TITLE IV--ENFORCEMENT OF RESTRICTIONS AGAINST EMPLOYMENT

   Subtitle A--Pilot Programs for Employment Eligibility Confirmation

     SEC. 401. ESTABLISHMENT OF PROGRAMS.

       (a) In General.--The Attorney General shall conduct 3 pilot
     programs of employment eligibility confirmation under this
     subtitle.
       (b) Implementation Deadline; Termination.--The Attorney
     General shall implement the pilot programs in a manner that
     permits persons and other entities to have elections under
     section 402 of this division made and in effect no later than
     1 year after the date of the enactment of this Act. Unless
     the Congress otherwise provides, the Attorney General shall
     terminate a pilot program at the end of the 4-year period
     beginning on the first day the pilot program is in effect.
       (c) Scope of Operation of Pilot Programs.--The Attorney
     General shall provide for the operation--
       (1) of the basic pilot program (described in section 403(a)
     of this division) in, at a minimum, 5 of the 7 States with
     the highest estimated population of aliens who are not
     lawfully present in the United States;
       (2) of the citizen attestation pilot program (described in
     section 403(b) of this division) in at least 5 States (or, if
     fewer, all of the States) that meet the condition described
     in section 403(b)(2)(A) of this division; and
       (3) of the machine-readable-document pilot program
     (described in section 403(c) of this division) in at least 5
     States (or, if fewer, all of the States) that meet the
     condition described in section 403(c)(2) of this division.
       (d) References in Subtitle.--In this subtitle--
       (1) Pilot program references.--The terms ``program'' or
     ``pilot program'' refer to any of the 3 pilot programs
     provided for under this subtitle.
       (2) Confirmation system.--The term ``confirmation system''
     means the confirmation system established under section 404
     of this division.
       (3) References to section 274a.--Any reference in this
     subtitle to section 274A (or a subdivision of such section)
     is deemed a reference to such section (or subdivision
     thereof) of the Immigration and Nationality Act.
       (4) I-9 or similar form.--The term ``I-9 or similar form''
     means the form used for purposes of section 274A(b)(1)(A) or
     such other form as the Attorney General determines to be
     appropriate.
        (5) Limited application to recruiters and referrers.--Any
     reference to recruitment or referral (or a recruiter or
     referrer) in relation to employment is deemed a reference
     only to such recruitment or referral (or recruiter or
     referrer) that is subject to section 274A(a)(1)(B)(ii).
       (6) United states citizenship.--The term ``United States
     citizenship'' includes United States nationality.
       (7) State.--The term ``State'' has the meaning given such
     term in section 101(a)(36) of the Immigration and Nationality
     Act.

     SEC. 402. VOLUNTARY ELECTION TO PARTICIPATE IN A PILOT
                   PROGRAM.

