,i #aacth ,,congress #ast ,session ,h4 ,r4 #ejb ,,in ,,the ,,house ,,of ,,representatives ,february #e1 #bjac ,mr4 ,de,fazio introduced the following bill2 which was referred to the ,committee on the ,judiciary1 and in addition to the ,committees on ,ways and ,means and ,education and the ,workforce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to create an electronic employment eligibility verification system to ensure that all workers in the ,united ,states are legally able to work1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,electronic ,employment ,eligibility ,verification and ,illegal ,immigration ,control ,act4 #b4 ,employment eligibility verification system 7a7 ,in general ,section #bgd;,a7b7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;a7b77 is amended by adding at the end the following3 7#g7 ,employment eligibility verification system 7,a7 ,in general ,the ,secretary of ,homeland ,security shall establish and administer a verification system through which the ,secretary 7or a designee of the ,secretary7-- 7i7 responds to inquiries made by persons at any time through a toll-free telephone line and other toll-free electronic media concerning an individual's identity and whether the individual is authorized to be employed2 and 7ii7 maintains records of the inquiries that were made1 of verifications provided 7or not provided71 and of the codes provided to inquirers as evidence of their compliance with their obligations under this section4 7,b7 ,design and operation of system ,the verification system shall be designed and operated-- 7i7 to maximize its reliability and ease of use by persons and other entities consistent with insulating and protecting the privacy and security of the underlying information2 7ii7 to respond to all inquiries made by such persons and entities on whether individuals are authorized to be employed and to register all times when such inquiries are not received2 7iii7 with appropriate administrative1 technical1 and physical safeguards to prevent unauthorized disclosure of personal information2 and 7iv7 to have reasonable safeguards against the system's resulting in unlawful discriminatory practices based on national origin or citizenship status1 including-- 7,i7 the selective or unauthorized use of the system to verify eligibility2 7,,ii7 the use of the system prior to an offer of employment2 or 7,,iii7 the exclusion of certain individuals from consideration for employment as a result of a perceived likelihood that additional verification will be required1 beyond what is required for most job applicants4 7,c7 ,responsibilities of the ,commissioner of ,social ,security ,as part of the verification system1 the ,commissioner of ,social ,security1 in consultation with the ,secretary of ,homeland ,security 7and any designee of the ,secretary selected to establish and administer the verification system71 shall establish a reliable1 secure method1 which1 within the time periods specified under subparagraphs 7,b7 and 7,c7 of paragraph 7#c71 compares the name and ,social ,security account number provided in an inquiry against such information maintained by the ,commissioner in order to validate 7or not validate7 the information provided regarding an individual whose identity and employment eligibility must be confirmed1 the correspondence of the name and number1 and whether the individual has presented a ,social ,security account number that is not valid for employment4 ,the ,commissioner shall not disclose or release ,social ,security information 7other than such verification or nonverification7 except as provided for in this section or section #bje7;c77#b77;,i7 of the ,social ,security ,act4 7,d7 ,responsibilities of the ,secretary of ,homeland ,security 7i7 ,as part of the verification system1 the ,secretary of ,homeland ,security 7in consultation with any designee of the ,secretary selected to establish and administer the verification system71 shall establish a reliable1 secure method1 which1 within the time periods specified under subparagraphs 7,b7 and 7,c7 of paragraph 7#c71 compares the name and alien identification or authorization number which are provided in an inquiry against such information maintained by the ,secretary in order to validate 7or not validate7 the information provided1 the correspondence of the name and number1 and whether the alien is authorized to be employed in the ,united ,states4 7ii7 ,when a single employer has submitted to the verification system pursuant to subparagraphs 7,b7 and 7,c7 of paragraph 7#c7 the identical ,social ,security account number in more than one instance1 or when multiple employers have submitted to the verification system pursuant to such paragraph the identical ,social ,security account number1 in a manner which indicates the possible fraudulent use of that number1 the ,secretary of ,homeland ,security shall conduct an investigation1 within the time periods specified in such subparagraphs1 in order to ensure that no fraudulent use of a ,social ,security account number has taken place4 ,if the ,secretary has selected a designee to establish and administer the verification system1 the designee shall notify the ,secretary when a single employer has submitted to the verification system pursuant to such subparagraphs the identical ,social ,security account number in more than one instance1 or when multiple employers have submitted to the verification system pursuant to such paragraph the identical ,social ,security account number1 in a manner which indicates the possible fraudulent use of that number4 ,the designee shall also provide the ,secretary with all pertinent information1 including the name and address