S. 4620

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4620 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
2d Session
S. 4620

To permanently establish the E-Verify employment eligibility 
verification system, to mandate the use of E-Verify by all employers, 
and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 21, 2026

Mrs. Britt (for herself, Mr. Cotton, Mr. Budd, Mr. Lankford, Mr. 
Graham, Mr. Tuberville, Mrs. Capito, Mr. Cruz, Mrs. Blackburn, and Mrs. 
Hyde-Smith) introduced the following bill; which was read twice and 
referred to the Committee on the Judiciary

_______________________________________________________________________

A BILL

To permanently establish the E-Verify employment eligibility 
verification system, to mandate the use of E-Verify by all employers, 
and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Mandatory E-Verify 
Act of 2026''.
(b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Establishment of permanent E-Verify.
Sec. 3. Mandatory E-Verify for all employers.
Sec. 4. Penalty for failure to use E-Verify.
Sec. 5. Enhanced penalties for unauthorized employment.
Sec. 6. E-Verify self-check.
Sec. 7. E-Verify process.
Sec. 8. Good faith defense.
Sec. 9. Preemption.
Sec. 10. Access to information.
Sec. 11. Fraud and misuse of documents.
Sec. 12. Fraud prevention.
Sec. 13. Protection of Social Security Administration programs.
Sec. 14. Inspector General audits.
Sec. 15. Recruitment, referral, and continuation of employment.
Sec. 16. Definitions.

SEC. 2. ESTABLISHMENT OF PERMANENT E-VERIFY.

