[Congressional Record (Bound Edition), Volume 159 (2013), Part 7]
[Senate]
[Pages 10526-10554]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1721. Mr. REID submitted an amendment intended to be proposed by 
him to the bill S. 744, to provide for comprehensive immigration reform 
and for other purposes; which was ordered to lie on the table; as 
follows:

       In the amendment, strike ``3 days'' and insert ``10 days''.
                                 ______
                                 
  SA 1722. Mr. REID submitted an amendment intended to be proposed by 
him to the bill S. 744, to provide for comprehensive immigration reform 
and for other purposes; which was ordered to lie on the table; as 
follows:

       In the amendment, strike ``3 days'' and insert ``11 days''.
                                 ______
                                 
  SA 1723. Mr. REID submitted an amendment intended to be proposed by 
him to the bill S. 744, to provide for comprehensive immigration reform 
and for other purposes; which was ordered to lie on the table; as 
follows:

       In the amendment, strike ``3 days'' and insert ``12 days''.
                                 ______
                                 
  SA 1724. Mr. JOHNSON of Wisconsin (for himself, Mr. Coburn, and Mr. 
Vitter) submitted an amendment intended to be proposed by him to the 
bill S. 744, to provide for comprehensive immigration reform and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DISALLOWANCE OF EARNED INCOME TAX CREDIT FOR 
                   REGISTERED PROVISIONAL IMMIGRANTS.

       (a) In General.--Subparagraph (D) of section 32(c)(1) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(D) Limitation on eligibility of certain aliens.--
       ``(i) Registered provisional immigrant status.--The term 
     `eligible individual' shall not include an individual who is 
     in registered provisional immigrant status under section 245B 
     of the Immigration and Nationality Act during any portion of 
     the taxable year.
       ``(ii) Nonresident aliens.--The term `eligible individual' 
     shall not include any individual who is a nonresident alien 
     individual for any portion of the taxable year unless such 
     individual is treated for such taxable year as a resident of 
     the United States for purposes of this chapter by reason of 
     an election under subsection (g) or (h) of section 6013.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 1725. Mr. JOHNSON of Wisconsin (for himself and Mr. Coburn) 
submitted an amendment intended to be proposed by him to the bill S. 
744, to provide for comprehensive immigration reform and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. APPLICATION PERIOD FOR REGISTERED PROVISIONAL 
                   IMMIGRANT STATUS.

       Notwithstanding paragraph (3) of section 245B(c) of the 
     Immigration and Nationality Act, as added by section 2101(a), 
     the Secretary may only accept applications for registered 
     provisional immigrant status from aliens in the United States 
     during the 1-year period beginning on the date on which the 
     final rule is published in the Federal Register pursuant to 
     paragraph (1) of such section 245B(c).
                                 ______
                                 
  SA 1726. Mr. PORTMAN (for himself and Mr. Tester) submitted an 
amendment intended to be proposed to amendment SA 1320 proposed by Mr. 
Cruz to the bill S. 744, to provide for comprehensive immigration 
reform and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. ___. EMPLOYMENT VERIFICATION SYSTEM IMPROVEMENTS.

       (a) Trigger.--In addition to the conditions set forth in 
     section 3(c)(2)(A), the Secretary may not adjust the status 
     of aliens who have been granted registered provisional 
     immigrant status, except for aliens granted blue card status 
     under section 2201 of this Act or described in section 
     245D(b) of the Immigration and Nationality Act, unless the 
     Secretary, after consultation with the Comptroller General of 
     the United States, and as part of the written certification 
     submitted to the President and Congress pursuant to section 
     3(c)(2)(A), certifies that the Secretary has implemented the 
     mandatory employment verification system, including the full 
     incorporation of the photo tool and additional security 
     measures, required by section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a), as amended by section 3101, 
     and has required the system's use by all employers to prevent 
     unauthorized workers from obtaining employment in the United 
     States.
       (b) Employment Verification System.--Section 274A (8 U.S.C. 
     1324a), as amended by section 3101, is further amended--
       (1) in subsection (a)(5)(A)(ii), by inserting ``, by clear 
     and convincing evidence,'' after demonstrates; and
       (2) by striking subsections (c) and (d) and inserting the 
     following:
       ``(c) Document Verification Requirements.--Any employer 
     hiring an individual for employment in the United States 
     shall comply with the following requirements and the 
     requirements under subsection (d) to verify that the 
     individual has employment authorized status.
       ``(1) Attestation after examination of documentation.--
       ``(A) In general.--
       ``(i) Examination by employer.--An employer shall attest, 
     under penalty of perjury on a form prescribed by the 
     Secretary, that the employer has verified the identity and 
     employment authorization status of the individual--

       ``(I) by examining--

       ``(aa) a document specified in subparagraph (C); or
       ``(bb) a document specified in subparagraph (D) and a 
     document specified in subparagraph (E); and

       ``(II) by utilizing an identity authentication mechanism 
     described in clause (iii) or (iv) of subparagraph (F).

       ``(ii) Publication of documents.--The Secretary shall 
     publish a picture of each document specified in subparagraphs 
     (C) and (E) on the U.S. Citizenship and Immigration Services 
     website.
       ``(B) Requirements.--
       ``(i) Form.--The form referred to in subparagraph (A)(i)--

       ``(I) shall be prescribed by the Secretary not later than 6 
     months after the date of the enactment of the Border 
     Security, Economic Opportunity, and Immigration Modernization 
     Act;
       ``(II) shall be available as--

       ``(aa) a paper form;
       ``(bb) a form that may be completed by an employer via 
     telephone or video conference;
       ``(cc) an electronic form; and
       ``(dd) a form that is integrated electronically with the 
     requirements under subparagraph (F) and subsection (d).
       ``(ii) Attestation.--Each such form shall require the 
     employer to sign an attestation with a handwritten, 
     electronic, or digital signature, according to standards 
     prescribed by the Secretary.
       ``(iii) Compliance.--An employer has complied with the 
     requirements under this paragraph with respect to examination 
     of the documents included in subclauses (I) and (II) of 
     subparagraph (A)(i) if--

       ``(I) the employer has, in good faith, followed applicable 
     regulations and any written procedures or instructions 
     provided by the Secretary; and
       ``(II) a reasonable person would conclude that the 
     documentation is genuine and relates to the individual 
     presenting such documentation.

       ``(C) Documents establishing identity and employment 
     authorized status.--A document is specified in this 
     subparagraph if the document is unexpired (unless the 
     validity of the document is extended by law) and is 1 of the 
     following:
       ``(i) A United States passport or passport card issued to 
     an individual pursuant to the Secretary of State's authority 
     under the Act entitled An Act to regulate the issue and 
     validity of passports, and for other purposes, approved July 
     3, 1926 (22 U.S.C. 211a).
       ``(ii) A document issued to an alien evidencing that the 
     alien is lawfully admitted for permanent residence or another 
     document issued to an individual evidencing the individual's 
     employment authorized status, as designated by the Secretary, 
     if the document--

       ``(I) contains a photograph of the individual, or such 
     other personal identifying information relating to the 
     individual as the Secretary determines, by regulation, to be 
     sufficient for the purposes of this subparagraph;
       ``(II) is evidence of employment authorized status; and
       ``(III) contains security features to make the document 
     resistant to tampering, counterfeiting, and fraudulent use.

       ``(iii) An enhanced driver's license or identification card 
     issued to a national of the United States by a State, an 
     outlying possession of the United States, or a federally 
     recognized Indian tribe that--

       ``(I) meets the requirements under section 202 of the REAL 
     ID Act of 2005 (division B of Public Law 109-13; 49 U.S.C. 
     30301 note); and
       ``(II) the Secretary has certified by notice published in 
     the Federal Register and

[[Page 10527]]

     through appropriate notice directly to employers registered 
     in the System 3 months prior to publication that such 
     enhanced license or card is suitable for use under this 
     subparagraph based upon the accuracy and security of the 
     issuance process, security features on the document, and such 
     other factors as the Secretary may prescribe.

       ``(iv) A passport issued by the appropriate authority of a 
     foreign country accompanied by a Form I-94 or Form I-94A (or 
     similar successor record), or other documentation as 
     designated by the Secretary that specifies the individual's 
     status in the United States and the duration of such status 
     if the proposed employment is not in conflict with any 
     restriction or limitation specified on such form or 
     documentation.
       ``(v) A passport issued by the Federated States of 
     Micronesia or the Republic of the Marshall Islands with 
     evidence of nonimmigrant admission to the United States under 
     the Compact of Free Association between the United States and 
     the Federated States of Micronesia or the Republic of the 
     Marshall Islands.
       ``(D) Documents establishing identity of individual.--A 
     document is specified in this subparagraph if the document is 
     unexpired (unless the validity of the document is extended by 
     law) and is 1 of the following:
       ``(i) A driver's license or identity card that is not 
     described in subparagraph (C)(iii) and is issued to an 
     individual by a State or an outlying possession of the United 
     States, a federally recognized Indian tribe, or an agency 
     (including military) of the Federal Government if the 
     driver's license or identity card includes, at a minimum--

       ``(I) the individual's photograph, name, date of birth, 
     gender, and driver's license or identification card number; 
     and
       ``(II) security features to make the license or card 
     resistant to tampering, counterfeiting, and fraudulent use.

       ``(ii) A voter registration card.
       ``(iii) A document that complies with the requirements 
     under section 7209(b)(1) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458; 8 
     U.S.C. 1185 note).
       ``(iv) For individuals under 18 years of age who are unable 
     to present a document listed in clause (i) or (ii), 
     documentation of personal identity of such other type as the 
     Secretary determines will provide a reliable means of 
     identification, which may include an attestation as to the 
     individual's identity by a parent or legal guardian under 
     penalty of perjury.
       ``(E) Documents evidencing employment authorization.--A 
     document is specified in this subparagraph if the document is 
     unexpired (unless the validity of the document is extended by 
     law) and is 1 of the following:
       ``(i) A social security account number card issued by the 
     Commissioner, other than a card which specifies on its face 
     that the card is not valid to evidence employment authorized 
     status or has other similar words of limitation.
       ``(ii) Any other documentation evidencing employment 
     authorized status that the Secretary determines and publishes 
     in the Federal Register and through appropriate notice 
     directly to employers registered within the System to be 
     acceptable for purposes of this subparagraph if such 
     documentation, including any electronic security measures 
     linked to such documentation, contains security features to 
     make such documentation resistant to tampering, 
     counterfeiting, and fraudulent use.
       ``(F) Identity authentication mechanism.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Covered identity document.--The term `covered 
     identity document' means a valid--

       ``(aa) United States passport, passport card, or a document 
     evidencing lawful permanent residence status or employment 
     authorized status issued to an alien;
       ``(bb) enhanced driver's license or identity card issued by 
     a participating State or an outlying possession of the United 
     States; or
       ``(cc) photograph and appropriate identifying information 
     provided by the Secretary of State pursuant to the granting 
     of a visa.

       ``(II) Participating state.--The term `participating State' 
     means a State that has an agreement with the Secretary to 
     provide the Secretary, for purposes of identity verification 
     in the System, with photographs and appropriate identifying 
     information maintained by the State.

       ``(ii) Requirement for identity authentication.--In 
     addition to verifying the documents specified in subparagraph 
     (C), (D), or (E), the System shall require each employer to 
     verify the identity of each new hire using the identity 
     authentication mechanism described in clause (iii) or, for an 
     individual whose identity is not able to be verified using 
     that mechanism, to use the additional security measures 
     provided in clause (iv) after such measures become available. 
     A failure of the System to verify the identity of an 
     individual due to the use of an identity authentication 
     mechanism shall result in a further action notice under 
     subsection (d)(4)(C)(iii).
       ``(iii) Photo tool.--

       ``(I) Use requirement.--An employer that hires an 
     individual who has a presented a covered identity document to 
     establish his or her identity and employment authorization 
     under subsection (c) shall verify the identity of such 
     individual using the photo tool described in subclause (II).
       ``(II) Development requirement.--The Secretary shall 
     develop and maintain a photo tool that enables employers to 
     match the photo on a covered identity document provided to 
     the employer to a photo maintained by a U.S. Citizenship and 
     Immigration Services or other appropriate database.
       ``(III) Individual queries.--The photo tool capability 
     shall be incorporated into the System and made available to 
     employers not later than 1 year after the date on which 
     regulations are published implementing subsection (d).
       ``(IV) Limitations on use of information.--Information and 
     images acquired from State motor vehicle databases through 
     the photo tool developed under subclause (II)--

       ``(aa) may only be used for matching photos to a covered 
     identity document for the purposes of employment 
     verification;
       ``(bb) shall not be collected or stored by the Federal 
     Government; and
       ``(cc) may only be disseminated in response to an 
     individual photo tool query.
       ``(iv) Additional security measures.--

       ``(I) Use requirement.--An employer seeking to hire an 
     individual whose identity is not able to be verified using 
     the photo tool described in clause (iii), because the 
     employee did not present a covered document for employment 
     eligibility verification purposes, shall verify the identity 
     of such individual using the additional security measures 
     described in subclause (II).
       ``(II) Development requirement.--The Secretary shall 
     develop, after publication in the Federal Register and an 
     opportunity for public comment, specific and effective 
     additional security measures to adequately verify the 
     identity of an individual whose identity is not able to be 
     verified using the photo tool described in clause (iii). Such 
     additional security measures--

       ``(aa) shall be kept up-to-date with technological 
     advances;
       ``(bb) shall provide a means of identity authentication in 
     a manner that provides a high level of certainty as to the 
     identity of such individual, using immigration and 
     identifying information that may include review of identity 
     documents or background screening verification techniques 
     using publicly available information; and
       ``(cc) shall be incorporated into the System and made 
     available to employers not later than 1 year after the date 
     on which regulations are published implementing subsection 
     (d).

       ``(III) Comprehensive use.--An employer may employ the 
     additional security measures set forth in this clause with 
     respect to all individuals the employer hires if the employer 
     notifies the Secretary of such election at the time the 
     employer registers for use of the System under subsection 
     (d)(4)(A)(i) or anytime thereafter. An election under this 
     subclause may be withdrawn 90 days after the employer 
     notifies the Secretary of the employer's intent to 
     discontinue such election.

       ``(v) Automated verification.--The Secretary--

       ``(I) may establish a program, in addition to the identity 
     authentication mechanism described in subparagraph (F)(iii), 
     in which the System automatically verifies information 
     contained in a covered identity document issued by a 
     participating State, which is presented under subparagraph 
     (D)(i), including information needed to verify that the 
     covered identity document matches the State's records;
       ``(II) may not maintain information provided by a 
     participating State in a database maintained by U.S. 
     Citizenship and Immigration Services; and
       ``(III) may not utilize or disclose such information, 
     except as authorized under this section.

       ``(G) Authority to prohibit use of certain documents.--If 
     the Secretary determines, after publication in the Federal 
     Register and an opportunity for public comment, that any 
     document or class of documents specified in subparagraph (B), 
     (C), or (D) does not reliably establish identity or that 
     employment authorized status is being used fraudulently to an 
     unacceptable degree, the Secretary--
       ``(i) may prohibit or restrict the use of such document or 
     class of documents for purposes of this subsection; and
       ``(ii) shall directly notify all employers registered 
     within the System of the prohibition through appropriate 
     means.
       ``(H) Authority to allow use of certain documents.--If the 
     Secretary has determined that another document or class of 
     documents, such as a document issued by a federally 
     recognized Indian tribe, may be used to reliably establish 
     identity or employment authorized status, the Secretary--
       ``(i) may allow the use of that document or class of 
     documents for purposes of this subsection after publication 
     in the Federal Register and an opportunity for public 
     comment;
       ``(ii) shall publish a description of any such document or 
     class of documents on the U.S. Citizenship and Immigration 
     Services website; and
       ``(iii) shall directly notify all employers registered 
     within the System of the addition through appropriate means.

[[Page 10528]]

       ``(2) Individual attestation of employment authorization.--
     An individual, upon commencing employment with an employer, 
     shall--
       ``(A) attest, under penalty of perjury, on the form 
     prescribed by the Secretary, that the individual is--
       ``(i) a citizen of the United States;
       ``(ii) an alien lawfully admitted for permanent residence;
       ``(iii) an alien who has employment authorized status; or
       ``(iv) otherwise authorized by the Secretary to be hired 
     for such employment;
       ``(B) provide such attestation by a handwritten, 
     electronic, or digital signature; and
       ``(C) provide the individual's social security account 
     number to the Secretary, unless the individual has not yet 
     been issued such a number, on such form as the Secretary may 
     require.
       ``(3) Retention of verification record.--
       ``(A) In general.--After completing a form for an 
     individual in accordance with paragraphs (1) and (2), the 
     employer shall retain a version of such completed form and 
     make such form available for inspection by the Secretary or 
     the Office of Special Counsel for Immigration-Related Unfair 
     Employment Practices of the Department of Justice during the 
     period beginning on the hiring date of the individual and 
     ending on the later of--
       ``(i) the date that is 3 years after such hiring date; or
       ``(ii) the date that is 1 year after the date on which the 
     individual's employment with the employer is terminated.
       ``(B) Requirement for electronic retention.--The 
     Secretary--
       ``(i) shall permit an employer to retain the form described 
     in subparagraph (A) in electronic form; and
       ``(ii) shall permit an employer to retain such form in 
     paper, microfiche, microfilm, portable document format, or 
     other media.
       ``(4) Copying of documentation and recordkeeping.--The 
     Secretary may promulgate regulations regarding--
       ``(A) copying documents and related information pertaining 
     to employment verification presented by an individual under 
     this subsection; and
       ``(B) retaining such information during a period not to 
     exceed the required retention period set forth in paragraph 
     (3).
       ``(5) Penalties.--An employer that fails to comply with any 
     requirement under this subsection may be penalized under 
     subsection (e)(4)(B).
       ``(6) Protection of civil rights.--
       ``(A) In general.--Nothing in this section may be construed 
     to diminish any rights otherwise protected by Federal law.
       ``(B) Prohibition on discrimination.--An employer shall use 
     the procedures for document verification set forth in this 
     paragraph for all employees without regard to race, color, 
     religion, sex, national origin, or, unless specifically 
     permitted in this section, to citizenship status.
       ``(7) Receipts.--The Secretary may authorize the use of 
     receipts for replacement documents, and temporary evidence of 
     employment authorization by an individual to meet a 
     documentation requirement under this subsection on a 
     temporary basis not to exceed 1 year, after which time the 
     individual shall provide documentation sufficient to satisfy 
     the documentation requirements under this subsection.
       ``(8) No authorization of national identification cards.--
     Nothing in this section may be construed to directly or 
     indirectly authorize the issuance, use, or establishment of a 
     national identification card.
       ``(d) Employment Verification System.--
       ``(1) In general.--
       ``(A) Establishment.--The Secretary, in consultation with 
     the Commissioner, shall establish the Employment Verification 
     System.
       ``(B) Monitoring.--The Secretary shall create the necessary 
     processes to monitor--
       ``(i) the functioning of the System, including the volume 
     of the workflow, the speed of processing of queries, the 
     speed and accuracy of responses;
       ``(ii) the misuse of the System, including the prevention 
     of fraud or identity theft;
       ``(iii) whether the use of the System results in wrongful 
     adverse actions or discrimination based upon a prohibited 
     factor against citizens or nationals of the United States or 
     individuals who have employment authorized status; and
       ``(iv) the security, integrity, and privacy of the System.
       ``(C) Procedures.--The Secretary--
       ``(i) shall create processes to provide an individual with 
     direct access to the individual's case history in the System, 
     including--

       ``(I) the identities of all persons or entities that have 
     queried the individual through the System;
       ``(II) the date of each such query; and
       ``(III) the System response for each such query; and

       ``(ii) in consultation with the Commissioner, shall 
     develop--

       ``(I) protocols to notify an individual, in a timely manner 
     through the use of electronic correspondence or mail, that a 
     query for the individual has been processed through the 
     System; or
       ``(II) a process for the individual to submit additional 
     queries to the System or notify the Secretary of potential 
     identity fraud.

       ``(2) Participation requirements.--
       ``(A) Federal government.--Except as provided in 
     subparagraph (B), all agencies and departments in the 
     executive, legislative, or judicial branches of the Federal 
     Government shall participate in the System beginning on the 
     earlier of--
       ``(i) the date of the enactment of the Border Security, 
     Economic Opportunity, and Immigration Modernization Act, to 
     the extent required under section 402(e)(1) of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (division C of Public Law 104-208; 8 U.S.C. 1324a) and as 
     already implemented by each agency or department; or
       ``(ii) the date that is 90 days after the date of the 
     enactment of the Border Security, Economic Opportunity, and 
     Immigration Modernization Act.
       ``(B) Federal contractors.--Federal contractors shall 
     participate in the System as provided in the final rule 
     relating to employment eligibility verification published in 
     the Federal Register on November 14, 2008 (73 Fed. Reg. 
     67,651), or any similar subsequent regulation, for which 
     purpose references to E-Verify in the final rule shall be 
     construed to apply to the System.
       ``(C) Critical infrastructure.--
       ``(i) In general.--Beginning on the date that is 1 year 
     after the date on which regulations are published 
     implementing this subsection, the Secretary may authorize or 
     direct any employer, person, or entity responsible for 
     granting access to, protecting, securing, operating, 
     administering, or regulating part of the critical 
     infrastructure (as defined in section 1016(e) of the Critical 
     Infrastructure Protection Act of 2001 (42 U.S.C. 5195c(e))) 
     to participate in the System to the extent the Secretary 
     determines that such participation will assist in the 
     protection of the critical infrastructure.
       ``(ii) Notification to employers.--The Secretary shall 
     notify an employer required to participate in the System 
     under this subparagraph not later than 90 days before the 
     date on which the employer is required to participate.
       ``(D) Employers with more than 10,000 employees.--Not later 
     than 1 year after regulations are published implementing this 
     subsection, all employers with more than 10,000 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(E) Employers with more than 500 employees.--Not later 
     than 2 years after regulations are published implementing 
     this subsection, all employers with more than 500 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(F) Employers with more than 20 employees.--Not later 
     than 3 years after regulations are published implementing 
     this subsection, all employers with more than 20 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(G) Agricultural employment.--Not later than 4 years 
     after regulations are published implementing this subsection, 
     employers of employees performing agricultural employment (as 
     defined in section 218A of this Act and section 2202 of the 
     Border Security, Economic Opportunity, and Immigration 
     Modernization Act) shall participate in the System with 
     respect to all newly hired employees and employees with 
     expiring temporary employment authorization documents. An 
     agricultural employee shall not be counted for purposes of 
     subparagraph (D), (E), or (F).
       ``(H) All employers.--Not later than 4 years after 
     regulations are published implementing this subsection, all 
     employers shall participate in the System with respect to all 
     newly hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(I) Tribal government employers.--
       ``(i) Rulemaking.--In developing regulations to implement 
     this subsection, the Secretary shall--

       ``(I) consider the effects of this section on federally 
     recognized Indian tribes and tribal members; and
       ``(II) consult with the governments of federally recognized 
     Indian tribes.

       ``(ii) Required participation.--Not later than 4 years 
     after regulations are published implementing this subsection, 
     all employers owned by, or entities of, the government of a 
     federally recognized Indian tribe shall participate in the 
     System with respect to all newly hired employees and 
     employees with expiring temporary employment authorization 
     documents.
       ``(J) Immigration law violators.--
       ``(i) Orders finding violations.--An order finding any 
     employer to have violated this section or section 274C may, 
     in the Secretary's discretion, require the employer to 
     participate in the System with respect to newly hired 
     employees and employees with expiring temporary employment 
     authorization documents, if such employer is not otherwise 
     required to participate in the System under this section. The 
     Secretary shall monitor such employer's compliance with 
     System procedures.

[[Page 10529]]

       ``(ii) Pattern or practice of violations.--The Secretary 
     may require an employer that is required to participate in 
     the System with respect to newly hired employees to 
     participate in the System with respect to the employer's 
     current employees if the employer is determined by the 
     Secretary or other appropriate authority to have engaged in a 
     pattern or practice of violations of the immigration laws of 
     the United States.
       ``(K)  Voluntary participation.--The Secretary may permit 
     any employer that is not required to participate in the 
     System under this section to do so on a voluntary basis.
       ``(3) Consequence of failure to participate.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the failure, other than a de minimis or inadvertent failure, 
     of an employer that is required to participate in the System 
     to comply with the requirements of the System with respect to 
     an individual--
       ``(i) shall be treated as a violation of subsection 
     (a)(1)(B) with respect to that individual; and
       ``(ii) creates a rebuttable presumption that the employer 
     has violated paragraph (1)(A) or (2) of subsection (a).
       ``(B) Exception.--
       ``(i) In general.--Subparagraph (A) shall not apply in a 
     criminal prosecution.
       ``(ii) Use as evidence.--Nothing in this paragraph may be 
     construed to limit the use in the prosecution of a Federal 
     crime, in a manner otherwise consistent with Federal criminal 
     law and procedure, of evidence relating to the employer's 
     failure to comply with requirements of the System.
       ``(4) Procedures for participants in the system.--
       ``(A) In general.--An employer participating in the System 
     shall register such participation with the Secretary and, 
     when hiring any individual for employment in the United 
     States, shall comply with the following:
       ``(i) Registration of employers.--The Secretary, through 
     notice in the Federal Register, shall prescribe procedures 
     that employers shall be required to follow to register with 
     the System.
       ``(ii) Updating information.--The employer is responsible 
     for providing notice of any change to the information 
     required under subclauses (I), (II), and (III) of clause (v) 
     before conducting any further inquiries within the System, or 
     on such other schedule as the Secretary may prescribe.
       ``(iii) Training.--The Secretary shall require employers to 
     undergo such training as the Secretary determines to be 
     necessary to ensure proper use, protection of civil rights 
     and civil liberties, privacy, integrity, and security of the 
     System. To the extent practicable, such training shall be 
     made available electronically on the U.S. Citizenship and 
     Immigration Services website.
       ``(iv) Notification to employees.--The employer shall 
     inform individuals hired for employment that the System--

       ``(I) will be used by the employer;
       ``(II) may be used for immigration enforcement purposes; 
     and
       ``(III) may not be used to discriminate or to take adverse 
     action against a national of the United States or an alien 
     who has employment authorized status.

       ``(v) Provision of additional information.--The employer 
     shall obtain from the individual (and the individual shall 
     provide) and shall record in such manner as the Secretary may 
     specify--

       ``(I) the individual's social security account number;
       ``(II) if the individual does not attest to United States 
     citizenship or status as a national of the United States 
     under subsection (c)(2), such identification or authorization 
     number established by the Department as the Secretary shall 
     specify; and
       ``(III) such other information as the Secretary may require 
     to determine the identity and employment authorization of an 
     individual.

       ``(vi) Presentation of documentation.--The employer, and 
     the individual whose identity and employment authorized 
     status are being confirmed, shall fulfill the requirements 
     under subsection (c).
       ``(B) Seeking confirmation.--
       ``(i) In general.--An employer shall use the System to 
     confirm the identity and employment authorized status of any 
     individual during--

       ``(I) the period beginning on the date on which the 
     individual accepts an offer of employment and ending 3 
     business days after the date on which employment begins; or
       ``(II) such other reasonable period as the Secretary may 
     prescribe.

       ``(ii) Limitation.--An employer may not make the starting 
     date of an individual's employment or training or any other 
     term and condition of employment dependent on the receipt of 
     a confirmation of identity and employment authorized status 
     by the System.
       ``(iii) Reverification.--If an individual has a limited 
     period of employment authorized status, the individual's 
     employer shall reverify such status through the System not 
     later than 3 business days after the last day of such period.
       ``(iv) Other employment.--For employers directed by the 
     Secretary to participate in the System under paragraph 
     (2)(C)(i) to protect critical infrastructure or otherwise 
     specified circumstances in this section to verify their 
     entire workforce, the System may be used for initial 
     verification of an individual who was hired before the 
     employer became subject to the System, and the employer shall 
     initiate all required procedures on or before such date as 
     the Secretary shall specify.
       ``(v) Notification.--

       ``(I) In general.--The Secretary shall provide, and the 
     employer shall utilize, as part of the System, a method of 
     notifying employers of a confirmation or nonconfirmation of 
     an individual's identity and employment authorized status, or 
     a notice that further action is required to verify such 
     identity or employment eligibility (referred to in this 
     subsection as a further action notice).
       ``(II) Procedures.--The Secretary shall--

       ``(aa) directly notify the individual and the employer, by 
     means of electronic correspondence, mail, text message, 
     telephone, or other direct communication, of a 
     nonconfirmation or further action notice;
       ``(bb) provide information about filing an administrative 
     appeal under paragraph (6) and a filing for review before an 
     administrative law judge under paragraph (7); and
       ``(cc) establish procedures to directly notify the 
     individual and the employer of a confirmation.

       ``(III) Implementation.--The Secretary may provide for a 
     phased-in implementation of the notification requirements 
     under this clause, as appropriate. The notification system 
     shall cover all inquiries not later than 1 year from the date 
     of the enactment of the Border Security, Economic 
     Opportunity, and Immigration Modernization Act.