       (a) Voluntary Election.--Subject to subsection (c)(3)(B),
     any person or other entity that conducts any hiring (or
     recruitment or referral) in a State in which a pilot program
     is operating may elect to participate in that pilot program.
     Except as specifically provided in subsection (e), the
     Attorney General may not require any person or other entity
     to participate in a pilot program.
       (b) Benefit of Rebuttable Presumption.--
       (1) In general.--If a person or other entity is
     participating in a pilot program and obtains confirmation of
     identity and employment eligibility in compliance with the
     terms and conditions of the program with respect to the
     hiring (or recruitment or referral) of an individual for
     employment in the United States, the person or entity has
     established a rebuttable presumption that the person or
     entity has not violated section 274A(a)(1)(A) with respect to
     such hiring (or such recruitment or referral).
       (2) Construction.--Paragraph (1) shall not be construed as
     preventing a person or other entity that has an election in
     effect under subsection (a) from establishing an affirmative
     defense under section 274A(a)(3) if the person or entity
     complies with the requirements of section 274A(a)(1)(B) but
     fails to obtain confirmation under paragraph (1).
       (c) General Terms of Elections.--
       (1) In general.--An election under subsection (a) shall be
     in such form and manner, under such terms and conditions, and
     shall take effect, as the Attorney General shall specify. The
     Attorney General may not impose any fee as a condition of
     making an election or participating in a pilot program.
       (2) Scope of election.--
       (A) In general.--Subject to paragraph (3), any electing
     person or other entity may provide that the election under
     subsection (a) shall apply (during the period in which the
     election is in effect)--
       (i) to all its hiring (and all recruitment or referral) in
     the State (or States) in which the pilot program is
     operating, or
       (ii) to its hiring (or recruitment or referral) in one or
     more pilot program States or one or more places of hiring (or
     recruitment or referral, as the case may be) in the pilot
     program States.
       (B) Application of programs in non-pilot program states.--
     In addition, the Attorney General may permit a person or
     entity electing--
       (i) the basic pilot program (described in section 403(a) of
     this division) to provide that the election applies to its
     hiring (or recruitment or referral) in one or more States or
     places of hiring (or recruitment or referral) in which the
     pilot program is not otherwise operating, or
       (ii) the citizen attestation pilot program (described in
     403(b) of this division) or the machine-readable-document
     pilot program (described in section 403(c) of this division)
     to provide that the election applies to its hiring (or
     recruitment or referral) in one or more States or places of
     hiring (or recruitment or referral) in which the pilot
     program is not otherwise operating but only if such States
     meet the requirements of 403(b)(2)(A) and 403(c)(2) of this
     division, respectively.
       (3) Acceptance and rejection of elections.--
       (A) In general.--Except as provided in subparagraph (B),
     the Attorney General shall accept all elections made under
     subsection (a).
       (B) Rejection of elections.--The Attorney General may
     reject an election by a person or other entity under this
     section or limit its applicability to certain States or
     places of hiring (or recruitment or referral) if the Attorney
     General has determined that there are insufficient resources
     to provide appropriate services under a pilot program for the
     person's or entity's hiring (or recruitment or referral) in
     any or all States or places of hiring.
       (4) Termination of elections.--The Attorney General may
     terminate an election by a person or other entity under this
     section because the person or entity has substantially failed
     to comply with its obligations under the pilot program. A
     person or other entity may terminate an election in such form
     and manner as the Attorney General shall specify.
       (d) Consultation, Education, and Publicity.--
       (1) Consultation.--The Attorney General shall closely
     consult with representatives of employers (and recruiters and
     referrers) in the development and implementation of the pilot
     programs, including the education of employers (and
     recruiters and referrers) about such programs.
       (2) Publicity.--The Attorney General shall widely publicize
     the election process and pilot programs, including the
     voluntary nature of the pilot programs and the advantages to
     employers (and recruiters and referrers) of making an
     election under this section.
       (3) Assistance through district offices.--The Attorney
     General shall designate one or more individuals in each
     District office of the Immigration and Naturalization Service
     for a Service District in which a pilot program is being
     implemented--
       (A) to inform persons and other entities that seek
     information about pilot programs of the voluntary nature of
     such programs, and
       (B) to assist persons and other entities in electing and
     participating in any pilot programs in effect in the
     District, in complying with the requirements of section 274A,
     and in facilitating confirmation of the identity and
     employment eligibility of individuals consistent with such
     section.
       (e) Select Entities Required to Participate in a Pilot
     Program.--
       (1) Federal government.--
       (A) Executive departments.--
       (i) In general.--Each Department of the Federal Government
     shall elect to participate in a pilot program and shall
     comply with the terms and conditions of such an election.
       (ii) Election.--Subject to clause (iii), the Secretary of
     each such Department--

       (I) shall elect the pilot program (or programs) in which
     the Department shall participate, and
       (II) may limit the election to hiring occurring in certain
     States (or geographic areas) covered by the program (or
     programs) and in specified divisions within the Department,
     so long as all hiring by such divisions and in such locations
     is covered.

       (iii) Role of attorney general.--The Attorney General shall
     assist and coordinate elections under this subparagraph in
     such manner as assures that--

       (I) a significant portion of the total hiring within each
     Department within States covered by a pilot program is
     covered under such a program, and
       (II) there is significant participation by the Federal
     Executive branch in each of the pilot programs.

       (B) Legislative branch.--Each Member of Congress, each
     officer of Congress, and the head of each agency of the
     legislative branch, that conducts hiring in a State in which
     a pilot program is operating shall elect to participate in a
     pilot program, may specify which pilot program or programs
     (if there is more than one) in which the Member, officer, or
     agency will participate, and shall comply with the terms and
     conditions of such an election.
       (2) Application to certain violators.--An order under
     section 274A(e)(4) or section 274B(g)

[[Page H11817]]

     of the Immigration and Nationality Act may require the
     subject of the order to participate in, and comply with the
     terms of, a pilot program with respect to the subject's
     hiring (or recruitment or referral) of individuals in a State
     covered by such a program.
       (3) Consequence of failure to participate.--If a person or
     other entity is required under this subsection to participate
     in a pilot program and fails to comply with the requirements
     of such program with respect to an individual--
       (A) such failure shall be treated as a violation of section
     274A(a)(1)(B) with respect to that individual, and
       (B) a rebuttable presumption is created that the person or
     entity has violated section 274A(a)(1)(A).
     Subparagraph (B) shall not apply in any prosecution under
     section 274A(f)(1).
       (f) Construction.--This subtitle shall not affect the
     authority of the Attorney General under any other law
     (including section 274A(d)(4)) to conduct demonstration
     projects in relation to section 274A.