(a) Establishment of Permanent E-Verify.--Section 274A(d) of the 
Immigration and Nationality Act (8 U.S.C. 1324a(d)) is amended to read 
as follows:
``(d) Establishment of Permanent E-Verify.--
``(1) In general.--On the date of the enactment of the 
Mandatory E-Verify Act of 2026, the Secretary of Homeland 
Security shall permanently establish E-Verify, based on the E-
Verify pilot program implemented under section 401(c)(1) of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 
1996 (8 U.S.C. 1324a note), in a manner that--
``(A) responds to inquiries made by persons through 
a website, mobile application, or other toll-free 
electronic media, as determined by the Secretary, 
concerning--
``(i) an individual's identity; and
``(ii) whether such individual is 
authorized to be employed in the United States; 
and
``(B) maintains records of--
``(i) the inquiries that were made;
``(ii) the verifications that were provided 
(or not provided); and
``(iii) the codes provided to inquirers as 
evidence of their compliance with their 
obligations under E-Verify.
``(2) Responses.--
``(A) Initial responses.--E-Verify shall provide 
confirmation or a tentative nonconfirmation of an 
individual's identity and employment eligibility not 
later than 3 business days after the initial inquiry. 
If providing confirmation or tentative nonconfirmation, 
E-Verify shall provide an appropriate code indicating 
such confirmation or such nonconfirmation.
``(B) Secondary confirmation process in case of 
tentative nonconfirmation.--
``(i) In general.--In cases of tentative 
nonconfirmation, the Secretary shall specify, 
in consultation with the Commissioner of Social 
Security, an available secondary verification 
process to confirm the validity of information 
provided and to provide a final confirmation or 
nonconfirmation not later than 10 business days 
after the date on which the notice of the 
tentative nonconfirmation is provided by the 
Secretary.
``(ii) Extensions.--The Secretary, in 
consultation with the Commissioner--
``(I) may extend the deadline under 
clause (i) once, on a case-by-case 
basis, for a period of 10 business 
days; and
``(II) if such deadline is 
extended, shall document such extension 
within the verification system.
``(iii) Notifications.--The Secretary, in 
consultation with the Commissioner, shall 
immediately notify the employee and employer of 
any tentative nonconfirmation under clause (i), 
which shall include--
``(I) guidance to the prospective 
employee regarding the secondary 
verification process; and
``(II) any extension granted under 
clause (ii).
``(iv) Process.--The Secretary, in 
consultation with the Commissioner, shall--
``(I) create a standard process for 
extensions and notifications under this 
paragraph; and
``(II) make a description of such 
process available to the public.
``(v) Code.--When final confirmation or 
nonconfirmation is provided, the verification 
system shall provide an appropriate code 
indicating such confirmation or 
nonconfirmation.
``(3) Design and operation of e-verify.--E-Verify shall be 
designed and operated--
``(A) 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 information;
``(B) 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;
``(C) to prevent unauthorized disclosure of 
personal information through appropriate 
administrative, technical, and physical safeguards;
``(D) to include reasonable safeguards against 
unlawful discriminatory practices based on national 
origin or citizenship status, including--
``(i) the selective or unauthorized use of 
E-Verify to verify eligibility; or
``(ii) 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) to maximize the prevention of identity theft 
use in the system;
``(F) to limit the subjects of verification to--
``(i) individuals hired, referred, or 
recruited, in accordance with paragraph (1) or 
(4) of subsection (b);
``(ii) employees and prospective employees, 
in accordance with paragraph (1), (2), (3), or 
(4) of subsection (b); and
``(iii) individuals seeking to confirm 
their own employment eligibility on a voluntary 
basis; and
``(G) to confirm identity and employment 
authorization through verification and comparison of 
records maintained by the Department of Homeland 
Security, other Federal departments, States, or 
outlying possessions of the United States, as 
determined necessary by the Secretary of Homeland 
Security, including--
``(i) records maintained by the Social 
Security Administration;
``(ii) passports, passport cards, and visa 
records (including photographs) maintained by 
the Department of State;
``(iii) notwithstanding section 6103 of the 
Internal Revenue Code of 1986 or any other 
provision of law, Employer Identification 
Number records maintained by the Internal 
Revenue Service;
``(iv) State driver's license or identity 
card information (including photographs) 
maintained by the Department of Motor Vehicles 
of a State or outlying possession; and
``(v) any other Federal records that the 
Secretary of Homeland Security determines to be 
relevant and necessary for such purpose.
``(4) Responsibilities of commissioner of social 
security.--
``(A) In general.--The Commissioner of Social 
Security, in consultation with the Secretary of 
Homeland Security (and any designee of the Secretary 
selected to establish and administer the verification 
system), shall establish a reliable, secure, electronic 
method within E-Verify, which, within the periods 
specified in subparagraphs (A) and (B) of paragraph 
(2), compares the name and Social Security account 
number provided in an inquiry against such information 
maintained by the Commissioner in order to validate (or 
not validate)--
``(i) the information provided regarding 
each individual whose identity and employment 
eligibility is being confirmed;
``(ii) the correspondence of the name and 
number; and
``(iii) whether the individual has 
presented a Social Security account number that 
is not valid for employment.
``(B) Limitation on disclosures.--The Commissioner 
may not disclose or release Social Security information 
(other than such confirmation or nonconfirmation) under 
E-Verify except as provided for in this section or 
section 205(c)(2)(I) of the Social Security Act (42 
U.S.C. 405(c)(2)(I)).
``(5) Responsibilities of secretary of homeland security.--
The Secretary of Homeland Security, in consultation with any 
designee of the Secretary selected to establish and administer 
the verification system, shall establish a reliable, secure, 
electronic method within E-Verify, which, within the periods 
specified in subparagraphs (A) and (B) of paragraph (2), 
compares the name and alien identification or authorization 
number (or any other information as determined relevant by the 
Secretary) which are provided in an inquiry against such 
information maintained or accessed by the Secretary--
``(A) to validate (or not validate)--
``(i) the information provided regarding 
each individual whose identity and employment 
eligibility is being confirmed;
``(ii) the correspondence of the name and 
number; and
``(iii) whether the alien is authorized to 
be employed in the United States; or
``(B) to the extent that the Secretary determines 
to be feasible and appropriate, to determine whether 
the records available to the Secretary verify the 
identity or status of a national of the United States.
``(6) Responsibilities of the secretary of state.--The 
Secretary of State, in consultation with the Secretary of 
Homeland Security and any designee of the Secretary of Homeland 
Security selected to establish and administer the verification 
system, shall establish a reliable, secure method, that 
compares and provides, within the time periods required under 
paragraphs (2) and (3), a confirmation or nonconfirmation of 
the name and passport, passport card, or visa number provided 
in an inquiry against such information maintained by the 
Secretary of State in order to confirm (or to not confirm) the 
information provided regarding an individual whose identity and 
employment eligibility must be confirmed.
``(7) Updating information.--The Commissioner of Social 
Security and the Secretary of Homeland Security shall 
immediately, and not later than 3 business days after receiving 
updated information, 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 paragraph (2)(B).
``(8) No national identification card.--Nothing in this 
subsection, or in the Mandatory E-Verify Act of 2026, may be 
construed to directly or indirectly authorize--
``(A) the issuance or use of national 
identification cards; or
``(B) the establishment of a national 
identification card.
``(9) Remedies.--
``(A) In general.--If an individual alleges that 
the individual would not have been dismissed from a job 
absent an error of the verification mechanism, the 
individual may seek--
``(i) compensation only through the 
mechanism of chapter 171 of title 28, United 
States Code (commonly known as the `Federal 
Tort Claims Act'); and
``(ii) injunctive relief to correct such 
error.
``(B) Class actions.--No class action may be 
brought under this subsection.''.
(b) Conforming Amendments.--Section 401 of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
is amended--
(1) by amending the section heading to read as follows: 
``e-verify'';
(2) in subsection (a), by striking ``3 pilot programs of 
employment eligibility confirmation'' and inserting ``E-
Verify''; and
(3) in subsection (b)--
(A) in the subsection heading, by striking ``; 
Termination''; and
(B) by striking ``Unless the Congress otherwise 
provides, the Secretary of Homeland Security shall 
terminate a pilot program on September 30, 2015.''.
(c) Transition From Pilot to Permanent E-Verify Program.--
(1) In general.--Subtitle A of title IV of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 1996 (8 
U.S.C. 1324a note) is repealed.
(2) References.--Any reference in any Federal law, 
Executive order, rule, regulation, or delegation of authority, 
or any document of, or pertaining to, the Department of 
Homeland Security, the Department of Justice, or the Social 
Security Administration, to the employment eligibility 
confirmation system established under section 404 of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 
1996 (8 U.S.C. 1324a note) is deemed to refer to E-Verify, 
which has been permanently established pursuant to subsection 
(a).
(3) Clerical amendment.--The table of contents in section 
1(d) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (division C of Public Law 104-208) 
is amended by striking the items relating to subtitle A of 
title IV.
(4) Effective date.--This subsection shall take effect on 
the date that is 90 days after the date of the enactment of 
this Act.
(d) Funding.--
(1) Transfers.--On the first day of each fiscal year 
beginning after the date of the enactment of this Act, the 
Secretary of the Treasury shall transfer $100,000,000 in 
unobligated funds from the general fund of the Treasury to the 
Department of Homeland Security, which shall be used to carry 
out E-Verify.
(2) Authorization of appropriations.--In addition to the 
amounts transferred pursuant to paragraph (1), there are 
authorized to be appropriated $100,000,000, for fiscal year 
2027, and for each successive fiscal year, to carry out E-
Verify.
(e) Reporting Requirements.--
(1) Defined term.--In this subsection, the term 
``appropriate congressional committees'' means--
(A) the Committee on the Judiciary of the Senate;
(B) the Committee on Homeland Security and 
Governmental Affairs of the Senate;
(C) the Committee on the Judiciary of the House of 
Representatives; and
(D) the Committee on Homeland Security of the House 
of Representatives.
(2) Permanent e-verify initial report.--Not later than 180 
days after the date of the enactment of this Act, the President 
shall submit a report to the appropriate congressional 
committees describing the implementation of the permanent E-
Verify Program, including--
(A) any significant changes made from the E-Verify 
Pilot Program in existence on the day before the date 
of the enactment of this Act;
(B) any additional planned changes to streamline or 
improve the permanent E-Verify Program; and
(C) a classified appendix, if necessary, to discuss 
sensitive topics, such as measures to prevent 
unauthorized disclosure of personal information.
(3) Permanent e-verify annual report.--Not later than 1 
year after the submission of the report under paragraph (2), 
and annually thereafter, the President shall submit a report to 
the appropriate congressional committees, the Committee on 
Appropriations of the Senate, and the Committee on 
Appropriations of the House of Representatives describing the 
status of the permanent E-Verify Program, including--
(A) statistics on use, confirmations, tentative and 
final nonconfirmations, and response times; and
(B) information regarding the costs of the program, 
including an accounting of any increases in costs that 
occurred during the previous year.

SEC. 3. MANDATORY E-VERIFY FOR ALL EMPLOYERS.

