ``(3) Effective date.--The standards certified by the 
     Secretary under paragraph (2) shall be effective on the date 
     that is 18 months after the date on which the Secretary 
     certifies the harmonized standards.
       ``(e) Termination.--The Board shall terminate and be 
     dissolved after making the recommendations to the Secretary 
     pursuant to subsection (d)(1).
       ``(f) Ongoing Review.--Not earlier than 3 years after the 
     termination of the Board under subsection (e), and not 
     earlier than every 3 years thereafter, the Secretary, in 
     consultation with the National Association of Insurance 
     Commissioners and the entities and constituencies represented 
     on the Board and the Advisory Panel, shall prepare and submit 
     to the appropriate committees of Congress a report that 
     assesses the effect of the harmonized standards on access, 
     cost, and health insurance market functioning. The Secretary 
     may, based on such report and applying the process 
     established for certification under subsection (d)(2)(B), in 
     consultation with the National Association of Insurance 
     Commissioners and the entities and constituencies represented 
     on the Board and the Advisory Panel, update the harmonized 
     standards through notice and comment rulemaking.
       ``(g) Publication.--
       ``(1) Listing.--The Secretary shall maintain an up to date 
     listing of all harmonized standards certified under this 
     section on the Internet website of the Department of Health 
     and Human Services.
       ``(2) Sample contract language.--The Secretary shall 
     publish on the Internet website of the Department of Health 
     and Human Services sample contract language that incorporates 
     the harmonized standards certified under this section, which 
     may be used by insurers seeking to qualify as an eligible 
     insurer. The types of harmonized standards that shall be 
     included in sample contract language are the standards that 
     are relevant to the contractual bargain between the insurer 
     and insured.
       ``(h) State Adoption and Enforcement.--Not later than 18 
     months after the certification by the Secretary of harmonized 
     standards under this section, the States may adopt such 
     harmonized standards (and become an adopting State) and, in 
     which case, shall enforce the harmonized standards pursuant 
     to State law.

     ``SEC. 2933. APPLICATION AND PREEMPTION.

       ``(a) Superceding of State Law.--
       ``(1) In general.--The harmonized standards certified under 
     this subtitle shall supersede any and all State laws of a 
     non-adopting State insofar as such State laws relate to the 
     areas of harmonized standards as applied to an eligible 
     insurer, or health insurance coverage issued by a eligible 
     insurer, including with respect to coverage issued to a small 
     business health plan, in a nonadopting State.
       ``(2) Nonadopting states.--This subtitle shall supersede 
     any and all State laws of a nonadopting State (whether 
     enacted prior to or after the date of enactment of this 
     title) insofar as they may--
       ``(A) prohibit an eligible insurer from offering, 
     marketing, or implementing health insurance coverage 
     consistent with the harmonized standards; or
       ``(B) have the effect of retaliating against or otherwise 
     punishing in any respect an eligible insurer for offering, 
     marketing, or implementing health insurance coverage 
     consistent with the harmonized standards under this subtitle.
       ``(b) Savings Clause and Construction.--
       ``(1) Nonapplication to adopting states.--Subsection (a) 
     shall not apply with respect to adopting States.
       ``(2) Nonapplication to certain insurers.--Subsection (a) 
     shall not apply with respect to insurers that do not qualify 
     as eligible insurers who offer health insurance coverage in a 
     nonadopting State.
       ``(3) Nonapplication where obtaining relief under state 
     law.--Subsection (a)(1) shall not supercede any State law of 
     a nonadopting State to the extent necessary to permit 
     individuals or the insurance department of the State (or 
     other State agency) to obtain relief under State law to 
     require an eligible insurer to comply with the harmonized 
     standards under this subtitle.
       ``(4) No effect on preemption.--In no case shall this 
     subtitle be construed to limit or affect in any manner the 
     preemptive scope of sections 502 and 514 of the Employee 
     Retirement Income Security Act of 1974. In no case

[[Page 2319]]

     shall this subtitle be construed to create any cause of 
     action under Federal or State law or enlarge or affect any 
     remedy available under the Employee Retirement Income 
     Security Act of 1974.
       ``(c) Effective Date.--This section shall apply beginning 
     on the date that is 18 months after the date on harmonized 
     standards are certified by the Secretary under this subtitle.

     ``SEC. 2934. CIVIL ACTIONS AND JURISDICTION.

       ``(a) In General.--The district courts of the United States 
     shall have exclusive jurisdiction over civil actions 
     involving the interpretation of this subtitle.
       ``(b) Actions.--An eligible insurer may bring an action in 
     the district courts of the United States for injunctive or 
     other equitable relief against any officials or agents of a 
     nonadopting State in connection with any conduct or action, 
     or proposed conduct or action, by such officials or agents 
     which violates, or which would if undertaken violate, section 
     2933.
       ``(c) Direct Filing in Court of Appeals.--At the election 
     of the eligible insurer, an action may be brought under 
     subsection (b) directly in the United States Court of Appeals 
     for the circuit in which the nonadopting State is located by 
     the filing of a petition for review in such Court.
       ``(d) Expedited Review.--
       ``(1) District court.--In the case of an action brought in 
     a district court of the United States under subsection (b), 
     such court shall complete such action, including the issuance 
     of a judgment, prior to the end of the 120-day period 
     beginning on the date on which such action is filed, unless 
     all parties to such proceeding agree to an extension of such 
     period.
       ``(2) Court of appeals.--In the case of an action brought 
     directly in a United States Court of Appeal under subsection 
     (c), or in the case of an appeal of an action brought in a 
     district court under subsection (b), such Court shall 
     complete all action on the petition, including the issuance 
     of a judgment, prior to the end of the 60-day period 
     beginning on the date on which such petition is filed with 
     the Court, unless all parties to such proceeding agree to an 
     extension of such period.
       ``(e) Standard of Review.--A court in an action filed under 
     this section, shall render a judgment based on a review of 
     the merits of all questions presented in such action and 
     shall not defer to any conduct or action, or proposed conduct 
     or action, of a nonadopting State.

     ``SEC. 2935. AUTHORIZATION OF APPROPRIATIONS; RULE OF 
                   CONSTRUCTION.

       ``(a) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this subtitle.
       ``(b) Health Savings Accounts.--Nothing in this subtitle 
     shall be construed to inhibit the development of health 
     savings accounts pursuant to section 223 of the Internal 
     Revenue Code of 1986.''.

     

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