     SEC. 403. PROCEDURES FOR PARTICIPANTS IN PILOT PROGRAMS.

       (a) Basic Pilot Program.--A person or other entity that
     elects to participate in the basic pilot program described in
     this subsection agrees to conform to the following procedures
     in the case of the hiring (or recruitment or referral) for
     employment in the United States of each individual covered by
     the election:
       (1) Provision of additional information.--The person or
     entity shall obtain from the individual (and the individual
     shall provide) and shall record on the I-9 or similar form--
       (A) the individual's social security account number, if the
     individual has been issued such a number, and
       (B) if the individual does not attest to United States
     citizenship under section 274A(b)(2), such identification or
     authorization number established by the Immigration and
     Naturalization Service for the alien as the Attorney General
     shall specify,
     and shall retain the original form and make it available for
     inspection for the period and in the manner required of I-9
     forms under section 274A(b)(3).
       (2) Presentation of documentation.--
       (A) In general.--The person or other entity, and the
     individual whose identity and employment eligibility are
     being confirmed, shall, subject to subparagraph (B), fulfill
     the requirements of section 274A(b) with the following
     modifications:
       (i) A document referred to in section 274A(b)(1)(B)(ii) (as
     redesignated by section 412(a) of this division) must be
     designated by the Attorney General as suitable for the
     purpose of identification in a pilot program.
       (ii) A document referred to in section 274A(b)(1)(D) must
     contain a photograph of the individual.
       (iii) The person or other entity has complied with the
     requirements of section 274A(b)(1) with respect to
     examination of a document if the document reasonably appears
     on its face to be genuine and it reasonably appears to
     pertain to the individual whose identity and work eligibility
     is being confirmed.
       (B) Limitation of requirement to examine documentation.--If
     the Attorney General finds that a pilot program would
     reliably determine with respect to an individual whether--
       (i) the person with the identity claimed by the individual
     is authorized to work in the United States, and
       (ii) the individual is claiming the identity of another
     person,
     if a person or entity could fulfill the requirement to
     examine documentation contained in subparagraph (A) of
     section 274A(b)(1) by examining a document specified in
     either subparagraph (B) or (D) of such section, the Attorney
     General may provide that, for purposes of such requirement,
     only such a document need be examined. In such case, any
     reference in section 274A(b)(1)(A) to a verification that an
     individual is not an unauthorized alien shall be deemed to be
     a verification of the individual's identity.
       (3) Seeking confirmation.--
       (A) In general.--The person or other entity shall make an
     inquiry, as provided in section 404(a)(1) of this division,
     using the confirmation system to seek confirmation of the
     identity and employment eligibility of an individual, by not
     later than the end of 3 working days (as specified by the
     Attorney General) after the date of the hiring (or
     recruitment or referral, as the case may be).
       (B) Extension of time period.--If the person or other
     entity in good faith attempts to make an inquiry during such
     3 working days and the confirmation system has registered
     that not all inquiries were received during such time, the
     person or entity can make an inquiry in the first subsequent
     working day in which the confirmation system registers that
     it has received all inquiries. If the confirmation system
     cannot receive inquiries at all times during a day, the
     person or entity merely has to assert that the entity
     attempted to make the inquiry on that day for the previous
     sentence to apply to such an inquiry, and does not have to
     provide any additional proof concerning such inquiry.
       (4) Confirmation or nonconfirmation.--
       (A) Confirmation upon initial inquiry.--If the person or
     other entity receives an appropriate confirmation of an
     individual's identity and work eligibility under the
     confirmation system within the time period specified under
     section 404(b) of this division, the person or entity shall
     record on the I-9 or similar form an appropriate code that is
     provided under the system and that indicates a final
     confirmation of such identity and work eligibility of the
     individual.
       (B) Nonconfirmation upon initial inquiry and secondary
     verification.--
       (i) Nonconfirmation.--If the person or other entity
     receives a tentative nonconfirmation of an individual's
     identity or work eligibility under the confirmation system
     within the time period specified under 404(b) of this
     division, the person or entity shall so inform the individual
     for whom the confirmation is sought.
       (ii) No contest.--If the individual does not contest the
     nonconfirmation within the time period specified in section
     404(c) of this division, the nonconfirmation shall be
     considered final. The person or entity shall then record on
     the I-9 or similar form an appropriate code which has been
     provided under the system to indicate a tentative