       ``(C) Confirmation or nonconfirmation.--
       ``(i) Initial response.--

       ``(I) In general.--Except as provided in subclause (II), 
     the System shall provide--

       ``(aa) a confirmation of an individual's identity and 
     employment authorized status or a further action notice at 
     the time of the inquiry; and
       ``(bb) an appropriate code indicating such confirmation or 
     such further action notice.

       ``(II) Alternative deadline.--If the System is unable to 
     provide immediate confirmation or further action notice for 
     technological reasons or due to unforeseen circumstances, the 
     System shall provide a confirmation or further action notice 
     not later than 3 business days after the initial inquiry.

       ``(ii) Confirmation upon initial inquiry.--If the employer 
     receives an appropriate confirmation of an individual's 
     identity and employment authorized status under the System, 
     the employer shall record the confirmation in such manner as 
     the Secretary may specify.
       ``(iii) Further action notice and later confirmation or 
     nonconfirmation.--

       ``(I) Notification and acknowledgment that further action 
     is required.--Not later than 3 business days after an 
     employer receives a further action notice of an individual's 
     identity or employment eligibility under the System, or 
     during such other reasonable time as the Secretary may 
     prescribe, the employer shall notify the individual for whom 
     the confirmation is sought of the further action notice and 
     any procedures specified by the Secretary for addressing such 
     notice. The further action notice shall be given to the 
     individual in writing and the employer shall acknowledge in 
     the System under penalty of perjury that it provided the 
     employee with the further action notice. The individual shall 
     affirmatively acknowledge in writing, or in such other manner 
     as the Secretary may specify, the receipt of the further 
     action notice from the employer. If the individual refuses to 
     acknowledge the receipt of the further action notice, or 
     acknowledges in writing that the individual will not contest 
     the further action notice under subclause (II), the employer 
     shall notify the Secretary in such manner as the Secretary 
     may specify.
       ``(II) Contest.--Not later than 10 business days after 
     receiving notification of a further action notice under 
     subclause (I), the individual shall contact the appropriate 
     Federal agency and, if the Secretary so requires, appear in 
     person for purposes of verifying the individual's identity 
     and employment eligibility. The Secretary, in consultation 
     with the Commissioner and other appropriate Federal agencies, 
     shall specify an available secondary verification procedure 
     to confirm the validity of information provided and to 
     provide a confirmation or nonconfirmation. Any procedures for 
     reexamination shall not limit in any way an employee's right 
     to appeal a nonconfirmation.
       ``(III) No contest.--If the individual refuses to 
     acknowledge receipt of the further action notice, 
     acknowledges that the individual will not contest the further 
     action notice as provided in subclause (I), or does not 
     contact the appropriate Federal agency within the period 
     specified in subclause (II), following expiration of the 
     period specified in subclause (II), a nonconfirmation shall 
     be issued. The employer shall record the nonconfirmation in 
     such manner as the Secretary may specify and terminate the 
     individual's employment. An individual's failure to contest a 
     further action notice shall not be considered an admission of 
     guilt with respect to any violation of this section or any 
     provision of law.
       ``(IV) Confirmation or nonconfirmation.--Unless the period 
     is extended in accordance

[[Page 10530]]

     with this subclause, the System shall provide a confirmation 
     or nonconfirmation not later than 10 business days after the 
     date on which the individual contests the further action 
     notice under subclause (II). If the Secretary determines that 
     good cause exists, after taking into account adverse impacts 
     to the employer, and including time to permit the individual 
     to obtain and provide needed evidence of identity or 
     employment eligibility, the Secretary shall extend the period 
     for providing confirmation or nonconfirmation for stated 
     periods beyond 10 business days. When confirmation or 
     nonconfirmation is provided, the confirmation system shall 
     provide an appropriate code indicating such confirmation or 
     nonconfirmation.
       ``(V) Reexamination.--Nothing in this section shall prevent 
     the Secretary from establishing procedures to reexamine a 
     case where a confirmation or nonconfirmation has been 
     provided if subsequently received information indicates that 
     the confirmation or nonconfirmation may not have been 
     correct. Any procedures for reexamination shall not limit in 
     any way an employee's right to appeal a nonconfirmation.
       ``(VI) Employee protections.--An employer may not terminate 
     employment or take any other adverse action against an 
     individual solely because of a failure of the individual to 
     have identity and employment eligibility confirmed under this 
     subsection until--

       ``(aa) a nonconfirmation has been issued;
       ``(bb) if the further action notice was contested, the 
     period to timely file an administrative appeal has expired 
     without an appeal or the contestation to the further action 
     notice is withdrawn; or
       ``(cc) if an appeal before an administrative law judge 
     under paragraph (7) has been filed, the nonconfirmation has 
     been upheld or the appeal has been withdrawn or dismissed.
       ``(iv) Notice of nonconfirmation.--Not later than 3 
     business days after an employer receives a nonconfirmation, 
     or during such other reasonable time as the Secretary may 
     provide, the employer shall notify the individual who is the 
     subject of the nonconfirmation, and provide information about 
     filing an administrative appeal pursuant to paragraph (6) and 
     a request for a hearing before an administrative law judge 
     pursuant to paragraph (7). The nonconfirmation notice shall 
     be given to the individual in writing and the employer shall 
     acknowledge in the System under penalty of perjury that it 
     provided the notice (or adequately attempted to provide 
     notice, but was unable to do so despite reasonable efforts). 
     The individual shall affirmatively acknowledge in writing, or 
     in such other manner as the Secretary may prescribe, the 
     receipt of the nonconfirmation notice from the employer. If 
     the individual refuses or fails to acknowledge the receipt of 
     the nonconfirmation notice, the employer shall notify the 
     Secretary in such manner as the Secretary may prescribe.
       ``(D) Consequences of nonconfirmation.--
       ``(i) Termination of continued employment.--Except as 
     provided in clause (iii), an employer that has received a 
     nonconfirmation regarding an individual and has made 
     reasonable efforts to notify the individual in accordance 
     with subparagraph (C)(iv) shall terminate the employment of 
     the individual upon the expiration of the time period 
     specified in paragraph (7).
       ``(ii) Continued employment after nonconfirmation.--If the 
     employer continues to employ an individual after receiving 
     nonconfirmation and exhaustion of all appeals or expiration 
     of all rights to appeal if not appealed, in violation of 
     clause (i), a rebuttable presumption is created that the 
     employer has violated paragraphs (1)(A) and (2) of subsection 
     (a). Such presumption shall not apply in any prosecution 
     under subsection (k)(1).
       ``(iii) Effect of administrative appeal or review by 
     administrative law judge.--If an individual files an 
     administrative appeal of the nonconfirmation within the time 
     period specified in paragraph (6)(A), or files for review 
     with an administrative law judge specified in paragraph 
     (7)(A), the employer shall not terminate the individual's 
     employment under this subparagraph prior to the resolution of 
     the administrative appeal unless the Secretary or 
     Commissioner terminates the stay under paragraph (6)(B) or 
     (7)(B).
       ``(iv) Weekly report.--The Director of U.S. Citizenship and 
     Immigration Services shall submit a weekly report to the 
     Assistant Secretary for Immigration and Customs Enforcement 
     that includes, for each individual who receives final 
     nonconfirmation through the System--

       ``(I) the name of such individual;
       ``(II) his or her social security number or alien file 
     number;
       ``(III) the name and contact information for his or her 
     current employer; and
       ``(IV) any other critical information that the Assistant 
     Secretary determines to be appropriate.

       ``(v) Other referral.--The Director of U.S. Citizenship and 
     Immigration Services shall refer to the Assistant Secretary 
     for Immigration and Customs Enforcement for appropriate 
     action by the Assistant Secretary or for referral by the 
     Assistant Secretary to another law enforcement agency, as 
     appropriate--

       ``(I) any case in which the Director believes that a social 
     security number has been falsely or fraudulently used; and
       ``(II) any case in which a false or fraudulent document is 
     used by an employee who has received a further action notice 
     to resolve such notice.

       ``(E) Obligation to respond to queries and additional 
     information.--
       ``(i) In general.--Employers shall comply with requests for 
     information from the Secretary and the Special Counsel for 
     Immigration-Related Unfair Employment Practices of the 
     Department of Justice, including queries concerning current 
     and former employees, within the time frame during which 
     records are required to be maintained under this section 
     regarding such former employees, if such information relates 
     to the functioning of the System, the accuracy of the 
     responses provided by the System, or any suspected misuse, 
     discrimination, fraud, or identity theft in the use of the 
     System. Failure to comply with a request under this clause 
     constitutes a violation of subsection (a)(1)(B).
       ``(ii) Action by individuals.--

       ``(I) In general.--Individuals being verified through the 
     System may be required to take further action to address 
     questions identified by the Secretary or the Commissioner 
     regarding the documents relied upon for purposes of 
     subsection (c).
       ``(II) Notification.--Not later than 3 business days after 
     the receipt of such questions regarding an individual, or 
     during such other reasonable time as the Secretary may 
     prescribe, the employer shall--

       ``(aa) notify the individual of any such requirement for 
     further actions; and
       ``(bb) record the date and manner of such notification.

       ``(III) Acknowledgment.--The individual shall acknowledge 
     the notification received from the employer under subclause 
     (II) in writing, or in such other manner as the Secretary may 
     prescribe.

       ``(iii) Rulemaking.--

       ``(I) In general.--The Secretary, in consultation with the 
     Commissioner and the Attorney General, is authorized to issue 
     regulations implementing, clarifying, and supplementing the 
     requirements under this subparagraph--

       ``(aa) to facilitate the functioning, accuracy, and 
     fairness of the System;
       ``(bb) to prevent misuse, discrimination, fraud, or 
     identity theft in the use of the System; or
       ``(cc) to protect and maintain the confidentiality of 
     information that could be used to locate or otherwise place 
     at risk of harm victims of domestic violence, dating 
     violence, sexual assault, stalking, and human trafficking, 
     and of the applicant or beneficiary of any petition described 
     in section 384(a)(2) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1367(a)(2)).

       ``(II) Notice.--The regulations issued under subclause (I) 
     shall be--

       ``(aa) published in the Federal Register; and
       ``(bb) provided directly to all employers registered in the 
     System.
       ``(F) Designated agents.--The Secretary shall establish a 
     process--
       ``(i) for certifying, on an annual basis or at such times 
     as the Secretary may prescribe, designated agents and other 
     System service providers seeking access to the System to 
     perform verification queries on behalf of employers, based 
     upon training, usage, privacy, and security standards 
     prescribed by the Secretary;
       ``(ii) for ensuring that designated agents and other System 
     service providers are subject to monitoring to the same 
     extent as direct access users; and
       ``(iii) for establishing standards for certification of 
     electronic I-9 programs.
       ``(G) Requirement to provide information.--
       ``(i) In general.--No later than 3 months after the date of 
     the enactment of the Border Security, Economic Opportunity, 
     and Immigration Modernization Act, the Secretary, in 
     consultation with the Secretary of Labor, the Secretary of 
     Agriculture, the Commissioner, the Attorney General, the 
     Equal Employment Opportunity Commission, and the 
     Administrator of the Small Business Administration, shall 
     commence a campaign to disseminate information respecting the 
     procedures, rights, and remedies prescribed under this 
     section.
       ``(ii) Campaign requirements.--The campaign authorized 
     under clause (i)--

       ``(I) shall be aimed at increasing the knowledge of 
     employers, employees, and the general public concerning 
     employer and employee rights, responsibilities, and remedies 
     under this section; and
       ``(II) shall be coordinated with the public education 
     campaign conducted by U.S. Citizenship and Immigration 
     Services.

       ``(iii) Assessment.--The Secretary shall assess the success 
     of the campaign in achieving the goals of the campaign.
       ``(iv) Authority to contract.--In order to carry out and 
     assess the campaign under this subparagraph, the Secretary 
     may, to the extent deemed appropriate and subject to the 
     availability of appropriations, contract with public and 
     private organizations for outreach and assessment activities 
     under the campaign.
       ``(v) Authorization of appropriations.--There are 
     authorized to be appropriated to

[[Page 10531]]

     carry out this paragraph $40,000,000 for each of the fiscal 
     years 2014 through 2016.
       ``(H) Authority to modify information requirements.--Based 
     on a regular review of the System and the document 
     verification procedures to identify misuse or fraudulent use 
     and to assess the security of the documents and processes 
     used to establish identity or employment authorized status, 
     the Secretary, in consultation with the Commissioner, after 
     publication of notice in the Federal Register and an 
     opportunity for public comment, may modify, if the Secretary 
     determines that the modification is necessary to ensure that 
     the System accurately and reliably determines the identity 
     and employment authorized status of employees and maintain 
     existing protections against misuse, discrimination, fraud, 
     and identity theft--
       ``(i) the information that shall be presented to the 
     employer by an individual;
       ``(ii) the information that shall be provided to the System 
     by the employer; and
       ``(iii) the procedures that shall be followed by employers 
     with respect to the process of verifying an individual 
     through the System.
       ``(I) Self-verification.--Subject to appropriate safeguards 
     to prevent misuse of the system, the Secretary, in 
     consultation with the Commissioner, shall establish a secure 
     self-verification procedure to permit an individual who seeks 
     to verify the individual's own employment eligibility to 
     contact the appropriate agency and, in a timely manner, 
     correct or update the information contained in the System.
       ``(5) Protection from liability for actions taken on the 
     basis of information provided by the system.--An employer 
     shall not be liable to a job applicant, an employee, the 
     Federal Government, or a State or local government, under 
     Federal, State, or local criminal or civil law for any 
     employment-related action taken with respect to a job 
     applicant or employee in good faith reliance on information 
     provided by the System.
       ``(6) Administrative appeal.--
       ``(A) In general.--An individual who is notified of a 
     nonconfirmation may, not later than 10 business days after 
     the date that such notice is received, file an administrative 
     appeal of such nonconfirmation with the Commissioner if the 
     notice is based on records maintained by the Commissioner, or 
     in any other case, with the Secretary. An individual who did 
     not timely contest a further action notice timely received by 
     that individual for which the individual acknowledged receipt 
     may not be granted a review under this paragraph.
       ``(B) Administrative stay of nonconfirmation.--The 
     nonconfirmation shall be automatically stayed upon the timely 
     filing of an administrative appeal, unless the 
     nonconfirmation resulted after the individual acknowledged 
     receipt of the further action notice but failed to contact 
     the appropriate agency within the time provided. The stay 
     shall remain in effect until the resolution of the appeal, 
     unless the Secretary or the Commissioner terminates the stay 
     based on a determination that the administrative appeal is 
     frivolous or filed for purposes of delay.
       ``(C) Review for error.--The Secretary and the Commissioner 
     shall develop procedures for resolving administrative appeals 
     regarding nonconfirmations based upon the information that 
     the individual has provided, including any additional 
     evidence or argument that was not previously considered. Any 
     such additional evidence or argument shall be filed within 10 
     business days of the date the appeal was originally filed. 
     Appeals shall be resolved within 20 business days after the 
     individual has submitted all evidence and arguments the 
     individual wishes to submit, or has stated in writing that 
     there is no additional evidence that the individual wishes to 
     submit. The Secretary and the Commissioner may, on a case by 
     case basis for good cause, extend the filing and submission 
     period in order to ensure accurate resolution of an appeal 
     before the Secretary or the Commissioner.
       ``(D) Preponderance of evidence.--Administrative appeal 
     under this paragraph shall be limited to whether a 
     nonconfirmation notice is supported by a preponderance of the 
     evidence.
       ``(E) Damages, fees, and costs.--No money damages, fees or 
     costs may be awarded in the administrative appeal process 
     under this paragraph.
       ``(7) Review by administrative law judge.--
       ``(A) In general.--Not later than 30 days after the date an 
     individual receives a final determination on an 
     administrative appeal under paragraph (6), the individual may 
     obtain review of such determination by filing a complaint 
     with a Department of Justice administrative law judge in 
     accordance with this paragraph.
       ``(B) Stay of nonconfirmation.--The nonconfirmation related 
     to such final determination shall be automatically stayed 
     upon the timely filing of a complaint under this paragraph, 
     and the stay shall remain in effect until the resolution of 
     the complaint, unless the administrative law judge determines 
     that the action is frivolous or filed for purposes of delay.
       ``(C) Service.--The respondent to complaint filed under 
     this paragraph is either the Secretary or the Commissioner, 
     but not both, depending upon who issued the administrative 
     order under paragraph (6). In addition to serving the 
     respondent, the plaintiff shall serve the Attorney General.
       ``(D) Authority of administrative law judge.--
       ``(i) Rules of practice.--The Secretary shall promulgate 
     regulations regarding the rules of practice in appeals 
     brought pursuant to this subsection.
       ``(ii) Authority of administrative law judge.--The 
     administrative law judge shall have power to--

       ``(I) terminate a stay of a nonconfirmation under 
     subparagraph (B) if the administrative law judge determines 
     that the action is frivolous or filed for purposes of delay;
       ``(II) adduce evidence at a hearing;
       ``(III) compel by subpoena the attendance of witnesses and 
     the production of evidence at any designated place or 
     hearing;
       ``(IV) resolve claims of identity theft; and
       ``(V) enter, upon the pleadings and any evidence adduced at 
     a hearing, a decision affirming or reversing the result of 
     the agency, with or without remanding the cause for a 
     rehearing.

       ``(iii) Subpoena.--In case of contumacy or refusal to obey 
     a subpoena lawfully issued under this section and upon 
     application of the administrative law judge, an appropriate 
     district court of the United States may issue an order 
     requiring compliance with such subpoena and any failure to 
     obey such order may be punished by such court as a contempt 
     of such court.
       ``(iv) Training.--An administrative law judge hearing cases 
     shall have special training respecting employment authorized 
     status verification.
       ``(E) Order by administrative law judge.--
       ``(i) In general.--The administrative law judge shall issue 
     and cause to be served to the parties in the proceeding an 
     order which may be appealed as provided in subparagraph (G).
       ``(ii) Contents of order.--Such an order shall uphold or 
     reverse the final determination on the request for 
     reconsideration and order lost wages and other appropriate 
     remedies as provided in subparagraph (F).
       ``(F) Compensation for error.--
       ``(i) In general.--In cases in which the administrative law 
     judge reverses the final determination of the Secretary or 
     the Commissioner made under paragraph (6), and the 
     administrative law judge finds that--

       ``(I) the nonconfirmation was due to gross negligence or 
     intentional misconduct of the employer, the administrative 
     law judge may order the employer to pay the individual lost 
     wages, and reasonable costs and attorneys' fees incurred 
     during administrative and judicial review; or
       ``(II) such final determination was erroneous by reason of 
     the negligence of the Secretary or the Commissioner, the 
     administrative law judge may order the Secretary or the 
     Commissioner to pay the individual lost wages, and reasonable 
     costs and attorneys' fees incurred during the administrative 
     appeal and the administrative law judge review.

       ``(ii) Calculation of lost wages.--Lost wages shall be 
     calculated based on the wage rate and work schedule that 
     prevailed prior to termination. The individual shall be 
     compensated for wages lost beginning on the first scheduled 
     work day after employment was terminated and ending 120 days 
     after completion of the administrative law judge's review 
     described in this paragraph or the day after the individual 
     is reinstated or obtains employment elsewhere, whichever 
     occurs first. If the individual obtains employment elsewhere 
     at a lower wage rate, the individual shall be compensated for 
     the difference in wages for the period ending 120 days after 
     completion of the administrative law judge review process. No 
     lost wages shall be awarded for any period of time during 
     which the individual was not in employment authorized status.
       ``(iii) Payment of compensation.--Notwithstanding any other 
     law, payment of compensation for lost wages, costs, and 
     attorneys' fees under this paragraph, or compromise 
     settlements of the same, shall be made as provided by section 
     1304 of title 31, United States Code. Appropriations made 
     available to the Secretary or the Commissioner, accounts 
     provided for under section 286, and funds from the Federal 
     Old-Age and Survivors Insurance Trust Fund or the Federal 
     Disability Insurance Trust Fund shall not be available to pay 
     such compensation.
       ``(G) Appeal.--No later than 45 days after the entry of 
     such final order, any person adversely affected by such final 
     order may seek review of such order in the United States 
     Court of Appeals for the circuit in which the violation is 
     alleged to have occurred or in which the employer resides or 
     transacts business.
       ``(8) Management of the system.--
       ``(A) In general.--The Secretary is authorized to 
     establish, manage, and modify the System, which shall--
       ``(i) respond to inquiries made by participating employers 
     at any time through the internet, or such other means as the 
     Secretary may designate, concerning an individual's identity 
     and whether the individual is in employment authorized 
     status;
       ``(ii) maintain records of the inquiries that were made, of 
     confirmations provided (or not

[[Page 10532]]

     provided), and of the codes provided to employers as evidence 
     of their compliance with their obligations under the System; 
     and
       ``(iii) provide information to, and require action by, 
     employers and individuals using the System.
       ``(B) Design and operation of system.--The System shall be 
     designed and operated--
       ``(i) to maximize its reliability and ease of use by 
     employers consistent with protecting the privacy and security 
     of the underlying information, and ensuring full notice of 
     such use to employees;
       ``(ii) to maximize its ease of use by employees, including 
     direct notification of its use, of results, and ability to 
     challenge results;
       ``(iii) to respond accurately to all inquiries made by 
     employers on whether individuals are authorized to be 
     employed and to register any times when the system is unable 
     to receive inquiries;
       ``(iv) to maintain appropriate administrative, technical, 
     and physical safeguards to prevent unauthorized disclosure of 
     personal information, misuse by employers and employees, and 
     discrimination;
       ``(v) to require regularly scheduled refresher training of 
     all users of the System to ensure compliance with all 
     procedures;
       ``(vi) to allow for auditing of the use of the System to 
     detect misuse, discrimination, fraud, and identity theft, to 
     protect privacy and assess System accuracy, and to preserve 
     the integrity and security of the information in all of the 
     System, including--

       ``(I) to develop and use tools and processes to detect or 
     prevent fraud and identity theft, such as multiple uses of 
     the same identifying information or documents to fraudulently 
     gain employment;
       ``(II) to develop and use tools and processes to detect and 
     prevent misuse of the system by employers and employees;
       ``(III) to develop tools and processes to detect anomalies 
     in the use of the system that may indicate potential fraud or 
     misuse of the system;
       ``(IV) to audit documents and information submitted by 
     employees to employers, including authority to conduct 
     interviews with employers and employees, and obtain 
     information concerning employment from the employer;

       ``(vii) to confirm identity and employment authorization 
     through verification and comparison of records as determined 
     necessary by the Secretary;
       ``(viii) to confirm electronically the issuance of the 
     employment authorization or identity document and--

       ``(I) if such photograph is available, to display the 
     digital photograph that the issuer placed on the document so 
     that the employer can compare the photograph displayed to the 
     photograph on the document presented by the employee; or
       ``(II) if a photograph is not available from the issuer, to 
     confirm the authenticity of the document using additional 
     security measures set forth in subsection (c)(1)(F)(iv);

       ``(ix) to employ specific and effective additional security 
     measures set forth in subsection (c)(1)(F)(iv) to adequately 
     verify the identity of an individual that are designed and 
     operated--

       ``(I) to use state-of-the-art technology to determine to a 
     high degree of accuracy whether an individual presenting 
     biographic information is the individual with that true 
     identity;
       ``(II) to retain under the control of the Secretary the use 
     of all determinations communicated by the System, regardless 
     of the entity operating the system pursuant to a contract or 
     other agreement with a nongovernmental entity or entities to 
     the extent helpful in acquiring the best technology to 
     implement the additional security measures;
       ``(III) to be integrated with the System so that employment 
     authorizations will be determined for all individuals 
     identified as presenting their true identities through the 
     databases maintained by the Commissioner of Social Security 
     and the Secretary;
       ``(IV) to use tools and processes to detect and prevent 
     further action notices and final nonconfirmations that are 
     not correlated to fraud or identity theft;
       ``(V) to make risk-based assessments regarding the 
     reliability of a claim of identity made by an individual 
     presenting biographic information and to tailor the identity 
     determination in accordance with those assessments;
       ``(VI) to permit queries to be presented to individuals 
     subject to identity verification at the time their identities 
     are being verified in a manner that permits rapid 
     communication through Internet, mobile phone, and landline 
     telephone connections to facilitate identity proofing;
       ``(VII) to generate queries that conform to the context of 
     the identity verification process and the circumstances of 
     the individual whose identity is being verified;
       ``(VIII) to use publicly available databases and databases 
     under the jurisdiction of the Commissioner of Social 
     Security, the Secretary, and the Secretary of State to 
     formulate queries to be presented to individuals whose 
     identities are being verified, as appropriate;
       ``(IX) to not retain data collected by the System within 
     any database separate from the database in which the 
     operating system is located and to limit access to the 
     existing databases to a reference process that shields the 
     operator of the System from acquiring possession of the data 
     beyond the formulation of queries and verification of 
     responses;
       ``(X) to not permit individuals or entities using the 
     System to access any data related to the individuals whose 
     identities are being verified beyond confirmations, further 
     action notices, and final nonconfirmations of identity;
       ``(XI) to include, if feasible, a capability for permitting 
     document or other inputs that can be offered to individuals 
     and entities using the System and that may be used at the 
     option of employees to facilitate identity verification, but 
     would not be required of either employers or employees; and
       ``(XII) to the greatest extent possible, in accordance with 
     the time frames specified in this section; and

       ``(x) to provide appropriate notification directly to 
     employers registered with the System of all changes made by 
     the Secretary or the Commissioner related to allowed and 
     prohibited documents, and use of the System.
       ``(C) Safeguards to the system.--
       ``(i) Requirement to develop.--The Secretary, in 
     consultation with the Commissioner and other appropriate 
     Federal and State agencies, shall develop policies and 
     procedures to ensure protection of the privacy and security 
     of personally identifiable information and identifiers 
     contained in the records accessed or maintained by the 
     System. The Secretary, in consultation with the Commissioner 
     and other appropriate Federal and State agencies, shall 
     develop and deploy appropriate privacy and security training 
     for the Federal and State employees accessing the records 
     under the System.
       ``(ii) Privacy audits.--The Secretary, acting through the 
     Chief Privacy Officer of the Department, shall conduct 
     regular privacy audits of the policies and procedures 
     established under clause (i) and the Department's compliance 
     with the limitations set forth in subsection 
     (c)(1)(F)(iii)(IV), including any collection, use, 
     dissemination, and maintenance of personally identifiable 
     information and any associated information technology 
     systems, as well as scope of requests for this information. 
     The Chief Privacy Officer shall review the results of the 
     audits and recommend to the Secretary any changes necessary 
     to improve the privacy protections of the program.
       ``(iii) Accuracy audits.--

       ``(I) In general.--Not later than November 30 of each year, 
     the Inspector General of the Department of Homeland Security 
     shall submit a report to the Secretary, with a copy to the 
     President of the Senate and the Speaker of the House of 
     Representatives, that sets forth the error rate of the System 
     for the previous fiscal year and the assessments required to 
     be submitted by the Secretary under subparagraphs (A) and (B) 
     of paragraph (10). The report shall describe in detail the 
     methodology employed for purposes of the report, and shall 
     make recommendations for how error rates may be reduced.
       ``(II) Error rate defined.--In this clause, the term error 
     rate means the percentage determined by dividing--

       ``(aa) the number of employment authorized individuals who 
     received further action notices, contested such notices, and 
     were subsequently found to be employment authorized; by
       ``(bb) the number of System inquiries submitted for 
     employment authorized individuals.

       ``(III) Error rate determination.--The audits required 
     under this clause shall--

       ``(aa) determine the error rate for identity determinations 
     pursuant to subsection (c)(1)(F) for individuals presenting 
     their true identities in the same manner and applying the 
     same standards as for employment authorization; and
       ``(bb) include recommendations, as provided in subclause 
     (I), but no reduction in fines pursuant to subclause (IV).

       ``(IV) Reduction of penalties for recordkeeping or 
     verification practices following persistent system 
     inaccuracies.--Notwithstanding subsection (e)(4)(C)(i), in 
     any calendar year following a report by the Inspector General 
     under subclause (I) that the System had an error rate higher 
     than 0.3 percent for the previous fiscal year, the civil 
     penalty assessable by the Secretary or an administrative law 
     judge under that subsection for each first-time violation by 
     an employer who has not previously been penalized under this 
     section may not exceed $1,000.

       ``(iv) Records security program.--Any person, including a 
     private third party vendor, who retains document verification 
     or System data pursuant to this section shall implement an 
     effective records security program that--

       ``(I) ensures that only authorized personnel have access to 
     document verification or System data; and
       ``(II) ensures that whenever such data is created, 
     completed, updated, modified, altered, or corrected in 
     electronic format, a secure record is created that 
     establishes the date of access, the identity of the 
     individual who accessed the electronic record, and the 
     particular action taken.

       ``(v) Records security program.--In addition to the 
     security measures described in

[[Page 10533]]

     clause (iv), a private third party vendor who retains 
     document verification or System data pursuant to this section 
     shall implement an effective records security program that--

       ``(I) provides for backup and recovery of any records 
     maintained in electronic format to protect against 
     information loss, such as power interruptions; and
       ``(II) ensures that employees are trained to minimize the 
     risk of unauthorized or accidental alteration or erasure of 
     such data in electronic format.

