prev        Page 37       next

SEC. _02. UNLAWFUL EMPLOYMENT OF ALIENS.

(a) IN GENERAL."Section 274A of the Immigrationand Nationality Act (8 U.S.C. 1324a) is amended to readas follows:''SEC. 274A. UNLAWFUL EMPLOYMENT OF ALIENS.''(a) MAKING EMPLOYMENT OF UNAUTHORIZEDALIENS UNLAWFUL."''(1) IN GENERAL."It is unlawful for an em14ployer"''(A) to hire, or to recruit or refer for afee, an alien for employment in the UnitedStates knowing, or with reckless disregard forthe fact that, the alien is an unauthorized alienwith respect to such employment; or''(B) to hire, or to recruit or refer for afee, an individual for employment in the UnitedStates, unless such employer meets the require23ments of subsections (c) and (d).''(2) CONTINUING EMPLOYMENT."It is unlaw25ful for an employer, after hiring an alien for employ.ment, to continue to employ the alien in the UnitedStates knowing, or with reckless disregard for thefact that, the alien is (or has become) an unauthorizedalien with respect to such employment.''(3) USE OF LABOR THROUGH CONTRACT."''(A) IN GENERAL."It is unlawful for anemployer to obtain, or continue to obtain, thelabor of an alien through a contract, subcontract,or exchange knowing that the alien is,or has become, an unauthorized alien with respectto such employment''(B) REBUTTABLE PRESUMPTION."Thereshall be a rebuttable presumption that the employerhas violated subparagraph (A) if the employerfails to terminate such contract or subcontractupon written or electronic notice fromthe Secretary that such alien is, or has become,an unauthorized alien with respect to such employment.''(C) NOTIFICATION."The Secretary shallestablish procedures to permit the notificationof employers under subparagraph (B).''(4) DEFENSE."''(A) IN GENERAL."Subject to subparagraph

(B), an employer that establishes that.the employer has complied in good faith withthe requirements of subsections (c) and (d) hasestablished an affirmative defense that the employerhas not violated paragraph (1)(A) withrespect to such hiring, recruiting, or referral.''(B) EXCEPTION."Until the date that anemployer is required to participate in the ElectronicEmployment Verification System undersubsection (d) or is participating in such Systemon a voluntary basis, the employer may establishan affirmative defense under subparagraph

(A) by complying with the requirementsof subsection (c).''(b) ORDER OF INTERNAL REVIEW AND CERTIFICATIONOF COMPLIANCE."''(1) AUTHORITY TO REQUIRE CERTIFI-CATION."If the Secretary has reasonable cause tobelieve that an employer has failed to comply withthis section, the Secretary is authorized, at any time,to require that the employer certify that the employeris in compliance with this section, or has instituteda program to come into compliance.''(2) CONTENT OF CERTIFICATION."Not laterthan 60 days after the date an employer receives arequest for a certification under paragraph (1) the.employer shall certify under penalty of perjurythat"''(A) the employer is in compliance withthe requirements of subsections (c) and (d); or''(B) that the employer has instituted aprogram to come into compliance with such requirements.''(3) EXTENSION."The 60-day period referredto in paragraph (2), may be extended by the Secretaryfor good cause, at the request of the employer.''(4) PUBLICATION."The Secretary is authorizedto publish in the Federal Register standards ormethods for certification under paragraph (1) andfor specific recordkeeping practices with respect tosuch certification, and procedures for the audit ofany records related to such certification.''(c) DOCUMENT VERIFICATION REQUIREMENTS."An employer hiring, or recruiting or referring for a fee,an individual for employment in the United States, shallverify that the individual is eligible for such employmentby meeting the following requirements:''(1) ATTESTATION BY EMPLOYER."''(A) REQUIREMENTS.".''(i) IN GENERAL."The employershall attest, under penalty of perjury andon a form prescribed by the Secretary, thatthe employer has verified the identity andeligibility for employment of the individualby examining a document described in subparagraph

(B).''(ii) SIGNATURE REQUIREMENTS."An attestation required by clause (i) maybe manifested by a handwritten or electronicsignature.''(iii) STANDARDS FOR EXAMINA-TION."The employer has complied withthe requirement of this paragraph with respectto examination of documentation if areasonable person would conclude that thedocument examined is genuine and relatesto the individual whose identity and eligibilityfor employment in the United Statesis being verified. If the individual providesa document sufficient to meet the requirementsof this paragraph, nothing in thisparagraph shall be construed as requiringan employer to solicit any other document.or as requiring the individual to produceany other document.''(B) IDENTIFICATION DOCUMENTS."Adocument described in this subparagraph is"''(i) in the case of an individual whois a national of the United States"''(I) a United States passport, orpassport card issued pursuant to theSecretary of State's authority underthe first section of the Act of July 3,

(44 Stat. 887, Chapter 772; 22U.S.C. 211a); or''(II) a driver's license or identitycard issued by a State, the Commonwealthof the Northern Mariana Islands,or an outlying possession of theUnited States that"''(aa) contains a photographof the individual and other identifyinginformation, including theindividual's name, date of birth,gender, and address; and''(bb) contains security featuresto make the license or card.resistant to tampering, counterfeiting,and fraudulent use;''(ii) in the case of an alien lawfullyadmitted for permanent residence in theUnited States, a permanent resident card,as specified by the Secretary that meetsthe requirements of items (aa) and (bb) ofclause (i)(II);''(iii) in the case of an alien who isauthorized to be employed in the UnitedStates, an employment authorization card,as specified by the Secretary that meetsthe requirements of such items (aa) and

(bb); or''(iv) in the case of an individual whois unable to obtain a document describedin clause (i), (ii), or (iii), a document designated by the Secretary that meets the requirements of such items (aa) and (bb).''(C) AUTHORITY TO PROHIBIT USE OFCERTAIN DOCUMENTS."''(i) AUTHORITY."If the Secretaryfinds that a document or class of documentsdescribed in subparagraph (B) isnot reliable to establish identity or is being.used fraudulently to an unacceptable degree,the Secretary shall prohibit, or imposeconditions, on the use of such documentor class of documents for purposes ofthis subsection.''(ii) REQUIREMENT FOR PUBLICA-TION."The Secretary shall publish noticeof any findings under clause (i) in the FederalRegister.''(2) ATTESTATION OF EMPLOYEE."''(A) REQUIREMENTS."''(i) IN GENERAL."The individualshall attest, under penalty of perjury onthe form described in paragraph (1)(A)(i),that the individual is a national of theUnited States, an alien lawfully admittedfor permanent residence, or an alien who isauthorized to be hired, or to be recruitedor referred for a fee, in the United States.''(ii) SIGNATURE FOR EXAMINA-TION."An attestation required by clause

