From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and September 25, 2001]
[CITE: 8USC1324a]


TITLE 8--ALIENS AND NATIONALITY
CHAPTER 12--IMMIGRATION AND NATIONALITY
SUBCHAPTER II--IMMIGRATION
 
                  Part VIII--General Penalty Provisions
 
Sec. 1324a. Unlawful employment of aliens

(a) Making employment of unauthorized aliens unlawful

                           (1) In general

        It is unlawful for a person or other entity--
            (A) to hire, or to recruit or refer for a fee, for
        employment in the United States an alien knowing the alien is an
        unauthorized alien (as defined in subsection (h)(3) of this
        section) with respect to such employment, or
            (B)(i) to hire for employment in the United States an
        individual without complying with the requirements of subsection
        (b) of this section or (ii) if the person or entity is an
        agricultural association, agricultural employer, or farm labor
        contractor (as defined in section 1802 of title 29), to hire, or
        to recruit or refer for a fee, for employment in the United
        States an individual without complying with the requirements of
        subsection (b) of this section.

                      (2) Continuing employment

        It is unlawful for a person or other entity, after hiring an
    alien for employment in accordance with paragraph (1), to continue
    to employ the alien in the United States knowing the alien is (or
    has become) an unauthorized alien with respect to such employment.

                             (3) Defense

        A person or entity that establishes that it has complied in good
    faith with the requirements of subsection (b) of this section with
    respect to the hiring, recruiting, or referral for employment of an
    alien in the United States has established an affirmative defense
    that the person or entity has not violated paragraph (1)(A) with
    respect to such hiring, recruiting, or referral.

                  (4) Use of labor through contract

        For purposes of this section, a person or other entity who uses
    a contract, subcontract, or exchange, entered into, renegotiated, or
    extended after November 6, 1986, to obtain the labor of an alien in
    the United States knowing that the alien is an unauthorized alien
    (as defined in subsection (h)(3) of this section) with respect to
    performing such labor, shall be considered to have hired the alien
    for employment in the United States in violation of paragraph
    (1)(A).

          (5) Use of State employment agency documentation

        For purposes of paragraphs (1)(B) and (3), a person or entity
    shall be deemed to have complied with the requirements of subsection
    (b) of this section with respect to the hiring of an individual who
    was referred for such employment by a State employment agency (as
    defined by the Attorney General), if the person or entity has and
    retains (for the period and in the manner described in subsection
    (b)(3) of this section) appropriate documentation of such referral
    by that agency, which documentation certifies that the agency has
    complied with the procedures specified in subsection (b) of this
    section with respect to the individual's referral.

        (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) of this
            section with respect to the employment of the individual,

        the subsequent employer shall be deemed to have complied with
        the requirements of subsection (b) of this section with respect
        to the hiring of the employee and shall not be liable for civil
        penalties described in subsection (e)(5) of this section.

        (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) of this section 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) of this section.

                (7) Application to Federal Government

        For purposes of this section, the term ``entity'' includes an
    entity in any branch of the Federal Government.

(b) Employment verification system

    The requirements referred to in paragraphs (1)(B) and (3) of
subsection (a) of this section are, in the case of a person or other
entity hiring, recruiting, or referring an individual for employment in
the United States, the requirements specified in the following three
paragraphs:

         (1) Attestation after examination of documentation

        (A) In general

            The person or entity must attest, under penalty of perjury
        and on a form designated or established by the Attorney General
        by regulation, that it has verified that the individual is not
        an unauthorized alien by examining--
                (i) a document described in subparagraph (B), or
                (ii) a document described in subparagraph (C) and a
            document described in subparagraph (D).

        A person or entity has complied with the requirement of this
        paragraph with respect to examination of a document if the
        document reasonably appears on its face to be genuine. If an
        individual provides a document or combination of documents that
        reasonably appears on its face to be genuine and that is
        sufficient to meet the requirements of the first sentence of
        this paragraph, nothing in this paragraph shall be construed as
        requiring the person or entity to solicit the production of any
        other document or as requiring the individual to produce such
        another document.