       ``(vi) Authorized personnel defined.--In this subparagraph, 
     the term authorized personnel means anyone registered as a 
     System user, or anyone with partial or full responsibility 
     for completion of employment authorization verification or 
     retention of data in connection with employment authorization 
     verification on behalf of an employer.
       ``(D) Available facilities and alternative 
     accommodations.--The Secretary shall make appropriate 
     arrangements and develop standards to allow employers or 
     employees, including remote hires, who are otherwise unable 
     to access the System to use electronic and telephonic formats 
     (including video conferencing, scanning technology, and other 
     available technologies), Federal Government facilities, 
     public facilities, or other available locations in order to 
     utilize the System.
       ``(E) Responsibilities of the secretary.--
       ``(i) In general.--As part of the System, the Secretary 
     shall maintain a reliable, secure method, which, operating 
     through the System and within the time periods specified, 
     compares the name, alien identification or authorization 
     number, or other information as determined relevant by the 
     Secretary, provided in an inquiry against such information 
     maintained or accessed by the Secretary in order to confirm 
     (or not confirm) the validity of the information provided, 
     the correspondence of the name and number, whether the alien 
     has employment authorized status (or, to the extent that the 
     Secretary determines to be feasible and appropriate, whether 
     the records available to the Secretary verify the identity or 
     status of a national of the United States), and such other 
     information as the Secretary may prescribe.
       ``(ii) Photograph display.--As part of the System, the 
     Secretary shall establish a reliable, secure method, which, 
     operating through the System, displays the digital photograph 
     described in subparagraph (B)(viii)(I).
       ``(iii) Timing of notices.--The Secretary shall have 
     authority to prescribe when a confirmation, nonconfirmation, 
     or further action notice shall be issued.
       ``(iv) Use of information.--The Secretary shall perform 
     regular audits under the System, as described in subparagraph 
     (B)(vi) and shall utilize the information obtained from such 
     audits, as well as any information obtained from the 
     Commissioner pursuant to part E of title XI of the Social 
     Security Act (42 U.S.C. 1301 et seq.), for the purposes of 
     this section and to administer and enforce the immigration 
     laws.
       ``(v) Identity fraud protection.--To prevent identity 
     fraud, not later than 18 months after the date of the 
     enactment of the Border Security, Economic Opportunity, and 
     Immigration Modernization Act, the Secretary shall--

       ``(I) in consultation with the Commissioner, establish a 
     program to provide a reliable, secure method for an 
     individual to temporarily suspend or limit the use of the 
     individual's social security account number or other 
     identifying information for verification by the System; and
       ``(II) for each individual being verified through the 
     System--

       ``(aa) notify the individual that the individual has the 
     option to limit the use of the individual's social security 
     account number or other identifying information for 
     verification by the System; and
       ``(bb) provide instructions to the individuals for 
     exercising the option referred to in item (aa).
       ``(vi) Allowing parents to prevent theft of their child's 
     identity.--The Secretary, in consultation with the 
     Commissioner, shall establish a program that provides a 
     reliable, secure method by which parents or legal guardians 
     may suspend or limit the use of the social security account 
     number or other identifying information of a minor under 
     their care for the purposes of the System. The Secretary may 
     implement the program on a limited pilot program basis before 
     making it fully available to all individuals.
       ``(vii) Protection from multiple use.--The Secretary and 
     the Commissioner shall establish a procedure for identifying 
     and handling a situation in which a social security account 
     number has been identified to be subject to unusual multiple 
     use in the System or is otherwise suspected or determined to 
     have been compromised by identity fraud. Such procedure shall 
     include notifying the legitimate holder of the social 
     security number at the appropriate time.
       ``(viii) Monitoring and compliance unit.--The Secretary 
     shall establish or designate a monitoring and compliance unit 
     to detect and reduce identity fraud and other misuse of the 
     System.
       ``(ix) Civil rights and civil liberties assessments.--

       ``(I) Requirement to conduct.--The Secretary shall conduct 
     regular civil rights and civil liberties assessments of the 
     System, including participation by employers, other private 
     entities, and Federal, State, and local government entities.
       ``(II) Requirement to respond.--Employers, other private 
     entities, and Federal, State, and local entities shall timely 
     respond to any request in connection with such an assessment.
       ``(III) Assessment and recommendations.--The Officer for 
     Civil Rights and Civil Liberties of the Department shall 
     review the results of each such assessment and recommend to 
     the Secretary any changes necessary to improve the civil 
     rights and civil liberties protections of the System.

       ``(F) Grants to states.--
       ``(i) In general.--The Secretary shall create and 
     administer a grant program to help provide funding for 
     reimbursement of the actual costs to States that grant--

       ``(I) the Secretary access to driver's license information 
     as needed to confirm that a driver's license presented under 
     subsection (c)(1)(D)(i) confirms the identity of the subject 
     of the System check, and that a driver's license matches the 
     State's records; and
       ``(II) such assistance as the Secretary may request in 
     order to resolve further action notices or nonconfirmations 
     relating to such information.

       ``(ii) Construction with the driver's privacy protection 
     act of 1994.--The provision of a photograph to the Secretary 
     as described in clause (i) may not be construed as a 
     violation of section 2721 of title 18, United States Code, 
     and is a permissible use under subsection (b)(1) of that 
     section.
       ``(iii) Authorization of appropriations.--There is 
     authorized to be appropriated to the Secretary, from the 
     Comprehensive Immigration Reform Trust Fund established under 
     section 6(a)(1), $500,000,000 to carry out this subparagraph.
       ``(G) Responsibilities of the secretary of state.--As part 
     of the System, the Secretary of State shall provide to the 
     Secretary access to passport and visa information as needed 
     to confirm that a passport, passport card, or visa presented 
     under subsection (c)(1)(C) confirms the identity of the 
     subject of the System check, and that a passport, passport 
     card, or visa photograph matches the Secretary of State's 
     records, and shall provide such assistance as the Secretary 
     may request in order to resolve further action notices or 
     nonconfirmations relating to such information.
       ``(H) Updating information.--The Commissioner, the 
     Secretary, and the Secretary of State shall update their 
     information in a manner that promotes maximum accuracy and 
     shall provide a process for the prompt correction of 
     erroneous information.
       ``(9) Limitation on use of the system.--Notwithstanding any 
     other provision of law, no department, bureau, or other 
     agency of the United States Government or any other entity 
     shall utilize, share, or transmit any information, database, 
     or other records assembled under this subsection for any 
     purpose other than for employment verification or to ensure 
     secure, appropriate and nondiscriminatory use of the System.
       ``(10) Annual report and certification.--Not later than 18 
     months after the promulgation of regulations to implement 
     this subsection, and annually thereafter, the Secretary shall 
     submit to Congress a report that includes the following:
       ``(A) An assessment, as submitted to the Secretary by the 
     Inspector General of the Department of Homeland Security 
     pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates 
     of further action notices and other System notices provided 
     by employers to individuals who are authorized to be employed 
     in the United States.
       ``(B) An assessment, as submitted to the Secretary by the 
     Inspector General of the Department of Homeland Security 
     pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates 
     of further action notices and other System notices provided 
     directly (by the System) in a timely fashion to individuals 
     who are not authorized to be employed in the United States.
       ``(C) An assessment of any challenges faced by small 
     employers in utilizing the System.
       ``(D) An assessment of the rate of employer noncompliance 
     (in addition to failure to provide required notices in a 
     timely fashion) in each of the following categories:
       ``(i) Taking adverse action based on a further action 
     notice.
       ``(ii) Use of the System for nonemployees or other 
     individuals before they are offered employment.
       ``(iii) Use of the System to reverify employment authorized 
     status of current employees except if authorized to do so.
       ``(iv) Use of the System selectively, except in cases in 
     which such use is authorized.
       ``(v) Use of the System to deny employment or post-
     employment benefits or otherwise interfere with labor rights.
       ``(vi) Requiring employees or applicants to use any self-
     verification feature or to provide self-verification results.
       ``(vii) Discouraging individuals who receive a further 
     action notice from challenging the further action notice or 
     appealing a determination made by the System.

[[Page 10534]]

       ``(E) An assessment of the rate of employee noncompliance 
     in each of the following categories:
       ``(i) Obtaining employment when unauthorized with an 
     employer complying with the System in good faith.
       ``(ii) Failure to provide required documents in a timely 
     manner.
       ``(iii) Attempting to use fraudulent documents or documents 
     not related to the individual.
       ``(iv) Misuse of the administrative appeal and judicial 
     review process.
       ``(F) An assessment of the amount of time taken for--
       ``(i) the System to provide the confirmation or further 
     action notice;
       ``(ii) individuals to contest further action notices;
       ``(iii) the System to provide a confirmation or 
     nonconfirmation of a contested further action notice;
       ``(iv) individuals to file an administrative appeal of a 
     nonconfirmation; and
       ``(v) resolving administrative appeals regarding 
     nonconfirmations.
       ``(11) Annual gao study and report.--
       ``(A) Requirement.--The Comptroller General shall, for each 
     year, undertake a study to evaluate the accuracy, efficiency, 
     integrity, and impact of the System.
       ``(B) Report.--Not later than 18 months after the 
     promulgation of regulations to implement this subsection, and 
     yearly thereafter, the Comptroller General shall submit to 
     Congress a report containing the findings of the study 
     carried out under this paragraph. Each such report shall 
     include, at a minimum, the following:
       ``(i) An assessment of System performance with respect to 
     the rate at which individuals who are eligible for employment 
     in the United States are correctly approved within the 
     required periods, including a separate assessment of such 
     rate for naturalized United States citizens, nationals of the 
     United States, and aliens.
       ``(ii) An assessment of the privacy and confidentiality of 
     the System and of the overall security of the System with 
     respect to cybertheft and theft or misuse of private data.
       ``(iii) An assessment of whether the System is being 
     implemented in a manner that is not discriminatory or used 
     for retaliation against employees.
       ``(iv) An assessment of the most common causes for the 
     erroneous issuance of nonconfirmations by the System and 
     recommendations to correct such causes.
       ``(v) The recommendations of the Comptroller General 
     regarding System improvements.
       ``(vi) An assessment of the frequency and magnitude of 
     changes made to the System and the impact on the ability for 
     employers to comply in good faith.
       ``(vii) An assessment of the direct and indirect costs 
     incurred by employers in complying with the System, including 
     costs associated with retaining potential employees through 
     the administrative appeals process and receiving a 
     nonconfirmation.
       ``(viii) An assessment of any backlogs or delays in the 
     System providing the confirmation or further action notice 
     and impacts to hiring by employers.
       ``(ix) An assessment of the effect of the identity 
     authentication mechanism and any other security measures set 
     forth in subsection (c)(1)(F)(iv) to verify identity 
     incorporated into the System or otherwise used by employers 
     on employees.
       ``(12) Outreach and partnership.--
       ``(A) Outreach.--The Secretary is authorized to conduct 
     outreach and establish programs to assist employers in 
     verifying employment authorization and preventing identity 
     fraud.
       ``(B) Partnership initiative.--The Secretary may establish 
     partnership initiatives between the Federal Government and 
     private sector employers to foster cooperative relationships 
     and to strengthen overall hiring practices.''.
       (c) Taxpayer Address Information.--Section 6103(m) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following:
       ``(8) Taxpayer address information furnished to secretary 
     of homeland security.--Upon written request from the 
     Secretary of Homeland Security, the Secretary shall disclose 
     the mailing address of any taxpayer who is entitled to 
     receive a notification from the Secretary of Homeland 
     Security pursuant to paragraphs (1)(C) and (8)(E)(vii) of 
     section 274A(d) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(d)) for use only by employees of the Department 
     of Homeland for the purpose of mailing such notification to 
     such taxpayer.''.
       (d) Social Security Account Statements.--Section 1143(a)(2) 
     of the Social Security Act (8 U.S.C. 1320b-13(a)(2)) is 
     amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) to the extent resources are available, information in 
     the Commissioner's records indicating that a query was 
     submitted to the employment verification system established 
     under section 274A (d) of the Immigration and Nationality Act 
     (8 U.S.C. 1324a(d)) under that individual's name or social 
     security number; and
       ``(G) a toll-free telephone number operated by the 
     Department of Homeland Security for employment verification 
     system inquiries and a link to self-verification procedure 
     established under section 274A(d)(4)(I) of such Act.''.
       (e) Good Faith Compliance.--Section 274B(a) (8 U.S.C. 
     1324b(a)), as amended by section 3105(a) of this Act, is 
     further amended by adding at the end the following:
       ``(10) Treatment of certain violations after reasonable 
     steps in good faith.--Notwithstanding paragraphs (4), (6), 
     and (7), a person, other entity, or employment agency shall 
     not be liable for civil penalties described in section 
     274B(g)(2)(B)(iv) that are related to a violation of any such 
     paragraph if the person, entity, or employment agency has 
     taken reasonable steps, in good faith, to comply with such 
     paragraphs at issue, unless the person, other entity, or 
     employment agency--
       ``(A) was, for similar conduct, subject to--
       ``(i) a reasonable cause determination by the Office of 
     Special Counsel for Immigration Related Unfair Employment 
     Practices; or
       ``(ii) a finding by an administrative law judge that a 
     violation of this section has occurred; or
       ``(B) committed the violation in order to interfere with 
     `workplace rights' (as defined in section 274A(b)(8)).
       ``(11) Good faith.--As used in paragraph (10), the term 
     `good faith' shall not include any action taken in order to 
     interfere with `workplace rights' (as defined in section 
     274A(b)(8)). Neither the Office of Special Counsel nor an 
     administrative law judge hearing a claim under this section 
     shall have any authority to assess workplace rights other 
     than those guaranteed under this section.
       ``(12) Rules of construction.--Nothing in this section may 
     be construed--
       ``(A) to permit the Office of Special Counsel for 
     Immigration-Related Unfair Employment Practices or an 
     administrative law judge hearing a claim under this Section 
     to enforce any workplace rights other than those guaranteed 
     under this section; or
       ``(B) to prohibit any person, other entity, or employment 
     agency from using an identity verification system, service, 
     or method (in addition to the employment verification system 
     described in section 274A(d)), until the date on which the 
     employer is required to participate in the System under 
     section 274A(d)(2) and the additional security measures 
     mandated by section 274A(c)(F)(iv) have become available to 
     verify the identity of a newly hired employee, if such 
     system--
       ``(i) is used in a uniform manner for all newly hired 
     employees;
       ``(ii) is not used for the purpose or with the intent of 
     discriminating against any individual;
       ``(iii) provides for timely notice to employees run through 
     the system of a mismatch or failure to confirm identity; and
       ``(iv) sets out procedures for employees run through the 
     system to resolve a mismatch or other failure to confirm 
     identity.
       ``(13) Liability.--A person, entity, or employment agency 
     that uses an identity verification system, service, or method 
     in a way that conflicts with the requirements set forth in 
     paragraph (10) shall be subject to liability under paragraph 
     (4)(I).''.
       (f) Maintenance of Reasonable Levels of Service and 
     Enforcement.--Notwithstanding section 3301(b)(1), amounts 
     appropriated pursuant to such section shall be used to 
     maintain reasonable levels of service and enforcement rather 
     than a specific numeric increase in the number of Department 
     personnel dedicated to administering the Employment 
     Verification System.
                                 ______
                                 
  SA 1727. Mr. PORTMAN (for himself and Mr. Tester) submitted an 
amendment intended to be proposed to amendment SA 1224 proposed by Mr. 
Reed to the bill S. 744, to provide for comprehensive immigration 
reform and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. ___. EMPLOYMENT VERIFICATION SYSTEM IMPROVEMENTS.

       (a) Trigger.--In addition to the conditions set forth in 
     section 3(c)(2)(A), the Secretary may not adjust the status 
     of aliens who have been granted registered provisional 
     immigrant status, except for aliens granted blue card status 
     under section 2201 of this Act or described in section 
     245D(b) of the Immigration and Nationality Act, unless the 
     Secretary, after consultation with the Comptroller General of 
     the United States, and as part of the written certification 
     submitted to the President and Congress pursuant to section 
     3(c)(2)(A), certifies that the Secretary has implemented the 
     mandatory employment verification system, including the full 
     incorporation of the photo tool and additional security 
     measures, required by section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a), as amended by section 3101, 
     and has required the system's use by all employers to prevent 
     unauthorized workers from obtaining employment in the United 
     States.

[[Page 10535]]

       (b) Employment Verification System.--Section 274A (8 U.S.C. 
     1324a), as amended by section 3101, is further amended--
       (1) in subsection (a)(5)(A)(ii), by inserting ``, by clear 
     and convincing evidence,'' after demonstrates; and
       (2) by striking subsections (c) and (d) and inserting the 
     following:
       ``(c) Document Verification Requirements.--Any employer 
     hiring an individual for employment in the United States 
     shall comply with the following requirements and the 
     requirements under subsection (d) to verify that the 
     individual has employment authorized status.
       ``(1) Attestation after examination of documentation.--
       ``(A) In general.--
       ``(i) Examination by employer.--An employer shall attest, 
     under penalty of perjury on a form prescribed by the 
     Secretary, that the employer has verified the identity and 
     employment authorization status of the individual--

       ``(I) by examining--

       ``(aa) a document specified in subparagraph (C); or
       ``(bb) a document specified in subparagraph (D) and a 
     document specified in subparagraph (E); and

       ``(II) by utilizing an identity authentication mechanism 
     described in clause (iii) or (iv) of subparagraph (F).

       ``(ii) Publication of documents.--The Secretary shall 
     publish a picture of each document specified in subparagraphs 
     (C) and (E) on the U.S. Citizenship and Immigration Services 
     website.
       ``(B) Requirements.--
       ``(i) Form.--The form referred to in subparagraph (A)(i)--

       ``(I) shall be prescribed by the Secretary not later than 6 
     months after the date of the enactment of the Border 
     Security, Economic Opportunity, and Immigration Modernization 
     Act;
       ``(II) shall be available as--

       ``(aa) a paper form;
       ``(bb) a form that may be completed by an employer via 
     telephone or video conference;
       ``(cc) an electronic form; and
       ``(dd) a form that is integrated electronically with the 
     requirements under subparagraph (F) and subsection (d).
       ``(ii) Attestation.--Each such form shall require the 
     employer to sign an attestation with a handwritten, 
     electronic, or digital signature, according to standards 
     prescribed by the Secretary.
       ``(iii) Compliance.--An employer has complied with the 
     requirements under this paragraph with respect to examination 
     of the documents included in subclauses (I) and (II) of 
     subparagraph (A)(i) if--

       ``(I) the employer has, in good faith, followed applicable 
     regulations and any written procedures or instructions 
     provided by the Secretary; and
       ``(II) a reasonable person would conclude that the 
     documentation is genuine and relates to the individual 
     presenting such documentation.

       ``(C) Documents establishing identity and employment 
     authorized status.--A document is specified in this 
     subparagraph if the document is unexpired (unless the 
     validity of the document is extended by law) and is 1 of the 
     following:
       ``(i) A United States passport or passport card issued to 
     an individual pursuant to the Secretary of State's authority 
     under the Act entitled An Act to regulate the issue and 
     validity of passports, and for other purposes, approved July 
     3, 1926 (22 U.S.C. 211a).
       ``(ii) A document issued to an alien evidencing that the 
     alien is lawfully admitted for permanent residence or another 
     document issued to an individual evidencing the individual's 
     employment authorized status, as designated by the Secretary, 
     if the document--

       ``(I) contains a photograph of the individual, or such 
     other personal identifying information relating to the 
     individual as the Secretary determines, by regulation, to be 
     sufficient for the purposes of this subparagraph;
       ``(II) is evidence of employment authorized status; and
       ``(III) contains security features to make the document 
     resistant to tampering, counterfeiting, and fraudulent use.

       ``(iii) An enhanced driver's license or identification card 
     issued to a national of the United States by a State, an 
     outlying possession of the United States, or a federally 
     recognized Indian tribe that--

       ``(I) meets the requirements under section 202 of the REAL 
     ID Act of 2005 (division B of Public Law 109-13; 49 U.S.C. 
     30301 note); and
       ``(II) the Secretary has certified by notice published in 
     the Federal Register and through appropriate notice directly 
     to employers registered in the System 3 months prior to 
     publication that such enhanced license or card is suitable 
     for use under this subparagraph based upon the accuracy and 
     security of the issuance process, security features on the 
     document, and such other factors as the Secretary may 
     prescribe.

       ``(iv) A passport issued by the appropriate authority of a 
     foreign country accompanied by a Form I-94 or Form I-94A (or 
     similar successor record), or other documentation as 
     designated by the Secretary that specifies the individual's 
     status in the United States and the duration of such status 
     if the proposed employment is not in conflict with any 
     restriction or limitation specified on such form or 
     documentation.
       ``(v) A passport issued by the Federated States of 
     Micronesia or the Republic of the Marshall Islands with 
     evidence of nonimmigrant admission to the United States under 
     the Compact of Free Association between the United States and 
     the Federated States of Micronesia or the Republic of the 
     Marshall Islands.
       ``(D) Documents establishing identity of individual.--A 
     document is specified in this subparagraph if the document is 
     unexpired (unless the validity of the document is extended by 
     law) and is 1 of the following:
       ``(i) A driver's license or identity card that is not 
     described in subparagraph (C)(iii) and is issued to an 
     individual by a State or an outlying possession of the United 
     States, a federally recognized Indian tribe, or an agency 
     (including military) of the Federal Government if the 
     driver's license or identity card includes, at a minimum--

       ``(I) the individual's photograph, name, date of birth, 
     gender, and driver's license or identification card number; 
     and
       ``(II) security features to make the license or card 
     resistant to tampering, counterfeiting, and fraudulent use.

       ``(ii) A voter registration card.
       ``(iii) A document that complies with the requirements 
     under section 7209(b)(1) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458; 8 
     U.S.C. 1185 note).
       ``(iv) For individuals under 18 years of age who are unable 
     to present a document listed in clause (i) or (ii), 
     documentation of personal identity of such other type as the 
     Secretary determines will provide a reliable means of 
     identification, which may include an attestation as to the 
     individual's identity by a parent or legal guardian under 
     penalty of perjury.
       ``(E) Documents evidencing employment authorization.--A 
     document is specified in this subparagraph if the document is 
     unexpired (unless the validity of the document is extended by 
     law) and is 1 of the following:
       ``(i) A social security account number card issued by the 
     Commissioner, other than a card which specifies on its face 
     that the card is not valid to evidence employment authorized 
     status or has other similar words of limitation.
       ``(ii) Any other documentation evidencing employment 
     authorized status that the Secretary determines and publishes 
     in the Federal Register and through appropriate notice 
     directly to employers registered within the System to be 
     acceptable for purposes of this subparagraph if such 
     documentation, including any electronic security measures 
     linked to such documentation, contains security features to 
     make such documentation resistant to tampering, 
     counterfeiting, and fraudulent use.
       ``(F) Identity authentication mechanism.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Covered identity document.--The term `covered 
     identity document' means a valid--

       ``(aa) United States passport, passport card, or a document 
     evidencing lawful permanent residence status or employment 
     authorized status issued to an alien;
       ``(bb) enhanced driver's license or identity card issued by 
     a participating State or an outlying possession of the United 
     States; or
       ``(cc) photograph and appropriate identifying information 
     provided by the Secretary of State pursuant to the granting 
     of a visa.

       ``(II) Participating state.--The term `participating State' 
     means a State that has an agreement with the Secretary to 
     provide the Secretary, for purposes of identity verification 
     in the System, with photographs and appropriate identifying 
     information maintained by the State.

       ``(ii) Requirement for identity authentication.--In 
     addition to verifying the documents specified in subparagraph 
     (C), (D), or (E), the System shall require each employer to 
     verify the identity of each new hire using the identity 
     authentication mechanism described in clause (iii) or, for an 
     individual whose identity is not able to be verified using 
     that mechanism, to use the additional security measures 
     provided in clause (iv) after such measures become available. 
     A failure of the System to verify the identity of an 
     individual due to the use of an identity authentication 
     mechanism shall result in a further action notice under 
     subsection (d)(4)(C)(iii).
       ``(iii) Photo tool.--

       ``(I) Use requirement.--An employer that hires an 
     individual who has a presented a covered identity document to 
     establish his or her identity and employment authorization 
     under subsection (c) shall verify the identity of such 
     individual using the photo tool described in subclause (II).
       ``(II) Development requirement.--The Secretary shall 
     develop and maintain a photo tool that enables employers to 
     match the photo on a covered identity document provided to 
     the employer to a photo maintained by a U.S. Citizenship and 
     Immigration Services or other appropriate database.
       ``(III) Individual queries.--The photo tool capability 
     shall be incorporated into the System and made available to 
     employers not

[[Page 10536]]

     later than 1 year after the date on which regulations are 
     published implementing subsection (d).
       ``(IV) Limitations on use of information.--Information and 
     images acquired from State motor vehicle databases through 
     the photo tool developed under subclause (II)--

       ``(aa) may only be used for matching photos to a covered 
     identity document for the purposes of employment 
     verification;
       ``(bb) shall not be collected or stored by the Federal 
     Government; and
       ``(cc) may only be disseminated in response to an 
     individual photo tool query.
       ``(iv) Additional security measures.--

       ``(I) Use requirement.--An employer seeking to hire an 
     individual whose identity is not able to be verified using 
     the photo tool described in clause (iii), because the 
     employee did not present a covered document for employment 
     eligibility verification purposes, shall verify the identity 
     of such individual using the additional security measures 
     described in subclause (II).
       ``(II) Development requirement.--The Secretary shall 
     develop, after publication in the Federal Register and an 
     opportunity for public comment, specific and effective 
     additional security measures to adequately verify the 
     identity of an individual whose identity is not able to be 
     verified using the photo tool described in clause (iii). Such 
     additional security measures--

       ``(aa) shall be kept up-to-date with technological 
     advances;
       ``(bb) shall provide a means of identity authentication in 
     a manner that provides a high level of certainty as to the 
     identity of such individual, using immigration and 
     identifying information that may include review of identity 
     documents or background screening verification techniques 
     using publicly available information; and
       ``(cc) shall be incorporated into the System and made 
     available to employers not later than 1 year after the date 
     on which regulations are published implementing subsection 
     (d).

       ``(III) Comprehensive use.--An employer may employ the 
     additional security measures set forth in this clause with 
     respect to all individuals the employer hires if the employer 
     notifies the Secretary of such election at the time the 
     employer registers for use of the System under subsection 
     (d)(4)(A)(i) or anytime thereafter. An election under this 
     subclause may be withdrawn 90 days after the employer 
     notifies the Secretary of the employer's intent to 
     discontinue such election.

       ``(v) Automated verification.--The Secretary--

       ``(I) may establish a program, in addition to the identity 
     authentication mechanism described in subparagraph (F)(iii), 
     in which the System automatically verifies information 
     contained in a covered identity document issued by a 
     participating State, which is presented under subparagraph 
     (D)(i), including information needed to verify that the 
     covered identity document matches the State's records;
       ``(II) may not maintain information provided by a 
     participating State in a database maintained by U.S. 
     Citizenship and Immigration Services; and
       ``(III) may not utilize or disclose such information, 
     except as authorized under this section.