(i) may be manifested by a handwritten orelectronic signature.''(B) PENALTIES."An individual whofalsely represents that the individual is eligible.for employment in the United States in an attestationrequired by subparagraph (A) shall,for each such violation, be subject to a fine ofnot more than $5,000, a term of imprisonmentnot to exceed 3 years, or both.''(3) RETENTION OF ATTESTATION."The employer shall retain a paper, microfiche, microfilm, orelectronic version of the attestations made underparagraphs (1) and (2) and make such attestationsavailable for inspection by an officer of the Departmentof Homeland Security, any other person designatedby the Secretary, the Special Counsel forImmigration-Related Unfair Employment Practicesof the Department of Justice, or the Secretary ofLabor during a period beginning on the date of thehiring, or recruiting or referring for a fee, of the individualand ending"''(A) in the case of the recruiting or referralfor a fee (without hiring) of an individual,years after the date of the recruiting or referral;or''(B) in the case of the hiring of an individualthe later of"''(i) 5 years after the date of such hiring;.''(ii) 1 year after the date the individual'semployment is terminated; or''(iii) in the case of an employer orclass of employers, a period that is lessthan the applicable period described inclause (i) or (ii) if the Secretary reducessuch period for such employer or class ofemployers.''(4) DOCUMENT RETENTION AND RECORDKEEPINGREQUIREMENTS."''(A) RETENTION OF DOCUMENTS."Notwithstandingany other provision of law, an employershall retain, for the applicable period describedin paragraph (3), the following documents:''(i) IN GENERAL."The employershall copy all documents presented by anindividual described in paragraph (1)(B) and shall retain paper, microfiche, microfilm,or electronic copies of such documents.Such copies shall be designated ascopied documents.''(ii) OTHER DOCUMENTS."The employershall maintain records of any actiontaken and copies of any correspondence.written or received with respect to theverification of an individual's identity oreligibility for employment in the UnitedStates.''(B) USE OF RETAINED DOCUMENTS."Anemployer shall use copies retained under clause

(i) or (ii) of subparagraph (A) only for the purposesof complying with the requirements ofthis subsection, except as otherwise permittedunder law.''(5) PENALTIES."An employer that fails tocomply with the recordkeeping requirements of thissubsection shall be subject to the penalties describedin subsection (e)(4)(B).''(6) NO AUTHORIZATION OF NATIONAL IDENTIFICATION CARDS."Nothing in this section may beconstrued to authorize, directly or indirectly, theissuance, use, or establishment of a national identification card.''(d) ELECTRONIC EMPLOYMENT VERIFICATION SYSTEM."''(1) REQUIREMENT FOR SYSTEM."The Secretary,in cooperation with the Commissioner of SocialSecurity, shall implement an Electronic Employ.ment Verification System (referred to in this subsection as the 'System') to determine whether"''(A) the identifying information submittedby an individual is consistent with the informationmaintained by the Secretary, the Secretaryof State, the Commissioner of Social Security,or the official of a State responsible for issuingdrivers' licenses and identity cards; and''(B) such individual is eligible for employmentin the United States.''(2) REQUIREMENT FOR PARTICIPATION."''(A) NEW EMPLOYEES."The Secretaryshall require all employers in the United Statesto participate in the System, with respect to allemployees hired by the employer on or after thedate that is not later than 18 months after thedate of enactment of this section.''(B) OTHER EMPLOYEES."Not later thanyears after such date of enactment, the Secretaryshall require all employers to verifythrough the System the identity and employmenteligibility of any individual who"''(i) the Secretary has reason to believeis unlawfully employed based on theinformation received under section.6103(l)(21) of the Internal Revenue Codeof 1986; and''(ii) has not been previously verifiedthrough the System.''(3) OTHER PARTICIPATION IN SYSTEM."Notwithstandingparagraph (2), the Secretary has theauthority"''(A) to permit any employer that is not requiredto participate in the System under paragraph

(2) to participate in the System on a voluntarybasis; and''(B) to require any employer or class ofemployers to participate on a priority basis inthe System with respect to individuals employedas of, or hired after, the date of enactment ofthis section"''(i) if the Secretary designates suchemployer or class of employers as a criticalemployer based on an assessment of homelandsecurity or national security needs; or''(ii) if the Secretary has reasonablecause to believe that the employer has engagedin material violations of paragraph

(1), (2), or (3) of subsection (a)..''(4) REQUIREMENT TO NOTIFY."The Secretaryshall notify the employer or class of employersin writing regarding the requirement for participationin the System under paragraph (2) or (3)(B) not less than 60 days prior to the effective date ofsuch requirement. Such notice shall include thetraining materials described in paragraph (8)(E)(iv).''(5) REGISTRATION OF EMPLOYERS."An employershall register the employer's participation inthe System in the manner prescribed by the Secretaryprior to the date the employer is required orpermitted to submit information with respect to anemployee under this subsection.''(6) ADDITIONAL GUIDANCE."A registered employershall be permitted to utilize any technologythat is consistent with this section and with any regulationor guidance from the Secretary to streamlinethe procedures to facilitate compliance with"''(A) the attestation requirement in subsection (c); and''(B) the employment eligibility verificationrequirements in this subsection.''(7) CONSEQUENCE OF FAILURE TO PARTICI-PATE."If an employer is required to participate in.the System and fails to comply with the requirements of the System with respect to an employee"''(A) such failure shall be treated as a violationof subsection (a)(1)(B); and''(B) a rebuttable presumption is createdthat the employer has violated subsection

(a)(1)(A), however, such presumption may notapply to a prosecution under subsection (f)(1).''(8) DESIGN AND OPERATION OF SYSTEM."''(A) IN GENERAL."The Secretary shall,through the System"''(i) respond to each inquiry made bya registered employer through the Internetor other electronic media, or over a toll-free telephone line regarding an individual'sidentity and eligibility for employmentin the United States; and''(ii) maintain a record of each suchinquiry and the information provided in responseto such inquiry.''(B) INITIAL INQUIRY."''(i) INFORMATION REQUIRED."Aregistered employer shall with respect tohiring or recruiting or referring for a feeany individual for employment in the.United States, obtain from the individualand record on the form described in subsection

(c)(1)(A)(i)"''(I) the individual's name anddate of birth;''(II) the individual's social securityaccount number;''(III) the identification numbercontained on the document presentedby the individual pursuant to subsection

(c)(1)(B); and''(IV) in the case of an individualwho does not attest that the individualis a national of the UnitedStates under subsection (c)(1)(A)(i),such alien identification or authorizationnumber that the Secretary shallrequire.''(ii) SUBMISSION TO SYSTEM."A registered employer shall submit an inquirythrough the System to seek confirmation ofthe individual's identity and eligibility foremployment in the United States"''(I) not earlier than the date ofhire and no later than the first day of.employment, or recruiting or referringfor a fee, of the individual (as thecase may be); or''(II) in the case of an employeehired before such employer was requiredto participate in the system, atsuch time as the Secretary shall specify.''(C) INITIAL RESPONSE."Not later thandays after an employer submits an inquiry tothe System regarding an individual, the Secretary shall provide, through the System, to theemployer"''(i) if the System is able to confirmthe individual's identity and eligibility foremployment in the United States, a confirmationnotice, including the appropriatecodes on such confirmation notice; or''(ii) if the System is unable to confirmthe individual's identity or eligibilityfor employment in the United States, andafter a secondary manual verification hasbeen conducted, a tentative nonconfirmationnotice, including the appropriate codeson such tentative nonconfirmation notice..''(D) CONFIRMATION OR NONCONFIRMATION."''(i) CONFIRMATION UPON INITIAL IN-QUIRY."If an employer receives a confirmationnotice under subparagraph (C)(i) for an individual, the employer shallrecord, on the form described in subsection