        (B) Documents establishing both employment authorization and
                identity

            A document described in this subparagraph is an
        individual's--
                (i) United States passport; \1\
---------------------------------------------------------------------------
    \1\ So in original. Probably should be followed by ``or''.
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                (ii) resident alien card, alien registration card, or
            other document designated by the Attorney General, if the
            document--
                    (I) contains a photograph of the individual and such
                other personal identifying information relating to the
                individual as the Attorney General finds, by regulation,
                sufficient for purposes of this subsection,
                    (II) is evidence of authorization of employment in
                the United States, and
                    (III) contains security features to make it
                resistant to tampering, counterfeiting, and fraudulent
                use.

        (C) Documents evidencing employment authorization

            A document described in this subparagraph is an
        individual's--
                (i) 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); or
                (ii) other documentation evidencing authorization of
            employment in the United States which the Attorney General
            finds, by regulation, to be acceptable for purposes of this
            section.

        (D) Documents establishing identity of individual

            A document described in this subparagraph is an
        individual's--
                (i) driver's license or similar document issued for the
            purpose of identification by a State, if it contains a
            photograph of the individual or such other personal
            identifying information relating to the individual as the
            Attorney General finds, by regulation, sufficient for
            purposes of this section; or
                (ii) in the case of individuals under 16 years of age or
            in a State which does not provide for issuance of an
            identification document (other than a driver's license)
            referred to in clause (i), documentation of personal
            identity of such other type as the Attorney General finds,
            by regulation, provides a reliable means of identification.

        (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.

       (2) Individual attestation of employment authorization

        The individual must attest, under penalty of perjury on the form
    designated or established for purposes of paragraph (1), 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 chapter or by the Attorney General to be
    hired, recruited, or referred for such employment.

                 (3) Retention of verification form

        After completion of such form in accordance with paragraphs (1)
    and (2), the person or entity must retain the form and make it
    available for inspection by officers of the Service, the Special
    Counsel for Immigration-Related Unfair Employment Practices, or the
    Department of Labor during a period beginning on the date of the
    hiring, recruiting, or referral of the individual and ending--
            (A) in the case of the recruiting or referral for a fee
        (without hiring) of an individual, three years after the date of
        the recruiting or referral, and
            (B) in the case of the hiring of an individual--
                (i) three years after the date of such hiring, or
                (ii) one year after the date the individual's employment
            is terminated,

        whichever is later.

               (4) Copying of documentation permitted

        Notwithstanding any other provision of law, the person or entity
    may copy a document presented by an individual pursuant to this
    subsection and may retain the copy, but only (except as otherwise
    permitted under law) for the purpose of complying with the
    requirements of this subsection.

              (5) Limitation on use of attestation form

        A form designated or established by the Attorney General under
    this subsection and any information contained in or appended to such
    form, may not be used for purposes other than for enforcement of
    this chapter and sections 1001, 1028, 1546, and 1621 of title 18.

                      (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) of this section.

(c) No authorization of national identification cards

    Nothing in this section shall be construed to authorize, directly or
indirectly, the issuance or use of national identification cards or the
establishment of a national identification card.

(d) Evaluation and changes in employment verification system

       (1) Presidential monitoring and improvements in system

        (A) Monitoring

            The President shall provide for the monitoring and
        evaluation of the degree to which the employment verification
        system established under subsection (b) of this section provides
        a secure system to determine employment eligibility in the
        United States and shall examine the suitability of existing
        Federal and State identification systems for use for this
        purpose.

        (B) Improvements to establish secure system

            To the extent that the system established under subsection
        (b) of this section is found not to be a secure system to
        determine employment eligibility in the United States, the
        President shall, subject to paragraph (3) and taking into
        account the results of any demonstration projects conducted
        under paragraph (4), implement such changes in (including
        additions to) the requirements of subsection (b) of this section
        as may be necessary to establish a secure system to determine
        employment eligibility in the United States. Such changes in the
        system may be implemented only if the changes conform to the
        requirements of paragraph (2).

                (2) Restrictions on changes in system

        Any change the President proposes to implement under paragraph
    (1) in the verification system must be designed in a manner so the
    verification system, as so changed, meets the following
    requirements:

        (A) Reliable determination of identity

            The system must be capable of reliably determining whether--
                (i) a person with the identity claimed by an employee or
            prospective employee is eligible to work, and
                (ii) the employee or prospective employee is claiming
            the identity of another individual.