     nonconfirmation.
       (iii) Contest.--If the individual does contest the
     nonconfirmation, the individual shall utilize the process for
     secondary verification provided under section 404(c) of this
     division. The nonconfirmation will remain tentative until a
     final confirmation or nonconfirmation is provided by the
     confirmation system within the time period specified in such
     section. In no case shall an employer terminate employment of
     an individual because of a failure of the individual to have
     identity and work eligibility confirmed under this section
     until a nonconfirmation becomes final. Nothing in this clause
     shall apply to a termination of employment for any reason
     other than because of such a failure.
       (iv) Recording of conclusion on form.--If a final
     confirmation or nonconfirmation is provided by the
     confirmation system under section 404(c) of this division
     regarding an individual, the person or entity shall record on
     the I-9 or similar form an appropriate code that is provided
     under the system and that indicates a confirmation or
     nonconfirmation of identity and work eligibility of the
     individual.
       (C) Consequences of nonconfirmation.--
       (i) Termination or notification of continued employment.--
     If the person or other entity has received a final
     nonconfirmation regarding an individual under subparagraph
     (B), the person or entity may terminate employment (or
     recruitment or referral) of the individual. If the person or
     entity does not terminate employment (or recruitment or
     referral) of the individual, the person or entity shall
     notify the Attorney General of such fact through the
     confirmation system or in such other manner as the Attorney
     General may specify.
       (ii) Failure to notify.--If the person or entity fails to
     provide notice with respect to an individual as required
     under clause (i), the failure is deemed to constitute a
     violation of section 274A(a)(1)(B) with respect to that
     individual and the applicable civil monetary penalty under
     section 274A(e)(5) shall be (notwithstanding the amounts
     specified in such section) no less than $500 and no more than
     $1,000 for each individual with respect to whom such
     violation occurred.
       (iii) Continued employment after final nonconfirmation.--If
     the person or other entity continues to employ (or to recruit
     or refer) an individual after receiving final
     nonconfirmation, a rebuttable presumption is created that the
     person or entity has violated section 274A(a)(1)(A). The
     previous sentence shall not apply in any prosecution under
     section 274A(f)(1).
       (b) Citizen Attestation Pilot Program.--
       (1) In general.--Except as provided in paragraphs (3)
     through (5), the procedures applicable under the citizen
     attestation pilot program under this subsection shall be the
     same procedures as those under the basic pilot program under
     subsection (a).
       (2) Restrictions.--
       (A) State document requirement to participate in pilot
     program.--The Attorney General may not provide for the
     operation of the citizen attestation pilot program in a State
     unless each driver's license or similar identification
     document described in section 274A(b)(1)(D)(i) issued by the
     State--
       (i) contains a photograph of the individual involved, and
       (ii) has been determined by the Attorney General to have
     security features, and to have been issued through
     application and issuance procedures, which make such document
     sufficiently resistant to counterfeiting, tampering, and
     fraudulent use that it is a reliable means of identification
     for purposes of this section.
       (B) Authorization to limit employer participation.--The
     Attorney General may restrict the number of persons or other
     entities that may elect to participate in the citizen
     attestation pilot program under this subsection as the
     Attorney General determines to be necessary to produce a
     representative sample of employers and to reduce the
     potential impact of fraud.
       (3) No confirmation required for certain individuals
     attesting to u.s. citizenship.--In the case of a person or
     other entity hiring (or recruiting or referring) an
     individual under the citizen attestation pilot program, if
     the individual attests to United States citizenship (under
     penalty of perjury on an I-9 or similar form which form
     states on its face the criminal and other penalties provided
     under law for a false representation of United States
     citizenship)--
       (A) the person or entity may fulfill the requirement to
     examine documentation contained in subparagraph (A) of
     section 274A(b)(1) by examining a document specified in
     either subparagraph (B)(i) or (D) of such section; and
       (B) the person or other entity is not required to comply
     with respect to such individual with the procedures described
     in paragraphs (3) and (4) of subsection (a), but only if the
     person or entity retains the form and makes it available for
     inspection in the same manner as in the case of an I-9 form
     under section 274A(b)(3).
       (4) Waiver of document presentation requirement in certain
     cases.--
       (A) In general.--In the case of a person or entity that
     elects, in a manner specified by the Attorney General
     consistent with subparagraph (B), to participate in the pilot
     program under