(c)(1)(A)(i), the appropriate code providedin such notice.''(ii) TENTATIVE NONCONFIRMA-TION."If an employer receives a tentativenonconfirmation notice under subparagraph

(C)(ii) for an individual, the employershall inform such individual of theissuance of such notice in writing, on aform prescribed by the Secretary not laterthan 3 days after receiving such notice.Such individual shall acknowledge receiptof such notice in writing on the form describedin subsection (c)(1)(A)(i).''(iii) NO CONTEST."If the individualdoes not contest the tentative nonconfirmationnotice within 10 days of receiving noticefrom the individual's employer, the noticeshall become final and the employer.shall record on the form described in subsection

(c)(1)(A)(i), the appropriate codeprovided through the System to indicatethe individual did not contest the tentativenonconfirmation. An individual's failure tocontest a tentative nonconfirmation shallnot be considered an admission of guiltwith respect to any violation of this Act orany other provision of law.''(iv) CONTEST."If the individualcontests the tentative nonconfirmation notice,the individual shall submit appropriateinformation to contest such noticeunder the procedures established in subparagraph

(E)(ii) not later than 10 daysafter receiving the notice from the individual'semployer.''(v) EFFECTIVE PERIOD OF TENTATIVENONCONFIRMATION NOTICE."Atentative nonconfirmation notice shall remainin effect until such notice becomesfinal under clause (iii) or a final confirmationnotice or final nonconfirmation noticeis issued through the System..''(vi) EFFECTIVE PERIOD OF FINALNOTICE."A final confirmation noticeissued under this paragraph for an individualshall remain in effect"''(I) during any continuous periodof employment of such individualby such employer, unless the Secretarydetermines the final confirmationwas the result of error or fraud;or''(II) in the case of an alien authorizedto be employed in the UnitedStates for a temporary period, duringsuch period.''(vii) PROHIBITION ON TERMI-NATION."An employer may not terminatesuch employment of an individual based ona tentative nonconfirmation notice untilsuch notice becomes final under clause (iii) or a final nonconfirmation notice is issuedfor the individual by the System. Nothingin this clause shall prohibit the terminationof such employment for any reason otherthan such tentative nonconfirmation..''(viii) RECORDING OF CONTEST RESO-LUTION."The employer shall record onthe form described in subsection

(c)(1)(A)(i) the appropriate code that isprovided through the System to indicate afinal confirmation notice or final nonconfirmationnotice.''(ix) CONSEQUENCES OF NONCON-FIRMATION."If the employer has receiveda final nonconfirmation regarding an individual,the employer shall immediately terminatethe employment, recruitment, or referralof the individual. Such employershall provide to the Secretary any informationrelating to the individual that the Secretarydetermines would assist the Secretaryin enforcing or administering theimmigration laws. If the employer continuesto employ, recruit, or refer the individualafter receiving final nonconfirmation,a rebuttable presumption is createdthat the employer has violated subsections

(a)(1)(A) and (a)(2). Such presumptionmay not apply to a prosecution under subsection

(f)(1)..''(E) RESPONSIBILITIES OF THE SECRETARY."''(i) IN GENERAL."The Secretaryshall establish a reliable, secure method toprovide through the System, within thetime periods required by this subsection"''(I) a determination of whetherthe name and alien identification orauthorization number provided in aninquiry by an employer is consistentwith such information maintained bythe Secretary in order to confirm thevalidity of the information provided;and''(II) a determination of whetherthe individual is authorized to be employedin the United States.''(ii) CONTEST AND SELF-VERIFICATION."The Secretary in consultationwith the Commissioner of SocialSecurity, shall establish procedures to permitan individual who contests a tentativeor final nonconfirmation notice, or seeks toverify the individual's own employment eligibilityprior to obtaining or changing em.ployment, to contact the appropriate agencyand, in a timely manner, correct or updatethe information used by the System.''(iii) INFORMATION TO EMPLOYEE."The Secretary shall develop a written formfor employers to provide to individuals whoreceive a tentative or final nonconfirmationnotice. Such form shall be made availablein a language other than English, as necessaryand reasonable, and shall include"''(I) information about the reasonfor such notice;''(II) the right to contest suchnotice;''(III) contact information for theappropriate agency and instructionsfor initiating such contest; and''(IV) a 24-hour toll-free telephone number to respond to inquiriesrelated to such notice.''(iv) TRAINING MATERIALS."TheSecretary shall make available or provideto the employer, upon request, not laterthan 60 days prior to such employer's participationin the System, appropriate train.ing materials to facilitate compliance withthis subsection, and sections 274B(a)(7) and 274C(a).''(F) RESPONSIBILITIES OF THE COMMISSIONEROF SOCIAL SECURITY."The responsibilitiesof the Commissioner of Social Securitywith respect to the System are set out in section205(c)(2) of the Social Security Act.''(G) RESPONSIBILITIES OF THE SECRETARYOF STATE."The Secretary of Stateshall establish a reliable, secure method to providethrough the System a confirmation of theissuance of identity documents described in subsection

(c)(1)(B)(i)(I) and transmit to the Secretarythe related photographic image or otheridentifying information.''(H) RESPONSIBILITIES OF A STATE."The official responsible for issuing drivers' licensesand identity cards for a State shall establisha reliable, secure method to providethrough the System a confirmation of theissuance of identity documents described in subsection

(c)(1)(B)(i)(II) and transmit to the Secretarythe related photographic image or otheridentifying information..''(9) PROTECTION FROM LIABILITY."No employerthat participates in the System shall be liableunder any law for any employment-related actiontaken with respect to an individual in good faith relianceon information provided by the System.''(10) ADMINISTRATIVE REVIEW."''(A) IN GENERAL."An individual who isterminated from employment as a result of afinal nonconfirmation notice may, not later thandays after the date of such termination, filean appeal of such notice.''(B) PROCEDURES."The Secretary andCommissioner of Social Security shall developprocedures to review appeals filed under subparagraph

(A) and to make final determinationson such appeals.''(C) REVIEW FOR ERRORS."If a final determinationon an appeal filed under subparagraph