        (B) Using of counterfeit-resistant documents

            If the system requires that a document be presented to or
        examined by an employer, the document must be in a form which is
        resistant to counterfeiting and tampering.

        (C) Limited use of system

            Any personal information utilized by the system may not be
        made available to Government agencies, employers, and other
        persons except to the extent necessary to verify that an
        individual is not an unauthorized alien.

        (D) Privacy of information

            The system must protect the privacy and security of personal
        information and identifiers utilized in the system.

        (E) Limited denial of verification

            A verification that an employee or prospective employee is
        eligible to be employed in the United States may not be withheld
        or revoked under the system for any reason other than that the
        employee or prospective employee is an unauthorized alien.

        (F) Limited use for law enforcement purposes

            The system may not be used for law enforcement purposes,
        other than for enforcement of this chapter or sections 1001,
        1028, 1546, and 1621 of title 18.

        (G) Restriction on use of new documents

            If the system requires individuals to present a new card or
        other document (designed specifically for use for this purpose)
        at the time of hiring, recruitment, or referral, then such
        document may not be required to be presented for any purpose
        other than under this chapter (or enforcement of sections 1001,
        1028, 1546, and 1621 of title 18) nor to be carried on one's
        person.

         (3) Notice to Congress before implementing changes

        (A) In general

            The President may not implement any change under paragraph
        (1) unless at least--
                (i) 60 days,
                (ii) one year, in the case of a major change described
            in subparagraph (D)(iii), or
                (iii) two years, in the case of a major change described
            in clause (i) or (ii) of subparagraph (D),

        before the date of implementation of the change, the President
        has prepared and transmitted to the Committee on the Judiciary
        of the House of Representatives and to the Committee on the
        Judiciary of the Senate a written report setting forth the
        proposed change. If the President proposes to make any change
        regarding social security account number cards, the President
        shall transmit to the Committee on Ways and Means of the House
        of Representatives and to the Committee on Finance of the Senate
        a written report setting forth the proposed change. The
        President promptly shall cause to have printed in the Federal
        Register the substance of any major change (described in
        subparagraph (D)) proposed and reported to Congress.

        (B) Contents of report

            In any report under subparagraph (A) the President shall
        include recommendations for the establishment of civil and
        criminal sanctions for unauthorized use or disclosure of the
        information or identifiers contained in such system.

        (C) Congressional review of major changes

            (i) Hearings and review

                The Committees on the Judiciary of the House of
            Representatives and of the Senate shall cause to have
            printed in the Congressional Record the substance of any
            major change described in subparagraph (D), shall hold
            hearings respecting the feasibility and desirability of
            implementing such a change, and, within the two year period
            before implementation, shall report to their respective
            Houses findings on whether or not such a change should be
            implemented.
            (ii) Congressional action

                No major change may be implemented unless the Congress
            specifically provides, in an appropriations or other Act,
            for funds for implementation of the change.

        (D) Major changes defined

            As used in this paragraph, the term ``major change'' means a
        change which would--
                (i) require an individual to present a new card or other
            document (designed specifically for use for this purpose) at
            the time of hiring, recruitment, or referral,
                (ii) provide for a telephone verification system under
            which an employer, recruiter, or referrer must transmit to a
            Federal official information concerning the immigration
            status of prospective employees and the official transmits
            to the person, and the person must record, a verification
            code, or
                (iii) require any change in any card used for accounting
            purposes under the Social Security Act [42 U.S.C. 301 et
            seq.], including any change requiring that the only social
            security account number cards which may be presented in
            order to comply with subsection (b)(1)(C)(i) of this section
            are such cards as are in a counterfeit-resistant form
            consistent with the second sentence of section 205(c)(2)(D)
            of the Social Security Act [42 U.S.C. 405(c)(2)(D)].

        (E) General revenue funding of social security card changes

            Any costs incurred in developing and implementing any change
        described in subparagraph (D)(iii) for purposes of this
        subsection shall not be paid for out of any trust fund
        established under the Social Security Act [42 U.S.C. 301 et
        seq.].

                     (4) Demonstration projects

        (A) Authority

            The President may undertake demonstration projects
        (consistent with paragraph (2)) of different changes in the
        requirements of subsection (b) of this section. No such project
        may extend over a period of longer than five years.