of the employer or employers who submitted the relevant ,social ,security account number1 the relevant ,social ,security account number submitted by the employer or employers1 and the relevant name and date of birth of the employee submitted by the employer or employers4 7iii7 ,the ,secretary in consultation with the ,commissioner of ,social ,security1 shall establish procedures to permit an individual who contests a tentative or final nonverification notice1 or seeks to verify the individual's own employment1 to contact the appropriate agency and1 in a timely manner1 correct or update the information used by the system4 7iv7 ,the ,secretary shall prescribe a system to register employer participation prior to the date the employer is required or permitted to submit information with respect to an employee4 7,e7 ,updating information ,the ,commissioner of ,social ,security and the ,secretary of ,homeland ,security shall update their information in a manner that promotes the maximum accuracy and shall provide a process for the prompt correction of erroneous information1 including instances in which it is brought to their attention in the secondary verification process described in paragraph 7#c77;,c74 7,f7 ,federal ,tort ,claims ,act ,if an individual alleges that the individual would not have been dismissed from a job but for an error of the verification mechanism1 the individual may seek compensation only through the mechanism of the ,federal ,tort ,claims ,act1 and injunctive relief to correct such error4 ,no class action may be brought under this subparagraph4 7,g7 ,protection from liability for actions taken on the basis of information ,no person or entity shall be civilly or criminally liable for any action taken in good faith reliance on information provided through the employment eligibility verification mechanism established under this paragraph4 4 7b7 ,repeal of ,provision ,relating to ,evaluations and ,changes in ,employment ,verification ,section #bgd;,a7d7 of such ,act 7#h ,u4,s4,c4 #acbd;a7d77 is repealed4 #c4 ,employment eligibility verification process ,section #bgd;,a of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;a7 is amended-- 7#a7 in subsection 7a77#c71 by inserting 7,a7 after ,defense4--1 and by adding at the end the following3 7,b7 ,failure to seek and obtain verification ,in the case of a person or entity in the ,united ,states that hires1 or continues to employ1 an individual1 or recruits or refers an individual for employment1 the following requirements apply3 7i7 ,failure to seek verification 7,i7 ,in general ,if the person or entity has not made an inquiry1 under the mechanism established under subsection 7b77#g71 seeking verification of the identity and work eligibility of the individual1 by not later than the end of #c working days 7as specified by the ,secretary of ,homeland ,security7 after the date of the hiring1 the date specified in subsection 7b77#h77;,b7 for previously hired individuals1 or before the recruiting or referring commences1 the defense under subparagraph 7,a7 shall not be considered to apply with respect to any employment1 except as provided in subclause 7,,ii74 7,,ii7 ,special rule for failure of verification mechanism ,if such a person or entity in good faith attempts to make an inquiry in order to qualify for the defense under subparagraph 7,a7 and the verification mechanism has registered that not all inquiries were responded to during the relevant time1 the person or entity can make an inquiry until the end of the first subsequent working day in which the verification mechanism registers no nonresponses and qualify for such defense4 7ii7 ,failure to obtain verification ,if the person or entity has made the inquiry described in clause 7i77,i7 but has not received an appropriate verification of such identity and work eligibility under such mechanism within the time period specified under subsection 7b77#g77;,b7 after the time the verification inquiry was received1 the defense under subparagraph 7,a7 shall not be considered to apply with respect to any employment after the end of such time period4 2 7#b7 by amending subparagraph 7,a7 of subsection 7b77#a7 to read as follows3 7,a7 ,in general ,the person or entity must attest1 under penalty of perjury and on a form designated or established by the ,secretary by regulation1 that it has verified that the individual is not an unauthorized alien by-- 7i7 obtaining from the individual the individual's ,social ,security account number and recording the number on the form 7if the individual claims to have been issued such a number71 and1 if the individual does not attest to ,united ,states citizenship under paragraph 7#b71 obtaining such identification or authorization number established by the ,department of ,homeland ,security for the alien as the ,secretary of ,homeland ,security may specify1 and recording such number on the form2 and 7ii7 7,i7 examining a document described in subparagraph 7,b72 or 7,,ii7 examining a document described in subparagraph 7,c7 and a document described in subparagraph 7,d74 ,a person or entity has complied with the requirement of this paragraph with respect to examination of a document if the document reasonably appears on its face to be genuine1 reasonably appears to pertain to the individual whose identity and work eligibility is being verified1 and1 if the document bears an expiration date1 that expiration date has not elapsed4 ,if an individual provides a document 7or combination of documents7 that reasonably appears on its face to be genuine1 reasonably appears to pertain to the individual whose identity and work eligibility is being verified1 and is sufficient