(a) In General.--Any person or other entity hiring, recruiting, or 
referring an individual for employment in the United States shall 
utilize E-Verify in accordance with this section.
(b) Implementation Timeline.--
(1) Hiring.--Except as provided in paragraphs (3) and (4), 
an employer shall use E-Verify whenever hiring an individual 
for employment in the United States beginning--
(A) on the date that is 6 months after the date of 
the enactment of this Act if the employer has 10,000 or 
more employees in the United States on such date of 
enactment;
(B) on the date that is 9 months after the date of 
the enactment of this Act if the employer has at least 
500 employees in the United States and fewer than 
10,000 employees in the United States on such date of 
enactment;
(C) on the date that is 1 year after the date of 
the enactment of this Act if the employer has at least 
20 employees in the United States and fewer than 500 
employees in the United States on such date of 
enactment;
(D) on the date that is 18 months after the date of 
the enactment of this Act if the employer has at least 
1 employee in the United States and fewer than 20 
employees in the United States on such date of 
enactment; and
(E) on the date that is 1 year after the date of 
the enactment of this Act for any new employer.
(2) Recruiting and referring.--Except as provided in 
paragraph (3), the requirement under subsection (a) shall apply 
to a person or other entity recruiting or referring an 
individual for employment in the United States beginning on the 
date that is 1 year after the date of the enactment of this 
Act.
(3) Agricultural labor or services.--Notwithstanding 
paragraph (1), the requirement under subsection (a) shall not 
apply to the verification of employment eligibility for 
employees performing agricultural labor or services until on or 
after the date that is 18 months after the date of the 
enactment of this Act.
(4) Critical infrastructure.--The Secretary of Homeland 
Security shall authorize and direct any person or entity 
responsible for granting access to, protecting, securing, 
operating, administering, or regulating part of the critical 
infrastructure (as defined in section 1016(e) of the Critical 
Infrastructure Protection Act of 2001 (42 U.S.C. 5195c(e))) to 
use E-Verify whenever hiring an individual for employment in 
the United States on or after the date that is 6 months after 
the date of the enactment of this Act.
(5) Use of contract labor.--Any employer that uses a 
contract, subcontract, or exchange to obtain the labor of an 
individual in the United States after the applicable effective 
date under paragraphs (1) through (4) shall certify, in such 
contract, subcontract, or exchange, that the employer, and all 
parties to such contract, subcontract, or exchange, use E-
Verify.
(6) Transition rule.--Any person or other entity hiring, 
recruiting, or referring an individual for employment in the 
United States before the applicable effective date under 
paragraphs (1) through (4) shall be subject to any other 
provision of Federal law requiring the person or entity to 
participate in the E-Verify Pilot Program described in section 
403(a) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (8 U.S.C. 1324a note), as in effect 
before the date of the enactment of this Act, including 
Executive Order 13465 (8 U.S.C. 1324a note), and all references 
to the E-Verify Pilot Program or a requirement to participate 
in an employment verification program, shall be deemed to refer 
to the E-Verify program established under section 401 of such 
Act.
(c) Early Compliance.--
(1) Former e-verify required users, including federal 
contractors.--Notwithstanding the deadlines set forth in 
subsection (b)(1), beginning on the date of the enactment of 
this Act, the Secretary of Homeland Security shall require 
employers required to participate in E-Verify described in 
section 403(a) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (8 U.S.C. 1324a note), including 
employers required to participate in such program by reason of 
Federal acquisition laws (and regulations promulgated under 
those laws, including the Federal Acquisition Regulation), to 
use E-Verify (and comply with any additional requirements of 
such Federal acquisition laws and regulation).
(2) Former e-verify voluntary users and others desiring 
early compliance.--Notwithstanding the deadlines set forth in 
subsection (b)(1), beginning on the date of the enactment of 
this Act, the Secretary of Homeland Security shall provide for 
the voluntary use of E-Verify by employers voluntarily electing 
to participate in the E-Verify program described in section 
403(a) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (8 U.S.C. 1324a note) before such 
date, and by other employers seeking voluntary early 
compliance.

SEC. 4. PENALTY FOR FAILURE TO USE E-VERIFY.

If a person or entity fails to utilize E-Verify in accordance with 
this Act and the amendments made by this Act, including failing to 
comply with section 3(b)(5) or providing information to the system that 
the person or entity knows or reasonably believes to be false, such 
failure shall be treated as a violation of paragraph (1)(A), (1)(B), or 
(2) of section 274A(a) of the Immigration and Nationality Act (8 U.S.C. 
1324a(a)), as applicable.

SEC. 5. ENHANCED PENALTIES FOR UNAUTHORIZED EMPLOYMENT.

(a) In General.--Section 274A of the Immigration and Nationality 
Act (8 U.S.C. 1324a) is amended--
(1) in subsection (e)--
(A) in paragraph (1)--
(i) by striking ``Attorney General'' each 
place such term appears and inserting 
``Secretary of Homeland Security''; and
(ii) in subparagraph (D), by striking 
``Service'' and inserting ``Department of 
Homeland Security'';
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) in the matter preceding clause 
(i), by inserting ``, subject to 
paragraph (10),'' after ``in an 
amount'';
(II) in subparagraph (A)(i), by 
striking ``not less than $250 and not 
more than $2,000'' and inserting ``not 
less than $2,500 and not more than 
$5,000'';
(III) in subparagraph (A)(ii), by 
striking ``not less than $2,000 and not 
more than $5,000'' and inserting ``not 
less than $5,000 and not more than 
$10,000''; and
(IV) in subparagraph (A)(iii), by 
striking ``not less than $3,000 and not 
more than $10,000'' and inserting ``not 
less than $10,000 and not more than 
$25,000''; and
(ii) by amending subparagraph (B) to read 
as follows:
``(B) may require the person or entity to take 
appropriate remedial action.'';
(C) in paragraph (5)--
(i) in the paragraph heading, by striking 
``paperwork'';
(ii) by inserting ``, subject to paragraphs 
(10) through (12),'' after ``in an amount''; 
and
(iii) by striking ``$100 and not more than 
$1,000'' and inserting ``$1,000 and not more 
than $25,000''; and
(D) by adding at the end the following:
``(10) Adjustment of penalty for good faith violation.--The 
Secretary of Homeland Security or the Attorney General may 
waive or reduce a civil penalty under paragraph (4)(A) (with 
respect to a violation of paragraph (1)(A) or (2) of subsection 
(a) for hiring or continuation of employment or recruitment or 
referral by person or entity) or a civil penalty under 
paragraph (5) (with respect to a violation of subsection 
(a)(1)(B) for hiring or recruitment or referral by a person or 
entity) if the violator establishes that the violator acted in 
good faith.
``(11) Mitigation.--The size of the business shall be taken 
into account when assessing the level of civil money penalty 
under paragraph (4).
``(12) Authority to debar employers for certain 
violations.--
``(A) In general.--If the Secretary of Homeland 
Security determines that a person or entity is a repeat 
violator of paragraph (1)(A) or (2) of subsection (a), 
or is convicted of a crime under this section, such 
person or entity may be proposed for debarment from the 
receipt of Federal contracts, grants, or cooperative 
agreements in accordance with the debarment standards 
and pursuant to the debarment procedures set forth in 
the Federal Acquisition Regulation.
``(B) Does not have contract, grant, or 
agreement.--If the Secretary of Homeland Security or 
the Attorney General determines that a person or entity 
should be proposed for debarment in accordance with 
subparagraph (A), and such person or entity does not 
hold a Federal contract, grant or cooperative 
agreement, the Secretary or the Attorney General shall 
refer the matter to the Administrator of General 
Services to determine--
``(i) whether to list the person or entity 
on the List of Parties Excluded from Federal 
Procurement; and
``(ii) if the person or entity is included 
on such list, the duration and scope of such 
inclusion.
``(C) Has contract, grant, agreement.--If the 
Secretary of Homeland Security or the Attorney General 
determines that a person or entity should be proposed 
for debarment in accordance with subparagraph (A), and 
such person or entity holds a Federal contract, grant 
or cooperative agreement, the Secretary or the Attorney 
General--
``(i) shall advise all agencies or 
departments holding a contract, grant, or 
cooperative agreement with the person or entity 
of the Government's interest in having the 
person or entity proposed for debarment; and
``(ii) after soliciting and considering the 
views of all such agencies and departments, may 
refer the matter to any appropriate lead agency 
to determine--
``(I) whether to list the person or 
entity on the List of Parties Excluded 
from Federal Procurement; and
``(II) if the person or entity is 
included on such list, the duration and 
scope of such inclusion.
``(D) Review.--Any decision to debar a person or 
entity under this paragraph shall be reviewable 
pursuant to part 9.4 of the Federal Acquisition 
Regulation.
``(13) Continued employment after final nonconfirmation.--
If a 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 subsection (a)(1)(A).''; and
(2) in subsection (f), by amending paragraph (1) to read as 
follows:
``(1) Criminal penalty.--Any person or entity that engages 
in a pattern or practice of violations of paragraph (1) or (2) 
of subsection (a) shall be fined not more than $30,000 for each 
unauthorized alien with respect to which such a violation 
occurs, imprisoned for not more than 18 months, or both.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the 
amendments made by subsection (a) shall take effect on the date 
of the enactment of this Act.
(2) Continued employment after final nonconfirmation.--
(A) In general.--Paragraph (13) of section 274A(e) 
of the Immigration and Nationality Act, as added by 
subsection (a)(1)(D), shall take effect on the date 
that is 6 months after the date of the enactment of 
this Act.
(B) Penalty calculations.--The calculation of any 
penalties under section 274A(f) of the Immigration and 
Nationality Act, as amended by subsection (a)(2), shall 
not include any period of continuing employment before 
the effective date referred to in subparagraph (A).