        (B) Reports on projects

            The President shall report to the Congress on the results of
        demonstration projects conducted under this paragraph.

(e) Compliance

                  (1) Complaints and investigations

        The Attorney General shall establish procedures--
            (A) for individuals and entities to file written, signed
        complaints respecting potential violations of subsection (a) or
        (g)(1) of this section,
            (B) for the investigation of those complaints which, on
        their face, have a substantial probability of validity,
            (C) for the investigation of such other violations of
        subsection (a) or (g)(1) of this section as the Attorney General
        determines to be appropriate, and
            (D) for the designation in the Service of a unit which has,
        as its primary duty, the prosecution of cases of violations of
        subsection (a) or (g)(1) of this section under this subsection.

                   (2) Authority in investigations

        In conducting investigations and hearings under this
    subsection--
            (A) immigration officers and administrative law judges shall
        have reasonable access to examine evidence of any person or
        entity being investigated,
            (B) administrative law judges, may, if necessary, compel by
        subpoena the attendance of witnesses and the production of
        evidence at any designated place or hearing, and
            (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).

    In case of contumacy or refusal to obey a subpoena lawfully issued
    under this paragraph and upon application of the Attorney General,
    an appropriate district court of the United States may issue an
    order requiring compliance with such subpoena and any failure to
    obey such order may be punished by such court as a contempt thereof.

                             (3) Hearing

        (A) In general

            Before imposing an order described in paragraph (4), (5), or
        (6) against a person or entity under this subsection for a
        violation of subsection (a) or (g)(1) of this section, the
        Attorney General shall provide the person or entity with notice
        and, upon request made within a reasonable time (of not less
        than 30 days, as established by the Attorney General) of the
        date of the notice, a hearing respecting the violation.

        (B) Conduct of hearing

            Any hearing so requested shall be conducted before an
        administrative law judge. The hearing shall be conducted in
        accordance with the requirements of section 554 of title 5. The
        hearing shall be held at the nearest practicable place to the
        place where the person or entity resides or of the place where
        the alleged violation occurred. If no hearing is so requested,
        the Attorney General's imposition of the order shall constitute
        a final and unappealable order.

        (C) Issuance of orders

            If the administrative law judge determines, upon the
        preponderance of the evidence received, that a person or entity
        named in the complaint has violated subsection (a) or (g)(1) of
        this section, the administrative law judge shall state his
        findings of fact and issue and cause to be served on such person
        or entity an order described in paragraph (4), (5), or (6).

      (4) Cease and desist order with civil money penalty for
                 hiring, recruiting, and referral violations

        With respect to a violation of subsection (a)(1)(A) or (a)(2) of
    this section, the order under this subsection--
            (A) shall require the person or entity to cease and desist
        from such violations and to pay a civil penalty in an amount
        of--
                (i) not less than $250 and not more than $2,000 for each
            unauthorized alien with respect to whom a violation of
            either such subsection occurred,
                (ii) not less than $2,000 and not more than $5,000 for
            each such alien in the case of a person or entity previously
            subject to one order under this paragraph, or
                (iii) not less than $3,000 and not more than $10,000 for
            each such alien in the case of a person or entity previously
            subject to more than one order under this paragraph; and

            (B) may require the person or entity--
                (i) to comply with the requirements of subsection (b) of
            this section (or subsection (d) of this section if
            applicable) with respect to individuals hired (or recruited
            or referred for employment for a fee) during a period of up
            to three years, and
                (ii) to take such other remedial action as is
            appropriate.

        In applying this subsection in the case of a person or entity
        composed of distinct, physically separate subdivisions each of
        which provides separately for the hiring, recruiting, or
        referring for employment, without reference to the practices of,
        and not under the control of or common control with, another
        subdivision, each such subdivision shall be considered a
        separate person or entity.

     (5) Order for civil money penalty for paperwork violations

        With respect to a violation of subsection (a)(1)(B) of this
    section, the order under this subsection shall require the person or
    entity to pay a civil penalty in an amount of not less than $100 and
    not more than $1,000 for each individual with respect to whom such
    violation occurred. In determining the amount of the penalty, due
    consideration shall be given to the size of the business of the
    employer being charged, the good faith of the employer, the
    seriousness of the violation, whether or not the individual was an
    unauthorized alien, and the history of previous violations.