to meet the first sentence of this paragraph1 nothing in this paragraph shall be construed as requiring the person or entity to solicit the production of any other document or as requiring the individual to produce another document4 2 7#c7 in subsection 7b77#a77;,d7-- 7,a7 in clause 7i71 by striking or such other personal identification information relating to the individual as the ,attorney ,general finds1 by regulation1 sufficient for purposes of this section2 and 7,b7 in clause 7ii71 by inserting before the period and that contains a photograph of the individual2 7#d7 in subsection 7b77#b71 by adding at the end the following3 ,the individual must also provide that individual's ,social ,security account number 7if the individual claims to have been issued such a number71 and1 if the individual does not attest to ,united ,states citizenship under this paragraph1 such identification or authorization number established by the ,department of ,homeland ,security for the alien as the ,secretary may specify42 and 7#e7 by amending paragraph 7#c7 of subsection 7b7 to read as follows3 7#c7 ,retention of verification form and verification 7,a7 ,in general ,after completion of such form in accordance with paragraphs 7#a7 and 7#b71 the person or entity must-- 7i7 retain a paper1 microfiche1 microfilm1 or electronic version of the form and make it available for inspection by officers of the ,department of ,homeland ,security1 the ,special ,counsel for ,immigration-,related ,unfair ,employment ,practices1 or the ,department of ,labor during a period beginning on the date of the hiring1 recruiting1 or referral of the individual or the date of the completion of verification of a previously hired individual and ending-- 7,i7 in the case of the recruiting or referral of an individual1 #c years after the date of the recruiting or referral2 7,,ii7 in the case of the hiring of an individual1 the later of-- 7aa7 #c years after the date of such hiring2 or 7bb7 #a year after the date the individual's employment is terminated2 and 7,,iii7 in the case of the verification of a previously hired individual1 the later of-- 7aa7 #c years after the date of the completion of verification2 or 7bb7 #a year after the date the individual's employment is terminated2 7ii7 make an inquiry1 as provided in paragraph 7#g71 using the verification system to seek verification of the identity and employment eligibility of an individual1 by not later than the end of #c working days 7as specified by the ,secretary of ,homeland ,security7 after the date of the hiring or in the case of previously hired individuals1 the date specified in paragraph 7#h77;,b71 or before the recruiting or referring commences2 and 7iii7 not commence recruitment or referral of the individual until the person or entity receives verification under clause 7i7 or 7ii7 of subparagraph 7,d74 7,b7 ,initial response ,the verification system shall provide verification or a tentative nonverification of an individual's identity and employment eligibility within #c working days of the initial inquiry4 ,if providing verification or tentative nonverification1 the verification system shall provide an appropriate code indicating such verification or such nonverification4 7,c7 ,secondary verification process in case of tentative nonverification ,in cases of tentative nonverification1 the ,secretary shall specify1 in consultation with the ,commissioner of ,social ,security1 an available secondary verification process to confirm the validity of information provided and to provide a final verification or nonverification within #aj working days after the date of the tentative nonverification4 ,when final verification or nonverification is provided1 the verification system shall provide an appropriate code indicating such verification or nonverification4 7,d7 ,verification or nonverification 7i7 ,verification upon initial inquiry ,if an employer receives a verification notice under subparagraph 7,b7 for an individual1 the employer shall record1 as described in subparagraph 7,a77i71 the appropriate code provided in such notice4 7ii7 ,tentative nonverification ,if an employer receives a tentative nonverification notice under subparagraph 7,b7 for an individual1 the employer shall inform such individual of the issuance of such notice in writing1 on a form prescribed by the ,secretary not later than #c days after receiving such notice4 ,such individual shall acknowledge receipt of such notice in writing as described in paragraph 7#a77;,a74 ,if the individual refuses to acknowledge receipt of notice1 the individual's employment must be terminated immediately4 7iii7 ,no contest ,if the individual does not contest the tentative nonverification notice within #aj days of receiving notice from the individual's employer1 the notice shall become final and the employer shall record1 as described in subparagraph 7,a77i71 the appropriate code provided through the system to indicate the individual did not contest the tentative nonverification4 ,an individual's failure to contest a tentative nonverification shall not be considered an admission of guilt with respect to any violation of this ,act or any other provision of law4 7iv7 ,contest ,if the individual contests the tentative nonverification notice1 the individual shall submit appropriate information to contest such notice under the procedures established in subparagraph 7,e7 not later than #aj days after receiving the notice from the individual's employer4 7v7 ,effective period of tentative nonverification notice ,a tentative nonverification notice shall remain in effect until such notice becomes final under clause 7iii71 or the earlier of-- 7,i7 a final