(A) results in a confirmation of an individual'seligibility to work in the United States,the administrative review process shall requirethe Secretary to determine whether the finalnonconfirmation notice issued for the individualwas the result of".''(i) the decision rules, processes, orprocedures utilized by the System;''(ii) a natural disaster, or other eventbeyond the control of the government;''(iii) acts or omissions of an employeeor official operating or responsible for theSystem;''(iv) acts or omissions of the individual'semployer;''(v) acts or omissions of the individual;or''(vi) any other reason.''(D) COMPENSATION FOR ERROR."''(i) IN GENERAL."If the Secretarymakes a determination under subparagraph

(C) that the final nonconfirmationnotice issued for an individual was causedby a negligent, reckless, willful, or maliciousact of the government, and was notdue to an act or omission of the individual,the Secretary, subject to the availability ofappropriations made in accordance withparagraph (12)(B), shall compensate theindividual for lost wages..''(ii) CALCULATION OF LOSTWAGES."Lost wages shall be calculatedbased on the wage rate and work schedulethat prevailed prior to termination. The individualshall be compensated for wageslost during the period beginning on thedate the individual files a notice of appealunder this paragraph and ending on theearlier of"''(I) the date which is 180 daysthereafter; or''(II) the day after the date theindividual receives a confirmation describedin subparagraph (C).''(11) JUDICIAL REVIEW."''(A) IN GENERAL."After the Secretarymakes a final determination on an appeal filedby an individual under the administrative reviewprocess described in paragraph (10), theindividual may obtain judicial review of suchdetermination by a civil action commenced notlater than 30 days after the date of such decision,or such further time as the Secretary mayallow..''(B) JURISDICTION."A civil action forsuch judicial review shall be brought in the districtcourt of the United States for the judicialdistrict in which the plaintiff resides, or has aprincipal place of business, or, if the plaintiffdoes not reside or have a principal place ofbusiness within any such judicial district, in theDistrict Court of the United States for the Districtof Columbia.''(C) ANSWER."As part of the Secretary'sanswer to a complaint for such judicial review,the Secretary shall file a certified copy of theadministrative record compiled during the administrativereview under paragraph (10), includingthe evidence upon which the findingsand decision complained of are based. The courtshall have power to enter, upon the pleadingsand transcript of the record, a judgment affirmingor reversing the result of that administrativereview, with or without remanding thecause for a rehearing.''(D) COMPENSATION FOR ERROR."''(i) IN GENERAL."In cases in whichsuch judicial review reverses the final determinationof the Secretary made under.paragraph (10), the court, subject to theavailability of appropriations made in accordancewith paragraph (12)(B), shallcompensate the individual for lost wages.''(ii) CALCULATION OF LOSTWAGES."Lost wages shall be calculatedbased on the wage rate and work scheduledthat prevailed prior to termination. The individualshall be compensated for wageslost during the period beginning on thedate the individual files a notice of appealunder paragraph (10) and ending on theearlier of"''(I) the date which is 180 daysthereafter; or''(II) the day after the date theindividual receives a reversal describedin clause (i).''(12) COMPENSATION FOR LOSS OF EMPLOY-MENT."For purposes of paragraphs (10) and

(11)"''(A) LIMITATION ON COMPENSATION."For purposes of determining an individual'scompensation for the loss of employment, suchcompensation shall not include any period in.which the individual was not present in, or wasineligible for employment in, the United States.''(B) AUTHORIZATION OF APPROPRIATIONOF FUNDS."There is authorized to be appropriated such sums as may be necessary to provide the compensation or reimbursement provided for under such paragraphs. An appropriation made pursuant to this authorization shallbe in addition to any funds otherwise authorized to be appropriated to the Department ofHomeland Security.''(13) LIMITATION ON COLLECTION AND USEOF DATA."''(A) LIMITATION ON COLLECTION OFDATA."''(i) IN GENERAL."The Secretaryshall collect and maintain only the minimumdata necessary to facilitate the successfuloperation of the System, and in nocase shall the data be other than"''(I) information necessary toregister employers under paragraph

(5);.''(II) information necessary toinitiate and respond to inquiries orcontests under paragraph (8);''(III) information necessary toestablish and enforce compliance withparagraphs (5) and (8);''(IV) information necessary todetect and prevent employment-relatedidentity fraud; and''(V) such other information theSecretary determines is necessary,subject to a 180-day notice and commentperiod in the Federal Register.''(ii) PENALTIES."Any officer, employee, or contractor who willfully andknowingly collects and maintains data inthe System other than data described inclause (i) shall be guilty of a misdemeanorand fined $1,000 for each violation.''(B) LIMITATION ON USE OF DATA."Whoever willfully and knowingly accesses, discloses, or uses any information obtained ormaintained by the System"''(i) for the purpose of committingidentity fraud, or assisting another person.in committing identity fraud, as defined insection 1028 of title 18, United StatesCode;''(ii) for the purpose of unlawfully obtainingemployment in the United Statesor unlawfully obtaining employment in theUnited States for any other person; or''(iii) for any purpose other than asprovided for under any provision of law;shall be guilty of a felony and upon convictionshall be fined under title 18, United StatesCode, or imprisoned for not more than 5 years,or both.''(C) EXCEPTIONS."Nothing in subparagraph

(A) or (B) may be construed to limit thecollection, maintenance, or use of data by theCommissioner of Internal Revenue or the Commissionerof Social Security as provided by law.''(14) MODIFICATION AUTHORITY."The Secretary,after notice is submitted to Congress andprovided to the public in the Federal Register, is authorizedto modify the requirements of this subsectionwith respect to completion of forms, methodof storage, attestations, copying of documents, signatures,methods of transmitting information, and.other operational and technical aspects to improvethe efficiency, accuracy, and security of the System.The Secretary shall minimize the collection and storageof paper documents and maximize the use ofelectronic records, including electronic signatures.''(15) ANNUAL GAO STUDY AND REPORT."''(A) REQUIREMENT."The ComptrollerGeneral of the United States shall conduct anannual study of the System.''(B) PURPOSE."The study shall evaluatethe accuracy, efficiency, integrity, and impact ofthe System.''(C) REPORT."Not later than the datethat is 24 months after the date of the enactmentof this section, and annually thereafter,the Comptroller General shall submit to Congressa report containing the findings of thestudy carried out under this paragraph. Eachsuch report shall include, at a minimum, thefollowing:''(i) An assessment of System performancewith respect to the rate at whichindividuals who are eligible for employmentin the United States are correctly approvedwithin each of the periods specified in.paragraph (8), including a separate assessmentof such rate for nationals and aliens.''(ii) An assessment of the privacy andsecurity of the System and its effects onidentity fraud or the misuse of personaldata.''(iii) An assessment of the effects ofthe System on the employment of unauthorized aliens.''(iv) An assessment of the effects ofthe System, including the effects of tentativeconfirmations on unfair immigration-related employment practices, and employmentdiscrimination based on nationalorigin or citizenship status.''(v) An assessment of whether theSecretary and the Commissioner of SocialSecurity have adequate resources to carryout the duties and responsibilities of thissection.''(e) COMPLIANCE."''(1) COMPLAINTS AND INVESTIGATIONS."TheSecretary shall establish procedures".''(A) for individuals and entities to filecomplaints regarding potential violations of subsection