              (6) Order for prohibited indemnity bonds

        With respect to a violation of subsection (g)(1) of this
    section, the order under this subsection may provide for the remedy
    described in subsection (g)(2) of this section.

                 (7) Administrative appellate review

        The decision and order of an administrative law judge shall
    become the final agency decision and order of the Attorney General
    unless either (A) within 30 days, an official delegated by
    regulation to exercise review authority over the decision and order
    modifies or vacates the decision and order, or (B) within 30 days of
    the date of such a modification or vacation (or within 60 days of
    the date of decision and order of an administrative law judge if not
    so modified or vacated) the decision and order is referred to the
    Attorney General pursuant to regulations, in which case the decision
    and order of the Attorney General shall become the final agency
    decision and order under this subsection. The Attorney General may
    not delegate the Attorney General's authority under this paragraph
    to any entity which has review authority over immigration-related
    matters.

                         (8) Judicial review

        A person or entity adversely affected by a final order
    respecting an assessment may, within 45 days after the date the
    final order is issued, file a petition in the Court of Appeals for
    the appropriate circuit for review of the order.

                      (9) Enforcement of orders

        If a person or entity fails to comply with a final order issued
    under this subsection against the person or entity, the Attorney
    General shall file a suit to seek compliance with the order in any
    appropriate district court of the United States. In any such suit,
    the validity and appropriateness of the final order shall not be
    subject to review.

(f) Criminal penalties and injunctions for pattern or practice
        violations

                        (1) Criminal penalty

        Any person or entity which engages in a pattern or practice of
    violations of subsection (a)(1)(A) or (a)(2) of this section shall
    be fined not more than $3,000 for each unauthorized alien with
    respect to whom such a violation occurs, imprisoned for not more
    than six months for the entire pattern or practice, or both,
    notwithstanding the provisions of any other Federal law relating to
    fine levels.

           (2) Enjoining of pattern or practice violations

        Whenever the Attorney General has reasonable cause to believe
    that a person or entity is engaged in a pattern or practice of
    employment, recruitment, or referral in violation of paragraph
    (1)(A) or (2) of subsection (a) of this section, the Attorney
    General may bring a civil action in the appropriate district court
    of the United States requesting such relief, including a permanent
    or temporary injunction, restraining order, or other order against
    the person or entity, as the Attorney General deems necessary.

(g) Prohibition of indemnity bonds

                           (1) Prohibition

        It is unlawful for a person or other entity, in the hiring,
    recruiting, or referring for employment of any individual, to
    require the individual to post a bond or security, to pay or agree
    to pay an amount, or otherwise to provide a financial guarantee or
    indemnity, against any potential liability arising under this
    section relating to such hiring, recruiting, or referring of the
    individual.

                          (2) Civil penalty

        Any person or entity which is determined, after notice and
    opportunity for an administrative hearing under subsection (e) of
    this section, to have violated paragraph (1) shall be subject to a
    civil penalty of $1,000 for each violation and to an administrative
    order requiring the return of any amounts received in violation of
    such paragraph to the employee or, if the employee cannot be
    located, to the general fund of the Treasury.

(h) Miscellaneous provisions

                          (1) Documentation

        In providing documentation or endorsement of authorization of
    aliens (other than aliens lawfully admitted for permanent residence)
    authorized to be employed in the United States, the Attorney General
    shall provide that any limitations with respect to the period or
    type of employment or employer shall be conspicuously stated on the
    documentation or endorsement.

                           (2) Preemption

        The provisions of this section preempt any State or local law
    imposing civil or criminal sanctions (other than through licensing
    and similar laws) upon those who employ, or recruit or refer for a
    fee for employment, unauthorized aliens.

                (3) Definition of unauthorized alien

        As used in this section, the term ``unauthorized alien'' means,
    with respect to the employment of an alien at a particular time,
    that the alien is not at that time either (A) an alien lawfully
    admitted for permanent residence, or (B) authorized to be so
    employed by this chapter or by the Attorney General.