verification notice or final nonverification notice is issued through the system2 or 7,,ii7 #aj working days after the individual contests a tentative nonverification under clause 7iv74 7vi7 ,additional authority ,the ,secretary shall have the authority to issue a final verification notice for an individual4 ,in such a case1 the ,secretary shall determine the individual's eligibility for employment in the ,united ,states and record the results of such determination in the system within #ab months4 7vii7 ,effective period of final notice ,a final verification notice issued under this paragraph for an individual shall remain in effect-- 7,i7 during any continuous period of employment of such individual by such employer1 unless the ,secretary determines the final verification was the result of identity fraud2 or 7,,ii7 in the case of an alien authorized to be employed in the ,united ,states for a temporary period1 during such period4 7viii7 ,prohibition on termination ,an employer may not terminate the employment of an individual based on a tentative nonverification notice until such notice becomes final under clause 7iii71 an individual refuses to acknowledge receipt of tentative nonverification under clause 7ii71 or a final nonverification notice is issued for the individual by the ,system4 ,nothing in this clause shall prohibit the termination of employment for any other reason other than such tentative nonverification4 7ix7 ,recording of contest resolution ,the employer shall record the appropriate code that is provided through the system to indicate a final verification notice or final nonverification notice as described in paragraph 7#a77;,a74 7x7 ,consequences of nonverification ,if the employer has received a final nonverification regarding an individual1 the employer shall terminate the employment1 recruitment1 or referral of the individual4 ,such employer shall provide to the ,secretary any information relating to the individual that the ,secretary determines would assist the ,secretary in enforcing or administering the immigration laws4 ,if the employer continues to employ1 recruit or refer the individual after receiving final nonverification1 a rebuttable presumption is created that the employer has violated subsections 7a77#a77;,a7 and 7a77#b74 ,such presumption may not apply to a prosecution under subsection 7f77#a74 7,e7 ,administrative review 7i7 ,in general ,an individual who is terminated from employment as a result of a final nonverification notice may1 not later than #fj days after the date of such termination1 file an appeal of such notice4 7ii7 ,procedures ,the ,secretary and ,commissioner of ,social ,security shall develop procedures to review appeals filed under clause 7i7 and to make final determinations on such appeals4 7iii7 ,review for errors ,if a final determination on an appeal filed under clause 7i7 results in verification of an individual's eligibility to work in the ,united ,states1 the administrative review process shall require the ,secretary to determine if the final nonverification notice issued for the individual was the result of-- 7,i7 an error or negligence on the part of an employee or official operating or responsible for the ,system2 7,,ii7 the decision rules1 processes1 or procedures utilized by the system2 or 7,,iii7 erroneous system information that was not the result of acts or omissions of the individual4 7iv7 ,compensation for error 7,i7 ,in general ,if the ,secretary makes a determination under clause 7iii7 that the final nonverification notice issued for an individual was not caused by an act or omission of the individual1 the ,secretary shall compensate the individual for lost wages4 7,,ii7 ,calculation of lost wages ,lost wages shall be calculated based on the wage rate and work schedule that prevailed prior to termination4 ,the individual shall be compensated for wages lost beginning on the first scheduled work day after employment was terminated and ending #ahj days after completion of the administrative review process described in this paragraph or the day after the individual is reinstated or obtains employment elsewhere1 whichever occurs first4 7v7 ,limitation on compensation ,for purposes of determining an individual's compensation for the loss of employment1 such compensation shall not include any period in which the individual was ineligible for employment in the ,united ,states4 7vi7 ,source of funds ,compensation or reimbursement provided under this paragraph shall be provided from the ,employment ,verification ,compensation ,fund established under section #h and shall not be provided from appropriated funds4 7,f7 ,judicial review 7i7 ,in general ,after the ,secretary makes a final determination on an appeal filed by an individual under the administrative review process described in subparagraph 7,e71 the individual may obtain judicial review of such determination by a civil action commenced not later than #fj days after the date of such decision1 or such further time as the ,secretary may allow4 7ii7 ,jurisdiction ,a civil action for such judicial review shall be brought in the district court of the ,united ,states for the judicial district in which the plaintiff resides1 or has a principal place of business1 or1 if the plaintiff does not reside or have a principal place of business within any such judicial district1 in the ,district ,court of the ,united ,states for the ,district of ,columbia4 7iii7 ,answer ,as part of the ,secretary's answer to a complaint for such judicial review1 the ,secretary shall file a certified copy of the administrative record compiled during the administrative review under subparagraph 7,e71 including the evidence