(a);''(B) for the investigation of such complaintsthat the Secretary determines are appropriateto investigate; and''(C) for the investigation of other violationsof subsection (a) that the Secretary determinesis appropriate.''(2) AUTHORITY IN INVESTIGATIONS."''(A) IN GENERAL."In conducting investigationsand hearings under this subsection, officersand employees of the Department ofHomeland Security"''(i) shall have reasonable access toexamine evidence regarding any employerbeing investigated; and''(ii) if designated by the Secretary,may compel by subpoena the attendance ofwitnesses and the production of evidence atany designated place in an investigation orcase under this subsection.''(B) FAILURE TO COOPERATE."In case ofrefusal to obey a subpoena lawfully issuedunder subparagraph (A)(ii), the Secretary may.request that the Attorney General apply in anappropriate district court of the United Statesfor an order requiring compliance with suchsubpoena, and any failure to obey such ordermay be punished by such court as contempt.''(C) DEPARTMENT OF LABOR."The Secretaryof Labor shall have the investigative authorityprovided under section 11(a) of the FairLabor Standards Act of 1938 (29 U.S.C.211(a)) to ensure compliance with the provisionsof this section.''(3) COMPLIANCE PROCEDURES."''(A) PREPENALTY NOTICE."If the Secretaryhas reasonable cause to believe thatthere has been a violation of a requirement ofthis section and determines that further proceedingsrelated to such violation are warranted,the Secretary shall issue to the employerconcerned a written notice of the Secretary'sintention to issue a claim for a fine orother penalty. Such notice shall"''(i) describe the violation;''(ii) specify the laws and regulationsallegedly violated;.''(iii) specify the amount of fines orother penalties to be imposed;''(iv) disclose the material facts whichestablish the alleged violation; and''(v) inform such employer that theemployer shall have a reasonable opportunity to make representations as to why aclaim for a monetary or other penaltyshould not be imposed.''(B) REMISSION OR MITIGATION OF PENALTIES."''(i) REVIEW BY SECRETARY."If theSecretary determines that such fine orother penalty was incurred erroneously, ordetermines the existence of such mitigatingcircumstances as to justify the remissionor mitigation of such fine or penalty, theSecretary may remit or mitigate such fineor other penalty on the terms and conditionsas the Secretary determines are reasonableand just, or order termination ofany proceedings related to the notice. Suchmitigating circumstances may include goodfaith compliance and participation in, or.agreement to participate in, the System, ifnot otherwise required.''(ii) APPLICABILITY."This subparagraphmay not apply to an employer thathas or is engaged in a pattern or practiceof violations of paragraph (1), (2), or (3) of subsection (a) or of any other requirementsof this section.''(C) PENALTY CLAIM."After consideringevidence and representations offered by the employer,the Secretary shall determine whetherthere was a violation and promptly issue a writtenfinal determination setting forth the findingsof fact and conclusions of law on which thedetermination is based and the appropriate penalty.''(4) CIVIL PENALTIES."''(A) HIRING OR CONTINUING TO EMPLOYUNAUTHORIZED ALIENS."Any employer thatviolates any provision of paragraph (1), (2), or

(3) of subsection (a) shall pay civil penalties asfollows:''(i) Pay a civil penalty of $5,000 foreach unauthorized alien with respect toeach such violation..''(ii) If the employer has previouslybeen fined 1 time under this subparagraph,pay a civil penalty of $10,000 for each unauthorizedalien with respect to each suchviolation.''(iii) If the employer has previouslybeen fined more than 1 time under thissubparagraph or has failed to comply witha previously issued and final order relatedto any such provision, pay a civil penaltyof $25,000 for each unauthorized alienwith respect to each such violation.''(iv) If the employer has previouslybeen fined more than 2 times under thissubparagraph or has failed to comply witha previously issued and final order relatedto any such provision, pay a civil penaltyof $75,000 for each unauthorized alienwith respect to each such violation.''(v) An employer who fails to complywith a written final determination underparagraph (3)(C) shall be fined $75,000for each violation, in addition to any finesor other penalties imposed by such determination..''(B) RECORDKEEPING OR VERIFICATIONPRACTICES."Any employer that violates or failsto comply with the recordkeeping requirementsof subsections (a), (c), and (d), shall pay a civilpenalty as follows:''(i) Pay a civil penalty of $1,000 foreach such violation.''(ii) If the employer has previouslybeen fined 1 time under this subparagraph,pay a civil penalty of $2,000 for each suchviolation.''(iii) If the employer has previouslybeen fined more than 1 time under thissubparagraph, pay a civil penalty offor each such violation.''(iv) If the employer has previouslybeen fined more than 2 times under thissubparagraph, pay a civil penalty offor each such violation.''(v) An employer who fails to complywith a written final determination underparagraph (3) shall be fined $15,000 foreach violation, in addition to any fines orother penalties imposed by such determination..''(C) OTHER PENALTIES."Notwithstandingsubparagraphs (A) and (B), the Secretarymay impose additional penalties for violations,including violations of cease and desistorders, specially designed compliance plans toprevent further violations, suspended fines totake effect in the event of a further violation,and in appropriate cases, the criminal penaltydescribed in subsection (f).''(5) JUDICIAL REVIEW."An employer adversely affected by a final determination may, withindays after the date the final determination isissued, file a petition in any appropriate districtcourt of the United States. The filing of a petitionas provided in this paragraph shall stay the Secretary'sdetermination until entry of judgment bythe court. The burden shall be on the employer toshow that the final determination was not supportedby substantial evidence. The Secretary is authorizedto require that the petitioner provide, prior to filingfor review, security for payment of fines and penaltiesthrough bond or other guarantee of paymentacceptable to the Secretary.''(6) ENFORCEMENT OF ORDERS."If an employerfails to comply with a final determination.issued against that employer under this subsection,and the final determination is not subject to reviewas provided in paragraph (5), the Attorney Generalmay file suit to enforce compliance with the final determination,not earlier than 31 days and not laterthan 180 days after the date the final determinationis issued, in any appropriate district court of theUnited States. In any such suit, the validity and appropriatenessof the final determination shall not besubject to review.''(f) CRIMINAL PENALTIES AND INJUNCTIONS FORPATTERN OR PRACTICE VIOLATIONS."''(1) CRIMINAL PENALTY."An employer thatengages in a pattern or practice of knowing violationsof subsection (a)(1)(A) or (a)(2) shall be finednot more than $75,000 for each unauthorized alienwith respect to whom such a violation occurs, imprisonedfor not more than 3 years for the entirepattern or practice, or both.''(2) ENJOINING OF PATTERN OR PRACTICEVIOLATIONS."If the Secretary or the Attorney Generalhas reasonable cause to believe that an employeris engaged in a pattern or practice of employment,recruitment, or referral in violation of paragraph