(June 27, 1952, ch. 477, title II, ch. 8, Sec. 274A, as added Pub. L.
99-603, title I, Sec. 101(a)(1), Nov. 6, 1986, 100 Stat. 3360; amended
Pub. L. 100-525, Sec. 2(a)(1), Oct. 24, 1988, 102 Stat. 2609; Pub. L.
101-649, title V, Secs. 521(a), 538(a), Nov. 29, 1990, 104 Stat. 5053,
5056; Pub. L. 102-232, title III, Secs. 306(b)(2), 309(b)(11), Dec. 12,
1991, 105 Stat. 1752, 1759; Pub. L. 103-416, title II, Secs. 213,
219(z)(4), Oct. 25, 1994, 108 Stat. 4314, 4318; Pub. L. 104-208, div. C,
title III, Sec. 379(a), title IV, Secs. 411(a), 412(a)-(d), 416, Sept.
30, 1996, 110 Stat. 3009-649, 3009-666 to 3009-669.)

                       References in Text

    The Social Security Act, referred to in subsec. (d)(3)(D)(iii), (E),
is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended, which is
classified generally to chapter 7 (Sec. 301 et seq.) of Title 42, The
Public Health and Welfare. For complete classification of this Act to
the Code, see section 1305 of Title 42 and Tables.
 