       ``(G) Authority to prohibit use of certain documents.--If 
     the Secretary determines, after publication in the Federal 
     Register and an opportunity for public comment, that any 
     document or class of documents specified in subparagraph (B), 
     (C), or (D) does not reliably establish identity or that 
     employment authorized status is being used fraudulently to an 
     unacceptable degree, the Secretary--
       ``(i) may prohibit or restrict the use of such document or 
     class of documents for purposes of this subsection; and
       ``(ii) shall directly notify all employers registered 
     within the System of the prohibition through appropriate 
     means.
       ``(H) Authority to allow use of certain documents.--If the 
     Secretary has determined that another document or class of 
     documents, such as a document issued by a federally 
     recognized Indian tribe, may be used to reliably establish 
     identity or employment authorized status, the Secretary--
       ``(i) may allow the use of that document or class of 
     documents for purposes of this subsection after publication 
     in the Federal Register and an opportunity for public 
     comment;
       ``(ii) shall publish a description of any such document or 
     class of documents on the U.S. Citizenship and Immigration 
     Services website; and
       ``(iii) shall directly notify all employers registered 
     within the System of the addition through appropriate means.
       ``(2) Individual attestation of employment authorization.--
     An individual, upon commencing employment with an employer, 
     shall--
       ``(A) attest, under penalty of perjury, on the form 
     prescribed by the Secretary, that the individual is--
       ``(i) a citizen of the United States;
       ``(ii) an alien lawfully admitted for permanent residence;
       ``(iii) an alien who has employment authorized status; or
       ``(iv) otherwise authorized by the Secretary to be hired 
     for such employment;
       ``(B) provide such attestation by a handwritten, 
     electronic, or digital signature; and
       ``(C) provide the individual's social security account 
     number to the Secretary, unless the individual has not yet 
     been issued such a number, on such form as the Secretary may 
     require.
       ``(3) Retention of verification record.--
       ``(A) In general.--After completing a form for an 
     individual in accordance with paragraphs (1) and (2), the 
     employer shall retain a version of such completed form and 
     make such form available for inspection by the Secretary or 
     the Office of Special Counsel for Immigration-Related Unfair 
     Employment Practices of the Department of Justice during the 
     period beginning on the hiring date of the individual and 
     ending on the later of--
       ``(i) the date that is 3 years after such hiring date; or
       ``(ii) the date that is 1 year after the date on which the 
     individual's employment with the employer is terminated.
       ``(B) Requirement for electronic retention.--The 
     Secretary--
       ``(i) shall permit an employer to retain the form described 
     in subparagraph (A) in electronic form; and
       ``(ii) shall permit an employer to retain such form in 
     paper, microfiche, microfilm, portable document format, or 
     other media.
       ``(4) Copying of documentation and recordkeeping.--The 
     Secretary may promulgate regulations regarding--
       ``(A) copying documents and related information pertaining 
     to employment verification presented by an individual under 
     this subsection; and
       ``(B) retaining such information during a period not to 
     exceed the required retention period set forth in paragraph 
     (3).
       ``(5) Penalties.--An employer that fails to comply with any 
     requirement under this subsection may be penalized under 
     subsection (e)(4)(B).
       ``(6) Protection of civil rights.--
       ``(A) In general.--Nothing in this section may be construed 
     to diminish any rights otherwise protected by Federal law.
       ``(B) Prohibition on discrimination.--An employer shall use 
     the procedures for document verification set forth in this 
     paragraph for all employees without regard to race, color, 
     religion, sex, national origin, or, unless specifically 
     permitted in this section, to citizenship status.
       ``(7) Receipts.--The Secretary may authorize the use of 
     receipts for replacement documents, and temporary evidence of 
     employment authorization by an individual to meet a 
     documentation requirement under this subsection on a 
     temporary basis not to exceed 1 year, after which time the 
     individual shall provide documentation sufficient to satisfy 
     the documentation requirements under this subsection.
       ``(8) No authorization of national identification cards.--
     Nothing in this section may be construed to directly or 
     indirectly authorize the issuance, use, or establishment of a 
     national identification card.
       ``(d) Employment Verification System.--
       ``(1) In general.--
       ``(A) Establishment.--The Secretary, in consultation with 
     the Commissioner, shall establish the Employment Verification 
     System.
       ``(B) Monitoring.--The Secretary shall create the necessary 
     processes to monitor--
       ``(i) the functioning of the System, including the volume 
     of the workflow, the speed of processing of queries, the 
     speed and accuracy of responses;
       ``(ii) the misuse of the System, including the prevention 
     of fraud or identity theft;
       ``(iii) whether the use of the System results in wrongful 
     adverse actions or discrimination based upon a prohibited 
     factor against citizens or nationals of the United States or 
     individuals who have employment authorized status; and
       ``(iv) the security, integrity, and privacy of the System.
       ``(C) Procedures.--The Secretary--
       ``(i) shall create processes to provide an individual with 
     direct access to the individual's case history in the System, 
     including--

       ``(I) the identities of all persons or entities that have 
     queried the individual through the System;
       ``(II) the date of each such query; and
       ``(III) the System response for each such query; and

       ``(ii) in consultation with the Commissioner, shall 
     develop--

       ``(I) protocols to notify an individual, in a timely manner 
     through the use of electronic correspondence or mail, that a 
     query for the individual has been processed through the 
     System; or
       ``(II) a process for the individual to submit additional 
     queries to the System or notify the Secretary of potential 
     identity fraud.

       ``(2) Participation requirements.--
       ``(A) Federal government.--Except as provided in 
     subparagraph (B), all agencies and departments in the 
     executive, legislative, or judicial branches of the Federal 
     Government shall participate in the System beginning on the 
     earlier of--
       ``(i) the date of the enactment of the Border Security, 
     Economic Opportunity, and Immigration Modernization Act, to 
     the extent required under section 402(e)(1) of the Illegal 
     Immigration Reform and Immigrant

[[Page 10537]]

     Responsibility Act of 1996 (division C of Public Law 104-208; 
     8 U.S.C. 1324a) and as already implemented by each agency or 
     department; or
       ``(ii) the date that is 90 days after the date of the 
     enactment of the Border Security, Economic Opportunity, and 
     Immigration Modernization Act.
       ``(B) Federal contractors.--Federal contractors shall 
     participate in the System as provided in the final rule 
     relating to employment eligibility verification published in 
     the Federal Register on November 14, 2008 (73 Fed. Reg. 
     67,651), or any similar subsequent regulation, for which 
     purpose references to E-Verify in the final rule shall be 
     construed to apply to the System.
       ``(C) Critical infrastructure.--
       ``(i) In general.--Beginning on the date that is 1 year 
     after the date on which regulations are published 
     implementing this subsection, the Secretary may authorize or 
     direct any employer, person, or entity responsible for 
     granting access to, protecting, securing, operating, 
     administering, or regulating part of the critical 
     infrastructure (as defined in section 1016(e) of the Critical 
     Infrastructure Protection Act of 2001 (42 U.S.C. 5195c(e))) 
     to participate in the System to the extent the Secretary 
     determines that such participation will assist in the 
     protection of the critical infrastructure.
       ``(ii) Notification to employers.--The Secretary shall 
     notify an employer required to participate in the System 
     under this subparagraph not later than 90 days before the 
     date on which the employer is required to participate.
       ``(D) Employers with more than 10,000 employees.--Not later 
     than 1 year after regulations are published implementing this 
     subsection, all employers with more than 10,000 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(E) Employers with more than 500 employees.--Not later 
     than 2 years after regulations are published implementing 
     this subsection, all employers with more than 500 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(F) Employers with more than 20 employees.--Not later 
     than 3 years after regulations are published implementing 
     this subsection, all employers with more than 20 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(G) Agricultural employment.--Not later than 4 years 
     after regulations are published implementing this subsection, 
     employers of employees performing agricultural employment (as 
     defined in section 218A of this Act and section 2202 of the 
     Border Security, Economic Opportunity, and Immigration 
     Modernization Act) shall participate in the System with 
     respect to all newly hired employees and employees with 
     expiring temporary employment authorization documents. An 
     agricultural employee shall not be counted for purposes of 
     subparagraph (D), (E), or (F).
       ``(H) All employers.--Not later than 4 years after 
     regulations are published implementing this subsection, all 
     employers shall participate in the System with respect to all 
     newly hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(I) Tribal government employers.--
       ``(i) Rulemaking.--In developing regulations to implement 
     this subsection, the Secretary shall--

       ``(I) consider the effects of this section on federally 
     recognized Indian tribes and tribal members; and
       ``(II) consult with the governments of federally recognized 
     Indian tribes.

       ``(ii) Required participation.--Not later than 4 years 
     after regulations are published implementing this subsection, 
     all employers owned by, or entities of, the government of a 
     federally recognized Indian tribe shall participate in the 
     System with respect to all newly hired employees and 
     employees with expiring temporary employment authorization 
     documents.
       ``(J) Immigration law violators.--
       ``(i) Orders finding violations.--An order finding any 
     employer to have violated this section or section 274C may, 
     in the Secretary's discretion, require the employer to 
     participate in the System with respect to newly hired 
     employees and employees with expiring temporary employment 
     authorization documents, if such employer is not otherwise 
     required to participate in the System under this section. The 
     Secretary shall monitor such employer's compliance with 
     System procedures.
       ``(ii) Pattern or practice of violations.--The Secretary 
     may require an employer that is required to participate in 
     the System with respect to newly hired employees to 
     participate in the System with respect to the employer's 
     current employees if the employer is determined by the 
     Secretary or other appropriate authority to have engaged in a 
     pattern or practice of violations of the immigration laws of 
     the United States.
       ``(K)  Voluntary participation.--The Secretary may permit 
     any employer that is not required to participate in the 
     System under this section to do so on a voluntary basis.
       ``(3) Consequence of failure to participate.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the failure, other than a de minimis or inadvertent failure, 
     of an employer that is required to participate in the System 
     to comply with the requirements of the System with respect to 
     an individual--
       ``(i) shall be treated as a violation of subsection 
     (a)(1)(B) with respect to that individual; and
       ``(ii) creates a rebuttable presumption that the employer 
     has violated paragraph (1)(A) or (2) of subsection (a).
       ``(B) Exception.--
       ``(i) In general.--Subparagraph (A) shall not apply in a 
     criminal prosecution.
       ``(ii) Use as evidence.--Nothing in this paragraph may be 
     construed to limit the use in the prosecution of a Federal 
     crime, in a manner otherwise consistent with Federal criminal 
     law and procedure, of evidence relating to the employer's 
     failure to comply with requirements of the System.
       ``(4) Procedures for participants in the system.--
       ``(A) In general.--An employer participating in the System 
     shall register such participation with the Secretary and, 
     when hiring any individual for employment in the United 
     States, shall comply with the following:
       ``(i) Registration of employers.--The Secretary, through 
     notice in the Federal Register, shall prescribe procedures 
     that employers shall be required to follow to register with 
     the System.
       ``(ii) Updating information.--The employer is responsible 
     for providing notice of any change to the information 
     required under subclauses (I), (II), and (III) of clause (v) 
     before conducting any further inquiries within the System, or 
     on such other schedule as the Secretary may prescribe.
       ``(iii) Training.--The Secretary shall require employers to 
     undergo such training as the Secretary determines to be 
     necessary to ensure proper use, protection of civil rights 
     and civil liberties, privacy, integrity, and security of the 
     System. To the extent practicable, such training shall be 
     made available electronically on the U.S. Citizenship and 
     Immigration Services website.
       ``(iv) Notification to employees.--The employer shall 
     inform individuals hired for employment that the System--

       ``(I) will be used by the employer;
       ``(II) may be used for immigration enforcement purposes; 
     and
       ``(III) may not be used to discriminate or to take adverse 
     action against a national of the United States or an alien 
     who has employment authorized status.

       ``(v) Provision of additional information.--The employer 
     shall obtain from the individual (and the individual shall 
     provide) and shall record in such manner as the Secretary may 
     specify--

       ``(I) the individual's social security account number;
       ``(II) if the individual does not attest to United States 
     citizenship or status as a national of the United States 
     under subsection (c)(2), such identification or authorization 
     number established by the Department as the Secretary shall 
     specify; and
       ``(III) such other information as the Secretary may require 
     to determine the identity and employment authorization of an 
     individual.

       ``(vi) Presentation of documentation.--The employer, and 
     the individual whose identity and employment authorized 
     status are being confirmed, shall fulfill the requirements 
     under subsection (c).
       ``(B) Seeking confirmation.--
       ``(i) In general.--An employer shall use the System to 
     confirm the identity and employment authorized status of any 
     individual during--

       ``(I) the period beginning on the date on which the 
     individual accepts an offer of employment and ending 3 
     business days after the date on which employment begins; or
       ``(II) such other reasonable period as the Secretary may 
     prescribe.

       ``(ii) Limitation.--An employer may not make the starting 
     date of an individual's employment or training or any other 
     term and condition of employment dependent on the receipt of 
     a confirmation of identity and employment authorized status 
     by the System.
       ``(iii) Reverification.--If an individual has a limited 
     period of employment authorized status, the individual's 
     employer shall reverify such status through the System not 
     later than 3 business days after the last day of such period.
       ``(iv) Other employment.--For employers directed by the 
     Secretary to participate in the System under paragraph 
     (2)(C)(i) to protect critical infrastructure or otherwise 
     specified circumstances in this section to verify their 
     entire workforce, the System may be used for initial 
     verification of an individual who was hired before the 
     employer became subject to the System, and the employer shall 
     initiate all required procedures on or before such date as 
     the Secretary shall specify.
       ``(v) Notification.--

       ``(I) In general.--The Secretary shall provide, and the 
     employer shall utilize, as part

[[Page 10538]]

     of the System, a method of notifying employers of a 
     confirmation or nonconfirmation of an individual's identity 
     and employment authorized status, or a notice that further 
     action is required to verify such identity or employment 
     eligibility (referred to in this subsection as a further 
     action notice).
       ``(II) Procedures.--The Secretary shall--

       ``(aa) directly notify the individual and the employer, by 
     means of electronic correspondence, mail, text message, 
     telephone, or other direct communication, of a 
     nonconfirmation or further action notice;
       ``(bb) provide information about filing an administrative 
     appeal under paragraph (6) and a filing for review before an 
     administrative law judge under paragraph (7); and
       ``(cc) establish procedures to directly notify the 
     individual and the employer of a confirmation.

       ``(III) Implementation.--The Secretary may provide for a 
     phased-in implementation of the notification requirements 
     under this clause, as appropriate. The notification system 
     shall cover all inquiries not later than 1 year from the date 
     of the enactment of the Border Security, Economic 
     Opportunity, and Immigration Modernization Act.

       ``(C) Confirmation or nonconfirmation.--
       ``(i) Initial response.--

       ``(I) In general.--Except as provided in subclause (II), 
     the System shall provide--

       ``(aa) a confirmation of an individual's identity and 
     employment authorized status or a further action notice at 
     the time of the inquiry; and
       ``(bb) an appropriate code indicating such confirmation or 
     such further action notice.

       ``(II) Alternative deadline.--If the System is unable to 
     provide immediate confirmation or further action notice for 
     technological reasons or due to unforeseen circumstances, the 
     System shall provide a confirmation or further action notice 
     not later than 3 business days after the initial inquiry.

       ``(ii) Confirmation upon initial inquiry.--If the employer 
     receives an appropriate confirmation of an individual's 
     identity and employment authorized status under the System, 
     the employer shall record the confirmation in such manner as 
     the Secretary may specify.
       ``(iii) Further action notice and later confirmation or 
     nonconfirmation.--

       ``(I) Notification and acknowledgment that further action 
     is required.--Not later than 3 business days after an 
     employer receives a further action notice of an individual's 
     identity or employment eligibility under the System, or 
     during such other reasonable time as the Secretary may 
     prescribe, the employer shall notify the individual for whom 
     the confirmation is sought of the further action notice and 
     any procedures specified by the Secretary for addressing such 
     notice. The further action notice shall be given to the 
     individual in writing and the employer shall acknowledge in 
     the System under penalty of perjury that it provided the 
     employee with the further action notice. The individual shall 
     affirmatively acknowledge in writing, or in such other manner 
     as the Secretary may specify, the receipt of the further 
     action notice from the employer. If the individual refuses to 
     acknowledge the receipt of the further action notice, or 
     acknowledges in writing that the individual will not contest 
     the further action notice under subclause (II), the employer 
     shall notify the Secretary in such manner as the Secretary 
     may specify.
       ``(II) Contest.--Not later than 10 business days after 
     receiving notification of a further action notice under 
     subclause (I), the individual shall contact the appropriate 
     Federal agency and, if the Secretary so requires, appear in 
     person for purposes of verifying the individual's identity 
     and employment eligibility. The Secretary, in consultation 
     with the Commissioner and other appropriate Federal agencies, 
     shall specify an available secondary verification procedure 
     to confirm the validity of information provided and to 
     provide a confirmation or nonconfirmation. Any procedures for 
     reexamination shall not limit in any way an employee's right 
     to appeal a nonconfirmation.
       ``(III) No contest.--If the individual refuses to 
     acknowledge receipt of the further action notice, 
     acknowledges that the individual will not contest the further 
     action notice as provided in subclause (I), or does not 
     contact the appropriate Federal agency within the period 
     specified in subclause (II), following expiration of the 
     period specified in subclause (II), a nonconfirmation shall 
     be issued. The employer shall record the nonconfirmation in 
     such manner as the Secretary may specify and terminate the 
     individual's employment. An individual's failure to contest a 
     further action notice shall not be considered an admission of 
     guilt with respect to any violation of this section or any 
     provision of law.
       ``(IV) Confirmation or nonconfirmation.--Unless the period 
     is extended in accordance with this subclause, the System 
     shall provide a confirmation or nonconfirmation not later 
     than 10 business days after the date on which the individual 
     contests the further action notice under subclause (II). If 
     the Secretary determines that good cause exists, after taking 
     into account adverse impacts to the employer, and including 
     time to permit the individual to obtain and provide needed 
     evidence of identity or employment eligibility, the Secretary 
     shall extend the period for providing confirmation or 
     nonconfirmation for stated periods beyond 10 business days. 
     When confirmation or nonconfirmation is provided, the 
     confirmation system shall provide an appropriate code 
     indicating such confirmation or nonconfirmation.
       ``(V) Reexamination.--Nothing in this section shall prevent 
     the Secretary from establishing procedures to reexamine a 
     case where a confirmation or nonconfirmation has been 
     provided if subsequently received information indicates that 
     the confirmation or nonconfirmation may not have been 
     correct. Any procedures for reexamination shall not limit in 
     any way an employee's right to appeal a nonconfirmation.
       ``(VI) Employee protections.--An employer may not terminate 
     employment or take any other adverse action against an 
     individual solely because of a failure of the individual to 
     have identity and employment eligibility confirmed under this 
     subsection until--

       ``(aa) a nonconfirmation has been issued;
       ``(bb) if the further action notice was contested, the 
     period to timely file an administrative appeal has expired 
     without an appeal or the contestation to the further action 
     notice is withdrawn; or
       ``(cc) if an appeal before an administrative law judge 
     under paragraph (7) has been filed, the nonconfirmation has 
     been upheld or the appeal has been withdrawn or dismissed.
       ``(iv) Notice of nonconfirmation.--Not later than 3 
     business days after an employer receives a nonconfirmation, 
     or during such other reasonable time as the Secretary may 
     provide, the employer shall notify the individual who is the 
     subject of the nonconfirmation, and provide information about 
     filing an administrative appeal pursuant to paragraph (6) and 
     a request for a hearing before an administrative law judge 
     pursuant to paragraph (7). The nonconfirmation notice shall 
     be given to the individual in writing and the employer shall 
     acknowledge in the System under penalty of perjury that it 
     provided the notice (or adequately attempted to provide 
     notice, but was unable to do so despite reasonable efforts). 
     The individual shall affirmatively acknowledge in writing, or 
     in such other manner as the Secretary may prescribe, the 
     receipt of the nonconfirmation notice from the employer. If 
     the individual refuses or fails to acknowledge the receipt of 
     the nonconfirmation notice, the employer shall notify the 
     Secretary in such manner as the Secretary may prescribe.
       ``(D) Consequences of nonconfirmation.--
       ``(i) Termination of continued employment.--Except as 
     provided in clause (iii), an employer that has received a 
     nonconfirmation regarding an individual and has made 
     reasonable efforts to notify the individual in accordance 
     with subparagraph (C)(iv) shall terminate the employment of 
     the individual upon the expiration of the time period 
     specified in paragraph (7).
       ``(ii) Continued employment after nonconfirmation.--If the 
     employer continues to employ an individual after receiving 
     nonconfirmation and exhaustion of all appeals or expiration 
     of all rights to appeal if not appealed, in violation of 
     clause (i), a rebuttable presumption is created that the 
     employer has violated paragraphs (1)(A) and (2) of subsection 
     (a). Such presumption shall not apply in any prosecution 
     under subsection (k)(1).
       ``(iii) Effect of administrative appeal or review by 
     administrative law judge.--If an individual files an 
     administrative appeal of the nonconfirmation within the time 
     period specified in paragraph (6)(A), or files for review 
     with an administrative law judge specified in paragraph 
     (7)(A), the employer shall not terminate the individual's 
     employment under this subparagraph prior to the resolution of 
     the administrative appeal unless the Secretary or 
     Commissioner terminates the stay under paragraph (6)(B) or 
     (7)(B).
       ``(iv) Weekly report.--The Director of U.S. Citizenship and 
     Immigration Services shall submit a weekly report to the 
     Assistant Secretary for Immigration and Customs Enforcement 
     that includes, for each individual who receives final 
     nonconfirmation through the System--

       ``(I) the name of such individual;
       ``(II) his or her social security number or alien file 
     number;
       ``(III) the name and contact information for his or her 
     current employer; and
       ``(IV) any other critical information that the Assistant 
     Secretary determines to be appropriate.

       ``(v) Other referral.--The Director of U.S. Citizenship and 
     Immigration Services shall refer to the Assistant Secretary 
     for Immigration and Customs Enforcement for appropriate 
     action by the Assistant Secretary or for referral by the 
     Assistant Secretary to another law enforcement agency, as 
     appropriate--

       ``(I) any case in which the Director believes that a social 
     security number has been falsely or fraudulently used; and
       ``(II) any case in which a false or fraudulent document is 
     used by an employee who has received a further action notice 
     to resolve such notice.

       ``(E) Obligation to respond to queries and additional 
     information.--

[[Page 10539]]

       ``(i) In general.--Employers shall comply with requests for 
     information from the Secretary and the Special Counsel for 
     Immigration-Related Unfair Employment Practices of the 
     Department of Justice, including queries concerning current 
     and former employees, within the time frame during which 
     records are required to be maintained under this section 
     regarding such former employees, if such information relates 
     to the functioning of the System, the accuracy of the 
     responses provided by the System, or any suspected misuse, 
     discrimination, fraud, or identity theft in the use of the 
     System. Failure to comply with a request under this clause 
     constitutes a violation of subsection (a)(1)(B).
       ``(ii) Action by individuals.--

       ``(I) In general.--Individuals being verified through the 
     System may be required to take further action to address 
     questions identified by the Secretary or the Commissioner 
     regarding the documents relied upon for purposes of 
     subsection (c).
       ``(II) Notification.--Not later than 3 business days after 
     the receipt of such questions regarding an individual, or 
     during such other reasonable time as the Secretary may 
     prescribe, the employer shall--

       ``(aa) notify the individual of any such requirement for 
     further actions; and
       ``(bb) record the date and manner of such notification.

       ``(III) Acknowledgment.--The individual shall acknowledge 
     the notification received from the employer under subclause 
     (II) in writing, or in such other manner as the Secretary may 
     prescribe.

       ``(iii) Rulemaking.--

       ``(I) In general.--The Secretary, in consultation with the 
     Commissioner and the Attorney General, is authorized to issue 
     regulations implementing, clarifying, and supplementing the 
     requirements under this subparagraph--

       ``(aa) to facilitate the functioning, accuracy, and 
     fairness of the System;
       ``(bb) to prevent misuse, discrimination, fraud, or 
     identity theft in the use of the System; or
       ``(cc) to protect and maintain the confidentiality of 
     information that could be used to locate or otherwise place 
     at risk of harm victims of domestic violence, dating 
     violence, sexual assault, stalking, and human trafficking, 
     and of the applicant or beneficiary of any petition described 
     in section 384(a)(2) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1367(a)(2)).

       ``(II) Notice.--The regulations issued under subclause (I) 
     shall be--

       ``(aa) published in the Federal Register; and
       ``(bb) provided directly to all employers registered in the 
     System.
       ``(F) Designated agents.--The Secretary shall establish a 
     process--
       ``(i) for certifying, on an annual basis or at such times 
     as the Secretary may prescribe, designated agents and other 
     System service providers seeking access to the System to 
     perform verification queries on behalf of employers, based 
     upon training, usage, privacy, and security standards 
     prescribed by the Secretary;
       ``(ii) for ensuring that designated agents and other System 
     service providers are subject to monitoring to the same 
     extent as direct access users; and
       ``(iii) for establishing standards for certification of 
     electronic I-9 programs.
       ``(G) Requirement to provide information.--
       ``(i) In general.--No later than 3 months after the date of 
     the enactment of the Border Security, Economic Opportunity, 
     and Immigration Modernization Act, the Secretary, in 
     consultation with the Secretary of Labor, the Secretary of 
     Agriculture, the Commissioner, the Attorney General, the 
     Equal Employment Opportunity Commission, and the 
     Administrator of the Small Business Administration, shall 
     commence a campaign to disseminate information respecting the 
     procedures, rights, and remedies prescribed under this 
     section.
       ``(ii) Campaign requirements.--The campaign authorized 
     under clause (i)--

       ``(I) shall be aimed at increasing the knowledge of 
     employers, employees, and the general public concerning 
     employer and employee rights, responsibilities, and remedies 
     under this section; and
       ``(II) shall be coordinated with the public education 
     campaign conducted by U.S. Citizenship and Immigration 
     Services.

       ``(iii) Assessment.--The Secretary shall assess the success 
     of the campaign in achieving the goals of the campaign.
       ``(iv) Authority to contract.--In order to carry out and 
     assess the campaign under this subparagraph, the Secretary 
     may, to the extent deemed appropriate and subject to the 
     availability of appropriations, contract with public and 
     private organizations for outreach and assessment activities 
     under the campaign.
       ``(v) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph 
     $40,000,000 for each of the fiscal years 2014 through 2016.
       ``(H) Authority to modify information requirements.--Based 
     on a regular review of the System and the document 
     verification procedures to identify misuse or fraudulent use 
     and to assess the security of the documents and processes 
     used to establish identity or employment authorized status, 
     the Secretary, in consultation with the Commissioner, after 
     publication of notice in the Federal Register and an 
     opportunity for public comment, may modify, if the Secretary 
     determines that the modification is necessary to ensure that 
     the System accurately and reliably determines the identity 
     and employment authorized status of employees and maintain 
     existing protections against misuse, discrimination, fraud, 
     and identity theft--
       ``(i) the information that shall be presented to the 
     employer by an individual;
       ``(ii) the information that shall be provided to the System 
     by the employer; and
       ``(iii) the procedures that shall be followed by employers 
     with respect to the process of verifying an individual 
     through the System.
       ``(I) Self-verification.--Subject to appropriate safeguards 
     to prevent misuse of the system, the Secretary, in 
     consultation with the Commissioner, shall establish a secure 
     self-verification procedure to permit an individual who seeks 
     to verify the individual's own employment eligibility to 
     contact the appropriate agency and, in a timely manner, 
     correct or update the information contained in the System.
       ``(5) Protection from liability for actions taken on the 
     basis of information provided by the system.--An employer 
     shall not be liable to a job applicant, an employee, the 
     Federal Government, or a State or local government, under 
     Federal, State, or local criminal or civil law for any 
     employment-related action taken with respect to a job 
     applicant or employee in good faith reliance on information 
     provided by the System.
       ``(6) Administrative appeal.--
       ``(A) In general.--An individual who is notified of a 
     nonconfirmation may, not later than 10 business days after 
     the date that such notice is received, file an administrative 
     appeal of such nonconfirmation with the Commissioner if the 
     notice is based on records maintained by the Commissioner, or 
     in any other case, with the Secretary. An individual who did 
     not timely contest a further action notice timely received by 
     that individual for which the individual acknowledged receipt 
     may not be granted a review under this paragraph.
       ``(B) Administrative stay of nonconfirmation.--The 
     nonconfirmation shall be automatically stayed upon the timely 
     filing of an administrative appeal, unless the 
     nonconfirmation resulted after the individual acknowledged 
     receipt of the further action notice but failed to contact 
     the appropriate agency within the time provided. The stay 
     shall remain in effect until the resolution of the appeal, 
     unless the Secretary or the Commissioner terminates the stay 
     based on a determination that the administrative appeal is 
     frivolous or filed for purposes of delay.
       ``(C) Review for error.--The Secretary and the Commissioner 
     shall develop procedures for resolving administrative appeals 
     regarding nonconfirmations based upon the information that 
     the individual has provided, including any additional 
     evidence or argument that was not previously considered. Any 
     such additional evidence or argument shall be filed within 10 
     business days of the date the appeal was originally filed. 
     Appeals shall be resolved within 20 business days after the 
     individual has submitted all evidence and arguments the 
     individual wishes to submit, or has stated in writing that 
     there is no additional evidence that the individual wishes to 
     submit. The Secretary and the Commissioner may, on a case by 
     case basis for good cause, extend the filing and submission 
     period in order to ensure accurate resolution of an appeal 
     before the Secretary or the Commissioner.
       ``(D) Preponderance of evidence.--Administrative appeal 
     under this paragraph shall be limited to whether a 
     nonconfirmation notice is supported by a preponderance of the 
     evidence.
       ``(E) Damages, fees, and costs.--No money damages, fees or 
     costs may be awarded in the administrative appeal process 
     under this paragraph.
       ``(7) Review by administrative law judge.--
       ``(A) In general.--Not later than 30 days after the date an 
     individual receives a final determination on an 
     administrative appeal under paragraph (6), the individual may 
     obtain review of such determination by filing a complaint 
     with a Department of Justice administrative law judge in 
     accordance with this paragraph.
       ``(B) Stay of nonconfirmation.--The nonconfirmation related 
     to such final determination shall be automatically stayed 
     upon the timely filing of a complaint under this paragraph, 
     and the stay shall remain in effect until the resolution of 
     the complaint, unless the administrative law judge determines 
     that the action is frivolous or filed for purposes of delay.
       ``(C) Service.--The respondent to complaint filed under 
     this paragraph is either the Secretary or the Commissioner, 
     but not both, depending upon who issued the administrative 
     order under paragraph (6). In addition to serving the 
     respondent, the plaintiff shall serve the Attorney General.
       ``(D) Authority of administrative law judge.--

[[Page 10540]]

       ``(i) Rules of practice.--The Secretary shall promulgate 
     regulations regarding the rules of practice in appeals 
     brought pursuant to this subsection.
       ``(ii) Authority of administrative law judge.--The 
     administrative law judge shall have power to--

       ``(I) terminate a stay of a nonconfirmation under 
     subparagraph (B) if the administrative law judge determines 
     that the action is frivolous or filed for purposes of delay;
       ``(II) adduce evidence at a hearing;
       ``(III) compel by subpoena the attendance of witnesses and 
     the production of evidence at any designated place or 
     hearing;
       ``(IV) resolve claims of identity theft; and
       ``(V) enter, upon the pleadings and any evidence adduced at 
     a hearing, a decision affirming or reversing the result of 
     the agency, with or without remanding the cause for a 
     rehearing.