upon which the findings and decision complained of are based4 ,the court shall have power to enter1 upon the pleadings and transcript of the record1 a judgment affirming or reversing the result of that administrative review1 with or without remanding the cause for a rehearing4 7iv7 ,compensation for error 7,i7 ,in general ,in cases in which such judicial review reverses the final determination of the ,secretary made under subparagraph 7,e71 the court shall compensate the individual for lost wages4 7,,ii7 ,calculation of lost wages ,lost wages shall be calculated based on the wage rate and work scheduled that prevailed prior to termination4 ,the individual shall be compensated for wages lost beginning on the first scheduled work day after employment was terminated and ending #ahj days after completion of the judicial review described in this paragraph or the day after the individual is reinstated or obtains employment elsewhere1 whichever occurs first4 7,g7 ,limitation on use of the verification system and any related systems ,notwithstanding any other provision of law1 nothing in this paragraph shall be construed to permit or allow any department1 bureau1 or other agency of the ,united ,states ,government to utilize any information1 database1 or other records assembled under this paragraph for any other purpose other than as provided for4 7,h7 ,limitation on collection and use of data 7i7 ,limitation on collection of data 7,i7 ,in general ,the ,system shall collect and maintain only the minimum data necessary to facilitate the successful operation of the ,system1 and in no case shall the data be other than-- 7aa7 information necessary to register employers under paragraph 7#g77;,d77iv72 7bb7 information necessary to initiate and respond to inquiries or contests under subparagraph 7,e72 7cc7 information necessary to establish and enforce compliance with paragraph 7#g77;,d77iv7 and subparagraph 7,e72 7dd7 information necessary to detect and prevent employment related identity fraud2 and 7ee7 such other information the ,secretary determines is necessary1 subject to a #ahj day notice and comment period in the ,federal ,register4 7,,ii7 ,penalties ,any officer1 employee1 or contractor who willfully and knowingly collects and maintains data in the system other than data described in clause 7i7 shall be guilty of a misdemeanor and fined not more than #a1jjj for each violation4 7ii7 ,limitation on use of data ,whoever willfully and knowingly accesses1 discloses1 or uses any information obtained or maintained by the system-- 7,i7 for the purpose of committing identity fraud1 or assisting another person in committing identity fraud1 as defined in section #ajbh of title #ah1 ,united ,states ,code2 7,,ii7 for the purpose of unlawfully obtaining employment in the ,united ,states or unlawfully obtaining employment in the ,united ,states for any other person2 or 7,,iii7 for any purpose other than as provided for under any provision of law2 shall be guilty of a felony and upon conviction shall be fined under title #ah1 ,united ,states ,code1 or imprisoned for not less than #e years1 or both4 7iii7 ,exceptions ,nothing in clauses 7i7 or 7ii7 may be construed to limit the collection1 maintenance1 or use of data by the ,commissioner of ,internal ,revenue or the ,commissioner of ,social ,security as provided by law4 4 #d4 ,expansion of employment eligibility verification system to previously hired individuals and recruiting and referring 7a7 ,application to ,recruiting and ,referring ,section #bgd;,a of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;a7 is amended-- 7#a7 in subsection 7a77#a77;,a71 by striking for a fee2 7#b7 in subsection 7a77#a71 by amending subparagraph 7,b7 to read as follows3 7,b7 to hire1 continue to employ1 or to recruit or refer for employment in the ,united ,states an individual without complying with the requirements of subsection 7b74 2 7#c7 in subsection 7a77#b71 by striking after hiring an alien for employment in accordance with paragraph 7#a71 and inserting after complying with paragraph 7#a712 and 7#d7 in subsection 7a77#c71 as amended by section #c1 is further amended by striking hiring1 and inserting hiring1 employing1 each place it appears4 7b7 ,employment ,eligibility ,verification for ,previously ,hired ,individuals ,section #bgd;,a7b7 of such ,act 7#h ,u4,s4,c4 #acbd;a7b771 as amended by section #b7;a71 is further amended by adding at the end the following3 7#h7 ,use of employment eligibility verification system for previously hired individuals 7,a7 ,on a voluntary basis ,beginning on the date that is #b years after the date of the enactment of the ,electronic ,employment ,eligibility ,verification and ,illegal ,immigration ,control ,act and until the date specified in subparagraph 7,b77iii71 a person or entity may make an inquiry1 as provided in paragraph 7#g71 using the verification system to seek verification of the identity and employment eligibility of any individual employed by the person or entity1 as long as it is done on a nondiscriminatory basis4 7,b7 ,on a mandatory basis 7i7 ,a person or entity described in clause 7ii7 must make an inquiry as provided in paragraph 7#g71 using the verification system to seek verification of the identity and employment eligibility of all individuals employed by the person or entity who have not been previously subject to an inquiry by the person or entity by the date #c years after the date of enactment of the ,electronic ,employment ,eligibility ,verification and ,illegal ,immigration ,control ,act4 7ii7 ,a person or entity is described in this clause if it is a ,federal1 ,state1 or local governmental body 7including the ,armed ,forces of the ,united ,states71 or if it employs individuals working in a location that is a ,federal1 ,state1 or local government building1 a military base1 a nuclear energy site1 a weapon site1 an airport1 or that contains critical infrastructure 7as defined in section #ajaf7;e7 of the ,critical ,infrastructure ,protection ,act of #bjja 7#db ,u4,s4,c4 #eaie;c7e7771 but only to the extent of such individuals4 7iii7 ,all persons and entities other than those described in clause 7ii7 must make an inquiry1 as provided in paragraph 7#g71 using the verification system to seek verification of the identity and employment eligibility of all individuals employed by the person or entity who have not been previously subject to an inquiry by the person or entity by the date #f years after the date of enactment of the ,electronic ,employment ,eligibility ,verification and ,illegal ,immigration ,control ,act4 4 #e4 ,basic pilot program ,section #dja7;b7 of the ,illegal ,immigration ,reform and ,immigrant ,responsibility ,act of #aiif 7#h ,u4,s4,c4 #acbd;a note7 is amended by striking on ,september #cj1 #bjab and inserting #b years after the enactment of the ,electronic ,employment ,eligibility ,verification and ,illegal ,immigration ,control ,act4 #f4 ,hiring halls ,section #bgd;,a7h7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;a7h77 is amended by adding at the end the following3 7#d7 ,recruitment and referral ,as used in this section1 the term refer means the act of sending or directing a person or transmitting documentation or information to another1 directly or indirectly1 with the intent of obtaining employment in the ,united ,states for such person4 ,generally1 only persons or entities referring for remuneration 7whether on a retainer or contingency basis7 are included in the definition4 ,however1 labor service agencies1 whether public1 private1 for-profit1 or nonprofit1 that refer1 dispatch1 or otherwise facilitate the hiring of workers for any period of time by a third party are included in the definition whether or not they receive remuneration4 ,as used in this section the term recruit means the act of soliciting a person1 directly or indirectly1 and referring the person to another with the intent of obtaining employment for that person4 ,generally1 only persons or entities recruiting for remunerations 7whether on a retainer or contingency basis7 are included in the definition4 ,however1 labor service agencies1 whether public1 private1 for-profit1 or nonprofit that refer1 dispatch1 or otherwise facilitate the hiring of workers for any period of time by a third party are included in the definition whether or not they receive remuneration4 4 #g4 ,penalties ,section #bgd;,a of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;a7 is amended-- 7#a7 in subsection 7e77#d7-- 7,a7 in subparagraph 7,a71 in the matter before clause 7i71 by inserting 1 subject to paragraphs 7#aj7 through 7#ab71 after in an amount2 7,b7 in subparagraph 7,a77i71 by striking not less than #bej and not more than #b1jjj and inserting not less than #e1jjj and not more than #ae1jjj2 7,c7 in subparagraph 7,a77ii71 by striking not less than #b1jjj and not more than #e1jjj and inserting not less than #aj1jjj and not more than #ae1jjj2 7,d7 in subparagraph 7,a77iii71 by striking not less than #c1jjj and not more than #aj1jjj and inserting not less than #be1jjj and not more than #dj1jjj2 and 7,e7 by amending subparagraph 7,b7 to read as follows3 7,b7 may require the person or entity to take such other remedial action as is appropriate4 2 7#b7 in subsection 7e77#e7-- 7,a7 by inserting 1 subject to paragraphs 7#aj7 through 7#ab71 after in an amount2 7,b7 by striking #ajj and inserting #a1jjj2 7,c7 by striking #a1jjj and inserting #be1jjj2 7,d7 by striking the size of the business of the employer being charged1 the good faith of the employer and inserting the good faith of the employer being charged2 and 7,e7 by adding at the end the following sentence3 ,failure by a person or entity to utilize the employment eligibility verification system as required by law1 or providing information to the system that the person or entity knows or reasonably believes to be false1 shall be treated as a violation of subsection 7a77#a77;,a742 7#c7 by adding at the end of subsection 7e7 the following new paragraphs3 7#aj7 ,mitigation of civil money penalties for smaller employers ,in the case of imposition of a civil penalty under paragraph 7#d77;,a7 with respect to a violation of subsection 7a77#a77;,a7 or 7a77#b7 for hiring or continuation of employment by an employer and in the case of imposition of a civil penalty under paragraph 7#e7 for a violation of subsection 7a77#a77;,b7 for hiring by an employer1 the dollar amounts otherwise specified in the respective paragraph shall be reduced as follows3 7,a7 ,in the case of an employer with an average of fewer than #bf full-time equivalent employees 7as defined by the ,secretary of ,homeland ,security71 the amounts shall be reduced by #fj percent4 7,b7 ,in the case of an employer with an average of at least #bf1 but fewer than #aja1 full-time equivalent employees 7as so defined71 the amounts shall be reduced by #dj percent4 7,c7 ,in the case of an employer with an average of at least #aja1 but fewer than #bea1 full-time equivalent employees 7as so defined71 the amounts shall be reduced by #bj percent4 ,the last sentence of paragraph 7#d7 shall apply under this paragraph in the same manner as it applies under such paragraph4 7#aa7 ,exemption from penalty for initial good faith violation ,in the case of imposition of a civil penalty under paragraph 7#d77;,a7 with respect to a violation of subsection 7a77#a77;,a7 