(1)(A) or (2) of subsection (a), the Attorney General.may bring a civil action in the appropriate districtcourt of the United States requesting a permanentor temporary injunction, restraining order, or otherorder against the employer, as the Secretary deemsnecessary.''(g) ADJUSTMENT FOR INFLATION."All penalties inthis section shall be increased every 4 years beginningJanuary 2011 to reflect the percentage increase in theconsumer price index for all urban consumers (all items;U.S. city average) for the 48 month period ending withSeptember of the year preceding the year such adjustmentis made. Any adjustment under this subparagraph shallbe rounded to the nearest dollar.''(h) PROHIBITION OF INDEMNITY BONDS."''(1) PROHIBITION."It is unlawful for an employer,in the hiring, recruiting, or referral of an individual,to require the individual to post a bond orsecurity, to pay or agree to pay an amount, or otherwiseto provide a financial guarantee or indemnity,against any potential liability arising under this sectionrelating to such hiring, recruiting, or referral ofthe individual.''(2) CIVIL PENALTY."Any employer which isdetermined, after notice and opportunity for mitigationof the monetary penalty under subsection (e), to.have violated paragraph (1) of this subsection shallbe subject to a civil penalty of $10,000 for each violationand to an administrative order requiring thereturn of any amounts received in violation of suchparagraph to the employee or, if the employee cannotbe located, to the general fund of the Treasury.''(i) PROHIBITION ON AWARD OF GOVERNMENT CONTRACTS, GRANTS, AND AGREEMENTS."''(1) EMPLOYERS WITH NO CONTRACTS,GRANTS, OR AGREEMENTS."''(A) IN GENERAL."If an employer whodoes not hold a Federal contract, grant, or cooperativeagreement is determined by the Secretaryto be a repeat violator of this section oris convicted of a crime under this section, theemployer shall be subject to debarment fromthe receipt of a Federal contract, grant, or cooperativeagreement for a period of not morethan 2 years in accordance with the proceduresand standards prescribed by the Federal AcquisitionRegulations. The Secretary or the AttorneyGeneral shall advise the Administrator ofGeneral Services of such a debarment, and theAdministrator of General Services shall list theemployer on the List of Parties Excluded from.Federal Procurement and Nonprocurement Programsfor a period of the debarment.''(B) WAIVER."The Administrator of General Services, in consultation with the Secretaryand the Attorney General, may waive operationof this subsection or may limit the duration orscope of the debarment.''(2) EMPLOYERS WITH CONTRACTS, GRANTS,OR AGREEMENTS."''(A) IN GENERAL."An employer whoholds a Federal contract, grant, or cooperativeagreement and is determined by the Secretaryto be a repeat violator of this section or is convictedof a crime under this section, shall besubject to debarment from the receipt of newFederal contracts, grants, or cooperative agreementsfor a period of not more than 2 years inaccordance with the procedures and standardsprescribed by the Federal Acquisition Regulations.''(B) NOTICE TO AGENCIES."Prior to debarringthe employer under subparagraph (A),the Secretary, in cooperation with the Administratorof General Services, shall advise all agenciesor departments holding a contract, grant,.or cooperative agreement with the employer ofthe Government's intention to debar the employerfrom the receipt of new Federal contracts,grants, or cooperative agreements for aperiod of not more than 2 years.''(C) WAIVER."After consideration of theviews of all agencies or departments that holda contract, grant, or cooperative agreementwith the employer, the Secretary may, in lieu ofdebarring the employer from the receipt of newFederal contracts, grants, or cooperative agreementsfor a period of nor more than 2 years,waive operation of this subsection, limit the durationor scope of the debarment, or may referto an appropriate lead agency the decision ofwhether to debar the employer, for what duration,and under what scope in accordance withthe procedures and standards prescribed by theFederal Acquisition Regulation. However, anyproposed debarment predicated on an administrativedetermination of liability for civil penaltyby the Secretary or the Attorney General shallnot be reviewable in any debarment proceeding.''(3) SUSPENSION."Indictments for violationsof this section or adequate evidence of actions that.could form the basis for debarment under this subsectionshall be considered a cause for suspensionunder the procedures and standards for suspensionprescribed by the Federal Acquisition Regulation.''(4) DETERMINATION OF REPEAT VIOLA-TORS."Inadvertent violations of recordkeeping orverification requirements, in the absence of anyother violations of this section, shall not be a basisfor determining that an employer is a repeat violatorfor purposes of this subsection.''(j) MISCELLANEOUS PROVISIONS."''(1) DOCUMENTATION."In providing documentationor endorsement of authorization of alienseligible to be employed in the United States, theSecretary shall provide that any limitations with respectto the period or type of employment or employershall be conspicuously stated on the documentationor endorsement (other than aliens lawfullyadmitted for permanent residence).''(2) PREEMPTION."The provisions of this sectionpreempt any State or local law"''(A) imposing civil or criminal sanctionsupon those who hire, or recruit or refer for afee, unauthorized aliens for employment; or.''(B) requiring the use of the System forany unauthorized purpose, or any authorizedpurpose prior to the time such use is requiredor permitted by Federal law.''(k) DEPOSIT OF AMOUNTS RECEIVED."Except asotherwise specified, civil penalties collected under this section shall be deposited by the Secretary into the generalfund of the Treasury.''(l) DEFINITIONS."In this section:''(1) SECRETARY."Except as otherwise provided,the term 'Secretary' means the Secretary ofHomeland Security.''(2) UNAUTHORIZED ALIEN."The term 'unauthorizedalien' means, with respect to the employmentof an alien at a particular time, that the alienis not at that time either"''(A) an alien lawfully admitted for permanentresidence; or''(B) authorized to be so employed by thisAct or by the Secretary under any other provisionof law.''.

(b) CONFORMING AMENDMENTS."

(1) AMENDMENTS."

(A) REPEAL OF BASIC PILOT."Sections401, 402, 403, 404, and 405 of the Illegal Im.migration Reform and Immigrant ResponsibilityAct of 1996 (division C of Public Law 104-208; 8 U.S.C. 1324a note) are repealed.

(B) REPEAL OF REPORTING REQUIREMENTS."

(i) REPORT ON EARNINGS OF ALIENSNOT AUTHORIZED TO WORK."Subsection

(c) of section 290 of the Immigration andNationality Act (8 U.S.C. 1360) is repealed.

(ii) REPORT ON FRAUDULENT USE OFSOCIAL SECURITY ACCOUNT NUMBERS."Subsection (b) of section 414 of the IllegalImmigration Reform and Immigrant ResponsibilityAct of 1996 (division C ofPublic Law 104-208; 8 U.S.C. 1360 note) is repealed.