       ``(iii) Subpoena.--In case of contumacy or refusal to obey 
     a subpoena lawfully issued under this section and upon 
     application of the administrative law judge, an appropriate 
     district court of the United States may issue an order 
     requiring compliance with such subpoena and any failure to 
     obey such order may be punished by such court as a contempt 
     of such court.
       ``(iv) Training.--An administrative law judge hearing cases 
     shall have special training respecting employment authorized 
     status verification.
       ``(E) Order by administrative law judge.--
       ``(i) In general.--The administrative law judge shall issue 
     and cause to be served to the parties in the proceeding an 
     order which may be appealed as provided in subparagraph (G).
       ``(ii) Contents of order.--Such an order shall uphold or 
     reverse the final determination on the request for 
     reconsideration and order lost wages and other appropriate 
     remedies as provided in subparagraph (F).
       ``(F) Compensation for error.--
       ``(i) In general.--In cases in which the administrative law 
     judge reverses the final determination of the Secretary or 
     the Commissioner made under paragraph (6), and the 
     administrative law judge finds that--

       ``(I) the nonconfirmation was due to gross negligence or 
     intentional misconduct of the employer, the administrative 
     law judge may order the employer to pay the individual lost 
     wages, and reasonable costs and attorneys' fees incurred 
     during administrative and judicial review; or
       ``(II) such final determination was erroneous by reason of 
     the negligence of the Secretary or the Commissioner, the 
     administrative law judge may order the Secretary or the 
     Commissioner to pay the individual lost wages, and reasonable 
     costs and attorneys' fees incurred during the administrative 
     appeal and the administrative law judge review.

       ``(ii) Calculation of lost wages.--Lost wages shall be 
     calculated based on the wage rate and work schedule that 
     prevailed prior to termination. The individual shall be 
     compensated for wages lost beginning on the first scheduled 
     work day after employment was terminated and ending 120 days 
     after completion of the administrative law judge's review 
     described in this paragraph or the day after the individual 
     is reinstated or obtains employment elsewhere, whichever 
     occurs first. If the individual obtains employment elsewhere 
     at a lower wage rate, the individual shall be compensated for 
     the difference in wages for the period ending 120 days after 
     completion of the administrative law judge review process. No 
     lost wages shall be awarded for any period of time during 
     which the individual was not in employment authorized status.
       ``(iii) Payment of compensation.--Notwithstanding any other 
     law, payment of compensation for lost wages, costs, and 
     attorneys' fees under this paragraph, or compromise 
     settlements of the same, shall be made as provided by section 
     1304 of title 31, United States Code. Appropriations made 
     available to the Secretary or the Commissioner, accounts 
     provided for under section 286, and funds from the Federal 
     Old-Age and Survivors Insurance Trust Fund or the Federal 
     Disability Insurance Trust Fund shall not be available to pay 
     such compensation.
       ``(G) Appeal.--No later than 45 days after the entry of 
     such final order, any person adversely affected by such final 
     order may seek review of such order in the United States 
     Court of Appeals for the circuit in which the violation is 
     alleged to have occurred or in which the employer resides or 
     transacts business.
       ``(8) Management of the system.--
       ``(A) In general.--The Secretary is authorized to 
     establish, manage, and modify the System, which shall--
       ``(i) respond to inquiries made by participating employers 
     at any time through the internet, or such other means as the 
     Secretary may designate, concerning an individual's identity 
     and whether the individual is in employment authorized 
     status;
       ``(ii) maintain records of the inquiries that were made, of 
     confirmations provided (or not provided), and of the codes 
     provided to employers as evidence of their compliance with 
     their obligations under the System; and
       ``(iii) provide information to, and require action by, 
     employers and individuals using the System.
       ``(B) Design and operation of system.--The System shall be 
     designed and operated--
       ``(i) to maximize its reliability and ease of use by 
     employers consistent with protecting the privacy and security 
     of the underlying information, and ensuring full notice of 
     such use to employees;
       ``(ii) to maximize its ease of use by employees, including 
     direct notification of its use, of results, and ability to 
     challenge results;
       ``(iii) to respond accurately to all inquiries made by 
     employers on whether individuals are authorized to be 
     employed and to register any times when the system is unable 
     to receive inquiries;
       ``(iv) to maintain appropriate administrative, technical, 
     and physical safeguards to prevent unauthorized disclosure of 
     personal information, misuse by employers and employees, and 
     discrimination;
       ``(v) to require regularly scheduled refresher training of 
     all users of the System to ensure compliance with all 
     procedures;
       ``(vi) to allow for auditing of the use of the System to 
     detect misuse, discrimination, fraud, and identity theft, to 
     protect privacy and assess System accuracy, and to preserve 
     the integrity and security of the information in all of the 
     System, including--

       ``(I) to develop and use tools and processes to detect or 
     prevent fraud and identity theft, such as multiple uses of 
     the same identifying information or documents to fraudulently 
     gain employment;
       ``(II) to develop and use tools and processes to detect and 
     prevent misuse of the system by employers and employees;
       ``(III) to develop tools and processes to detect anomalies 
     in the use of the system that may indicate potential fraud or 
     misuse of the system;
       ``(IV) to audit documents and information submitted by 
     employees to employers, including authority to conduct 
     interviews with employers and employees, and obtain 
     information concerning employment from the employer;

       ``(vii) to confirm identity and employment authorization 
     through verification and comparison of records as determined 
     necessary by the Secretary;
       ``(viii) to confirm electronically the issuance of the 
     employment authorization or identity document and--

       ``(I) if such photograph is available, to display the 
     digital photograph that the issuer placed on the document so 
     that the employer can compare the photograph displayed to the 
     photograph on the document presented by the employee; or
       ``(II) if a photograph is not available from the issuer, to 
     confirm the authenticity of the document using additional 
     security measures set forth in subsection (c)(1)(F)(iv);

       ``(ix) to employ specific and effective additional security 
     measures set forth in subsection (c)(1)(F)(iv) to adequately 
     verify the identity of an individual that are designed and 
     operated--

       ``(I) to use state-of-the-art technology to determine to a 
     high degree of accuracy whether an individual presenting 
     biographic information is the individual with that true 
     identity;
       ``(II) to retain under the control of the Secretary the use 
     of all determinations communicated by the System, regardless 
     of the entity operating the system pursuant to a contract or 
     other agreement with a nongovernmental entity or entities to 
     the extent helpful in acquiring the best technology to 
     implement the additional security measures;
       ``(III) to be integrated with the System so that employment 
     authorizations will be determined for all individuals 
     identified as presenting their true identities through the 
     databases maintained by the Commissioner of Social Security 
     and the Secretary;
       ``(IV) to use tools and processes to detect and prevent 
     further action notices and final nonconfirmations that are 
     not correlated to fraud or identity theft;
       ``(V) to make risk-based assessments regarding the 
     reliability of a claim of identity made by an individual 
     presenting biographic information and to tailor the identity 
     determination in accordance with those assessments;
       ``(VI) to permit queries to be presented to individuals 
     subject to identity verification at the time their identities 
     are being verified in a manner that permits rapid 
     communication through Internet, mobile phone, and landline 
     telephone connections to facilitate identity proofing;
       ``(VII) to generate queries that conform to the context of 
     the identity verification process and the circumstances of 
     the individual whose identity is being verified;
       ``(VIII) to use publicly available databases and databases 
     under the jurisdiction of the Commissioner of Social 
     Security, the Secretary, and the Secretary of State to 
     formulate queries to be presented to individuals whose 
     identities are being verified, as appropriate;
       ``(IX) to not retain data collected by the System within 
     any database separate from the database in which the 
     operating system is located and to limit access to the 
     existing databases to a reference process that shields the 
     operator of the System from acquiring possession of the data 
     beyond the formulation of queries and verification of 
     responses;
       ``(X) to not permit individuals or entities using the 
     System to access any data related

[[Page 10541]]

     to the individuals whose identities are being verified beyond 
     confirmations, further action notices, and final 
     nonconfirmations of identity;
       ``(XI) to include, if feasible, a capability for permitting 
     document or other inputs that can be offered to individuals 
     and entities using the System and that may be used at the 
     option of employees to facilitate identity verification, but 
     would not be required of either employers or employees; and
       ``(XII) to the greatest extent possible, in accordance with 
     the time frames specified in this section; and

       ``(x) to provide appropriate notification directly to 
     employers registered with the System of all changes made by 
     the Secretary or the Commissioner related to allowed and 
     prohibited documents, and use of the System.
       ``(C) Safeguards to the system.--
       ``(i) Requirement to develop.--The Secretary, in 
     consultation with the Commissioner and other appropriate 
     Federal and State agencies, shall develop policies and 
     procedures to ensure protection of the privacy and security 
     of personally identifiable information and identifiers 
     contained in the records accessed or maintained by the 
     System. The Secretary, in consultation with the Commissioner 
     and other appropriate Federal and State agencies, shall 
     develop and deploy appropriate privacy and security training 
     for the Federal and State employees accessing the records 
     under the System.
       ``(ii) Privacy audits.--The Secretary, acting through the 
     Chief Privacy Officer of the Department, shall conduct 
     regular privacy audits of the policies and procedures 
     established under clause (i) and the Department's compliance 
     with the limitations set forth in subsection 
     (c)(1)(F)(iii)(IV), including any collection, use, 
     dissemination, and maintenance of personally identifiable 
     information and any associated information technology 
     systems, as well as scope of requests for this information. 
     The Chief Privacy Officer shall review the results of the 
     audits and recommend to the Secretary any changes necessary 
     to improve the privacy protections of the program.
       ``(iii) Accuracy audits.--

       ``(I) In general.--Not later than November 30 of each year, 
     the Inspector General of the Department of Homeland Security 
     shall submit a report to the Secretary, with a copy to the 
     President of the Senate and the Speaker of the House of 
     Representatives, that sets forth the error rate of the System 
     for the previous fiscal year and the assessments required to 
     be submitted by the Secretary under subparagraphs (A) and (B) 
     of paragraph (10). The report shall describe in detail the 
     methodology employed for purposes of the report, and shall 
     make recommendations for how error rates may be reduced.
       ``(II) Error rate defined.--In this clause, the term error 
     rate means the percentage determined by dividing--

       ``(aa) the number of employment authorized individuals who 
     received further action notices, contested such notices, and 
     were subsequently found to be employment authorized; by
       ``(bb) the number of System inquiries submitted for 
     employment authorized individuals.

       ``(III) Error rate determination.--The audits required 
     under this clause shall--

       ``(aa) determine the error rate for identity determinations 
     pursuant to subsection (c)(1)(F) for individuals presenting 
     their true identities in the same manner and applying the 
     same standards as for employment authorization; and
       ``(bb) include recommendations, as provided in subclause 
     (I), but no reduction in fines pursuant to subclause (IV).

       ``(IV) Reduction of penalties for recordkeeping or 
     verification practices following persistent system 
     inaccuracies.--Notwithstanding subsection (e)(4)(C)(i), in 
     any calendar year following a report by the Inspector General 
     under subclause (I) that the System had an error rate higher 
     than 0.3 percent for the previous fiscal year, the civil 
     penalty assessable by the Secretary or an administrative law 
     judge under that subsection for each first-time violation by 
     an employer who has not previously been penalized under this 
     section may not exceed $1,000.

       ``(iv) Records security program.--Any person, including a 
     private third party vendor, who retains document verification 
     or System data pursuant to this section shall implement an 
     effective records security program that--

       ``(I) ensures that only authorized personnel have access to 
     document verification or System data; and
       ``(II) ensures that whenever such data is created, 
     completed, updated, modified, altered, or corrected in 
     electronic format, a secure record is created that 
     establishes the date of access, the identity of the 
     individual who accessed the electronic record, and the 
     particular action taken.

       ``(v) Records security program.--In addition to the 
     security measures described in clause (iv), a private third 
     party vendor who retains document verification or System data 
     pursuant to this section shall implement an effective records 
     security program that--

       ``(I) provides for backup and recovery of any records 
     maintained in electronic format to protect against 
     information loss, such as power interruptions; and
       ``(II) ensures that employees are trained to minimize the 
     risk of unauthorized or accidental alteration or erasure of 
     such data in electronic format.

       ``(vi) Authorized personnel defined.--In this subparagraph, 
     the term authorized personnel means anyone registered as a 
     System user, or anyone with partial or full responsibility 
     for completion of employment authorization verification or 
     retention of data in connection with employment authorization 
     verification on behalf of an employer.
       ``(D) Available facilities and alternative 
     accommodations.--The Secretary shall make appropriate 
     arrangements and develop standards to allow employers or 
     employees, including remote hires, who are otherwise unable 
     to access the System to use electronic and telephonic formats 
     (including video conferencing, scanning technology, and other 
     available technologies), Federal Government facilities, 
     public facilities, or other available locations in order to 
     utilize the System.
       ``(E) Responsibilities of the secretary.--
       ``(i) In general.--As part of the System, the Secretary 
     shall maintain a reliable, secure method, which, operating 
     through the System and within the time periods specified, 
     compares the name, alien identification or authorization 
     number, or other information as determined relevant by the 
     Secretary, provided in an inquiry against such information 
     maintained or accessed by the Secretary in order to confirm 
     (or not confirm) the validity of the information provided, 
     the correspondence of the name and number, whether the alien 
     has employment authorized status (or, to the extent that the 
     Secretary determines to be feasible and appropriate, whether 
     the records available to the Secretary verify the identity or 
     status of a national of the United States), and such other 
     information as the Secretary may prescribe.
       ``(ii) Photograph display.--As part of the System, the 
     Secretary shall establish a reliable, secure method, which, 
     operating through the System, displays the digital photograph 
     described in subparagraph (B)(viii)(I).
       ``(iii) Timing of notices.--The Secretary shall have 
     authority to prescribe when a confirmation, nonconfirmation, 
     or further action notice shall be issued.
       ``(iv) Use of information.--The Secretary shall perform 
     regular audits under the System, as described in subparagraph 
     (B)(vi) and shall utilize the information obtained from such 
     audits, as well as any information obtained from the 
     Commissioner pursuant to part E of title XI of the Social 
     Security Act (42 U.S.C. 1301 et seq.), for the purposes of 
     this section and to administer and enforce the immigration 
     laws.
       ``(v) Identity fraud protection.--To prevent identity 
     fraud, not later than 18 months after the date of the 
     enactment of the Border Security, Economic Opportunity, and 
     Immigration Modernization Act, the Secretary shall--

       ``(I) in consultation with the Commissioner, establish a 
     program to provide a reliable, secure method for an 
     individual to temporarily suspend or limit the use of the 
     individual's social security account number or other 
     identifying information for verification by the System; and
       ``(II) for each individual being verified through the 
     System--

       ``(aa) notify the individual that the individual has the 
     option to limit the use of the individual's social security 
     account number or other identifying information for 
     verification by the System; and
       ``(bb) provide instructions to the individuals for 
     exercising the option referred to in item (aa).
       ``(vi) Allowing parents to prevent theft of their child's 
     identity.--The Secretary, in consultation with the 
     Commissioner, shall establish a program that provides a 
     reliable, secure method by which parents or legal guardians 
     may suspend or limit the use of the social security account 
     number or other identifying information of a minor under 
     their care for the purposes of the System. The Secretary may 
     implement the program on a limited pilot program basis before 
     making it fully available to all individuals.
       ``(vii) Protection from multiple use.--The Secretary and 
     the Commissioner shall establish a procedure for identifying 
     and handling a situation in which a social security account 
     number has been identified to be subject to unusual multiple 
     use in the System or is otherwise suspected or determined to 
     have been compromised by identity fraud. Such procedure shall 
     include notifying the legitimate holder of the social 
     security number at the appropriate time.
       ``(viii) Monitoring and compliance unit.--The Secretary 
     shall establish or designate a monitoring and compliance unit 
     to detect and reduce identity fraud and other misuse of the 
     System.
       ``(ix) Civil rights and civil liberties assessments.--

       ``(I) Requirement to conduct.--The Secretary shall conduct 
     regular civil rights and civil liberties assessments of the 
     System, including participation by employers, other private 
     entities, and Federal, State, and local government entities.
       ``(II) Requirement to respond.--Employers, other private 
     entities, and Federal,

[[Page 10542]]

     State, and local entities shall timely respond to any request 
     in connection with such an assessment.
       ``(III) Assessment and recommendations.--The Officer for 
     Civil Rights and Civil Liberties of the Department shall 
     review the results of each such assessment and recommend to 
     the Secretary any changes necessary to improve the civil 
     rights and civil liberties protections of the System.

       ``(F) Grants to states.--
       ``(i) In general.--The Secretary shall create and 
     administer a grant program to help provide funding for 
     reimbursement of the actual costs to States that grant--

       ``(I) the Secretary access to driver's license information 
     as needed to confirm that a driver's license presented under 
     subsection (c)(1)(D)(i) confirms the identity of the subject 
     of the System check, and that a driver's license matches the 
     State's records; and
       ``(II) such assistance as the Secretary may request in 
     order to resolve further action notices or nonconfirmations 
     relating to such information.

       ``(ii) Construction with the driver's privacy protection 
     act of 1994.--The provision of a photograph to the Secretary 
     as described in clause (i) may not be construed as a 
     violation of section 2721 of title 18, United States Code, 
     and is a permissible use under subsection (b)(1) of that 
     section.
       ``(iii) Authorization of appropriations.--There is 
     authorized to be appropriated to the Secretary, from the 
     Comprehensive Immigration Reform Trust Fund established under 
     section 6(a)(1), $500,000,000 to carry out this subparagraph.
       ``(G) Responsibilities of the secretary of state.--As part 
     of the System, the Secretary of State shall provide to the 
     Secretary access to passport and visa information as needed 
     to confirm that a passport, passport card, or visa presented 
     under subsection (c)(1)(C) confirms the identity of the 
     subject of the System check, and that a passport, passport 
     card, or visa photograph matches the Secretary of State's 
     records, and shall provide such assistance as the Secretary 
     may request in order to resolve further action notices or 
     nonconfirmations relating to such information.
       ``(H) Updating information.--The Commissioner, the 
     Secretary, and the Secretary of State shall update their 
     information in a manner that promotes maximum accuracy and 
     shall provide a process for the prompt correction of 
     erroneous information.
       ``(9) Limitation on use of the system.--Notwithstanding any 
     other provision of law, no department, bureau, or other 
     agency of the United States Government or any other entity 
     shall utilize, share, or transmit any information, database, 
     or other records assembled under this subsection for any 
     purpose other than for employment verification or to ensure 
     secure, appropriate and nondiscriminatory use of the System.
       ``(10) Annual report and certification.--Not later than 18 
     months after the promulgation of regulations to implement 
     this subsection, and annually thereafter, the Secretary shall 
     submit to Congress a report that includes the following:
       ``(A) An assessment, as submitted to the Secretary by the 
     Inspector General of the Department of Homeland Security 
     pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates 
     of further action notices and other System notices provided 
     by employers to individuals who are authorized to be employed 
     in the United States.
       ``(B) An assessment, as submitted to the Secretary by the 
     Inspector General of the Department of Homeland Security 
     pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates 
     of further action notices and other System notices provided 
     directly (by the System) in a timely fashion to individuals 
     who are not authorized to be employed in the United States.
       ``(C) An assessment of any challenges faced by small 
     employers in utilizing the System.
       ``(D) An assessment of the rate of employer noncompliance 
     (in addition to failure to provide required notices in a 
     timely fashion) in each of the following categories:
       ``(i) Taking adverse action based on a further action 
     notice.
       ``(ii) Use of the System for nonemployees or other 
     individuals before they are offered employment.
       ``(iii) Use of the System to reverify employment authorized 
     status of current employees except if authorized to do so.
       ``(iv) Use of the System selectively, except in cases in 
     which such use is authorized.
       ``(v) Use of the System to deny employment or post-
     employment benefits or otherwise interfere with labor rights.
       ``(vi) Requiring employees or applicants to use any self-
     verification feature or to provide self-verification results.
       ``(vii) Discouraging individuals who receive a further 
     action notice from challenging the further action notice or 
     appealing a determination made by the System.
       ``(E) An assessment of the rate of employee noncompliance 
     in each of the following categories:
       ``(i) Obtaining employment when unauthorized with an 
     employer complying with the System in good faith.
       ``(ii) Failure to provide required documents in a timely 
     manner.
       ``(iii) Attempting to use fraudulent documents or documents 
     not related to the individual.
       ``(iv) Misuse of the administrative appeal and judicial 
     review process.
       ``(F) An assessment of the amount of time taken for--
       ``(i) the System to provide the confirmation or further 
     action notice;
       ``(ii) individuals to contest further action notices;
       ``(iii) the System to provide a confirmation or 
     nonconfirmation of a contested further action notice;
       ``(iv) individuals to file an administrative appeal of a 
     nonconfirmation; and
       ``(v) resolving administrative appeals regarding 
     nonconfirmations.
       ``(11) Annual gao study and report.--
       ``(A) Requirement.--The Comptroller General shall, for each 
     year, undertake a study to evaluate the accuracy, efficiency, 
     integrity, and impact of the System.
       ``(B) Report.--Not later than 18 months after the 
     promulgation of regulations to implement this subsection, and 
     yearly thereafter, the Comptroller General shall submit to 
     Congress a report containing the findings of the study 
     carried out under this paragraph. Each such report shall 
     include, at a minimum, the following:
       ``(i) An assessment of System performance with respect to 
     the rate at which individuals who are eligible for employment 
     in the United States are correctly approved within the 
     required periods, including a separate assessment of such 
     rate for naturalized United States citizens, nationals of the 
     United States, and aliens.
       ``(ii) An assessment of the privacy and confidentiality of 
     the System and of the overall security of the System with 
     respect to cybertheft and theft or misuse of private data.
       ``(iii) An assessment of whether the System is being 
     implemented in a manner that is not discriminatory or used 
     for retaliation against employees.
       ``(iv) An assessment of the most common causes for the 
     erroneous issuance of nonconfirmations by the System and 
     recommendations to correct such causes.
       ``(v) The recommendations of the Comptroller General 
     regarding System improvements.
       ``(vi) An assessment of the frequency and magnitude of 
     changes made to the System and the impact on the ability for 
     employers to comply in good faith.
       ``(vii) An assessment of the direct and indirect costs 
     incurred by employers in complying with the System, including 
     costs associated with retaining potential employees through 
     the administrative appeals process and receiving a 
     nonconfirmation.
       ``(viii) An assessment of any backlogs or delays in the 
     System providing the confirmation or further action notice 
     and impacts to hiring by employers.
       ``(ix) An assessment of the effect of the identity 
     authentication mechanism and any other security measures set 
     forth in subsection (c)(1)(F)(iv) to verify identity 
     incorporated into the System or otherwise used by employers 
     on employees.
       ``(12) Outreach and partnership.--
       ``(A) Outreach.--The Secretary is authorized to conduct 
     outreach and establish programs to assist employers in 
     verifying employment authorization and preventing identity 
     fraud.
       ``(B) Partnership initiative.--The Secretary may establish 
     partnership initiatives between the Federal Government and 
     private sector employers to foster cooperative relationships 
     and to strengthen overall hiring practices.''.
       (c) Taxpayer Address Information.--Section 6103(m) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following:
       ``(8) Taxpayer address information furnished to secretary 
     of homeland security.--Upon written request from the 
     Secretary of Homeland Security, the Secretary shall disclose 
     the mailing address of any taxpayer who is entitled to 
     receive a notification from the Secretary of Homeland 
     Security pursuant to paragraphs (1)(C) and (8)(E)(vii) of 
     section 274A(d) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(d)) for use only by employees of the Department 
     of Homeland for the purpose of mailing such notification to 
     such taxpayer.''.
       (d) Social Security Account Statements.--Section 1143(a)(2) 
     of the Social Security Act (8 U.S.C. 1320b-13(a)(2)) is 
     amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) to the extent resources are available, information in 
     the Commissioner's records indicating that a query was 
     submitted to the employment verification system established 
     under section 274A (d) of the Immigration and Nationality Act 
     (8 U.S.C. 1324a(d)) under that individual's name or social 
     security number; and
       ``(G) a toll-free telephone number operated by the 
     Department of Homeland Security for employment verification 
     system inquiries and a link to self-verification procedure 
     established under section 274A(d)(4)(I) of such Act.''.

[[Page 10543]]

       (e) Good Faith Compliance.--Section 274B(a) (8 U.S.C. 
     1324b(a)), as amended by section 3105(a) of this Act, is 
     further amended by adding at the end the following:
       ``(10) Treatment of certain violations after reasonable 
     steps in good faith.--Notwithstanding paragraphs (4), (6), 
     and (7), a person, other entity, or employment agency shall 
     not be liable for civil penalties described in section 
     274B(g)(2)(B)(iv) that are related to a violation of any such 
     paragraph if the person, entity, or employment agency has 
     taken reasonable steps, in good faith, to comply with such 
     paragraphs at issue, unless the person, other entity, or 
     employment agency--
       ``(A) was, for similar conduct, subject to--
       ``(i) a reasonable cause determination by the Office of 
     Special Counsel for Immigration Related Unfair Employment 
     Practices; or
       ``(ii) a finding by an administrative law judge that a 
     violation of this section has occurred; or
       ``(B) committed the violation in order to interfere with 
     `workplace rights' (as defined in section 274A(b)(8)).
       ``(11) Good faith.--As used in paragraph (10), the term 
     `good faith' shall not include any action taken in order to 
     interfere with `workplace rights' (as defined in section 
     274A(b)(8)). Neither the Office of Special Counsel nor an 
     administrative law judge hearing a claim under this section 
     shall have any authority to assess workplace rights other 
     than those guaranteed under this section.
       ``(12) Rules of construction.--Nothing in this section may 
     be construed--
       ``(A) to permit the Office of Special Counsel for 
     Immigration-Related Unfair Employment Practices or an 
     administrative law judge hearing a claim under this Section 
     to enforce any workplace rights other than those guaranteed 
     under this section; or
       ``(B) to prohibit any person, other entity, or employment 
     agency from using an identity verification system, service, 
     or method (in addition to the employment verification system 
     described in section 274A(d)), until the date on which the 
     employer is required to participate in the System under 
     section 274A(d)(2) and the additional security measures 
     mandated by section 274A(c)(F)(iv) have become available to 
     verify the identity of a newly hired employee, if such 
     system--
       ``(i) is used in a uniform manner for all newly hired 
     employees;
       ``(ii) is not used for the purpose or with the intent of 
     discriminating against any individual;
       ``(iii) provides for timely notice to employees run through 
     the system of a mismatch or failure to confirm identity; and
       ``(iv) sets out procedures for employees run through the 
     system to resolve a mismatch or other failure to confirm 
     identity.
       ``(13) Liability.--A person, entity, or employment agency 
     that uses an identity verification system, service, or method 
     in a way that conflicts with the requirements set forth in 
     paragraph (10) shall be subject to liability under paragraph 
     (4)(I).''.
       (f) Maintenance of Reasonable Levels of Service and 
     Enforcement.--Notwithstanding section 3301(b)(1), amounts 
     appropriated pursuant to such section shall be used to 
     maintain reasonable levels of service and enforcement rather 
     than a specific numeric increase in the number of Department 
     personnel dedicated to administering the Employment 
     Verification System.
                                 ______
                                 
  SA 1728. Mr. PORTMAN (for himself and Mr. Tester) submitted an 
amendment intended to be proposed to amendment SA 1240 proposed by Mrs. 
Boxer (for herself and Ms. Landrieu) to the bill S. 744, to provide for 
comprehensive immigration reform and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. EMPLOYMENT VERIFICATION SYSTEM IMPROVEMENTS.

       (a) Trigger.--In addition to the conditions set forth in 
     section 3(c)(2)(A), the Secretary may not adjust the status 
     of aliens who have been granted registered provisional 
     immigrant status, except for aliens granted blue card status 
     under section 2201 of this Act or described in section 
     245D(b) of the Immigration and Nationality Act, unless the 
     Secretary, after consultation with the Comptroller General of 
     the United States, and as part of the written certification 
     submitted to the President and Congress pursuant to section 
     3(c)(2)(A), certifies that the Secretary has implemented the 
     mandatory employment verification system, including the full 
     incorporation of the photo tool and additional security 
     measures, required by section 274A of the Immigration and 
     Nationality Act (8 U.S.C. 1324a), as amended by section 3101, 
     and has required the system's use by all employers to prevent 
     unauthorized workers from obtaining employment in the United 
     States.
       (b) Employment Verification System.--Section 274A (8 U.S.C. 
     1324a), as amended by section 3101, is further amended--
       (1) in subsection (a)(5)(A)(ii), by inserting ``, by clear 
     and convincing evidence,'' after demonstrates; and
       (2) by striking subsections (c) and (d) and inserting the 
     following:
       ``(c) Document Verification Requirements.--Any employer 
     hiring an individual for employment in the United States 
     shall comply with the following requirements and the 
     requirements under subsection (d) to verify that the 
     individual has employment authorized status.
       ``(1) Attestation after examination of documentation.--
       ``(A) In general.--
       ``(i) Examination by employer.--An employer shall attest, 
     under penalty of perjury on a form prescribed by the 
     Secretary, that the employer has verified the identity and 
     employment authorization status of the individual--

       ``(I) by examining--

       ``(aa) a document specified in subparagraph (C); or
       ``(bb) a document specified in subparagraph (D) and a 
     document specified in subparagraph (E); and

       ``(II) by utilizing an identity authentication mechanism 
     described in clause (iii) or (iv) of subparagraph (F).