[[Page H11818]]

     this paragraph, if an individual being hired (or recruited or
     referred) attests (in the manner described in paragraph (3))
     to United States citizenship and the person or entity retains
     the form on which the attestation is made and makes it
     available for inspection in the same manner as in the case of
     an I-9 form under section 274A(b)(3), the person or entity is
     not required to comply with the procedures described in
     section 274A(b).
       (B) Restriction.--The Attorney General shall restrict the
     election under this paragraph to no more than 1,000 employers
     and, to the extent practicable, shall select among employers
     seeking to make such election in a manner that provides for
     such an election by a representative sample of employers.
       (5) Nonreviewable determinations.--The determinations of
     the Attorney General under paragraphs (2) and (4) are within
     the discretion of the Attorney General and are not subject to
     judicial or administrative review.
       (c) Machine-Readable-Document Pilot Program.--
       (1) In general.--Except as provided in paragraph (3), the
     procedures applicable under the machine-readable-document
     pilot program under this subsection shall be the same
     procedures as those under the basic pilot program under
     subsection (a).
       (2) State document requirement to participate in pilot
     program.--The Attorney General may not provide for the
     operation of the machine-readable-document pilot program in a
     State unless driver's licenses and similar identification
     documents described in section 274A(b)(1)(D)(i) issued by the
     State include a machine-readable social security account
     number.
       (3) Use of machine-readable documents.--If the individual
     whose identity and employment eligibility must be confirmed
     presents to the person or entity hiring (or recruiting or
     referring) the individual a license or other document
     described in paragraph (2) that includes a machine-readable
     social security account number, the person or entity must
     make an inquiry through the confirmation system by using a
     machine-readable feature of such document. If the individual
     does not attest to United States citizenship under section
     274A(b)(2), the individual's identification or authorization
     number described in subsection (a)(1)(B) shall be provided as
     part of the inquiry.
       (d) Protection from Liability for Actions Taken on the
     Basis of Information Provided by the Confirmation System.--No
     person or entity participating in a pilot program shall be
     civilly or criminally liable under any law for any action
     taken in good faith reliance on information provided
     through the confirmation system.

     SEC. 404. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

       (a) In General.--The Attorney General shall establish a
     pilot program confirmation system through which the Attorney
     General (or a designee of the Attorney General, which may be
     a nongovernmental entity)--
       (1) responds to inquiries made by electing persons and
     other entities (including those made by the transmittal of
     data from machine-readable documents under the machine-
     readable pilot program) at any time through a toll-free
     telephone line or other toll-free electronic media concerning
     an individual's identity and whether the individual is
     authorized to be employed, and
       (2) maintains records of the inquiries that were made, of
     confirmations provided (or not provided), and of the codes
     provided to inquirers as evidence of their compliance with
     their obligations under the pilot programs.