SEC. 6. E-VERIFY SELF-CHECK.

(a) In General.--The Secretary of Homeland Security, in 
consultation with the Commissioner of Social Security, shall establish 
a secure self-verification procedure to permit an individual to verify 
his or her employment eligibility.
(b) Elements.--The self-verification procedure established under 
subsection (a)--
(1) shall be subject to appropriate safeguards to prevent 
misuse of the confirmation system, including requiring 
employees or applicants--
(A) to use any self-verification feature; or
(B) to provide the employer with self-verification 
results; and
(2) shall allow individuals to contact the appropriate 
agency to correct or update the information contained in the 
confirmation system.

SEC. 7. E-VERIFY PROCESS.

Section 274A(b) of the Immigration and Nationality Act (8 U.S.C. 
1324a(b)) is amended to read as follows:
``(b) Employment Eligibility Verification Process.--
``(1) New hires, recruitment, and referral.--A person or 
other entity hiring, recruiting, or referring an individual for 
employment in the United States shall be subject to the 
following requirements:
``(A) Attestation after examination of 
documentation.--
``(i) Attestation.--During the verification 
period, the person or entity shall attest, by 
either a handwritten or electronic signature, 
under penalty of perjury, on a form, including 
electronic formats, designated or established 
by the Secretary by regulation not later than 6 
months after the date of the enactment of the 
Mandatory E-Verify Act of 2026, that the person 
or entity has verified that the individual is 
not an unauthorized alien by--
``(I)(aa) obtaining from the 
individual the individual's Social 
Security account number or United 
States passport number and recording 
the number on the form;
``(bb) if the individual does not 
attest to United States nationality 
under subparagraph (B), obtaining such 
identification or authorization number 
established by the Department of 
Homeland Security for the alien as the 
Secretary of Homeland Security may 
specify, and recording such number on 
the form;
``(II) examining, in a manner 
prescribed by the Secretary--
``(aa) a document described 
in clause (ii) that relates to 
the individual presenting the 
document; or
``(bb) a document described 
in clause (iii) that relates to 
the individual presenting the 
document and a document 
described in clause (iv) that 
relates to the individual 
presenting the document; and
``(III) matching the photograph on 
a document described in subclause (II) 
that relates to the individual 
presenting the document with a 
photograph of such individual, if such 
photograph is available through the E-
Verify Program.
``(ii) Documents evidencing employment 
authorization and establishing identity.--A 
document described in this clause is an 
individual's--
``(I) unexpired United States 
passport or passport card;
``(II) unexpired permanent resident 
card that contains a photograph;
``(III) unexpired employment 
authorization card that contains a 
photograph;
``(IV) in the case of a 
nonimmigrant alien authorized to work 
for a specific employer incident to 
status, a foreign passport with Form I-
94 or Form I-94A, or other 
documentation as designated by the 
Secretary specifying the alien's 
nonimmigrant status as long as the 
period of status has not yet expired 
and the proposed employment is not in 
conflict with any restrictions or 
limitations identified in the 
documentation;
``(V) passport from the Federated 
States of Micronesia (FSM) or the 
Republic of the Marshall Islands (RMI) 
with Form I-94 or Form I-94A, or other 
documentation as designated by the 
Secretary, indicating nonimmigrant 
admission under the Compact of Free 
Association Between the United States 
and the FSM or RMI; or
``(VI) other document designated by 
the Secretary of Homeland Security, if 
the document--
``(aa) contains a 
photograph of the individual 
and biometric identification 
data from the individual and 
such other personal identifying 
information relating to the 
individual as the Secretary of 
Homeland Security finds, by 
regulation, sufficient for 
purposes of this clause;
``(bb) is evidence of 
authorization of employment in 
the United States; and
``(cc) contains security 
features to make it resistant 
to tampering, counterfeiting, 
and fraudulent use.
``(iii) Documents evidencing employment 
authorization.--A document described in this 
clause is an individual's Social Security 
account number card (other than such a card 
which specifies on the face that the issuance 
of the card does not authorize employment in 
the United States).
``(iv) Documents establishing identity of 
individual.--A document described in this 
clause is--
``(I) an individual's unexpired 
State issued driver's license or 
identification card if the license or 
card contains a photograph and 
personally identifying information, 
such as name, date of birth, gender, 
height, eye color, and home address;
``(II) an individual's unexpired 
U.S. military identification card that 
contains a photograph;
``(III) an individual's unexpired 
Native American tribal identification 
document that contains a photograph and 
was issued by a tribal entity 
recognized by the Bureau of Indian 
Affairs; or
``(IV) in the case of an individual 
who is younger than 18 years of age, a 
parent or legal guardian's attestation 
under penalty of law as to the identity 
and age of the individual.
``(v) Authority to prohibit use of certain 
documents.--If the Secretary of Homeland 
Security finds, by regulation, that any 
document described in clause (ii), (iii), or 
(iv) as establishing employment authorization 
or identity does not reliably establish such 
authorization or identity or is being used 
fraudulently to an unacceptable degree, the 
Secretary may prohibit or place conditions on 
its use for purposes of this paragraph.
``(B) Individual attestation of employment 
authorization.--
``(i) In general.--During the verification 
period, the individual shall--
``(I) attest, by either a 
handwritten or electronic signature, 
under penalty of perjury, and on the 
form designated or established for 
purposes of subparagraph (A), that the 
individual is a citizen or national of 
the United States, an alien lawfully 
admitted for permanent residence, or an 
alien who is authorized under this Act 
or by the Secretary of Homeland 
Security to be hired, recruited, or 
referred for such employment; and
``(II) provide his or her Social 
Security account number or valid United 
States passport number.
``(ii) Other identification.--If the 
individual does not attest to United States 
nationality under clause (i), the individual 
shall provide the identification or 
authorization number established for the alien 
by the Department of Homeland Security, as 
specified by the Secretary.
``(C) E-verify redesign.--The Secretary is 
authorized to issue regulations allowing any person or 
other entity hiring, recruiting, or referring an 
individual for employment and the individual to comply 
with this section through an updated digital 
verification system that requires the submission of--
``(i) the information required under 
subparagraph (A)(i)(I);
``(ii) the documentation required under 
subparagraph (A)(i)(II); and
``(iii) the matching of any available 
photos with any photo contained in any document 
presented for identity or employment 
verification purposes.
``(D) System responses.--
``(i) Confirmation received.--If a person 
or other entity receives an appropriate 
confirmation of an individual's identity and 
work eligibility under the verification system 
within the specified period, the person or 
entity shall record, on the form designated or 
established for purposes of subparagraph (A), 
an appropriate code provided by the system that 
indicates a final confirmation of such identity 
and work eligibility of the individual.
``(ii) Tentative nonconfirmation.--
``(I) In general.--If the person or 
other entity receives a tentative 
nonconfirmation of an individual's 
identity or work eligibility under the 
verification system within the 
specified period, the person or entity 
shall--
``(aa) inform the 
individual for whom the 
verification is sought of such 
nonconfirmation;
``(bb) if the individual 
does not contest the 
nonconfirmation within 10 
business days after receiving 
such tentative nonconfirmation, 
record on the form an 
appropriate code which has been 
provided under the system to 
indicate a final 
nonconfirmation; and
``(cc) if the individual 
does contest the 
nonconfirmation during such 
period, refer the individual to 
the secondary verification 
process described in subsection 
(d)(2)(B).
``(II) Duration.--A nonconfirmation 
described in subclause (I) shall remain 
tentative until a final confirmation or 
nonconfirmation is provided by the 
verification system not later than 10 
business days after the issuance of a 
tentative nonconfirmation.
``(III) Not grounds for 
termination.--An employer may not 
terminate the employment of an 
individual because of a failure of the 
individual to have his or her identity 
and work eligibility confirmed under 
this section until the nonconfirmation 
becomes final. Nothing in this 
subclause may be construed to apply to 
a termination of employment for any 
reason other than because of such 
failure.
``(IV) Not grounds for rescission 
of offer.--An employer may not rescind 
an offer of employment to an individual 
because of a failure of the individual 
to have his or her identity and work 
eligibility confirmed under this 
section until the nonconfirmation 
becomes final. Nothing in this 
subclause may be construed to apply to 