       ``(ii) Publication of documents.--The Secretary shall 
     publish a picture of each document specified in subparagraphs 
     (C) and (E) on the U.S. Citizenship and Immigration Services 
     website.
       ``(B) Requirements.--
       ``(i) Form.--The form referred to in subparagraph (A)(i)--

       ``(I) shall be prescribed by the Secretary not later than 6 
     months after the date of the enactment of the Border 
     Security, Economic Opportunity, and Immigration Modernization 
     Act;
       ``(II) shall be available as--

       ``(aa) a paper form;
       ``(bb) a form that may be completed by an employer via 
     telephone or video conference;
       ``(cc) an electronic form; and
       ``(dd) a form that is integrated electronically with the 
     requirements under subparagraph (F) and subsection (d).
       ``(ii) Attestation.--Each such form shall require the 
     employer to sign an attestation with a handwritten, 
     electronic, or digital signature, according to standards 
     prescribed by the Secretary.
       ``(iii) Compliance.--An employer has complied with the 
     requirements under this paragraph with respect to examination 
     of the documents included in subclauses (I) and (II) of 
     subparagraph (A)(i) if--

       ``(I) the employer has, in good faith, followed applicable 
     regulations and any written procedures or instructions 
     provided by the Secretary; and
       ``(II) a reasonable person would conclude that the 
     documentation is genuine and relates to the individual 
     presenting such documentation.

       ``(C) Documents establishing identity and employment 
     authorized status.--A document is specified in this 
     subparagraph if the document is unexpired (unless the 
     validity of the document is extended by law) and is 1 of the 
     following:
       ``(i) A United States passport or passport card issued to 
     an individual pursuant to the Secretary of State's authority 
     under the Act entitled An Act to regulate the issue and 
     validity of passports, and for other purposes, approved July 
     3, 1926 (22 U.S.C. 211a).
       ``(ii) A document issued to an alien evidencing that the 
     alien is lawfully admitted for permanent residence or another 
     document issued to an individual evidencing the individual's 
     employment authorized status, as designated by the Secretary, 
     if the document--

       ``(I) contains a photograph of the individual, or such 
     other personal identifying information relating to the 
     individual as the Secretary determines, by regulation, to be 
     sufficient for the purposes of this subparagraph;
       ``(II) is evidence of employment authorized status; and
       ``(III) contains security features to make the document 
     resistant to tampering, counterfeiting, and fraudulent use.

       ``(iii) An enhanced driver's license or identification card 
     issued to a national of the United States by a State, an 
     outlying possession of the United States, or a federally 
     recognized Indian tribe that--

       ``(I) meets the requirements under section 202 of the REAL 
     ID Act of 2005 (division B of Public Law 109-13; 49 U.S.C. 
     30301 note); and
       ``(II) the Secretary has certified by notice published in 
     the Federal Register and through appropriate notice directly 
     to employers registered in the System 3 months prior to 
     publication that such enhanced license or card is suitable 
     for use under this subparagraph based upon the accuracy and 
     security of the issuance process, security features on the 
     document, and such other factors as the Secretary may 
     prescribe.

       ``(iv) A passport issued by the appropriate authority of a 
     foreign country accompanied by a Form I-94 or Form I-94A (or 
     similar successor record), or other documentation as 
     designated by the Secretary that specifies the individual's 
     status in the United States and the duration of such status 
     if the proposed employment is not in conflict with any 
     restriction or limitation specified on such form or 
     documentation.
       ``(v) A passport issued by the Federated States of 
     Micronesia or the Republic of the Marshall Islands with 
     evidence of nonimmigrant admission to the United States

[[Page 10544]]

     under the Compact of Free Association between the United 
     States and the Federated States of Micronesia or the Republic 
     of the Marshall Islands.
       ``(D) Documents establishing identity of individual.--A 
     document is specified in this subparagraph if the document is 
     unexpired (unless the validity of the document is extended by 
     law) and is 1 of the following:
       ``(i) A driver's license or identity card that is not 
     described in subparagraph (C)(iii) and is issued to an 
     individual by a State or an outlying possession of the United 
     States, a federally recognized Indian tribe, or an agency 
     (including military) of the Federal Government if the 
     driver's license or identity card includes, at a minimum--

       ``(I) the individual's photograph, name, date of birth, 
     gender, and driver's license or identification card number; 
     and
       ``(II) security features to make the license or card 
     resistant to tampering, counterfeiting, and fraudulent use.

       ``(ii) A voter registration card.
       ``(iii) A document that complies with the requirements 
     under section 7209(b)(1) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458; 8 
     U.S.C. 1185 note).
       ``(iv) For individuals under 18 years of age who are unable 
     to present a document listed in clause (i) or (ii), 
     documentation of personal identity of such other type as the 
     Secretary determines will provide a reliable means of 
     identification, which may include an attestation as to the 
     individual's identity by a parent or legal guardian under 
     penalty of perjury.
       ``(E) Documents evidencing employment authorization.--A 
     document is specified in this subparagraph if the document is 
     unexpired (unless the validity of the document is extended by 
     law) and is 1 of the following:
       ``(i) A social security account number card issued by the 
     Commissioner, other than a card which specifies on its face 
     that the card is not valid to evidence employment authorized 
     status or has other similar words of limitation.
       ``(ii) Any other documentation evidencing employment 
     authorized status that the Secretary determines and publishes 
     in the Federal Register and through appropriate notice 
     directly to employers registered within the System to be 
     acceptable for purposes of this subparagraph if such 
     documentation, including any electronic security measures 
     linked to such documentation, contains security features to 
     make such documentation resistant to tampering, 
     counterfeiting, and fraudulent use.
       ``(F) Identity authentication mechanism.--
       ``(i) Definitions.--In this subparagraph:

       ``(I) Covered identity document.--The term `covered 
     identity document' means a valid--

       ``(aa) United States passport, passport card, or a document 
     evidencing lawful permanent residence status or employment 
     authorized status issued to an alien;
       ``(bb) enhanced driver's license or identity card issued by 
     a participating State or an outlying possession of the United 
     States; or
       ``(cc) photograph and appropriate identifying information 
     provided by the Secretary of State pursuant to the granting 
     of a visa.

       ``(II) Participating state.--The term `participating State' 
     means a State that has an agreement with the Secretary to 
     provide the Secretary, for purposes of identity verification 
     in the System, with photographs and appropriate identifying 
     information maintained by the State.

       ``(ii) Requirement for identity authentication.--In 
     addition to verifying the documents specified in subparagraph 
     (C), (D), or (E), the System shall require each employer to 
     verify the identity of each new hire using the identity 
     authentication mechanism described in clause (iii) or, for an 
     individual whose identity is not able to be verified using 
     that mechanism, to use the additional security measures 
     provided in clause (iv) after such measures become available. 
     A failure of the System to verify the identity of an 
     individual due to the use of an identity authentication 
     mechanism shall result in a further action notice under 
     subsection (d)(4)(C)(iii).
       ``(iii) Photo tool.--

       ``(I) Use requirement.--An employer that hires an 
     individual who has a presented a covered identity document to 
     establish his or her identity and employment authorization 
     under subsection (c) shall verify the identity of such 
     individual using the photo tool described in subclause (II).
       ``(II) Development requirement.--The Secretary shall 
     develop and maintain a photo tool that enables employers to 
     match the photo on a covered identity document provided to 
     the employer to a photo maintained by a U.S. Citizenship and 
     Immigration Services or other appropriate database.
       ``(III) Individual queries.--The photo tool capability 
     shall be incorporated into the System and made available to 
     employers not later than 1 year after the date on which 
     regulations are published implementing subsection (d).
       ``(IV) Limitations on use of information.--Information and 
     images acquired from State motor vehicle databases through 
     the photo tool developed under subclause (II)--

       ``(aa) may only be used for matching photos to a covered 
     identity document for the purposes of employment 
     verification;
       ``(bb) shall not be collected or stored by the Federal 
     Government; and
       ``(cc) may only be disseminated in response to an 
     individual photo tool query.
       ``(iv) Additional security measures.--

       ``(I) Use requirement.--An employer seeking to hire an 
     individual whose identity is not able to be verified using 
     the photo tool described in clause (iii), because the 
     employee did not present a covered document for employment 
     eligibility verification purposes, shall verify the identity 
     of such individual using the additional security measures 
     described in subclause (II).
       ``(II) Development requirement.--The Secretary shall 
     develop, after publication in the Federal Register and an 
     opportunity for public comment, specific and effective 
     additional security measures to adequately verify the 
     identity of an individual whose identity is not able to be 
     verified using the photo tool described in clause (iii). Such 
     additional security measures--

       ``(aa) shall be kept up-to-date with technological 
     advances;
       ``(bb) shall provide a means of identity authentication in 
     a manner that provides a high level of certainty as to the 
     identity of such individual, using immigration and 
     identifying information that may include review of identity 
     documents or background screening verification techniques 
     using publicly available information; and
       ``(cc) shall be incorporated into the System and made 
     available to employers not later than 1 year after the date 
     on which regulations are published implementing subsection 
     (d).

       ``(III) Comprehensive use.--An employer may employ the 
     additional security measures set forth in this clause with 
     respect to all individuals the employer hires if the employer 
     notifies the Secretary of such election at the time the 
     employer registers for use of the System under subsection 
     (d)(4)(A)(i) or anytime thereafter. An election under this 
     subclause may be withdrawn 90 days after the employer 
     notifies the Secretary of the employer's intent to 
     discontinue such election.

       ``(v) Automated verification.--The Secretary--

       ``(I) may establish a program, in addition to the identity 
     authentication mechanism described in subparagraph (F)(iii), 
     in which the System automatically verifies information 
     contained in a covered identity document issued by a 
     participating State, which is presented under subparagraph 
     (D)(i), including information needed to verify that the 
     covered identity document matches the State's records;
       ``(II) may not maintain information provided by a 
     participating State in a database maintained by U.S. 
     Citizenship and Immigration Services; and
       ``(III) may not utilize or disclose such information, 
     except as authorized under this section.

       ``(G) Authority to prohibit use of certain documents.--If 
     the Secretary determines, after publication in the Federal 
     Register and an opportunity for public comment, that any 
     document or class of documents specified in subparagraph (B), 
     (C), or (D) does not reliably establish identity or that 
     employment authorized status is being used fraudulently to an 
     unacceptable degree, the Secretary--
       ``(i) may prohibit or restrict the use of such document or 
     class of documents for purposes of this subsection; and
       ``(ii) shall directly notify all employers registered 
     within the System of the prohibition through appropriate 
     means.
       ``(H) Authority to allow use of certain documents.--If the 
     Secretary has determined that another document or class of 
     documents, such as a document issued by a federally 
     recognized Indian tribe, may be used to reliably establish 
     identity or employment authorized status, the Secretary--
       ``(i) may allow the use of that document or class of 
     documents for purposes of this subsection after publication 
     in the Federal Register and an opportunity for public 
     comment;
       ``(ii) shall publish a description of any such document or 
     class of documents on the U.S. Citizenship and Immigration 
     Services website; and
       ``(iii) shall directly notify all employers registered 
     within the System of the addition through appropriate means.
       ``(2) Individual attestation of employment authorization.--
     An individual, upon commencing employment with an employer, 
     shall--
       ``(A) attest, under penalty of perjury, on the form 
     prescribed by the Secretary, that the individual is--
       ``(i) a citizen of the United States;
       ``(ii) an alien lawfully admitted for permanent residence;
       ``(iii) an alien who has employment authorized status; or
       ``(iv) otherwise authorized by the Secretary to be hired 
     for such employment;
       ``(B) provide such attestation by a handwritten, 
     electronic, or digital signature; and
       ``(C) provide the individual's social security account 
     number to the Secretary, unless the individual has not yet 
     been issued such a number, on such form as the Secretary may 
     require.

[[Page 10545]]

       ``(3) Retention of verification record.--
       ``(A) In general.--After completing a form for an 
     individual in accordance with paragraphs (1) and (2), the 
     employer shall retain a version of such completed form and 
     make such form available for inspection by the Secretary or 
     the Office of Special Counsel for Immigration-Related Unfair 
     Employment Practices of the Department of Justice during the 
     period beginning on the hiring date of the individual and 
     ending on the later of--
       ``(i) the date that is 3 years after such hiring date; or
       ``(ii) the date that is 1 year after the date on which the 
     individual's employment with the employer is terminated.
       ``(B) Requirement for electronic retention.--The 
     Secretary--
       ``(i) shall permit an employer to retain the form described 
     in subparagraph (A) in electronic form; and
       ``(ii) shall permit an employer to retain such form in 
     paper, microfiche, microfilm, portable document format, or 
     other media.
       ``(4) Copying of documentation and recordkeeping.--The 
     Secretary may promulgate regulations regarding--
       ``(A) copying documents and related information pertaining 
     to employment verification presented by an individual under 
     this subsection; and
       ``(B) retaining such information during a period not to 
     exceed the required retention period set forth in paragraph 
     (3).
       ``(5) Penalties.--An employer that fails to comply with any 
     requirement under this subsection may be penalized under 
     subsection (e)(4)(B).
       ``(6) Protection of civil rights.--
       ``(A) In general.--Nothing in this section may be construed 
     to diminish any rights otherwise protected by Federal law.
       ``(B) Prohibition on discrimination.--An employer shall use 
     the procedures for document verification set forth in this 
     paragraph for all employees without regard to race, color, 
     religion, sex, national origin, or, unless specifically 
     permitted in this section, to citizenship status.
       ``(7) Receipts.--The Secretary may authorize the use of 
     receipts for replacement documents, and temporary evidence of 
     employment authorization by an individual to meet a 
     documentation requirement under this subsection on a 
     temporary basis not to exceed 1 year, after which time the 
     individual shall provide documentation sufficient to satisfy 
     the documentation requirements under this subsection.
       ``(8) No authorization of national identification cards.--
     Nothing in this section may be construed to directly or 
     indirectly authorize the issuance, use, or establishment of a 
     national identification card.
       ``(d) Employment Verification System.--
       ``(1) In general.--
       ``(A) Establishment.--The Secretary, in consultation with 
     the Commissioner, shall establish the Employment Verification 
     System.
       ``(B) Monitoring.--The Secretary shall create the necessary 
     processes to monitor--
       ``(i) the functioning of the System, including the volume 
     of the workflow, the speed of processing of queries, the 
     speed and accuracy of responses;
       ``(ii) the misuse of the System, including the prevention 
     of fraud or identity theft;
       ``(iii) whether the use of the System results in wrongful 
     adverse actions or discrimination based upon a prohibited 
     factor against citizens or nationals of the United States or 
     individuals who have employment authorized status; and
       ``(iv) the security, integrity, and privacy of the System.
       ``(C) Procedures.--The Secretary--
       ``(i) shall create processes to provide an individual with 
     direct access to the individual's case history in the System, 
     including--

       ``(I) the identities of all persons or entities that have 
     queried the individual through the System;
       ``(II) the date of each such query; and
       ``(III) the System response for each such query; and

       ``(ii) in consultation with the Commissioner, shall 
     develop--

       ``(I) protocols to notify an individual, in a timely manner 
     through the use of electronic correspondence or mail, that a 
     query for the individual has been processed through the 
     System; or
       ``(II) a process for the individual to submit additional 
     queries to the System or notify the Secretary of potential 
     identity fraud.

       ``(2) Participation requirements.--
       ``(A) Federal government.--Except as provided in 
     subparagraph (B), all agencies and departments in the 
     executive, legislative, or judicial branches of the Federal 
     Government shall participate in the System beginning on the 
     earlier of--
       ``(i) the date of the enactment of the Border Security, 
     Economic Opportunity, and Immigration Modernization Act, to 
     the extent required under section 402(e)(1) of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (division C of Public Law 104-208; 8 U.S.C. 1324a) and as 
     already implemented by each agency or department; or
       ``(ii) the date that is 90 days after the date of the 
     enactment of the Border Security, Economic Opportunity, and 
     Immigration Modernization Act.
       ``(B) Federal contractors.--Federal contractors shall 
     participate in the System as provided in the final rule 
     relating to employment eligibility verification published in 
     the Federal Register on November 14, 2008 (73 Fed. Reg. 
     67,651), or any similar subsequent regulation, for which 
     purpose references to E-Verify in the final rule shall be 
     construed to apply to the System.
       ``(C) Critical infrastructure.--
       ``(i) In general.--Beginning on the date that is 1 year 
     after the date on which regulations are published 
     implementing this subsection, the Secretary may authorize or 
     direct any employer, person, or entity responsible for 
     granting access to, protecting, securing, operating, 
     administering, or regulating part of the critical 
     infrastructure (as defined in section 1016(e) of the Critical 
     Infrastructure Protection Act of 2001 (42 U.S.C. 5195c(e))) 
     to participate in the System to the extent the Secretary 
     determines that such participation will assist in the 
     protection of the critical infrastructure.
       ``(ii) Notification to employers.--The Secretary shall 
     notify an employer required to participate in the System 
     under this subparagraph not later than 90 days before the 
     date on which the employer is required to participate.
       ``(D) Employers with more than 10,000 employees.--Not later 
     than 1 year after regulations are published implementing this 
     subsection, all employers with more than 10,000 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(E) Employers with more than 500 employees.--Not later 
     than 2 years after regulations are published implementing 
     this subsection, all employers with more than 500 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(F) Employers with more than 20 employees.--Not later 
     than 3 years after regulations are published implementing 
     this subsection, all employers with more than 20 employees 
     shall participate in the System with respect to all newly 
     hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(G) Agricultural employment.--Not later than 4 years 
     after regulations are published implementing this subsection, 
     employers of employees performing agricultural employment (as 
     defined in section 218A of this Act and section 2202 of the 
     Border Security, Economic Opportunity, and Immigration 
     Modernization Act) shall participate in the System with 
     respect to all newly hired employees and employees with 
     expiring temporary employment authorization documents. An 
     agricultural employee shall not be counted for purposes of 
     subparagraph (D), (E), or (F).
       ``(H) All employers.--Not later than 4 years after 
     regulations are published implementing this subsection, all 
     employers shall participate in the System with respect to all 
     newly hired employees and employees with expiring temporary 
     employment authorization documents.
       ``(I) Tribal government employers.--
       ``(i) Rulemaking.--In developing regulations to implement 
     this subsection, the Secretary shall--

       ``(I) consider the effects of this section on federally 
     recognized Indian tribes and tribal members; and
       ``(II) consult with the governments of federally recognized 
     Indian tribes.

       ``(ii) Required participation.--Not later than 4 years 
     after regulations are published implementing this subsection, 
     all employers owned by, or entities of, the government of a 
     federally recognized Indian tribe shall participate in the 
     System with respect to all newly hired employees and 
     employees with expiring temporary employment authorization 
     documents.
       ``(J) Immigration law violators.--
       ``(i) Orders finding violations.--An order finding any 
     employer to have violated this section or section 274C may, 
     in the Secretary's discretion, require the employer to 
     participate in the System with respect to newly hired 
     employees and employees with expiring temporary employment 
     authorization documents, if such employer is not otherwise 
     required to participate in the System under this section. The 
     Secretary shall monitor such employer's compliance with 
     System procedures.
       ``(ii) Pattern or practice of violations.--The Secretary 
     may require an employer that is required to participate in 
     the System with respect to newly hired employees to 
     participate in the System with respect to the employer's 
     current employees if the employer is determined by the 
     Secretary or other appropriate authority to have engaged in a 
     pattern or practice of violations of the immigration laws of 
     the United States.
       ``(K)  Voluntary participation.--The Secretary may permit 
     any employer that is not required to participate in the 
     System under this section to do so on a voluntary basis.
       ``(3) Consequence of failure to participate.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the failure, other than a de minimis or inadvertent failure, 
     of an employer that is required to participate in the

[[Page 10546]]

     System to comply with the requirements of the System with 
     respect to an individual--
       ``(i) shall be treated as a violation of subsection 
     (a)(1)(B) with respect to that individual; and
       ``(ii) creates a rebuttable presumption that the employer 
     has violated paragraph (1)(A) or (2) of subsection (a).
       ``(B) Exception.--
       ``(i) In general.--Subparagraph (A) shall not apply in a 
     criminal prosecution.
       ``(ii) Use as evidence.--Nothing in this paragraph may be 
     construed to limit the use in the prosecution of a Federal 
     crime, in a manner otherwise consistent with Federal criminal 
     law and procedure, of evidence relating to the employer's 
     failure to comply with requirements of the System.
       ``(4) Procedures for participants in the system.--
       ``(A) In general.--An employer participating in the System 
     shall register such participation with the Secretary and, 
     when hiring any individual for employment in the United 
     States, shall comply with the following:
       ``(i) Registration of employers.--The Secretary, through 
     notice in the Federal Register, shall prescribe procedures 
     that employers shall be required to follow to register with 
     the System.
       ``(ii) Updating information.--The employer is responsible 
     for providing notice of any change to the information 
     required under subclauses (I), (II), and (III) of clause (v) 
     before conducting any further inquiries within the System, or 
     on such other schedule as the Secretary may prescribe.
       ``(iii) Training.--The Secretary shall require employers to 
     undergo such training as the Secretary determines to be 
     necessary to ensure proper use, protection of civil rights 
     and civil liberties, privacy, integrity, and security of the 
     System. To the extent practicable, such training shall be 
     made available electronically on the U.S. Citizenship and 
     Immigration Services website.
       ``(iv) Notification to employees.--The employer shall 
     inform individuals hired for employment that the System--

       ``(I) will be used by the employer;
       ``(II) may be used for immigration enforcement purposes; 
     and
       ``(III) may not be used to discriminate or to take adverse 
     action against a national of the United States or an alien 
     who has employment authorized status.

       ``(v) Provision of additional information.--The employer 
     shall obtain from the individual (and the individual shall 
     provide) and shall record in such manner as the Secretary may 
     specify--

       ``(I) the individual's social security account number;
       ``(II) if the individual does not attest to United States 
     citizenship or status as a national of the United States 
     under subsection (c)(2), such identification or authorization 
     number established by the Department as the Secretary shall 
     specify; and
       ``(III) such other information as the Secretary may require 
     to determine the identity and employment authorization of an 
     individual.

       ``(vi) Presentation of documentation.--The employer, and 
     the individual whose identity and employment authorized 
     status are being confirmed, shall fulfill the requirements 
     under subsection (c).
       ``(B) Seeking confirmation.--
       ``(i) In general.--An employer shall use the System to 
     confirm the identity and employment authorized status of any 
     individual during--

       ``(I) the period beginning on the date on which the 
     individual accepts an offer of employment and ending 3 
     business days after the date on which employment begins; or
       ``(II) such other reasonable period as the Secretary may 
     prescribe.

       ``(ii) Limitation.--An employer may not make the starting 
     date of an individual's employment or training or any other 
     term and condition of employment dependent on the receipt of 
     a confirmation of identity and employment authorized status 
     by the System.
       ``(iii) Reverification.--If an individual has a limited 
     period of employment authorized status, the individual's 
     employer shall reverify such status through the System not 
     later than 3 business days after the last day of such period.
       ``(iv) Other employment.--For employers directed by the 
     Secretary to participate in the System under paragraph 
     (2)(C)(i) to protect critical infrastructure or otherwise 
     specified circumstances in this section to verify their 
     entire workforce, the System may be used for initial 
     verification of an individual who was hired before the 
     employer became subject to the System, and the employer shall 
     initiate all required procedures on or before such date as 
     the Secretary shall specify.
       ``(v) Notification.--

       ``(I) In general.--The Secretary shall provide, and the 
     employer shall utilize, as part of the System, a method of 
     notifying employers of a confirmation or nonconfirmation of 
     an individual's identity and employment authorized status, or 
     a notice that further action is required to verify such 
     identity or employment eligibility (referred to in this 
     subsection as a further action notice).
       ``(II) Procedures.--The Secretary shall--

       ``(aa) directly notify the individual and the employer, by 
     means of electronic correspondence, mail, text message, 
     telephone, or other direct communication, of a 
     nonconfirmation or further action notice;
       ``(bb) provide information about filing an administrative 
     appeal under paragraph (6) and a filing for review before an 
     administrative law judge under paragraph (7); and
       ``(cc) establish procedures to directly notify the 
     individual and the employer of a confirmation.

       ``(III) Implementation.--The Secretary may provide for a 
     phased-in implementation of the notification requirements 
     under this clause, as appropriate. The notification system 
     shall cover all inquiries not later than 1 year from the date 
     of the enactment of the Border Security, Economic 
     Opportunity, and Immigration Modernization Act.

       ``(C) Confirmation or nonconfirmation.--
       ``(i) Initial response.--

       ``(I) In general.--Except as provided in subclause (II), 
     the System shall provide--

       ``(aa) a confirmation of an individual's identity and 
     employment authorized status or a further action notice at 
     the time of the inquiry; and
       ``(bb) an appropriate code indicating such confirmation or 
     such further action notice.

       ``(II) Alternative deadline.--If the System is unable to 
     provide immediate confirmation or further action notice for 
     technological reasons or due to unforeseen circumstances, the 
     System shall provide a confirmation or further action notice 
     not later than 3 business days after the initial inquiry.

       ``(ii) Confirmation upon initial inquiry.--If the employer 
     receives an appropriate confirmation of an individual's 
     identity and employment authorized status under the System, 
     the employer shall record the confirmation in such manner as 
     the Secretary may specify.
       ``(iii) Further action notice and later confirmation or 
     nonconfirmation.--

       ``(I) Notification and acknowledgment that further action 
     is required.--Not later than 3 business days after an 
     employer receives a further action notice of an individual's 
     identity or employment eligibility under the System, or 
     during such other reasonable time as the Secretary may 
     prescribe, the employer shall notify the individual for whom 
     the confirmation is sought of the further action notice and 
     any procedures specified by the Secretary for addressing such 
     notice. The further action notice shall be given to the 
     individual in writing and the employer shall acknowledge in 
     the System under penalty of perjury that it provided the 
     employee with the further action notice. The individual shall 
     affirmatively acknowledge in writing, or in such other manner 
     as the Secretary may specify, the receipt of the further 
     action notice from the employer. If the individual refuses to 
     acknowledge the receipt of the further action notice, or 
     acknowledges in writing that the individual will not contest 
     the further action notice under subclause (II), the employer 
     shall notify the Secretary in such manner as the Secretary 
     may specify.
       ``(II) Contest.--Not later than 10 business days after 
     receiving notification of a further action notice under 
     subclause (I), the individual shall contact the appropriate 
     Federal agency and, if the Secretary so requires, appear in 
     person for purposes of verifying the individual's identity 
     and employment eligibility. The Secretary, in consultation 
     with the Commissioner and other appropriate Federal agencies, 
     shall specify an available secondary verification procedure 
     to confirm the validity of information provided and to 
     provide a confirmation or nonconfirmation. Any procedures for 
     reexamination shall not limit in any way an employee's right 
     to appeal a nonconfirmation.
       ``(III) No contest.--If the individual refuses to 
     acknowledge receipt of the further action notice, 
     acknowledges that the individual will not contest the further 
     action notice as provided in subclause (I), or does not 
     contact the appropriate Federal agency within the period 
     specified in subclause (II), following expiration of the 
     period specified in subclause (II), a nonconfirmation shall 
     be issued. The employer shall record the nonconfirmation in 
     such manner as the Secretary may specify and terminate the 
     individual's employment. An individual's failure to contest a 
     further action notice shall not be considered an admission of 
     guilt with respect to any violation of this section or any 
     provision of law.
       ``(IV) Confirmation or nonconfirmation.--Unless the period 
     is extended in accordance with this subclause, the System 
     shall provide a confirmation or nonconfirmation not later 
     than 10 business days after the date on which the individual 
     contests the further action notice under subclause (II). If 
     the Secretary determines that good cause exists, after taking 
     into account adverse impacts to the employer, and including 
     time to permit the individual to obtain and provide needed 
     evidence of identity or employment eligibility, the Secretary 
     shall extend the period for providing confirmation or 
     nonconfirmation for stated periods beyond 10 business days. 
     When confirmation or nonconfirmation is provided, the 
     confirmation system shall provide an appropriate code 
     indicating such confirmation or nonconfirmation.
       ``(V) Reexamination.--Nothing in this section shall prevent 
     the Secretary from establishing procedures to reexamine a 
     case where

[[Page 10547]]

     a confirmation or nonconfirmation has been provided if 
     subsequently received information indicates that the 
     confirmation or nonconfirmation may not have been correct. 
     Any procedures for reexamination shall not limit in any way 
     an employee's right to appeal a nonconfirmation.
       ``(VI) Employee protections.--An employer may not terminate 
     employment or take any other adverse action against an 
     individual solely because of a failure of the individual to 
     have identity and employment eligibility confirmed under this 
     subsection until--

       ``(aa) a nonconfirmation has been issued;
       ``(bb) if the further action notice was contested, the 
     period to timely file an administrative appeal has expired 
     without an appeal or the contestation to the further action 
     notice is withdrawn; or
       ``(cc) if an appeal before an administrative law judge 
     under paragraph (7) has been filed, the nonconfirmation has 
     been upheld or the appeal has been withdrawn or dismissed.
       ``(iv) Notice of nonconfirmation.--Not later than 3 
     business days after an employer receives a nonconfirmation, 
     or during such other reasonable time as the Secretary may 
     provide, the employer shall notify the individual who is the 
     subject of the nonconfirmation, and provide information about 
     filing an administrative appeal pursuant to paragraph (6) and 
     a request for a hearing before an administrative law judge 
     pursuant to paragraph (7). The nonconfirmation notice shall 
     be given to the individual in writing and the employer shall 
     acknowledge in the System under penalty of perjury that it 
     provided the notice (or adequately attempted to provide 
     notice, but was unable to do so despite reasonable efforts). 
     The individual shall affirmatively acknowledge in writing, or 
     in such other manner as the Secretary may prescribe, the 
     receipt of the nonconfirmation notice from the employer. If 
     the individual refuses or fails to acknowledge the receipt of 
     the nonconfirmation notice, the employer shall notify the 
     Secretary in such manner as the Secretary may prescribe.
       ``(D) Consequences of nonconfirmation.--
       ``(i) Termination of continued employment.--Except as 
     provided in clause (iii), an employer that has received a 
     nonconfirmation regarding an individual and has made 
     reasonable efforts to notify the individual in accordance 
     with subparagraph (C)(iv) shall terminate the employment of 
     the individual upon the expiration of the time period 
     specified in paragraph (7).
       ``(ii) Continued employment after nonconfirmation.--If the 
     employer continues to employ an individual after receiving 
     nonconfirmation and exhaustion of all appeals or expiration 
     of all rights to appeal if not appealed, in violation of 
     clause (i), a rebuttable presumption is created that the 
     employer has violated paragraphs (1)(A) and (2) of subsection 
     (a). Such presumption shall not apply in any prosecution 
     under subsection (k)(1).
       ``(iii) Effect of administrative appeal or review by 
     administrative law judge.--If an individual files an 
     administrative appeal of the nonconfirmation within the time 
     period specified in paragraph (6)(A), or files for review 
     with an administrative law judge specified in paragraph 
     (7)(A), the employer shall not terminate the individual's 
     employment under this subparagraph prior to the resolution of 
     the administrative appeal unless the Secretary or 
     Commissioner terminates the stay under paragraph (6)(B) or 
     (7)(B).
       ``(iv) Weekly report.--The Director of U.S. Citizenship and 
     Immigration Services shall submit a weekly report to the 
     Assistant Secretary for Immigration and Customs Enforcement 
     that includes, for each individual who receives final 
     nonconfirmation through the System--

       ``(I) the name of such individual;
       ``(II) his or her social security number or alien file 
     number;
       ``(III) the name and contact information for his or her 
     current employer; and
       ``(IV) any other critical information that the Assistant 
     Secretary determines to be appropriate.