     To the extent practicable, the Attorney General shall seek to
     establish such a system using one or more nongovernmental
     entities.
       (b) Initial Response.--The confirmation system shall
     provide confirmation or a tentative nonconfirmation of an
     individual's identity and employment eligibility within 3
     working days of the initial inquiry. If providing
     confirmation or tentative nonconfirmation, the confirmation
     system shall provide an appropriate code indicating such
     confirmation or such nonconfirmation.
       (c) Secondary Verification Process in Case of Tentative
     Nonconfirmation.--In cases of tentative nonconfirmation, the
     Attorney General shall specify, in consultation with the
     Commissioner of Social Security and the Commissioner of the
     Immigration and Naturalization Service, an available
     secondary verification process to confirm the validity of
     information provided and to provide a final confirmation or
     nonconfirmation within 10 working days after the date of the
     tentative nonconfirmation. When final confirmation or
     nonconfirmation is provided, the confirmation system shall
     provide an appropriate code indicating such confirmation or
     nonconfirmation.
       (d) Design and Operation of System.--The confirmation
     system shall be designed and operated--
       (1) to maximize its reliability and ease of use by persons
     and other entities making elections under section 402(a) of
     this division consistent with insulating and protecting the
     privacy and security of the underlying information;
       (2) 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
     received;
       (3) with appropriate administrative, technical, and
     physical safeguards to prevent unauthorized disclosure of
     personal information; and
       (4) to have reasonable safeguards against the system's
     resulting in unlawful discriminatory practices based on
     national origin or citizenship status, including--
       (A) the selective or unauthorized use of the system to
     verify eligibility;
       (B) the use of the system prior to an offer of employment;
     or
       (C) the exclusion of certain individuals from consideration
     for employment as a result of a perceived likelihood that
     additional verification will be required, beyond what is
     required for most job applicants.
       (e) Responsibilities of the Commissioner of Social
     Security.--As part of the confirmation system, the
     Commissioner of Social Security, in consultation with the
     entity responsible for administration of the system, shall
     establish a reliable, secure method, which, within the time
     periods specified under subsections (b) and (c), compares the
     name and social security account number provided in an
     inquiry against such information maintained by the
     Commissioner in order to confirm (or not confirm) the
     validity of the information provided regarding an individual
     whose identity and employment eligibility must be confirmed,
     the correspondence of the name and number, and whether the
     individual has presented a social security account number
     that is not valid for employment. The Commissioner shall not
     disclose or release social security information (other than
     such confirmation or nonconfirmation).
       (f) Responsibilities of the Commissioner of the Immigration
     and Naturalization Service.--As part of the confirmation
     system, the Commissioner of the Immigration and
     Naturalization Service, in consultation with the entity
     responsible for administration of the system, shall establish
     a reliable, secure method, which, within the time periods
     specified under subsections (b) and (c), compares the name
     and alien identification or authorization number described in
     section 403(a)(1)(B) of this division which are provided in
     an inquiry against such information maintained by the
     Commissioner in order to confirm (or not confirm) the
     validity of the information provided, the correspondence of
     the name and number, and whether the alien is authorized to
     be employed in the United States.
       (g) Updating Information.--The Commissioners of Social
     Security and the Immigration and Naturalization Service shall
     update their information in a manner that promotes the
     maximum accuracy and shall provide a process for the prompt
     correction of erroneous information, including instances in
     which it is brought to their attention in the secondary
     verification process described in subsection (c).
       (h) Limitation on Use of the Confirmation System and Any
     Related Systems.--
       (1) In general.--Notwithstanding any other provision of
     law, nothing in this subtitle shall be construed to permit or
     allow any department, bureau, or other agency of the United
     States Government to utilize any information, data base, or
     other records assembled under this subtitle for any other
     purpose other than as provided for under a pilot program.
       (2) No national identification card.--Nothing in this
     subtitle shall be construed to authorize, directly or
     indirectly, the issuance or use of national identification
     cards or the establishment of a national identification card.

     SEC. 405. REPORTS.

       The Attorney General shall submit to the Committees on the
     Judiciary of the House of Representatives and of the Senate
     reports on the pilot programs within 3 months after the end
     of the third and fourth years in which the programs are in
     effect. Such reports shall--
       (1) assess the degree of fraudulent attesting of United
     States citizenship,
       (2) include recommendations on whether or not the pilot
     programs should be continued or modified, and
       (3) assess the benefits of the pilot programs to employers
     and the degree to which they assist in the enforcement of
     section 274A.
      Subtitle B--Other Provisions Relating to Employer Sanctions

     SEC. 411. LIMITING LIABILITY FOR CERTAIN TECHNICAL VIOLATIONS
                   OF PAPERWORK REQUIREMENTS.

       (a) In General.--Section 274A(b) (8 U.S.C. 1324a(b)) is
     amended by adding at the end the following new paragraph:
       ``(6) Good faith compliance.--
       ``(A) In general.--Except as provided in subparagraphs (B)
     and (C), a person or entity is considered to have complied
     with a requirement of this subsection notwithstanding a
     technical or procedural failure to meet such requirement if
     there was a good faith attempt to comply with the
     requirement.
       ``(B) Exception if failure to correct after notice.--
     Subparagraph (A) shall not apply if--
       ``(i) the Service (or another enforcement agency) has
     explained to the person or entity the basis for the failure,
       ``(ii) the person or entity has been provided a period of
     not less than 10 business days (beginning after the date of
     the explanation) within which to correct the failure, and
       ``(iii) the person or entity has not corrected the failure
     voluntarily within such period.
       ``(C) Exception for pattern or practice violators.--
     Subparagraph (A) shall not apply to a person or entity that
     has or is engaging in a pattern or practice of violations of
     subsection (a)(1)(A) or (a)(2).''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to failures occurring on or after the date of the
     enactment of this Act.

     SEC. 412. PAPERWORK AND OTHER CHANGES IN THE EMPLOYER
                   SANCTIONS PROGRAM.