a rescission of an offer of employment 
for any reason other than because of 
such failure.
``(iii) Final confirmation or 
nonconfirmation received.--If a final 
confirmation or nonconfirmation is provided by 
the verification system regarding an 
individual, the person or entity shall record 
on the 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.
``(iv) Extension.--If a person or other 
entity in good faith attempts to make an 
inquiry during the time period specified and 
the verification system has registered that not 
all inquiries were received during such time, 
the person or entity may make an inquiry in the 
first 5 subsequent business days in which the 
verification system registers that it has 
received all inquiries. If the verification 
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.
``(v) Termination upon final 
nonconfirmation.--Not later than 3 business 
days after receiving a final nonconfirmation 
regarding an individual, the person or entity 
shall terminate the employment of the 
individual (or decline to recruit or refer the 
individual).
``(E) Defined term.--
``(i) Verification period.--In this 
paragraph:
``(I) In the case of recruitment or 
referral, the term `verification 
period' means the period ending on the 
date recruiting or referring commences.
``(II) In the case of hiring, the 
term `verification period' means the 
period beginning on the date on which 
an offer of employment is extended and 
ending on the date that is 3 business 
days after the date of hire, except as 
provided in clause (iii). The offer of 
employment may be conditioned in 
accordance with clause (ii).
``(ii) Job offer may be conditional.--A 
person or other entity may offer a prospective 
employee an employment position that is 
conditioned on final verification of the 
identity and employment eligibility of the 
employee using the procedures established under 
this paragraph.
``(iii) Contact information.--A person or 
other entity, upon making an offer of 
employment to a prospective employee under 
clause (ii), shall submit to E-Verify the 
contact information of the prospective 
employee, including an email address or a 
telephone number, so that E-Verify can notify 
the prospective employee in the case of a 
tentative nonconfirmation.
``(iv) Special rule.--Notwithstanding 
clause (i)(II), if a United States citizen, a 
lawful permanent resident, or an alien who is 
authorized for employment provides evidence 
from the Social Security Administration that 
such individual has applied for a Social 
Security account number, the verification 
period shall end on the date that is 3 business 
days after the date on which the individual 
receives the Social Security account number.
``(2) Reverification for individuals with limited work 
authorization.--
``(A) In general.--Except as provided in 
subparagraphs (B) and (C), a person or entity shall use 
E-Verify to seek reverification of the employment 
eligibility of all individuals with a limited period of 
work authorization employed by the person or entity not 
later than 3 business days after the date on which the 
employee's prior work authorization expires.
``(B) Effective date.--Employers shall be subject 
to the requirement under subparagraph (A) beginning on 
the date on which the employer is required to use E-
Verify pursuant to section 3 of the Mandatory E-Verify 
Act of 2026.
``(C) Reverification.--Paragraph (1)(C) shall apply 
to reverifications under this paragraph on the same 
basis as it applies to verifications under paragraph 
(1), except that employers shall use a form designated 
or established by the Secretary by regulation for 
purposes of this paragraph.
``(3) Previously hired individuals.--
``(A) On a mandatory basis for certain employees.--
``(i) In general.--Not later than the date 
that is 6 months after the date of the 
enactment of the Mandatory E-Verify Act of 
2026, an employer shall use E-Verify to seek 
verification of the identity and employment 
eligibility of any individual described in 
clause (ii) who is employed by the employer and 
whose employment eligibility has not been 
verified under the E-Verify program described 
in section 403(a) of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note).
``(ii) Individuals described.--An 
individual described in this clause is--
``(I) an employee of any unit of a 
Federal, State, or local government;
``(II) an employee who requires a 
Federal security clearance working in a 
Federal, State or local government 
building, a military base, a nuclear 
energy site, a weapons site, or an 
airport or other facility that requires 
workers--
``(aa) to carry a 
Transportation Worker 
Identification Credential; or
``(bb) to have access to a 
Secure Identification Display 
Area; or
``(III) an employee assigned to 
perform work in the United States under 
a Federal contract, except that this 
subclause--
``(aa) is not applicable to 
individuals who normally 
perform support work, such as 
indirect or overhead functions, 
and do not perform any 
substantial duties applicable 
to the contract, or are working 
solely on contracts that 
provide Commercial Off The 
Shelf goods or services as set 
forth by the Federal 
Acquisition Regulatory Council, 
unless they are subject to 
verification under subclause 
(II); and
``(bb) only applies to 
contracts in excess of the 
micro-purchase threshold (as 
defined in section 2.101 of 
title 48, Code of Federal 
Regulations).
``(B) On a mandatory basis for multiple users of 
same social security account number.--An employer who 
is required to use E-Verify, or has elected voluntarily 
to use E-Verify, shall make inquiries to the system in 
accordance with the following:
``(i) The Commissioner of Social Security 
shall notify annually employees (at the 
employee address listed on the Wage and Tax 
Statement) who submit a Social Security account 
number to which more than 1 employer reports 
income and for which there is a pattern of 
unusual multiple use. The notification letter 
shall identify the number of employers to which 
income is being reported as well as sufficient 
information notifying the employee of the 
process to contact the Social Security 
Administration Fraud Hotline if the employee 
believes the employee's identity may have been 
stolen. The notice may not include information 
protected as private, in order to avoid any 
recipient of the notice from being in the 
position to further commit or begin committing 
identity theft.
``(ii) If the person to whom the Social 
Security account number was issued by the 
Social Security Administration has been 
identified and confirmed by the Commissioner, 
and indicates that the Social Security account 
number was used without his or her knowledge, 
the Secretary and the Commissioner shall--
``(I) lock the Social Security 
account number for employment 
eligibility verification purposes; and
``(II) notify the employers of the 
individuals who wrongfully submitted 
the Social Security account number that 
the employee may not be work eligible.
``(iii) Each employer receiving 
notification of an incorrect Social Security 
account number under clause (ii) shall use E-
Verify to check the work eligibility status of 
the applicable employee not later than 10 
business days after receiving the notification.
``(C) On a voluntary basis.--
``(i) In general.--Subject to paragraph (2) 
and subparagraphs (A) and (B), an employer may 
make an inquiry through E-Verify to seek 
verification of the identity and employment 
eligibility of any individual employed by the 
employer. If an employer chooses voluntarily to 
seek verification of any individual employed by 
the employer, the employer shall--
``(I) seek verification of all 
individuals employed by the employer; 
and
``(II) notify E-Verify whether the 
individual is an existing or 
prospective employee.
``(ii) Effect of verification decision.--An 
employer's decision not to voluntarily seek 
verification of its current workforce under 
this subparagraph may not be considered by any 
government agency in any proceeding, 
investigation, or review provided for in this 
Act.
``(D) Verification.--Paragraph (1)(C)(ii) shall 
apply to verifications pursuant to this paragraph on 
the same basis as it applies to verifications pursuant 
to paragraph (1), except that employers shall use a 
form designated or established by the Secretary by 
regulation for purposes of this paragraph.
``(4) Copying of documentation permitted.--Notwithstanding 
any other provision of law, the person or entity--
``(A) may copy a document presented by an 
individual under this subsection; and
``(B) may retain the copy for the purpose of 
complying with the requirements under this subsection.
``(5) Limitation on use of forms.--A form designated or 
established by the Secretary of Homeland Security under this 
subsection and any information contained in or appended to such 
form, may not be used for purposes other than for the 
enforcement or administration of this Act and any other 
provision of Federal or State criminal law.
``(6) Good faith compliance.--
``(A) In general.--Except as otherwise provided in 
this subsection, 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 failure is not de minimis;
``(ii) the Secretary of Homeland Security 
has explained to the person or entity the basis 
for the failure and why it is not de minimis;
``(iii) the person or entity has been 
provided a period of not less than 30 calendar 
days (beginning after the date of the 
explanation) within which to correct the 
failure; and
``(iv) 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 violating paragraph (1)(A) or (2) of 
subsection (a).''.