       ``(v) Other referral.--The Director of U.S. Citizenship and 
     Immigration Services shall refer to the Assistant Secretary 
     for Immigration and Customs Enforcement for appropriate 
     action by the Assistant Secretary or for referral by the 
     Assistant Secretary to another law enforcement agency, as 
     appropriate--

       ``(I) any case in which the Director believes that a social 
     security number has been falsely or fraudulently used; and
       ``(II) any case in which a false or fraudulent document is 
     used by an employee who has received a further action notice 
     to resolve such notice.

       ``(E) Obligation to respond to queries and additional 
     information.--
       ``(i) In general.--Employers shall comply with requests for 
     information from the Secretary and the Special Counsel for 
     Immigration-Related Unfair Employment Practices of the 
     Department of Justice, including queries concerning current 
     and former employees, within the time frame during which 
     records are required to be maintained under this section 
     regarding such former employees, if such information relates 
     to the functioning of the System, the accuracy of the 
     responses provided by the System, or any suspected misuse, 
     discrimination, fraud, or identity theft in the use of the 
     System. Failure to comply with a request under this clause 
     constitutes a violation of subsection (a)(1)(B).
       ``(ii) Action by individuals.--

       ``(I) In general.--Individuals being verified through the 
     System may be required to take further action to address 
     questions identified by the Secretary or the Commissioner 
     regarding the documents relied upon for purposes of 
     subsection (c).
       ``(II) Notification.--Not later than 3 business days after 
     the receipt of such questions regarding an individual, or 
     during such other reasonable time as the Secretary may 
     prescribe, the employer shall--

       ``(aa) notify the individual of any such requirement for 
     further actions; and
       ``(bb) record the date and manner of such notification.

       ``(III) Acknowledgment.--The individual shall acknowledge 
     the notification received from the employer under subclause 
     (II) in writing, or in such other manner as the Secretary may 
     prescribe.

       ``(iii) Rulemaking.--

       ``(I) In general.--The Secretary, in consultation with the 
     Commissioner and the Attorney General, is authorized to issue 
     regulations implementing, clarifying, and supplementing the 
     requirements under this subparagraph--

       ``(aa) to facilitate the functioning, accuracy, and 
     fairness of the System;
       ``(bb) to prevent misuse, discrimination, fraud, or 
     identity theft in the use of the System; or
       ``(cc) to protect and maintain the confidentiality of 
     information that could be used to locate or otherwise place 
     at risk of harm victims of domestic violence, dating 
     violence, sexual assault, stalking, and human trafficking, 
     and of the applicant or beneficiary of any petition described 
     in section 384(a)(2) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1367(a)(2)).

       ``(II) Notice.--The regulations issued under subclause (I) 
     shall be--

       ``(aa) published in the Federal Register; and
       ``(bb) provided directly to all employers registered in the 
     System.
       ``(F) Designated agents.--The Secretary shall establish a 
     process--
       ``(i) for certifying, on an annual basis or at such times 
     as the Secretary may prescribe, designated agents and other 
     System service providers seeking access to the System to 
     perform verification queries on behalf of employers, based 
     upon training, usage, privacy, and security standards 
     prescribed by the Secretary;
       ``(ii) for ensuring that designated agents and other System 
     service providers are subject to monitoring to the same 
     extent as direct access users; and
       ``(iii) for establishing standards for certification of 
     electronic I-9 programs.
       ``(G) Requirement to provide information.--
       ``(i) In general.--No later than 3 months after the date of 
     the enactment of the Border Security, Economic Opportunity, 
     and Immigration Modernization Act, the Secretary, in 
     consultation with the Secretary of Labor, the Secretary of 
     Agriculture, the Commissioner, the Attorney General, the 
     Equal Employment Opportunity Commission, and the 
     Administrator of the Small Business Administration, shall 
     commence a campaign to disseminate information respecting the 
     procedures, rights, and remedies prescribed under this 
     section.
       ``(ii) Campaign requirements.--The campaign authorized 
     under clause (i)--

       ``(I) shall be aimed at increasing the knowledge of 
     employers, employees, and the general public concerning 
     employer and employee rights, responsibilities, and remedies 
     under this section; and
       ``(II) shall be coordinated with the public education 
     campaign conducted by U.S. Citizenship and Immigration 
     Services.

       ``(iii) Assessment.--The Secretary shall assess the success 
     of the campaign in achieving the goals of the campaign.
       ``(iv) Authority to contract.--In order to carry out and 
     assess the campaign under this subparagraph, the Secretary 
     may, to the extent deemed appropriate and subject to the 
     availability of appropriations, contract with public and 
     private organizations for outreach and assessment activities 
     under the campaign.
       ``(v) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph 
     $40,000,000 for each of the fiscal years 2014 through 2016.
       ``(H) Authority to modify information requirements.--Based 
     on a regular review of the System and the document 
     verification procedures to identify misuse or fraudulent use 
     and to assess the security of the documents and processes 
     used to establish identity or employment authorized status, 
     the Secretary, in consultation with the Commissioner, after 
     publication of notice in the Federal Register and an 
     opportunity for public comment, may modify, if the Secretary 
     determines that the modification is necessary to ensure that 
     the System accurately and reliably determines the identity 
     and employment authorized status of employees and

[[Page 10548]]

     maintain existing protections against misuse, discrimination, 
     fraud, and identity theft--
       ``(i) the information that shall be presented to the 
     employer by an individual;
       ``(ii) the information that shall be provided to the System 
     by the employer; and
       ``(iii) the procedures that shall be followed by employers 
     with respect to the process of verifying an individual 
     through the System.
       ``(I) Self-verification.--Subject to appropriate safeguards 
     to prevent misuse of the system, the Secretary, in 
     consultation with the Commissioner, shall establish a secure 
     self-verification procedure to permit an individual who seeks 
     to verify the individual's own employment eligibility to 
     contact the appropriate agency and, in a timely manner, 
     correct or update the information contained in the System.
       ``(5) Protection from liability for actions taken on the 
     basis of information provided by the system.--An employer 
     shall not be liable to a job applicant, an employee, the 
     Federal Government, or a State or local government, under 
     Federal, State, or local criminal or civil law for any 
     employment-related action taken with respect to a job 
     applicant or employee in good faith reliance on information 
     provided by the System.
       ``(6) Administrative appeal.--
       ``(A) In general.--An individual who is notified of a 
     nonconfirmation may, not later than 10 business days after 
     the date that such notice is received, file an administrative 
     appeal of such nonconfirmation with the Commissioner if the 
     notice is based on records maintained by the Commissioner, or 
     in any other case, with the Secretary. An individual who did 
     not timely contest a further action notice timely received by 
     that individual for which the individual acknowledged receipt 
     may not be granted a review under this paragraph.
       ``(B) Administrative stay of nonconfirmation.--The 
     nonconfirmation shall be automatically stayed upon the timely 
     filing of an administrative appeal, unless the 
     nonconfirmation resulted after the individual acknowledged 
     receipt of the further action notice but failed to contact 
     the appropriate agency within the time provided. The stay 
     shall remain in effect until the resolution of the appeal, 
     unless the Secretary or the Commissioner terminates the stay 
     based on a determination that the administrative appeal is 
     frivolous or filed for purposes of delay.
       ``(C) Review for error.--The Secretary and the Commissioner 
     shall develop procedures for resolving administrative appeals 
     regarding nonconfirmations based upon the information that 
     the individual has provided, including any additional 
     evidence or argument that was not previously considered. Any 
     such additional evidence or argument shall be filed within 10 
     business days of the date the appeal was originally filed. 
     Appeals shall be resolved within 20 business days after the 
     individual has submitted all evidence and arguments the 
     individual wishes to submit, or has stated in writing that 
     there is no additional evidence that the individual wishes to 
     submit. The Secretary and the Commissioner may, on a case by 
     case basis for good cause, extend the filing and submission 
     period in order to ensure accurate resolution of an appeal 
     before the Secretary or the Commissioner.
       ``(D) Preponderance of evidence.--Administrative appeal 
     under this paragraph shall be limited to whether a 
     nonconfirmation notice is supported by a preponderance of the 
     evidence.
       ``(E) Damages, fees, and costs.--No money damages, fees or 
     costs may be awarded in the administrative appeal process 
     under this paragraph.
       ``(7) Review by administrative law judge.--
       ``(A) In general.--Not later than 30 days after the date an 
     individual receives a final determination on an 
     administrative appeal under paragraph (6), the individual may 
     obtain review of such determination by filing a complaint 
     with a Department of Justice administrative law judge in 
     accordance with this paragraph.
       ``(B) Stay of nonconfirmation.--The nonconfirmation related 
     to such final determination shall be automatically stayed 
     upon the timely filing of a complaint under this paragraph, 
     and the stay shall remain in effect until the resolution of 
     the complaint, unless the administrative law judge determines 
     that the action is frivolous or filed for purposes of delay.
       ``(C) Service.--The respondent to complaint filed under 
     this paragraph is either the Secretary or the Commissioner, 
     but not both, depending upon who issued the administrative 
     order under paragraph (6). In addition to serving the 
     respondent, the plaintiff shall serve the Attorney General.
       ``(D) Authority of administrative law judge.--
       ``(i) Rules of practice.--The Secretary shall promulgate 
     regulations regarding the rules of practice in appeals 
     brought pursuant to this subsection.
       ``(ii) Authority of administrative law judge.--The 
     administrative law judge shall have power to--

       ``(I) terminate a stay of a nonconfirmation under 
     subparagraph (B) if the administrative law judge determines 
     that the action is frivolous or filed for purposes of delay;
       ``(II) adduce evidence at a hearing;
       ``(III) compel by subpoena the attendance of witnesses and 
     the production of evidence at any designated place or 
     hearing;
       ``(IV) resolve claims of identity theft; and
       ``(V) enter, upon the pleadings and any evidence adduced at 
     a hearing, a decision affirming or reversing the result of 
     the agency, with or without remanding the cause for a 
     rehearing.

       ``(iii) Subpoena.--In case of contumacy or refusal to obey 
     a subpoena lawfully issued under this section and upon 
     application of the administrative law judge, an appropriate 
     district court of the United States may issue an order 
     requiring compliance with such subpoena and any failure to 
     obey such order may be punished by such court as a contempt 
     of such court.
       ``(iv) Training.--An administrative law judge hearing cases 
     shall have special training respecting employment authorized 
     status verification.
       ``(E) Order by administrative law judge.--
       ``(i) In general.--The administrative law judge shall issue 
     and cause to be served to the parties in the proceeding an 
     order which may be appealed as provided in subparagraph (G).
       ``(ii) Contents of order.--Such an order shall uphold or 
     reverse the final determination on the request for 
     reconsideration and order lost wages and other appropriate 
     remedies as provided in subparagraph (F).
       ``(F) Compensation for error.--
       ``(i) In general.--In cases in which the administrative law 
     judge reverses the final determination of the Secretary or 
     the Commissioner made under paragraph (6), and the 
     administrative law judge finds that--

       ``(I) the nonconfirmation was due to gross negligence or 
     intentional misconduct of the employer, the administrative 
     law judge may order the employer to pay the individual lost 
     wages, and reasonable costs and attorneys' fees incurred 
     during administrative and judicial review; or
       ``(II) such final determination was erroneous by reason of 
     the negligence of the Secretary or the Commissioner, the 
     administrative law judge may order the Secretary or the 
     Commissioner to pay the individual lost wages, and reasonable 
     costs and attorneys' fees incurred during the administrative 
     appeal and the administrative law judge review.

       ``(ii) Calculation of lost wages.--Lost wages shall be 
     calculated based on the wage rate and work schedule that 
     prevailed prior to termination. The individual shall be 
     compensated for wages lost beginning on the first scheduled 
     work day after employment was terminated and ending 120 days 
     after completion of the administrative law judge's review 
     described in this paragraph or the day after the individual 
     is reinstated or obtains employment elsewhere, whichever 
     occurs first. If the individual obtains employment elsewhere 
     at a lower wage rate, the individual shall be compensated for 
     the difference in wages for the period ending 120 days after 
     completion of the administrative law judge review process. No 
     lost wages shall be awarded for any period of time during 
     which the individual was not in employment authorized status.
       ``(iii) Payment of compensation.--Notwithstanding any other 
     law, payment of compensation for lost wages, costs, and 
     attorneys' fees under this paragraph, or compromise 
     settlements of the same, shall be made as provided by section 
     1304 of title 31, United States Code. Appropriations made 
     available to the Secretary or the Commissioner, accounts 
     provided for under section 286, and funds from the Federal 
     Old-Age and Survivors Insurance Trust Fund or the Federal 
     Disability Insurance Trust Fund shall not be available to pay 
     such compensation.
       ``(G) Appeal.--No later than 45 days after the entry of 
     such final order, any person adversely affected by such final 
     order may seek review of such order in the United States 
     Court of Appeals for the circuit in which the violation is 
     alleged to have occurred or in which the employer resides or 
     transacts business.
       ``(8) Management of the system.--
       ``(A) In general.--The Secretary is authorized to 
     establish, manage, and modify the System, which shall--
       ``(i) respond to inquiries made by participating employers 
     at any time through the internet, or such other means as the 
     Secretary may designate, concerning an individual's identity 
     and whether the individual is in employment authorized 
     status;
       ``(ii) maintain records of the inquiries that were made, of 
     confirmations provided (or not provided), and of the codes 
     provided to employers as evidence of their compliance with 
     their obligations under the System; and
       ``(iii) provide information to, and require action by, 
     employers and individuals using the System.
       ``(B) Design and operation of system.--The System shall be 
     designed and operated--
       ``(i) to maximize its reliability and ease of use by 
     employers consistent with protecting the privacy and security 
     of the underlying information, and ensuring full notice of 
     such use to employees;
       ``(ii) to maximize its ease of use by employees, including 
     direct notification of its use, of results, and ability to 
     challenge results;

[[Page 10549]]

       ``(iii) to respond accurately to all inquiries made by 
     employers on whether individuals are authorized to be 
     employed and to register any times when the system is unable 
     to receive inquiries;
       ``(iv) to maintain appropriate administrative, technical, 
     and physical safeguards to prevent unauthorized disclosure of 
     personal information, misuse by employers and employees, and 
     discrimination;
       ``(v) to require regularly scheduled refresher training of 
     all users of the System to ensure compliance with all 
     procedures;
       ``(vi) to allow for auditing of the use of the System to 
     detect misuse, discrimination, fraud, and identity theft, to 
     protect privacy and assess System accuracy, and to preserve 
     the integrity and security of the information in all of the 
     System, including--

       ``(I) to develop and use tools and processes to detect or 
     prevent fraud and identity theft, such as multiple uses of 
     the same identifying information or documents to fraudulently 
     gain employment;
       ``(II) to develop and use tools and processes to detect and 
     prevent misuse of the system by employers and employees;
       ``(III) to develop tools and processes to detect anomalies 
     in the use of the system that may indicate potential fraud or 
     misuse of the system;
       ``(IV) to audit documents and information submitted by 
     employees to employers, including authority to conduct 
     interviews with employers and employees, and obtain 
     information concerning employment from the employer;

       ``(vii) to confirm identity and employment authorization 
     through verification and comparison of records as determined 
     necessary by the Secretary;
       ``(viii) to confirm electronically the issuance of the 
     employment authorization or identity document and--

       ``(I) if such photograph is available, to display the 
     digital photograph that the issuer placed on the document so 
     that the employer can compare the photograph displayed to the 
     photograph on the document presented by the employee; or
       ``(II) if a photograph is not available from the issuer, to 
     confirm the authenticity of the document using additional 
     security measures set forth in subsection (c)(1)(F)(iv);

       ``(ix) to employ specific and effective additional security 
     measures set forth in subsection (c)(1)(F)(iv) to adequately 
     verify the identity of an individual that are designed and 
     operated--

       ``(I) to use state-of-the-art technology to determine to a 
     high degree of accuracy whether an individual presenting 
     biographic information is the individual with that true 
     identity;
       ``(II) to retain under the control of the Secretary the use 
     of all determinations communicated by the System, regardless 
     of the entity operating the system pursuant to a contract or 
     other agreement with a nongovernmental entity or entities to 
     the extent helpful in acquiring the best technology to 
     implement the additional security measures;
       ``(III) to be integrated with the System so that employment 
     authorizations will be determined for all individuals 
     identified as presenting their true identities through the 
     databases maintained by the Commissioner of Social Security 
     and the Secretary;
       ``(IV) to use tools and processes to detect and prevent 
     further action notices and final nonconfirmations that are 
     not correlated to fraud or identity theft;
       ``(V) to make risk-based assessments regarding the 
     reliability of a claim of identity made by an individual 
     presenting biographic information and to tailor the identity 
     determination in accordance with those assessments;
       ``(VI) to permit queries to be presented to individuals 
     subject to identity verification at the time their identities 
     are being verified in a manner that permits rapid 
     communication through Internet, mobile phone, and landline 
     telephone connections to facilitate identity proofing;
       ``(VII) to generate queries that conform to the context of 
     the identity verification process and the circumstances of 
     the individual whose identity is being verified;
       ``(VIII) to use publicly available databases and databases 
     under the jurisdiction of the Commissioner of Social 
     Security, the Secretary, and the Secretary of State to 
     formulate queries to be presented to individuals whose 
     identities are being verified, as appropriate;
       ``(IX) to not retain data collected by the System within 
     any database separate from the database in which the 
     operating system is located and to limit access to the 
     existing databases to a reference process that shields the 
     operator of the System from acquiring possession of the data 
     beyond the formulation of queries and verification of 
     responses;
       ``(X) to not permit individuals or entities using the 
     System to access any data related to the individuals whose 
     identities are being verified beyond confirmations, further 
     action notices, and final nonconfirmations of identity;
       ``(XI) to include, if feasible, a capability for permitting 
     document or other inputs that can be offered to individuals 
     and entities using the System and that may be used at the 
     option of employees to facilitate identity verification, but 
     would not be required of either employers or employees; and
       ``(XII) to the greatest extent possible, in accordance with 
     the time frames specified in this section; and

       ``(x) to provide appropriate notification directly to 
     employers registered with the System of all changes made by 
     the Secretary or the Commissioner related to allowed and 
     prohibited documents, and use of the System.
       ``(C) Safeguards to the system.--
       ``(i) Requirement to develop.--The Secretary, in 
     consultation with the Commissioner and other appropriate 
     Federal and State agencies, shall develop policies and 
     procedures to ensure protection of the privacy and security 
     of personally identifiable information and identifiers 
     contained in the records accessed or maintained by the 
     System. The Secretary, in consultation with the Commissioner 
     and other appropriate Federal and State agencies, shall 
     develop and deploy appropriate privacy and security training 
     for the Federal and State employees accessing the records 
     under the System.
       ``(ii) Privacy audits.--The Secretary, acting through the 
     Chief Privacy Officer of the Department, shall conduct 
     regular privacy audits of the policies and procedures 
     established under clause (i) and the Department's compliance 
     with the limitations set forth in subsection 
     (c)(1)(F)(iii)(IV), including any collection, use, 
     dissemination, and maintenance of personally identifiable 
     information and any associated information technology 
     systems, as well as scope of requests for this information. 
     The Chief Privacy Officer shall review the results of the 
     audits and recommend to the Secretary any changes necessary 
     to improve the privacy protections of the program.
       ``(iii) Accuracy audits.--

       ``(I) In general.--Not later than November 30 of each year, 
     the Inspector General of the Department of Homeland Security 
     shall submit a report to the Secretary, with a copy to the 
     President of the Senate and the Speaker of the House of 
     Representatives, that sets forth the error rate of the System 
     for the previous fiscal year and the assessments required to 
     be submitted by the Secretary under subparagraphs (A) and (B) 
     of paragraph (10). The report shall describe in detail the 
     methodology employed for purposes of the report, and shall 
     make recommendations for how error rates may be reduced.
       ``(II) Error rate defined.--In this clause, the term error 
     rate means the percentage determined by dividing--

       ``(aa) the number of employment authorized individuals who 
     received further action notices, contested such notices, and 
     were subsequently found to be employment authorized; by
       ``(bb) the number of System inquiries submitted for 
     employment authorized individuals.

       ``(III) Error rate determination.--The audits required 
     under this clause shall--

       ``(aa) determine the error rate for identity determinations 
     pursuant to subsection (c)(1)(F) for individuals presenting 
     their true identities in the same manner and applying the 
     same standards as for employment authorization; and
       ``(bb) include recommendations, as provided in subclause 
     (I), but no reduction in fines pursuant to subclause (IV).

       ``(IV) Reduction of penalties for recordkeeping or 
     verification practices following persistent system 
     inaccuracies.--Notwithstanding subsection (e)(4)(C)(i), in 
     any calendar year following a report by the Inspector General 
     under subclause (I) that the System had an error rate higher 
     than 0.3 percent for the previous fiscal year, the civil 
     penalty assessable by the Secretary or an administrative law 
     judge under that subsection for each first-time violation by 
     an employer who has not previously been penalized under this 
     section may not exceed $1,000.

       ``(iv) Records security program.--Any person, including a 
     private third party vendor, who retains document verification 
     or System data pursuant to this section shall implement an 
     effective records security program that--

       ``(I) ensures that only authorized personnel have access to 
     document verification or System data; and
       ``(II) ensures that whenever such data is created, 
     completed, updated, modified, altered, or corrected in 
     electronic format, a secure record is created that 
     establishes the date of access, the identity of the 
     individual who accessed the electronic record, and the 
     particular action taken.

       ``(v) Records security program.--In addition to the 
     security measures described in clause (iv), a private third 
     party vendor who retains document verification or System data 
     pursuant to this section shall implement an effective records 
     security program that--

       ``(I) provides for backup and recovery of any records 
     maintained in electronic format to protect against 
     information loss, such as power interruptions; and
       ``(II) ensures that employees are trained to minimize the 
     risk of unauthorized or accidental alteration or erasure of 
     such data in electronic format.

       ``(vi) Authorized personnel defined.--In this subparagraph, 
     the term authorized personnel means anyone registered as a 
     System

[[Page 10550]]

     user, or anyone with partial or full responsibility for 
     completion of employment authorization verification or 
     retention of data in connection with employment authorization 
     verification on behalf of an employer.
       ``(D) Available facilities and alternative 
     accommodations.--The Secretary shall make appropriate 
     arrangements and develop standards to allow employers or 
     employees, including remote hires, who are otherwise unable 
     to access the System to use electronic and telephonic formats 
     (including video conferencing, scanning technology, and other 
     available technologies), Federal Government facilities, 
     public facilities, or other available locations in order to 
     utilize the System.
       ``(E) Responsibilities of the secretary.--
       ``(i) In general.--As part of the System, the Secretary 
     shall maintain a reliable, secure method, which, operating 
     through the System and within the time periods specified, 
     compares the name, alien identification or authorization 
     number, or other information as determined relevant by the 
     Secretary, provided in an inquiry against such information 
     maintained or accessed by the Secretary in order to confirm 
     (or not confirm) the validity of the information provided, 
     the correspondence of the name and number, whether the alien 
     has employment authorized status (or, to the extent that the 
     Secretary determines to be feasible and appropriate, whether 
     the records available to the Secretary verify the identity or 
     status of a national of the United States), and such other 
     information as the Secretary may prescribe.
       ``(ii) Photograph display.--As part of the System, the 
     Secretary shall establish a reliable, secure method, which, 
     operating through the System, displays the digital photograph 
     described in subparagraph (B)(viii)(I).
       ``(iii) Timing of notices.--The Secretary shall have 
     authority to prescribe when a confirmation, nonconfirmation, 
     or further action notice shall be issued.
       ``(iv) Use of information.--The Secretary shall perform 
     regular audits under the System, as described in subparagraph 
     (B)(vi) and shall utilize the information obtained from such 
     audits, as well as any information obtained from the 
     Commissioner pursuant to part E of title XI of the Social 
     Security Act (42 U.S.C. 1301 et seq.), for the purposes of 
     this section and to administer and enforce the immigration 
     laws.
       ``(v) Identity fraud protection.--To prevent identity 
     fraud, not later than 18 months after the date of the 
     enactment of the Border Security, Economic Opportunity, and 
     Immigration Modernization Act, the Secretary shall--

       ``(I) in consultation with the Commissioner, establish a 
     program to provide a reliable, secure method for an 
     individual to temporarily suspend or limit the use of the 
     individual's social security account number or other 
     identifying information for verification by the System; and
       ``(II) for each individual being verified through the 
     System--

       ``(aa) notify the individual that the individual has the 
     option to limit the use of the individual's social security 
     account number or other identifying information for 
     verification by the System; and
       ``(bb) provide instructions to the individuals for 
     exercising the option referred to in item (aa).
       ``(vi) Allowing parents to prevent theft of their child's 
     identity.--The Secretary, in consultation with the 
     Commissioner, shall establish a program that provides a 
     reliable, secure method by which parents or legal guardians 
     may suspend or limit the use of the social security account 
     number or other identifying information of a minor under 
     their care for the purposes of the System. The Secretary may 
     implement the program on a limited pilot program basis before 
     making it fully available to all individuals.
       ``(vii) Protection from multiple use.--The Secretary and 
     the Commissioner shall establish a procedure for identifying 
     and handling a situation in which a social security account 
     number has been identified to be subject to unusual multiple 
     use in the System or is otherwise suspected or determined to 
     have been compromised by identity fraud. Such procedure shall 
     include notifying the legitimate holder of the social 
     security number at the appropriate time.
       ``(viii) Monitoring and compliance unit.--The Secretary 
     shall establish or designate a monitoring and compliance unit 
     to detect and reduce identity fraud and other misuse of the 
     System.
       ``(ix) Civil rights and civil liberties assessments.--

       ``(I) Requirement to conduct.--The Secretary shall conduct 
     regular civil rights and civil liberties assessments of the 
     System, including participation by employers, other private 
     entities, and Federal, State, and local government entities.
       ``(II) Requirement to respond.--Employers, other private 
     entities, and Federal, State, and local entities shall timely 
     respond to any request in connection with such an assessment.
       ``(III) Assessment and recommendations.--The Officer for 
     Civil Rights and Civil Liberties of the Department shall 
     review the results of each such assessment and recommend to 
     the Secretary any changes necessary to improve the civil 
     rights and civil liberties protections of the System.