       (a) Reducing the Number of Documents Accepted for
     Employment Verification.--Section 274A(b)(1) (8 U.S.C.
     1324a(b)(1)) is amended--
       (1) in subparagraph (B)--
       (A) by striking clauses (ii) through (iv),
       (B) in clause (v), by striking ``or other alien
     registration card, if the card'' and inserting ``, alien
     registration card, or other document designated by the
     Attorney General, if the document'' and redesignating such
     clause as clause (ii), and

[[Page H11819]]

       (C) in clause (ii), as so redesignated--
       (i) in subclause (I), by striking ``or'' before ``such
     other personal identifying information'' and inserting
     ``and'',
       (ii) by striking ``and'' at the end of subclause (I),
       (iii) by striking the period at the end of subclause (II)
     and inserting ``, and'', and
       (iv) by adding at the end the following new subclause:

       ``(III) contains security features to make it resistant to
     tampering, counterfeiting, and fraudulent use.'';

       (2) in subparagraph (C)--
       (A) by adding ``or'' at the end of clause (i),
       (B) by striking clause (ii), and
       (C) by redesignating clause (iii) as clause (ii); and
       (3) by adding at the end the following new subparagraph:
       ``(E) Authority to prohibit use of certain documents.--If
     the Attorney General finds, by regulation, that any document
     described in subparagraph (B), (C), or (D) as establishing
     employment authorization or identity does not reliably
     establish such authorization or identity or is being used
     fraudulently to an unacceptable degree, the Attorney General
     may prohibit or place conditions on its use for purposes of
     this subsection.''.
       (b) Reduction of Paperwork for Certain Employees.--Section
     274A(a) (8 U.S.C. 1324a(a)) is amended by adding at the end
     the following new paragraph:
       ``(6) Treatment of documentation for certain employees.--
       ``(A) In general.--For purposes of this section, if--
       ``(i) an individual is a member of a collective-bargaining
     unit and is employed, under a collective bargaining agreement
     entered into between one or more employee organizations and
     an association of two or more employers, by an employer that
     is a member of such association, and
       ``(ii) within the period specified in subparagraph (B),
     another employer that is a member of the association (or an
     agent of such association on behalf of the employer) has
     complied with the requirements of subsection (b) with respect
     to the employment of the individual,
     the subsequent employer shall be deemed to have complied with
     the requirements of subsection (b) with respect to the hiring
     of the employee and shall not be liable for civil penalties
     described in subsection (e)(5).
       ``(B) Period.--The period described in this subparagraph is
     3 years, or, if less, the period of time that the individual
     is authorized to be employed in the United States.
       ``(C) Liability.--
       ``(i) In general.--If any employer that is a member of an
     association hires for employment in the United States an
     individual and relies upon the provisions of subparagraph (A)
     to comply with the requirements of subsection (b) and the
     individual is an alien not authorized to work in the United
     States, then for the purposes of paragraph (1)(A), subject to
     clause (ii), the employer shall be presumed to have known at
     the time of hiring or afterward that the individual was an
     alien not authorized to work in the United States.
       ``(ii) Rebuttal of presumption.--The presumption
     established by clause (i) may be rebutted by the employer
     only through the presentation of clear and convincing
     evidence that the employer did not know (and could not
     reasonably have known) that the individual at the time of
     hiring or afterward was an alien not authorized to work in
     the United States.
       ``(iii) Exception.--Clause (i) shall not apply in any
     prosecution under subsection (f)(1).''.
       (c) Elimination of Dated Provisions.--Section 274A (8
     U.S.C. 1324a) is amended by striking subsections (i) through
     (n).
       (d) Clarification of Application to Federal Government.--
     Section 274A(a) (8 U.S.C. 1324a(a)), as amended by subsection
     (b), is amended by adding at the end the following new
     paragraph:
       ``(7) Application to federal government.--For purposes of
     this section, the term `entity' includes an entity in any
     branch of the Federal Government.''.
       (e) Effective Dates.--
       (1) The amendments made by subsection (a) shall apply with
     respect to hiring (or recruitment or referral) occurring on
     or after such date (not later than 12 months after the date
     of the enactment of this Act) as the Attorney General shall
     designate.
       (2) The amendment made by subsection (b) shall apply to
     individuals hired on or after 60 days after the date of the
     enactment of this Act.
       (3) The amendment made by subsection (c) shall take effect
     on the date of the enactment of this Act.
       (4) The amendment made by subsection (d) applies to hiring
     occurring before, on, or after the date of the enactment of
     this Act, but no penalty shall be imposed under subsection
     (e) or (f) of section 274A of the Immigration and Nationality
     Act for such hiring occurring before such date.