SEC. 8. GOOD FAITH DEFENSE.

Section 274A(a)(3) of the Immigration and Nationality Act (8 U.S.C. 
1324a(a)(3)) is amended to read as follows:
``(3) Good faith defense.--
``(A) Defense.--An employer (or person or entity 
that hires, employs, recruits, or refers, or is 
otherwise obligated to comply with this section) that 
establishes good faith compliance with the requirements 
under subsection (b)--
``(i) shall not be liable to a job 
applicant, an employee, the Federal Government, 
or a State or local government, under Federal, 
State, or local criminal or civil law for any 
employment-related action taken with respect to 
a job applicant or employee in good-faith 
reliance on information provided through the 
system established under subsection (d); and
``(ii) has established compliance with its 
obligations under subparagraphs (A) and (B) of 
paragraph (1) and subsection (b) absent a 
showing by the Secretary of Homeland Security, 
by clear and convincing evidence, that the 
employer had knowledge that an employee is an 
unauthorized alien.
``(B) Mitigation element.--For purposes of 
subparagraph (A)(i), if an employer proves by a 
preponderance of the evidence that the employer uses a 
reasonable, secure, and established technology to 
authenticate the identity of the new employee, that 
fact shall be taken into account for purposes of 
determining good faith use of the system established 
under subsection (d).
``(C) Failure to seek and obtain verification.--
Subject to the effective dates and other deadlines 
applicable under subsection (b), in the case of a 
person or entity in the United States that hires, or 
continues to employ, an individual, or recruits or 
refers an individual for employment, the following 
requirements shall apply:
``(i) Failure to seek verification.--
``(I) In general.--If the person or 
entity has not made an inquiry, under 
the mechanism established under 
subsection (d) and in accordance with 
the timeframes established under 
subsection (b), seeking verification of 
the identity and work eligibility of 
the individual, the defense under 
subparagraph (A) shall not be 
considered to apply with respect to any 
employment, except as provided in 
subclause (II).
``(II) 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 (A) 
and the verification mechanism has 
registered that not all inquiries were 
responded to during the relevant time, 
the person or entity can make an 
inquiry until the end of the first 
subsequent business day in which the 
verification mechanism registers no 
nonresponses and qualify for such 
defense.
``(ii) Failure to obtain verification.--If 
the person or entity has made the inquiry 
described in clause (i)(I), but has not 
received an appropriate verification of such 
identity and work eligibility under such 
mechanism within the time period specified 
under subsection (d)(2) after the time the 
verification inquiry was received, the defense 
under subparagraph (A) shall not be considered 
to apply with respect to any employment after 
the end of such time period.''.