(2) CONSTRUCTION."Nothing in this subsectionor in subsection (d) of section 274A, asamended by subsection (a), may be construed tolimit the authority of the Secretary to allow or continueto allow the participation of employers whoparticipated in the basic pilot program under sections401, 402, 403, 404, and 405 of the Illegal ImmigrationReform and Immigrant Responsibility Act.of 1996 (division C of Public Law 104-208; 8U.S.C. 1324a note) in the Electronic EmploymentVerification System established pursuant to suchsubsection (d).

(c) TECHNICAL AMENDMENTS."

(1) DEFINITION OF UNAUTHORIZED ALIEN."Sections 218(i)(1) (8 U.S.C. 1188(i)(1)), 245(c)(8) U.S.C. 1255(c)(8)), 274(a)(3)(B)(i) (8 U.S.C.1324(a)(3)(B)(i)), and 274B(a)(1) (8 U.S.C.1324b(a)(1)) are amended by striking ''274A(h)(3)''and inserting ''274A''.

(2) DOCUMENT REQUIREMENTS."Section 274Bof the Immigration and Nationality Act (8 U.S.C.1324b) is amended"

(A) in subsections (a)(6) and (g)(2)(B), bystriking ''274A(b)'' and inserting ''274A(c) and

(d)''; and

(B) in subsection (g)(2)(B)(ii), by striking''274A(b)(5)'' and inserting ''274A(c)''.

(d) AMENDMENTS TO THE SOCIAL SECURITY ACT."

(1) EEVS DETERMINATIONS."Section205(c)(2) of the Social Security Act (42 U.S.C.405(c)(2)) is amended by adding at the end the following:.''(I)(i) The Commissioner of Social Security shall,subject to the provisions of section l01(f)(2) of the SecureBorders, Economic Opportunity and Immigration ReformAct of 2007, establish a reliable, secure method toprovide through the Electronic Employment VerificationSystem established pursuant to subsection (d) of section274A of the Immigration and Nationality Act (referredto in this subparagraph as the 'System'), within the timeperiods required by paragraph (8) of such subsection"''(I) a determination of whether the name, dateof birth, and social security account number of anindividual provided in an inquiry made to the Systemby an employer is consistent with such informationmaintained by the Commissioner;''(II) a determination of the citizenship statusassociated with such name and social security accountnumber, according to the records maintainedby the Commissioner;''(III) a determination of whether the name andnumber belongs to an individual who is deceased, accordingto the records maintained by the Commissioner;''(IV) a determination of whether the name andnumber is blocked in accordance with clause (ii); and.''(V) a confirmation notice or a nonconfirmationnotice described in such paragraph (8), in amanner that ensures that other information maintainedby the Commissioner is not disclosed or releasedto employers through the System.''(ii) The Commissioner of Social Security shall prevent the fraudulent or other misuse of a social securityaccount number by establishing procedures under whichan individual who has been assigned a social security accountnumber may block the use of such number underthe System and remove such block.''(J) In assigning social security account numbers toaliens who are authorized to work in the United Statesunder section 218A of the Immigration and NationalityAct, the Commissioner of Social Security shall"''(i) to the maximum extent practicable, assignsuch numbers by employing the enumeration procedureadministered jointly by the Commissioner, theSecretary of State, and the Secretary of HomelandSecurity;''(ii) in all cases, record, verify, and maintainan electronic record of the alien identification or authorizationnumber issued by the Secretary and utilizedby the Commissioner in assigning such socialsecurity account number; and.''(iii) upon the issuance of a social security accountnumber, transmit such number to the Secretaryof Homeland Security for inclusion in suchalien's record maintained by the Secretary.''.

(2) AGREEMENT."Section 205(c)(2)(C)(i) ofthe Social Security Act (42 U.S.C. 405(c)(2)(C)(i)) is amended by adding at the end the following: ''AnyState that utilizes a social security account numberfor such purpose shall enter into an agreement withthe Commissioner to allow the Commissioner toverify the name, date of birth, and the identity numberissued by the official the State responsible forissuing drivers' licenses and identity cards. Suchagreement shall be under the same terms and conditionsas agreements entered into by the Commissionerunder paragraph 205(r)(8).''.

(3) DISCLOSURE OF DEATH INFORMATION."Section 205(r) of the Social Security Act (42 U.S.C.405(r)) is amended by adding at the end the following:''(9) Notwithstanding this section or any agreemententered into thereunder, the Commissioner ofSocial Security is authorized to disclose death informationto the Secretary of Homeland Security to theextent necessary to carry out the responsibilities re.quired under subsection (c)(2) and section6103(l)(21) of the Internal Revenue Code of 1986.''.

(e) DISCLOSURE OF CERTAIN TAXPAYER IDENTITYINFORMATION."

(1) IN GENERAL."Section 6103(l) of the InternalRevenue Code of 1986 is amended by adding atthe end the following:''(21) DISCLOSURE OF CERTAIN TAXPAYERIDENTITY INFORMATION BY THE SOCIAL SECURITYADMINISTRATION TO THE DEPARTMENT OF HOMELANDSECURITY."''(A) IN GENERAL."Upon written requestby the Secretary of Homeland Security, theCommissioner of Social Security or the Secretaryshall disclose directly to officers, employees,and contractors of the Department ofHomeland Security the following information:''(i) DISCLOSURE OF EMPLOYER NOMATCH NOTICES."The taxpayer identityof each person who has filed an informationreturn required by reason of sectionor section 6041(a) for tax year 2005and subsequent tax years that end beforethe date that is specified in subparagraph

(F) which contains".''(I) 1 (or any greater numberthe Secretary shall request) name andtaxpayer identifying number of anyemployee (within the meaning of section6051) or any recipient (withinthe meaning of section 6041(a)) thatcould not be matched to the recordsmaintained by the Commissioner ofSocial Security, or''(II) 2 (or any greater numberthe Secretary shall request) names ofemployees (within the meaning ofsuch section) or recipients (within themeaning of section 6041(a)) with thesame taxpayer identifying number,and the taxpayer identity of each such employeeor recipient.''(ii) DISCLOSURE OF INFORMATIONREGARDING USE OF DUPLICATE TAXPAYERIDENTIFYING INFORMATION OF EMPLOY-EES."The taxpayer identity of each personwho has filed an information return requiredby reason of section 6051 or section6041(a) for tax year 2005 and subsequenttax years that end before the date that is.specified in subparagraph (F) which contains the taxpayer identifying number (assigned under section 6109) of an employee

(within the meaning of section 6051) or arecipient (within the meaning of section6041(a))"''(I) who is under the age of 14

(or any lesser age the Secretary shallrequest), according to the recordsmaintained by the Commissioner ofSocial Security,''(II) whose date of death, accordingto the records so maintained,occurred in a calendar year precedingthe calendar year for which the informationreturn was filed,''(III) whose taxpayer identifyingnumber is contained in more than one