     SEC. 413. REPORT ON ADDITIONAL AUTHORITY OR RESOURCES NEEDED
                   FOR ENFORCEMENT OF EMPLOYER SANCTIONS
                   PROVISIONS.

       (a) In General.--Not later than 1 year after the date of
     the enactment of this Act, the Attorney General shall submit
     to the Committees on the Judiciary of the House of
     Representatives and of the Senate a report on any additional
     authority or resources needed--
       (1) by the Immigration and Naturalization Service in order
     to enforce section 274A of the Immigration and Nationality
     Act, or
       (2) by Federal agencies in order to carry out the Executive
     Order of February 13, 1996 (entitled ``Economy and Efficiency
     in Government Procurement Through Compliance with Certain
     Immigration and Naturalization Act Provisions'') and to
     expand the restrictions in such order to cover agricultural
     subsidies, grants, job training programs, and other Federally
     subsidized assistance programs.
       (b) Reference to Increased Authorization of
     Appropriations.--For provision increasing the authorization
     of appropriations for investigators for violations of
     sections 274 and 274A of the Immigration and Nationality Act,
     see section 131 of this division.

     SEC. 414. REPORTS ON EARNINGS OF ALIENS NOT AUTHORIZED TO
                   WORK.

       (a) In General.--Subsection (c) of section 290 (8 U.S.C.
     1360) is amended to read as follows:
       ``(c)(1) Not later than 3 months after the end of each
     fiscal year (beginning with fiscal year 1996), the
     Commissioner of Social Security shall report to the
     Committees on the Judiciary of the House of Representatives
     and the Senate on the aggregate quantity of social security
     account numbers issued to aliens not authorized to be
     employed, with respect to which, in such fiscal year,
     earnings were reported to the Social Security Administration.
       ``(2) If earnings are reported on or after January 1, 1997,
     to the Social Security Administration on a social security
     account number issued to an alien not authorized to work in
     the United States, the Commissioner of Social Security shall
     provide the Attorney General with information regarding the
     name and address of the alien, the name and address of the
     person reporting the earnings, and the amount of the
     earnings. The information shall be provided in an electronic
     form agreed upon by the Commissioner and the Attorney
     General.''.
       (b) Report on Fraudulent Use of Social Security Account
     Numbers.--The Commissioner of Social Security shall transmit
     to the Attorney General, by not later than 1 year after the
     date of the enactment of this Act, a report on the extent to
     which social security account numbers and cards are used by
     aliens for fraudulent purposes.

     SEC. 415. AUTHORIZING MAINTENANCE OF CERTAIN INFORMATION ON
                   ALIENS.

       Section 264 (8 U.S.C. 1304) is amended by adding at the end
     the following new subsection:
       ``(f) Notwithstanding any other provision of law, the
     Attorney General is authorized to require any alien to
     provide the alien's social security account number for
     purposes of inclusion in any record of the alien maintained
     by the Attorney General or the Service.''.

     SEC. 416. SUBPOENA AUTHORITY.

       Section 274A(e)(2) (8 U.S.C. 1324a(e)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by striking the period at the end of subparagraph (B)
     and inserting ``, and''; and
       (3) by inserting after subparagraph (B) the following:
       ``(C) immigration officers designated by the Commissioner
     may compel by subpoena the attendance of witnesses and the
     production of evidence at any designated place prior to the
     filing of a complaint in a case under paragraph (2).''.
      Subtitle C--Unfair Immigration-Related Employment Practices

     SEC. 421. TREATMENT OF CERTAIN DOCUMENTARY PRACTICES AS
                   UNFAIR IMMIGRATION-RELATED EMPLOYMENT
                   PRACTICES.

       (a) In General.--Section 274B(a)(6) (8 U.S.C. 1324b(a)(6))
     is amended--
       (1) by striking ``For purposes of paragraph (1), a'' and
     inserting ``A''; and
       (2) by striking ``relating to the hiring of individuals''
     and inserting the following: ``if made for the purpose or
     with the intent of discriminating against an individual in
     violation of paragraph (1)''.
       (b) Effective Date.--The amendments made by subsection (a)
     shall apply to requests made on or after the date of the
     enactment of this Act.



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G. Wellington Smith, P.C.
1600 Nueces St.,
Austin, TX 78701

Phone: (512) 476-7163
Fax: (512) 476-3869