SEC. 9. PREEMPTION.

Section 274A(h)(2) of the Immigration and Nationality Act (8 U.S.C. 
1324a(h)(2)) is amended to read as follows:
``(2) Preemption.--A State or unit of local government may 
not prohibit any person or other entity hiring, recruiting, or 
referring an individual for employment in the United States 
from utilizing E-Verify for purposes of verifying identity and 
employment eligibility.''.

SEC. 10. ACCESS TO INFORMATION.

(a) Defined Term.--In this section, the term ``E-Verify purposes'' 
means--
(1) preventing identity theft, fraud, and misuse of E-
Verify; and
(2) administering and enforcing the provisions of this Act 
and section 274A of the Immigration and Nationality Act (8 
U.S.C. 1324a) governing employment eligibility verification.
(b) Federal Records.--Notwithstanding any other provision of law, 
including section 6103 of the Internal Revenue Code of 1986, with 
respect to Employer Identification Number information, the Secretary of 
Homeland Security shall have access to relevant Federal records 
described in clauses (i) through (iii) of section 274A(d)(3)(G) of the 
Immigration and Nationality Act (8 U.S.C. 1324a(d)(3)(G)) for E-Verify 
purposes.
(c) Federal Cooperation.--Any Federal agency or other Federal 
Government entity possessing records described in subsection (a) shall 
provide such assistance and cooperation as the Secretary of Homeland 
Security may request to resolve initial verification inquiries, further 
action required results, cases in continuance, and final 
nonconfirmation results relating to such records or to otherwise 
improve the accuracy of E-Verify.
(d) State Cooperation.--
(1) Driver's license information.--Notwithstanding section 
2721 of title 18, United States Code, or any other law, a State 
department of motor vehicles may provide information described 
in section 274A(d)(3)(G)(iv) of the Immigration and Nationality 
Act, as added by section 2(a) of this Act, obtained by the 
department, including an individual's photograph, to the 
Secretary of Homeland Security for E-Verify purposes.
(2) Information sharing agreements.--The Secretary of 
Homeland Security shall maximize enrollment of States and other 
non-Federal Government entities possessing information 
described in section 274A(d)(3)(G)(iv) of the Immigration and 
Nationality Act in information sharing agreements that provide 
access to such information to the Secretary for E-Verify 
purposes and fully implement such agreements.
(3) Conditions for federal grant funding.--
(A) Economic development assistance grants.--
Section 3(4) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3122(4)) is amended 
by adding at the end the following:
``(C) Grants conditioned on information sharing.--
The term `eligible recipient' does not include, with 
respect to grants authorized under section 201, 203, 
205, or 207--
``(i) a State that--
``(I) does not provide access to 
driver's license or identity card 
information (including photographs) 
maintained by the State department of 
motor vehicles to the Secretary of 
Homeland Security for E-Verify purposes 
(as defined in section 10(a) of the 
Mandatory E-Verify Act of 2026); or
``(II) does not provide such 
assistance and cooperation as the 
Secretary may request to resolve 
initial verification inquiries, further 
action required results, cases in 
continuance, and final nonconfirmation 
results relating to such records; or
``(ii) a city, or other political 
subdivision of a State described in clause (i), 
including a special purpose unit of such State 
or political subdivision engaged in economic or 
infrastructure development activities, or a 
consortium of such political subdivisions.''.
(B) Community development block grants.--Section 
104 of the Housing and Community Development Act of 
1974 (42 U.S.C. 5304) is amended by adding at the end 
the following:
``(n) Protections for Authorized Workers.--
``(1) In general.--Amounts appropriated to carry out this 
title may not be obligated or expended for any State (or any 
unit of general local government that is a political 
subdivision of such State) that--
``(A) does not provide access to driver's license 
or identity card information (including photographs) 
maintained by the State department of motor vehicles to 
the Department of Homeland Security for E-Verify 
purposes (as defined in section 10(a) of the Mandatory 
E-Verify Act of 2026); or
``(B) does not provide such assistance and 
cooperation as the Secretary may request to resolve 
initial verification inquiries, further action required 
results, cases in continuance, and final 
nonconfirmation results relating to such records.
``(2) Returned amounts.--
``(A) State.--If a State receives funding under 
this title during any period in which the State is 
ineligible to receive such funding pursuant to 
paragraph (1), the Secretary shall--
``(i) direct the State to immediately 
return to the Secretary any such funding; and
``(ii) reallocate amounts returned under 
clause (i) for grants under this title to other 
States that are not ineligible for such 
funding.
``(B) Unit of general local government.--If a unit 
of general local government receives funding under this 
title during any period in which it is ineligible for 
such funding pursuant to paragraph (1)--
``(i) the local government shall return any 
such amounts to the Secretary; and
``(ii) the Secretary shall reallocate such 
amounts for grants under this title to States 
and other units of general local government 
that are not ineligible for such funding.
``(C) Reallocation rules.--In reallocating amounts 
pursuant to subparagraphs (A) and (B), the Secretary--
``(i) shall apply the relevant allocation 
formula under subsection (b), with all entities 
ineligible for funding pursuant to paragraph 
(1) excluded; and
``(ii) shall not be subject to the rules 
for reallocation under subsection (c).''.
(C) Effective date.--The amendments made by this 
paragraph shall take effect on the date that is 1 year 
after the date of the enactment of this Act.

SEC. 11. FRAUD AND MISUSE OF DOCUMENTS.

Section 1546(b) of title 18, United States Code, is amended--
(1) in paragraph (1), by striking ``identification 
document,'' and inserting ``identification document or document 
meant to establish work authorization (including the documents 
described in section 274A(b) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(b))),''; and
(2) in paragraph (2), by striking ``identification 
document'' and inserting ``identification document or document 
meant to establish work authorization (including the documents 
described in section 274A(b) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(b))),''.

SEC. 12. FRAUD PREVENTION.