(or any greater number the Secretaryshall request) information return filedin such calendar year,''(IV) who is not authorized towork in the United States, accordingto the records so maintained, or.''(V) who is not a national of theUnited States, according to therecords so maintained,and the taxpayer identity of each such employeeor recipient.''(iii) DISCLOSURE OF INFORMATIONREGARDING NONPARTICIPATING EMPLOY-ERS."The taxpayer identity of each personwho has filed an information return requiredby reason of section 6051 or section6041(a) which the Commissioner of SocialSecurity or the Secretary, as the case maybe, has reason to believe, based on a comparisonwith information submitted by theSecretary of Homeland Security, containsevidence of such person's failure to registerand participate in the Electronic EmploymentVerification System authorized undersection 274A(d) of the Immigration andNationality Act (hereafter in this paragraphreferred to as the 'System').''(iv) DISCLOSURE OF INFORMATIONREGARDING NEW EMPLOYEES OF NONPARTICIPATINGEMPLOYERS."The taxpayeridentity of all employees (within the.meaning of section 6051) hired and recipients

(within the meaning of section6041(a)) retained after the date a personidentified in clause (iii) is required to participatein the System under section274A(d)(2) or section 274A(d)(3)(B) ofthe Immigration and Nationality Act.''(v) DISCLOSURE OF INFORMATIONREGARDING EMPLOYEES OF CERTAIN DESIGNATEDEMPLOYERS."The taxpayer identityof all employees (within the meaningof section 6051) and recipients (within themeaning of section 6041(a)) of each personwho is required to participate in the Systemunder section 274A(d)(3)(B) of theImmigration and Nationality Act.''(vi) DISCLOSURE OF NEW HIRE TAXPAYERIDENTITY INFORMATION."The taxpayeridentity of each person participatingin the System and the taxpayer identity ofall employees (within the meaning of section6051) of such person hired and all recipients

(within the meaning of section6041(a)) of such person retained duringthe period beginning with the later of".''(I) the date such person beginsto participate in the System, or''(II) the date of the request immediatelypreceding the most recentrequest under this clause,ending with the date of the most recent requestunder this clause.''(B) RESTRICTION ON DISCLOSURE."Thetaxpayer identities disclosed under subparagraph

(A) may be used by officers, employees,and contractors of the Department of HomelandSecurity only for purposes of, and to theextent necessary in"''(i) preventing identity fraud;''(ii) preventing unauthorized aliensfrom obtaining employment in the UnitedStates;''(iii) establishing and enforcing employerparticipation in the System;''(iv) carrying out, including throughcivil administrative and civil judicial proceedings,of sections 212, 217, 235, 237,238, 274A, 274B, and 274C of the Immigrationand Nationality Act; and.''(v) the civil operation of the AlienTerrorist Removal Court.''(C) REIMBURSEMENT."The Commissionerof Social Security and the Secretary shallprescribe a reasonable fee schedule based on theadditional costs directly incurred for furnishingtaxpayer identities under this paragraph andcollect such fees in advance from the Secretaryof Homeland Security.''(D) INFORMATION RETURNS UNDER SECTION6041."For purposes of this paragraph,any reference to information returns requiredby reason of section 6041(a) shall only be a referenceto such information returns relating topayments for labor.''(E) FORM OF DISCLOSURE."The taxpayeridentities to be disclosed under paragraph

(A) shall be provided in a form agreed upon bythe Commissioner of Social Security, the Secretary,and the Secretary of Homeland Security.''(F) TERMINATION."This paragraph shallnot apply to any request made after the datewhich is 5 years after the date of the enactmentof this paragraph.''..

(2) COMPLIANCE BY DHS CONTRACTORS WITHCONFIDENTIALITY SAFEGUARDS."Section 6103(p) of such Code is amended by adding at the end thefollowing:''(9) DISCLOSURE TO DHS CONTRACTORS."Notwithstanding any other provision of this section,no return or return information shall be disclosed toany contractor of the Department of Homeland Securityunless such Department, to the satisfaction ofthe Secretary"''(A) has requirements in effect which requireeach such contractor which would haveaccess to returns or return information to providesafeguards (within the meaning of paragraph

(4)) to protect the confidentiality of suchreturns or return information,''(B) agrees to conduct an on-site reviewevery 3 years (midpoint review in the case ofcontracts or agreements of less than 3 years induration) of each contractor to determine compliancewith such requirements,''(C) submits the findings of the most recentreview conducted under subparagraph (B) to the Secretary as part of the report requiredby paragraph (4)(E), and.''(D) certifies to the Secretary, for themost recent annual period, that such contractoris in compliance with all such requirements, bysubmitting the name and address of each contractor,a description of the contract or agreementwith such contractor, and the duration ofsuch contract or agreement.''.

(3) CONFORMING AMENDMENTS."

(A) Section 6103(a)(3) of such Code isamended by striking ''or (20)'' and inserting''(20), or (21)''.

(B) Section 6103(p)(3)(A) of such Code isamended by adding at the end the followingnew sentence: ''The Commissioner of Social Securityshall provide to the Secretary such informationas the Secretary may require in carryingout this paragraph with respect to return informationinspected or disclosed under the authorityof subsection (l)(21).''.

(C) Section 6103(p)(4) of such Code isamended"

(i) by striking ''or (17)'' both places itappears and inserting ''(17), or (21)''; and

(ii) by striking ''or (20)'' each place itappears and inserting ''(20), or (21)''..

(D) Section 6103(p)(8)(B) of such Code isamended by inserting ''or paragraph (9)'' after''subparagraph (A)''.

(E) Section 7213(a)(2) of such Code isamended by striking ''or (20)'' and inserting''(20), or (21)''.

(f) AUTHORIZATION OF APPROPRIATIONS."

(1) IN GENERAL."There are authorized to beappropriated to the Secretary such sums as are necessaryto carry out the amendments made by thissection.

(2) LIMITATION ON VERIFICATION RESPONSIBILITIESOF COMMISSIONER OF SOCIAL SECU-RITY."The Commissioner of Social Security is authorizedto perform activities with respect to carryingout the Commissioner's responsibilities in thistitle or the amendments made by this title, but onlyto the extent funds are appropriated, in advance, tocover the Commissioner's full costs in carrying outsuch responsibilities. In no case shall funds from theFederal Old-Age and Survivors Insurance TrustFund or the Federal Disability Insurance TrustFund be used to carry out such responsibilities.

(g) EFFECTIVE DATES.".

(1) IN GENERAL."The amendments made bysubsections (a), (b), (c), and (d) shall take effect onthe date of the enactment of this Act.

(2) SUBSECTION (e)."

(A) IN GENERAL."The amendments madeby subsection (e) shall apply to disclosuresmade after the date of the enactment of thisAct.

(B) CERTIFICATIONS."The first certificationunder section 6103(p)(9)(D) of the InternalRevenue Code of 1986, as added by subsection

(e)(2), shall be made with respect to calendaryear 2008.

formerfso
2007-06-27 01:14:31

Unless they qualify for a z-visa - this section creates a tremendous incentive for employers to certify as many of their employees as qualified to avoid prosecution. What a load of garbage.

---