or 7a77#b7 for hiring or continuation of employment or recruitment or referral by person or entity and in the case of imposition of a civil penalty under paragraph 7#e7 for a violation of subsection 7a77#a77;,b7 for hiring or recruitment or referral by a person or entity1 the penalty otherwise imposed shall be waived if the violator establishes that it was the first such violation of such provision by the violator and the violator acted in good faith4 7#ab7 ,safe harbor for contractors ,a person or other entity shall be liable for a penalty under paragraph 7#d77;,a7 with respect to the violation of subsection 7a77#a77;,a71 7a77#a77;,b71 or 7a77#b7 with respect to the hiring or continuation of employment of an unauthorized alien by a subcontractor of that person or entity unless the person or entity verifies through the employment eligibility verification system that all subcontractor employees and entities participating in the subcontracted employment are eligible for employment prior to beginning employment for the contracting person or entity4 ,a contracting person or entity shall not be required to verify a subcontractor if the contracting person or entity has previously verified the employment eligibility of that subcontractor4 ,a contracting person or entity shall not be required to verify the employment eligibility of a subcontractor employee if the person or entity has previously verified the subcontractor employee as a result of the subcontractor employee's previous employment on behalf of the person or entity as an employee of the subcontractor4 2 7#d7 by amending paragraph 7#a7 of subsection 7f7 to read as follows3 7#a7 ,criminal penalty ,any person or entity which engages in a pattern or practice of violations of subsection 7a7 7#a7 or 7#b7 shall be fined not more than #ej1jjj for each unauthorized alien with respect to which such a violation occurs1 imprisoned for not less than #a year1 or both1 notwithstanding the provisions of any other ,federal law relating to fine levels4 2 7#e7 in subsection 7f77#b71 by striking ,attorney ,general each place it appears and inserting ,secretary of ,homeland ,security2 7#f7 by redesignating subsection 7h7 as subsection 7j72 7#g7 by inserting after subsection 7g7 the following3 7h7 ,prohibition on award of government contracts1 grants and agreements 7#a7 ,employers with no contracts1 grants1 or agreements 7,a7 ,in general ,if an employer who does not hold a ,federal contract1 grant1 or cooperative agreement is determined by the ,secretary to be a repeat violator of this section or is convicted of a crime under this section1 the employer shall be debarred from the receipt of a ,federal contract1 grant1 or cooperative agreement for a period of #e years4 ,the ,secretary or the ,attorney ,general shall advise the ,administrator of ,general ,services of such a debarment1 and the ,administrator of ,general ,services shall list the employer on the ,list of ,parties ,excluded from ,federal ,procurement and ,nonprocurement ,programs for a period of #e years4 7,b7 ,waiver ,the ,administrator of ,general ,services1 in consultation with the ,secretary and the ,attorney ,general1 may waive operation of this subsection or may limit the duration or scope of the debarment4 7#b7 ,employers with contracts1 grants1 or agreements ,an employer who holds a ,federal contract1 grant1 or cooperative agreement and is determined by the ,secretary to be a repeat violator of this section or is convicted of a crime under this section1 shall be debarred from the receipt of new ,federal contracts1 grants1 or cooperative agreements for a period of #e years4 7i7 ,penalty for false attestation by employee ,an individual who falsely represents that the individual is eligible for employment in the ,united ,states in an attestation required by this shall1 for each such violation1 be subject to a fine of not less than #e1jjj1 a term of imprisonment not to exceed #c years1 or both4 2 and 7#h7 by inserting after subsection 7j7 7as so redesignated7 the following3 7k7 ,special criminal penalties for subcontractors and labor brokers ,any person or subcontracting entity which engages in a pattern or practice of violations of subsection 7a77#a77;,a7 or 7a77#b7 shall be fined not less than #ajj1jjj for each unauthorized alien with respect to whom such a violation occurs1 imprisoned for not less than #e years for the entire pattern or practice1 or both1 notwithstanding the provisions of any other law relating to fine levels4 4 #h4 ,compensation fund 7a7 ,establishment ,there is established in the ,treasury a separate account to be known as the ,employment ,verification ,compensation ,fund 7in this section referred to as the ,fund74 7b7 ,transfers to the ,fund ,there shall be deposited in the ,fund all fines and penalties collected under section #bgd;,a of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;a74 7c7 ,expenditures ,subject to appropriations ,acts1 amounts in the ,fund shall be available for compensation pursuant to subparagraphs 7,e7 and 7,f7 of section #bgd;,a7b77#c7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #acbd;a7b77#c771 as amended by section #c of this ,act4 #i4 ,contractor database and audits 7a7 ,database ,the ,secretary of ,homeland ,security shall create and maintain a publicly available and accessible online database of contracting and subcontracting individuals or entities which discloses the number of employment eligibility violations and employment eligibility verification rejections each contracting or subcontracting individual or entity has received4 ,the database shall also disclose the total number of verification attempts each contracting or subcontracting