(a) Blocking Misused Social Security Account Numbers.--The 
Secretary of Homeland Security, in consultation with the Commissioner 
of Social Security, shall establish a program in which Social Security 
account numbers that have been identified to be subject to unusual 
multiple use through E-Verify or that are otherwise suspected or 
determined to have been compromised by identity fraud, the Social 
Security account numbers of deceased individuals, or other misuse, 
shall be blocked from use by E-Verify unless the individual using such 
number is able to establish, through secure and fair additional 
security procedures, as determined by the Secretary of Homeland 
Security, that the individual is the legitimate holder of the number.
(b) Allowing Suspension of Use of Certain Social Security Account 
Numbers.--The Secretary of Homeland Security, in consultation with the 
Commissioner of Social Security, shall establish a program which shall 
provide a reliable, secure method by which victims of identity fraud 
and other individuals may suspend or limit the use of their Social 
Security account numbers or other identifying information for purposes 
of E-Verify. The Secretary may implement the program on a limited pilot 
program basis before making it fully available to all individuals.
(c) Allowing Parents To Prevent Theft of Their Child's Identity.--
The Secretary of Homeland Security, in consultation with the 
Commissioner of Social Security, shall establish a program which shall 
provide a reliable, secure method by which parents or legal guardians 
may suspend or limit the use of the Social Security account number or 
other identifying information of a minor under their care for the 
purposes of E-Verify. The Secretary may implement the program on a 
limited pilot program basis before making it fully available to all 
individuals.

SEC. 13. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.

Pursuant to an agreement with the Commissioner of Social Security, 
the Secretary of Homeland Security shall continue to provide funds to 
the Commissioner for the full costs of the responsibilities of the 
Commissioner under section 274A of the Immigration and Nationality Act, 
as amended by this Act.

SEC. 14. INSPECTOR GENERAL AUDITS.

(a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Inspector General of the Social Security 
Administration, in order to uncover evidence of individuals who are not 
authorized to work in the United States, shall complete audits of--
(1) workers who dispute wages reported on their Social 
Security account number because they believe that their names 
and such numbers were fraudulently used by others to secure 
employment;
(2) children's Social Security account numbers that have 
been fraudulently used for work purposes;
(3) employers whose workers present significant numbers of 
mismatched Social Security account numbers or names for wage 
reporting;
(4) Social Security account numbers of deceased individuals 
that were fraudulently used for work purposes; and
(5) Social Security account numbers of retired individuals 
that were potentially used fraudulently for work purposes.
(b) Submission.--The Inspector General of the Social Security 
Administration shall--
(1) submit the audits completed pursuant to subsection (a) 
to--
(A) the Committee on Finance of the Senate;
(B) the Committee on the Judiciary of the Senate;
(C) the Committee on Homeland Security and 
Governmental Affairs of the Senate;
(D) the Committee on Ways and Means of the House of 
Representatives;
(E) the Committee on the Judiciary of the House of 
Representatives; and
(F) the Committee on Homeland Security of the House 
of Representatives; and
(2) make the information contained in such audits available 
to Federal law enforcement.

SEC. 15. RECRUITMENT, REFERRAL, AND CONTINUATION OF EMPLOYMENT.

(a) Additional Changes to Rules for Recruitment, Referral, and 
Continuation of Employment.--Section 274A(a) of the Immigration and 
Nationality Act (8 U.S.C. 1324a(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``for a fee''; 
and
(B) by amending subparagraph (B) to read as 
follows:
``(B) to hire, continue to employ, or to recruit or 
refer for employment in the United States an individual 
without complying with the requirements of subsection 
(b).''; and
(2) in paragraph (2), by striking ``after hiring an alien 
for employment in accordance with paragraph (1),'' and 
inserting ``after complying with paragraph (1),''.
(b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is 6 months after the date of the 
enactment of this Act to the extent such amendments relate to 
continuation of employment.

SEC. 16. DEFINITIONS.

(a) In General.--In this Act, the terms ``agricultural labor or 
services'', ``date of hire'', ``recruit'', ``refer'', and 
``unauthorized alien'', have the meanings given such terms in section 
274A(i) of the Immigration and Nationality Act, as amended by 
subsection (b).
(b) Amendments to the Immigration and Nationality Act.--Section 
274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is 
amended--
(1) in subsection (h), by striking paragraph (3); and
(2) by adding at the end the following:
``(i) Definitions.--In this section:
``(1) Agricultural labor or services.--The term 
`agricultural labor or services'--
``(A) has the meaning given such term by the 
Secretary of Agriculture, by regulation; and
``(B) includes--
``(i) agricultural labor (as defined in 
section 3121(g) of the Internal Revenue Code of 
1986);
``(ii) agriculture (as defined in section 
3(f) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 203(f)));
``(iii) all activities required for the 
preparation, processing, or manufacturing of a 
product of agriculture (as defined in such 
section 3(f)) for further distribution; and
``(iv) the handling, planting, drying, 
packing, packaging, processing, freezing, or 
grading prior to delivery for storage of any 
agricultural or horticultural commodity in its 
unmanufactured state.
``(2) Date of hire.--The term `date of hire' means the date 
of commencement of employment for wages or other remuneration.
``(3) Recruit.--
``(A) In general.--Except as provided in 
subparagraph (B), the term `recruit' means the act of 
soliciting a person who is in the United States, 
directly or indirectly, and referring the person to 
another with the intent of obtaining employment for 
that person.
``(B) Exceptions.--The term `recruit' only applies 
to persons or entities referring for remuneration 
(whether on a retainer or contingency basis) except 
that the term applies to--
``(i) union hiring halls that refer union 
members or nonunion individuals who pay union 
membership dues regardless of whether they 
receive remuneration; and
``(ii) labor service entities or labor 
service agencies, whether public, private, for-
profit, or nonprofit that recruit, dispatch, or 
otherwise facilitate the hiring of laborers for 
any period of time by a third party.
``(4) Refer.--
``(A) In general.--Except as provided in 
subparagraph (B), the term `refer' means the act of 
sending or directing a person who is in the United 
States or transmitting documentation or information to 
another, directly or indirectly, with the intent of 
obtaining employment in the United States for such 
person.
``(B) Exceptions.--The term `refer' only applies to 
persons or entities referring for remuneration (whether 
on a retainer or contingency basis) except that the 
term applies to--
``(i) union hiring halls that refer union 
members or nonunion individuals who pay union 
membership dues regardless of whether they 
receive remuneration; and
``(ii) labor service entities or labor 
service agencies, whether public, private, for-
profit, or nonprofit, that refer, dispatch, or 
otherwise facilitate the hiring of laborers for 
any period of time by a third party.
``(5) Unauthorized alien.--The term `unauthorized alien' 
means, with respect to the employment of an alien at a 
particular time, an alien who is not--
``(A) an alien lawfully admitted for permanent 
residence; or
``(B) otherwise authorized to be employed under 
this Act or by the Secretary of Homeland Security.''.
<all>