       ``(F) Grants to states.--
       ``(i) In general.--The Secretary shall create and 
     administer a grant program to help provide funding for 
     reimbursement of the actual costs to States that grant--

       ``(I) the Secretary access to driver's license information 
     as needed to confirm that a driver's license presented under 
     subsection (c)(1)(D)(i) confirms the identity of the subject 
     of the System check, and that a driver's license matches the 
     State's records; and
       ``(II) such assistance as the Secretary may request in 
     order to resolve further action notices or nonconfirmations 
     relating to such information.

       ``(ii) Construction with the driver's privacy protection 
     act of 1994.--The provision of a photograph to the Secretary 
     as described in clause (i) may not be construed as a 
     violation of section 2721 of title 18, United States Code, 
     and is a permissible use under subsection (b)(1) of that 
     section.
       ``(iii) Authorization of appropriations.--There is 
     authorized to be appropriated to the Secretary, from the 
     Comprehensive Immigration Reform Trust Fund established under 
     section 6(a)(1), $500,000,000 to carry out this subparagraph.
       ``(G) Responsibilities of the secretary of state.--As part 
     of the System, the Secretary of State shall provide to the 
     Secretary access to passport and visa information as needed 
     to confirm that a passport, passport card, or visa presented 
     under subsection (c)(1)(C) confirms the identity of the 
     subject of the System check, and that a passport, passport 
     card, or visa photograph matches the Secretary of State's 
     records, and shall provide such assistance as the Secretary 
     may request in order to resolve further action notices or 
     nonconfirmations relating to such information.
       ``(H) Updating information.--The Commissioner, the 
     Secretary, and the Secretary of State shall update their 
     information in a manner that promotes maximum accuracy and 
     shall provide a process for the prompt correction of 
     erroneous information.
       ``(9) Limitation on use of the system.--Notwithstanding any 
     other provision of law, no department, bureau, or other 
     agency of the United States Government or any other entity 
     shall utilize, share, or transmit any information, database, 
     or other records assembled under this subsection for any 
     purpose other than for employment verification or to ensure 
     secure, appropriate and nondiscriminatory use of the System.
       ``(10) Annual report and certification.--Not later than 18 
     months after the promulgation of regulations to implement 
     this subsection, and annually thereafter, the Secretary shall 
     submit to Congress a report that includes the following:
       ``(A) An assessment, as submitted to the Secretary by the 
     Inspector General of the Department of Homeland Security 
     pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates 
     of further action notices and other System notices provided 
     by employers to individuals who are authorized to be employed 
     in the United States.
       ``(B) An assessment, as submitted to the Secretary by the 
     Inspector General of the Department of Homeland Security 
     pursuant to paragraph (8)(C)(iii)(I), of the accuracy rates 
     of further action notices and other System notices provided 
     directly (by the System) in a timely fashion to individuals 
     who are not authorized to be employed in the United States.
       ``(C) An assessment of any challenges faced by small 
     employers in utilizing the System.
       ``(D) An assessment of the rate of employer noncompliance 
     (in addition to failure to provide required notices in a 
     timely fashion) in each of the following categories:
       ``(i) Taking adverse action based on a further action 
     notice.
       ``(ii) Use of the System for nonemployees or other 
     individuals before they are offered employment.
       ``(iii) Use of the System to reverify employment authorized 
     status of current employees except if authorized to do so.
       ``(iv) Use of the System selectively, except in cases in 
     which such use is authorized.
       ``(v) Use of the System to deny employment or post-
     employment benefits or otherwise interfere with labor rights.
       ``(vi) Requiring employees or applicants to use any self-
     verification feature or to provide self-verification results.
       ``(vii) Discouraging individuals who receive a further 
     action notice from challenging the further action notice or 
     appealing a determination made by the System.
       ``(E) An assessment of the rate of employee noncompliance 
     in each of the following categories:
       ``(i) Obtaining employment when unauthorized with an 
     employer complying with the System in good faith.
       ``(ii) Failure to provide required documents in a timely 
     manner.
       ``(iii) Attempting to use fraudulent documents or documents 
     not related to the individual.
       ``(iv) Misuse of the administrative appeal and judicial 
     review process.
       ``(F) An assessment of the amount of time taken for--
       ``(i) the System to provide the confirmation or further 
     action notice;

[[Page 10551]]

       ``(ii) individuals to contest further action notices;
       ``(iii) the System to provide a confirmation or 
     nonconfirmation of a contested further action notice;
       ``(iv) individuals to file an administrative appeal of a 
     nonconfirmation; and
       ``(v) resolving administrative appeals regarding 
     nonconfirmations.
       ``(11) Annual gao study and report.--
       ``(A) Requirement.--The Comptroller General shall, for each 
     year, undertake a study to evaluate the accuracy, efficiency, 
     integrity, and impact of the System.
       ``(B) Report.--Not later than 18 months after the 
     promulgation of regulations to implement this subsection, and 
     yearly thereafter, the Comptroller General shall submit to 
     Congress a report containing the findings of the study 
     carried out under this paragraph. Each such report shall 
     include, at a minimum, the following:
       ``(i) An assessment of System performance with respect to 
     the rate at which individuals who are eligible for employment 
     in the United States are correctly approved within the 
     required periods, including a separate assessment of such 
     rate for naturalized United States citizens, nationals of the 
     United States, and aliens.
       ``(ii) An assessment of the privacy and confidentiality of 
     the System and of the overall security of the System with 
     respect to cybertheft and theft or misuse of private data.
       ``(iii) An assessment of whether the System is being 
     implemented in a manner that is not discriminatory or used 
     for retaliation against employees.
       ``(iv) An assessment of the most common causes for the 
     erroneous issuance of nonconfirmations by the System and 
     recommendations to correct such causes.
       ``(v) The recommendations of the Comptroller General 
     regarding System improvements.
       ``(vi) An assessment of the frequency and magnitude of 
     changes made to the System and the impact on the ability for 
     employers to comply in good faith.
       ``(vii) An assessment of the direct and indirect costs 
     incurred by employers in complying with the System, including 
     costs associated with retaining potential employees through 
     the administrative appeals process and receiving a 
     nonconfirmation.
       ``(viii) An assessment of any backlogs or delays in the 
     System providing the confirmation or further action notice 
     and impacts to hiring by employers.
       ``(ix) An assessment of the effect of the identity 
     authentication mechanism and any other security measures set 
     forth in subsection (c)(1)(F)(iv) to verify identity 
     incorporated into the System or otherwise used by employers 
     on employees.
       ``(12) Outreach and partnership.--
       ``(A) Outreach.--The Secretary is authorized to conduct 
     outreach and establish programs to assist employers in 
     verifying employment authorization and preventing identity 
     fraud.
       ``(B) Partnership initiative.--The Secretary may establish 
     partnership initiatives between the Federal Government and 
     private sector employers to foster cooperative relationships 
     and to strengthen overall hiring practices.''.
       (c) Taxpayer Address Information.--Section 6103(m) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following:
       ``(8) Taxpayer address information furnished to secretary 
     of homeland security.--Upon written request from the 
     Secretary of Homeland Security, the Secretary shall disclose 
     the mailing address of any taxpayer who is entitled to 
     receive a notification from the Secretary of Homeland 
     Security pursuant to paragraphs (1)(C) and (8)(E)(vii) of 
     section 274A(d) of the Immigration and Nationality Act (8 
     U.S.C. 1324a(d)) for use only by employees of the Department 
     of Homeland for the purpose of mailing such notification to 
     such taxpayer.''.
       (d) Social Security Account Statements.--Section 1143(a)(2) 
     of the Social Security Act (8 U.S.C. 1320b-13(a)(2)) is 
     amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) to the extent resources are available, information in 
     the Commissioner's records indicating that a query was 
     submitted to the employment verification system established 
     under section 274A (d) of the Immigration and Nationality Act 
     (8 U.S.C. 1324a(d)) under that individual's name or social 
     security number; and
       ``(G) a toll-free telephone number operated by the 
     Department of Homeland Security for employment verification 
     system inquiries and a link to self-verification procedure 
     established under section 274A(d)(4)(I) of such Act.''.
       (e) Good Faith Compliance.--Section 274B(a) (8 U.S.C. 
     1324b(a)), as amended by section 3105(a) of this Act, is 
     further amended by adding at the end the following:
       ``(10) Treatment of certain violations after reasonable 
     steps in good faith.--Notwithstanding paragraphs (4), (6), 
     and (7), a person, other entity, or employment agency shall 
     not be liable for civil penalties described in section 
     274B(g)(2)(B)(iv) that are related to a violation of any such 
     paragraph if the person, entity, or employment agency has 
     taken reasonable steps, in good faith, to comply with such 
     paragraphs at issue, unless the person, other entity, or 
     employment agency--
       ``(A) was, for similar conduct, subject to--
       ``(i) a reasonable cause determination by the Office of 
     Special Counsel for Immigration Related Unfair Employment 
     Practices; or
       ``(ii) a finding by an administrative law judge that a 
     violation of this section has occurred; or
       ``(B) committed the violation in order to interfere with 
     `workplace rights' (as defined in section 274A(b)(8)).
       ``(11) Good faith.--As used in paragraph (10), the term 
     `good faith' shall not include any action taken in order to 
     interfere with `workplace rights' (as defined in section 
     274A(b)(8)). Neither the Office of Special Counsel nor an 
     administrative law judge hearing a claim under this section 
     shall have any authority to assess workplace rights other 
     than those guaranteed under this section.
       ``(12) Rules of construction.--Nothing in this section may 
     be construed--
       ``(A) to permit the Office of Special Counsel for 
     Immigration-Related Unfair Employment Practices or an 
     administrative law judge hearing a claim under this Section 
     to enforce any workplace rights other than those guaranteed 
     under this section; or
       ``(B) to prohibit any person, other entity, or employment 
     agency from using an identity verification system, service, 
     or method (in addition to the employment verification system 
     described in section 274A(d)), until the date on which the 
     employer is required to participate in the System under 
     section 274A(d)(2) and the additional security measures 
     mandated by section 274A(c)(F)(iv) have become available to 
     verify the identity of a newly hired employee, if such 
     system--
       ``(i) is used in a uniform manner for all newly hired 
     employees;
       ``(ii) is not used for the purpose or with the intent of 
     discriminating against any individual;
       ``(iii) provides for timely notice to employees run through 
     the system of a mismatch or failure to confirm identity; and
       ``(iv) sets out procedures for employees run through the 
     system to resolve a mismatch or other failure to confirm 
     identity.
       ``(13) Liability.--A person, entity, or employment agency 
     that uses an identity verification system, service, or method 
     in a way that conflicts with the requirements set forth in 
     paragraph (10) shall be subject to liability under paragraph 
     (4)(I).''.
       (f) Maintenance of Reasonable Levels of Service and 
     Enforcement.--Notwithstanding section 3301(b)(1), amounts 
     appropriated pursuant to such section shall be used to 
     maintain reasonable levels of service and enforcement rather 
     than a specific numeric increase in the number of Department 
     personnel dedicated to administering the Employment 
     Verification System.
                                 ______
                                 
  SA 1729. Ms. COLLINS (for herself and Mr. King) submitted an 
amendment intended to be proposed to amendment SA 1705 submitted by Ms. 
Collins (for herself and Mr. King) and intended to be proposed to the 
bill S. 744, to provide for comprehensive immigration reform and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1, strike lines 2 through 8 and insert the 
     following:

     SEC. __. LOGGING EMPLOYMENT.

       (a) Definition of Agricultural Employment.--The definition 
     of ``agricultural employment'' in section 218A(a)(1) of the 
     Immigration and Nationality Act, as added by section 2232, 
     shall be implemented to includes logging employment, as 
     described in section 655.103(c)(4)of title 20, Code of 
     Federal Regulations, as in effect on the date of the 
     enactment of this Act.
       (b) Job Categories.--Section 218A(f)(2)(A) of the 
     Immigration and Nationality Act, as added by section 2232, 
     shall be implemented as if it included at the end the 
     following:
       ``(vii) Logging Workers (45-4020).''.
       (c) Determination of Wage Rate.--Section 218A(f)(3)(C) of 
     the Immigration and Nationality Act, as added by section 
     2232, shall be administered as to require the Secretary, in 
     consultation with the Secretary of Labor, to establish the 
     required wage for the next calendar year for Logging Workers 
     (45-4020).
       .
                                 ______
                                 
  SA 1730. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 1664 submitted by Mr. Reid and intended to be proposed to 
the bill S. 744, to provide for comprehensive immigration reform and 
for other purposes; which was ordered to lie on the table; as follows:

       Strike ``8 days'' and insert ``13 days''
                                 ______
                                 
  SA 1731. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 1664 submitted by Mr.

[[Page 10552]]

Reid and intended to be proposed to the bill S. 744, to provide for 
comprehensive immigration reform and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike ``8 days'' and insert ``15 days''
                                 ______
                                 
  SA 1732. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 1664 submitted by Mr. Reid and intended to be proposed to 
the bill S. 744, to provide for comprehensive immigration reform and 
for other purposes; which was ordered to lie on the table; as follows:

       Strike ``8 days'' and insert ``14 days''
                                 ______
                                 
  SA 1733. Ms. LANDRIEU (for herself, Ms. Hirono, and Mr. Franken) 
submitted an amendment intended to be proposed to amendment SA 1406 
submitted by Ms. Landrieu and intended to be proposed to the bill S. 
744, to provide for comprehensive immigration reform and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. BEST INTEREST OF THE CHILD.

       (a) In General.--In all procedures and decisions concerning 
     unaccompanied alien children that are made by a Federal 
     agency or a Federal court pursuant to the Immigration and 
     Nationality Act (8 U.S.C. 1101 et seq.) or regulations 
     implementing the Act, the best interests of the child shall 
     be a primary consideration.
       (b) Determinations Related to Section 101(a)(27)(J) of the 
     Immigration and Nationality Act.--Best interests 
     determinations made in administrative or judicial proceedings 
     described in section 101(a)(27)(J) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(27)(J)) shall be conclusive 
     in assessing the best interests of the child under this 
     section.
       (c) Factors.--In assessing the best interests of the child, 
     the entities referred to in subsection (a) shall consider, in 
     the context of the child's age and maturity, the following 
     factors:
       (1) The views of the child.
       (2) The safety and security considerations of the child.
       (3) The mental and physical health of the child.
       (4) The parent-child relationship and family unity, and the 
     potential effect of separating the child from the child's 
     parent or legal guardian, siblings, and other members of the 
     child's extended biological family.
       (5) The child's sense of security, familiarity, and 
     attachments.
       (6) The child's well-being, including the need of the child 
     for education and support related to child development.
       (7) The child's ethnic, religious, and cultural and 
     linguistic background.
                                 ______
                                 
  SA 1734. Ms. LANDRIEU (for herself and Mr. Kirk) submitted an 
amendment intended to be proposed to amendment SA 1406 submitted by Ms. 
Landrieu and intended to be proposed to the bill S. 744, to provide for 
comprehensive immigration reform and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 4225. SMALL BUSINESS EXPRESS LANE.

       Section 212(n) of the Immigration and Nationality Act (8 
     U.S.C. 1182(n)), as amended by section 4231, is amended by 
     adding at the end the following:
       ``(8)(A) The Secretary shall establish a small business 
     express lane for the H-1B visa application process, under 
     which the Secretary--
       ``(i) may waive the fee for premium processing under 
     section 286(u) for a business that--
       ``(I) is considered a small business with not more than 25 
     employees;
       ``(II) is not considered an H-1B dependent employer; and
       ``(III) reports a business income on the tax filings for 
     the previous year of not more than $250,000; and
       ``(ii) shall, to the extent practicable, create or modify 
     an online interface capable of providing real time feedback 
     and error mitigation technology that can be used by small 
     businesses and other employers with the purpose of increasing 
     employer access in streamlining the H-1B visa application 
     process.
       ``(B) The total amount of fees waived during a fiscal year 
     by the Secretary under subparagraph (A)(i) shall be added to 
     the projected cost for the service in the following fiscal 
     year and a revised fee shall be established based on the 
     projected cost.
       ``(C) The Secretary shall, to the extent practicable, 
     create an online interface and mobile application that can be 
     used by small businesses and other employers with the purpose 
     of increasing employer access in streamlining the H-1B visa 
     application process.
       ``(D)(i) The Secretary, in coordination with the 
     Administrator of the Small Business Administration, shall set 
     a goal of not less than 30 percent of H-1B visas being 
     awarded to small businesses.
       ``(ii) Of the goal amount described in clause (i)--
       ``(I) \1/3\ of the goal shall be reserved for businesses 
     with not more than 25 employees; and
       ``(II) \2/3\ of the goal may be used by businesses with not 
     more than 500 employees.
       ``(iii) The goal described in clause (i) may be modified by 
     the Secretary, in consultation with the Administrator of the 
     Small Business Administration, based on any feedback provided 
     by the Office of Advocacy of the Small Business 
     Administration.
       ``(E) The Bureau of Immigration and Labor Market Research 
     shall submit a report, on an annual basis, to the Committee 
     on the Judiciary of the Senate, the Small Business and 
     Entrepreneurship Committee of the Senate, the Committee on 
     the Judiciary of the House of Representatives, and the Small 
     Business and Entrepreneurship Committee of the House of 
     Representatives that contains--
       ``(i) the total number of H-1B visa applications broken 
     down by business size category and expressed as a percentage 
     of the total--
       ``(I) 0-25 employees;
       ``(II) 26-50 employees;
       ``(III) 50-100 employees;
       ``(IV) 100-500 employees; or
       ``(V) more than 500 employees;
       ``(ii) the total number of H-1B visa applications broken 
     down by North American Industry Classification System (NAICS) 
     Code and expressed as a percentage of the total; and
       ``(iii) the percentage and number of--
       ``(I) small businesses to apply for H-1B visas;
       ``(II) small businesses awarded H-1B visas;
       ``(III) small businesses that used the premium processing 
     service;
       ``(IV) all businesses that used the premium processing 
     service and were awarded H-1B visas; and
       ``(V) all businesses that did not use the premium 
     processing service and were awarded H-1B visas; and
       ``(iv) a longitudinal and graphical view of the small 
     business percentages described in subparagraph (D) and this 
     subparagraph.
       ``(F) Beginning 4 years after the date of enactment of the 
     Border Security, Economic Opportunity, and Immigration 
     Modernization Act, and every 4 years thereafter, as part of 
     the report submitted under subparagraph (E), the Bureau of 
     Immigration and Labor Market Research shall include 
     description of the impact of the application process on the 
     on small business, which shall take into consideration--
       ``(i) the cost to apply for the visas;
       ``(ii) the impact of the fee waiver under subparagraph 
     (A)(i) on small businesses; and
       ``(iii) recommendations for streamlining the application 
     process, including recommended modifications and updates to 
     the online user interface and mobile application.''.
                                 ______
                                 
  SA 1735. Ms. LANDRIEU (for herself, Mrs. Shaheen, Mr. Franken, and 
Mr. Coats) submitted an amendment intended to be proposed to amendment 
SA 1406 submitted by Ms. Landrieu and intended to be proposed to the 
bill S. 744, to provide for comprehensive immigration reform and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:
       (c) Report on Impact of the System on Employers.--Not later 
     than 18 months after the date of the enactment of this Act, 
     the Secretary, in consultation with the Chief Counsel of the 
     Office of Advocacy of the Small Business Administration, 
     shall submit to Congress a report that assesses--
       (1) the implementation of the Employment Verification 
     System established under section 274A(d) of the Immigration 
     and Nationality Act, as amended by subsection (a), by 
     employers;
       (2) any adverse impact on the revenues, business processes, 
     or profitability of employers required to use such System; 
     and
       (3) the economic impact of such System on small businesses.
       (d) Government Accountability Office Study of the Effects 
     of Document Requirements on Employment Authorized Persons and 
     Employers.--
       (1) Study.--The Comptroller General of the United States 
     shall carry out a study of--
       (A) the effects of the documentary requirements of section 
     274A of the Immigration and Nationality Act, as amended by 
     subsection (a), on employers, naturalized United States 
     citizens, nationals of the United States, and individuals 
     with employment authorized status; and
       (B) the challenges such employers, citizens, nationals, or 
     individuals may face in obtaining the documentation required 
     under that section.
       (2) Report.--Not later than 4 years after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report containing the findings of the study 
     carried out under paragraph (1). Such report shall include, 
     at a minimum, the following:
       (A) An assessment of available information regarding the 
     number of working age nationals of the United States and 
     individuals who

[[Page 10553]]

     have employment authorized status who lack documents required 
     for employment by such section 274A.
       (B) A description of the additional steps required for 
     individuals who have employment authorized status and do not 
     possess the documents required by such section 274A to obtain 
     such documents.
       (C) A general assessment of the average financial costs for 
     individuals who have employment authorized status who do not 
     possess the documents required by such section 274A to obtain 
     such documents.
       (D) A general assessment, conducted in consultation with 
     the Chief Counsel of the Office of Advocacy of the Small 
     Business Administration, of the average financial costs and 
     challenges for employers who have been required to 
     participate in the Employment Verification System established 
     by subsection (d) of such section 274A.
       (E) A description of the barriers to individuals who have 
     employment authorized status in obtaining the documents 
     required by such section 274A, including barriers imposed by 
     the executive branch of the Government.
       (F) Any particular challenges facing individuals who have 
     employment authorized status who are members of a federally 
     recognized Indian tribe in complying with the provisions of 
     such section 274A.
       (e) Early Adoption for Small Employers.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall create a mobile 
     application and utilize other available smart-phone 
     technology for employers utilizing the System, to encourage 
     small employers to utilize the System prior to the time at 
     which utilization becomes mandatory for all employers.
       (2) Marketing.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall, in consultation 
     with the Administrator of the Small Business Administration, 
     make available marketing and other incentives to small 
     business concerns to encourage small employers to utilize the 
     System prior to the time at which utilization of the System 
     becomes mandatory for all employers.
                                 ______
                                 
  SA 1736. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 1406 submitted by Ms. Landrieu and intended to be 
proposed to the bill S. 744, to provide for comprehensive immigration 
reform and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

     SEC. 3717. COST EFFECTIVENESS IN DETENTION FACILITY 
                   CONTRACTING.

       The Director of U.S. Immigration and Customs Enforcement 
     shall take appropriate measures to minimize, and if possible 
     reduce, the daily bed rate charged to the Federal Government 
     through a competitive process in contracting for or otherwise 
     obtaining detention beds while ensuring that the most recent 
     detention standards, including health standards, and 
     management practices employed by the agency are met.
                                 ______
                                 
  SA 1737. Ms. LANDRIEU (for herself and Mr. Cochran) submitted an 
amendment intended to be proposed to amendment SA 1406 submitted by Ms. 
Landrieu and intended to be proposed to the bill S. 744, to provide for 
comprehensive immigration reform and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, add the following:
       (j) Reports.--
       (1) Requirement for reports.--Not later than 90 days after 
     the date of the enactment of this Act, and every 180 days 
     thereafter, the Secretary shall submit to the Committee on 
     the Judiciary and the Committee on Appropriations of the 
     Senate and the Committee on the Judiciary and the Committee 
     on Appropriations of the House of Representatives a report on 
     the EB-5 program carried out pursuant to section 203(b)(5) of 
     the Immigration and Nationality (8 U.S.C. 1153(b)(5)), as 
     amended by this section.
       (2) Content.--Each report required by paragraph (1) shall 
     include the following:
       (A) The number of applications pending for an immigrant 
     visa described in section 203(b)(5) of the Immigration and 
     Nationality Act (8 U.S.C. 1153(b)(5)), disaggregated by 
     State.
       (B) The period of time each such application has been 
     pending.
       (C) The average length of time required to conduct an 
     economic evaluation of a project and suitability of a 
     petitioner for such a visa and the Secretary's goals for 
     these timeframes.
       (D) A description of any additional resources necessary to 
     efficiently administer the EB-5 program carried out pursuant 
     to such section 203(b)(5).
       (E) The number of applications that have been approved or 
     denied for such a visa in the most recent reporting period 
     with an accompanying explanation of reasons for such approval 
     or denial, disaggregated by State.
       (F) The number of jobs created by such EB-5 program in each 
     180-day period, disaggregated by State.
       (G) The types of projects proposed and the number of aliens 
     granted such a visa in each 180-day period, disaggregated by 
     State and by North American Industry Classification System 
     (NAICS) code.
                                 ______
                                 
  SA 1738. Ms. LANDRIEU (for herself, Mr. Carper, Mr. Begich, and Ms. 
Murkowski) submitted an amendment intended to be proposed to amendment 
SA 1406 submitted by Ms. Landrieu and intended to be proposed to the 
bill S. 744, to provide for comprehensive immigration reform and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place insert the following:
       (d) Donations for Land Ports of Entry Facilities.--
       (1) Donations permitted.--Notwithstanding any other 
     provision of law, including chapter 33 of title 40, United 
     States Code, the Secretary, for purposes of constructing, 
     altering, operating, or maintaining a new or existing land 
     port of entry facility, may accept donations of real and 
     personal property (including monetary donations) and 
     nonpersonal services from private parties and State and local 
     government entities.
       (2) Allowable uses of donations.--The Secretary, with 
     respect to any donation provided pursuant to paragraph (1), 
     may--
       (A) use such property or services for necessary activities 
     related to the construction, alteration, operation, or 
     maintenance of a new or existing land port of entry facility 
     under the custody and control of the Secretary, including 
     expenses related to--
       (i) land acquisition, design, construction, repair and 
     alteration;
       (ii) furniture, fixtures, and equipment;
       (iii) the deployment of technology and equipment; and
       (iv) operations and maintenance; or
       (B) transfer such property or services to the Administrator 
     of General Services for necessary activities described in 
     paragraph (1) related to a new or existing land port of entry 
     facility under the custody and control of the Administrator.
       (3) Evaluation procedures.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary, in 
     consultation with the Administrator, shall establish 
     procedures for evaluating a proposal submitted by any person 
     described in paragraph (1) to make a donation of real or 
     personal property (including monetary donations) or 
     nonpersonal services to facilitate the construction, 
     alteration, operation, or maintenance of a new or existing 
     land port of entry facility under the custody and control of 
     the Secretary.
       (4) Considerations.--In determining whether or not to 
     approve a proposal described in paragraph (3), the Secretary 
     or the Administrator shall consider--
       (A) the impact of the proposal on reducing wait times at 
     that port of entry and other ports of entry on the same 
     border;
       (B) the potential of the proposal to increase trade and 
     travel efficiency through added capacity;
       (C) the potential of the proposal to enhance the security 
     of the port of entry; and
       (D) other factors that the Secretary determines to be 
     relevant.
       (5) Consultation.--
       (A) Locations for new ports of entry.--The Secretary is 
     encouraged to consult with the Secretary of the Interior, the 
     Secretary of Agriculture, the Secretary of State, the 
     International Boundary and Water Commission, and appropriate 
     representatives of States, local governments, Indian tribes, 
     and property owners--
       (i) to determine locations for new ports of entry; and
       (ii) to minimize the adverse impacts from such ports on the 
     environment, historic and cultural resources, commerce, and 
     the quality of life for the communities and residents located 
     near such ports.
       (B) Savings provision.--Nothing in this paragraph may be 
     construed--
       (i) to create any right or liability of the parties 
     described in subparagraph (A); and
       (ii) to affect any consultation requirement under any other 
     law.
       (6) Supplemental funding.--Property (including monetary 
     donations) and services provided pursuant to paragraph (1) 
     may be used in addition to any other funding (including 
     appropriated funds), property, or services made available for 
     the same purpose.
       (7) Unconditional donations.--A donation provided pursuant 
     to paragraph (1) shall be made unconditionally, although the 
     donor may specify--
       (A) the land port of entry facility or facilities to be 
     benefitted from such donation; and
       (B) the timeframe during which the donated property or 
     services shall be used.
       (8) Return of donations.--If the Secretary or the 
     Administrator does not use the property or services donated 
     pursuant to paragraph (1) for the specific land port of entry 
     facility or facilities designated by the donor or within the 
     timeframe specified by the donor, such donated property or 
     services shall be returned to the entity that made the

[[Page 10554]]

     donation. No interest shall be owed to the donor with respect 
     to any donation of funding provided under paragraph (1) that 
     is returned pursuant to this paragraph.
       (9) Report.--
       (A) In general.--Not later than 1 year after the date of 
     the enactment of this Act, and annually thereafter, the 
     Secretary, in consultation with the Administrator, shall 
     submit a report to the congressional committees listed in 
     subparagraph (B) that describes--
       (i) the accepted donations received under this subsection;
       (ii) the ports of entry that received such donations; and
       (iii) how each donation helped facilitate the construction, 
     alteration, operation, or maintenance of a new or existing 
     land port of entry.
       (B) Congressional committees.--The congressional committees 
     listed in this subparagraph are--
       (i) the Committee on Appropriations of the Senate;
       (ii) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (iii) the Committee on Finance of the Senate;
       (iv) the Committee on Appropriations of the House of 
     Representatives;
       (v) the Committee on Homeland Security of the House of 
     Representatives; and
       (vi) the Committee on Ways and Means of the House of 
     Representatives.
       (10) Savings provision.--Nothing in this subsection may be 
     construed to affect or alter the existing authority of the 
     Secretary or the Administrator of General Services to 
     construct, alter, operate, and maintain land port of entry 
     facilities.
       (e)

                          ____________________