individual or entity has made4 7b7 ,audit ,the ,secretary of ,homeland ,security shall audit and investigate any contracting or subcontracting individual or entity which has a #aj or greater employment verification rejection rate4 #aj4 ,report on social security card-based employment eligibility verification 7a7 ,report 7#a7 ,in general ,not later than #i months after the date of the enactment of this ,act1 the ,commissioner of ,social ,security1 in consultation with the ,secretary of ,treasury1 the ,secretary of ,homeland ,security1 and the ,attorney ,general1 shall submit a report to the ,congress that includes an evaluation of the following requirements and changes3 7,a7 ,a requirement that ,social ,security cards that are made of a durable plastic or similar material and that include an encrypted1 machine-readable electronic identification strip and a digital photograph of the individual to whom the card is issued1 be issued to each individual 7whether or not a ,united ,states citizen7 who-- 7i7 is authorized to be employed in the ,united ,states2 7ii7 is seeking employment in the ,united ,states2 and 7iii7 files an application for such card1 whether as a replacement of an existing ,social ,security card or as a card issued in connection with the issuance of a new ,social ,security account number4 7,b7 ,the creation of a unified database to be maintained by the ,department of ,homeland ,security and comprised of data from the ,social ,security ,administration and the ,department of ,homeland ,security specifying the work authorization of individuals 7including both ,united ,states citizens and noncitizens7 for the purpose of conducting employment eligibility verification4 7,c7 ,a requirement that all employers verify the employment eligibility of all new hires using the ,social ,security cards described in subparagraph 7,a7 and a phone1 electronic card-reading1 or other mechanism to seek verification of employment eligibility through the use of the unified database described in subparagraph 7,b74 7#b7 ,items included in report ,the report under paragraph 7#a7 shall include an evaluation of each of the following3 7,a7 ,projected cost1 including the cost to the ,federal ,government1 ,state and local governments1 and the private sector4 7,b7 ,administrability4 7,c7 ,potential effects on-- 7i7 employers2 7ii7 employees1 including employees who are ,united ,states citizens as well as those that are not citizens2 7iii7 tax revenue2 and 7iv7 privacy4 7,d7 ,the extent to which employer and employee compliance with immigration laws would be expected to improve4 7,e7 ,any other relevant information4 7#c7 ,alternatives ,the report under paragraph 7#a7 also shall examine any alternatives to achieve the same goals as the requirements and changes described in paragraph 7#a7 but that involve lesser cost1 lesser burden on those affected1 or greater ease of administration4 7b7 ,inspector general review ,not later than #c months after the report is submitted under subsection 7a71 the ,inspector ,general of the ,social ,security ,administration1 in consultation with the ,inspectors ,general of the ,department of ,treasury1 the ,department of ,homeland ,security1 and the ,department of ,justice1 shall send to the ,congress an evaluation of such report4 7c7 ,congressional consideration ,upon receipt of the ,inspector ,general's evaluation of the ,commissioner of ,social ,security's report1 the ,congress shall consider legislation enacting a plan that best meets both the objectives outlined in this section as well as ease and feasibility of implementation based on the reports presented by the ,commissioner of ,social ,security and the ,inspector ,general4 #aa4 ,effective date ,this ,act and the amendments made by this ,act shall take effect on the date of enactment of this ,act1 except that the requirements of persons and entities to comply with the employment eligibility verification process shall take effect on the date that is #b years after such date4 #ab4 ,limitation on verification responsibilities of ,commissioner of ,social ,security ,the ,commissioner of ,social ,security is authorized to perform activities with respect to carrying out the ,commissioner's responsibilities in this ,act or the amendments made by this ,act1 but only to the extent 7except for the purpose of carrying out section #h7 the ,secretary of ,homeland ,security has provided1 in advance1 funds to cover the ,commissioner's full costs in carrying out such responsibilities4 ,in no case shall funds from the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund or the ,federal ,disability ,insurance ,trust ,fund be used to carry out such responsibilities4 #ac4 ,report on impact on contracting and subcontracting individuals and entities ,not later than #ab months after the date of the enactment of this ,act1 the ,secretary of ,homeland ,security shall submit a report to the ,congress that determines whether the described employment eligibility verification system permits contracting individuals and entities to determine the eligibility of subcontracting individuals or entities without unduly burdening contractors and without freeing subcontracting individuals or entities to break employment laws4 #ad4 ,report on employment eligibility verification system ,not later than #a year after the implementation of the employment eligibility verification system established under this ,act1 and #a year thereafter1 the ,secretary of ,homeland ,security shall submit to the ,congress a report on the progress and problems associated with implementation of the system1 including information relating to the most efficient use of the system by small businesses4