                               Amendments

    1996--Subsec. (a)(6). Pub. L. 104-208, Sec. 412(b), added par. (6).
    Subsec. (a)(7). Pub. L. 104-208, Sec. 412(d), added par. (7).
    Subsec. (b)(1)(B). Pub. L. 104-208, Sec. 412(a)(1)(A), (B),
redesignated cl. (v) as (ii), substituted ``, alien registration card,
or other document designated by the Attorney General, if the document''
for ``or other alien registration card, if the card'' in introductory
provisions of that cl., and struck out former cls. (ii) to (iv) which
read as follows:
    ``(ii) certificate of United States citizenship;
    ``(iii) certificate of naturalization;
    ``(iv) unexpired foreign passport, if the passport has an
appropriate, unexpired endorsement of the Attorney General authorizing
the individual's employment in the United States; or''.
    Subsec. (b)(1)(B)(ii). Pub. L. 104-208, Sec. 412(a)(1)(C), in subcl.
(I), substituted ``and'' for ``or'' before ``such other personal'' and
struck out ``and'' at end, in subcl. (II), substituted ``, and'' for the
period at end, and added subcl. (III).
    Subsec. (b)(1)(C). Pub. L. 104-208, Sec. 412(a)(2), inserted ``or''
at end of cl. (i), redesignated cl. (iii) as (ii), and struck out former
cl. (ii) which read as follows: ``certificate of birth in the United
States or establishing United States nationality at birth, which
certificate the Attorney General finds, by regulation, to be acceptable
for purposes of this section; or''.
    Subsec. (b)(1)(E). Pub. L. 104-208, Sec. 412(a)(3), added subpar.
(E).
    Subsec. (b)(6). Pub. L. 104-208, Sec. 411(a), added par. (6).
    Subsec. (e)(2)(C). Pub. L. 104-208, Sec. 416, added subpar. (C).
    Subsec. (e)(7). Pub. L. 104-208, Sec. 379(a)(2), substituted ``the
final agency decision and order under this subsection'' for ``a final
order under this subsection''.
    Pub. L. 104-208, Sec. 379(a)(1), substituted ``unless either (A)
within 30 days, an official delegated by regulation to exercise review
authority over the decision and order modifies or vacates the decision
and order, or (B) within 30 days of the date of such a modification or
vacation (or within 60 days of the date of decision and order of an
administrative law judge if not so modified or vacated) the decision and
order is referred to the Attorney General pursuant to regulations'' for
``unless, within 30 days, the Attorney General modifies or vacates the
decision and order''.
    Subsecs. (i) to (n). Pub. L. 104-208, Sec. 412(c), struck out
subsec. (i) which provided effective dates for implementation of this
section, subsec. (j) which required General Accounting Office reports on
implementation of this section, subsec. (k) which established a
taskforce to review reports, subsec. (l) which provided a termination
date for employer sanctions under this section upon finding of
widespread discrimination in implementing this section, and subsecs. (m)
and (n) which provided for expedited procedures in House of
Representatives and Senate for considering resolutions to approve
findings in the reports.
    1994--Subsec. (b)(3). Pub. L. 103-416, Sec. 219(z)(4), made
technical correction to Pub. L. 102-232, Sec. 306(b)(2). See 1991
Amendment note below.
    Subsec. (d)(4)(A). Pub. L. 103-416, Sec. 213, substituted ``five''
for ``three'' in second sentence.
    1991--Subsec. (b)(1)(D)(ii). Pub. L. 102-232, Sec. 309(b)(11),
substituted ``clause (i)'' for ``clause (ii)''.
    Subsec. (b)(3). Pub. L. 102-232, Sec. 306(b)(2), as amended by Pub.
L. 103-416, Sec. 219(z)(4), made technical correction to Pub. L. 101-
649, Sec. 538(a). See 1990 Amendment note below.
    1990--Subsec. (a)(1). Pub. L. 101-649, Sec. 521(a), struck out ``to
hire, or to recruit or refer for a fee, for employment in the United
States'' after ``or other entity'' in introductory provisions, inserted
``to hire, or to recruit or refer for a fee, for employment in the
United States'' after ``(A)'' in subpar. (A), and inserted ``(i) to hire
for employment in the United States an individual without complying with
the requirements of subsection (b) of this section or (ii) if the person
or entity is an agricultural association, agricultural employer, or farm
labor contractor (as defined in section 1802 of title 29), to hire, or
to recruit or refer for a fee, for employment in the United States''
after ``(B)'' in subpar. (B).
    Subsec. (b)(3). Pub. L. 101-649, Sec. 538(a), as amended by Pub. L.
102-232, Sec. 306(b)(2), as amended by Pub. L. 103-416, Sec. 219(z)(4),
inserted ``, the Special Counsel for Immigration-Related Unfair
Employment Practices,'' after ``officers of the Service''.
    1988--Subsec. (b)(1)(A). Pub. L. 100-525, Sec. 2(a)(1)(A),
substituted ``the first sentence of this paragraph'' for ``such
sentence'' and ``such another document'' for ``such a document''.
    Subsec. (d)(3)(D). Pub. L. 100-525, Sec. 2(a)(1)(B), in heading
substituted ``defined'' for ``requiring two years notice and
congressional review''.
    Subsec. (e)(1). Pub. L. 100-525, Sec. 2(a)(1)(C)(i), inserted
reference to subsec. (g)(1) in three places.
    Subsec. (e)(3). Pub. L. 100-525, Sec. 2(a)(1)(C)(i), (ii), inserted
reference to subsec. (g)(1) in two places and reference to par. (6) in
two places.
    Subsec. (e)(4)(A)(ii), (iii). Pub. L. 100-525, Sec. 2(a)(1)(D),
substituted ``paragraph'' for ``subparagraph''.
    Subsec. (e)(6) to (9). Pub. L. 100-525, Sec. 2(a)(1)(C)(iii), (iv),
added par. (6) and redesignated former pars. (6) to (8) as (7) to (9),
respectively.
    Subsec. (g)(2). Pub. L. 100-525, Sec. 2(a)(1)(E), inserted reference
to subsec. (e) of this section.
    Subsec. (i)(3)(B)(iii). Pub. L. 100-525, Sec. 2(a)(1)(F),
substituted ``an order'' for ``a order'' and ``subsection (a)(1)(A) of
this section'' for ``paragraph (1)(A)''.
    Subsec. (j)(1). Pub. L. 100-525, Sec. 2(a)(1)(G), made technical
amendment to provision of original act which was translated as
``November 6, 1986,'' and struck out ``of the United States'' after
``Comptroller General''.
    Subsec. (j)(2). Pub. L. 100-525, Sec. 2(a)(1)(H), substituted ``this
section'' for ``that section''.
 

                    Effective Date of 1996 Amendment

    Section 379(b) of div. C of Pub. L. 104-208 provided that: ``The
amendments made by subsection (a) [amending this section and section
1324c of this title] shall apply to orders issued on or after the date
of the enactment of this Act [Sept. 30, 1996].''
    Section 411(b) of div. C of Pub. L. 104-208 provided that: ``The
amendment made by subsection (a) [amending this section] shall apply to
failures occurring on or after the date of the enactment of this Act
[Sept. 30, 1996].''
    Section 412(e) of div. C of Pub. L. 104-208, as amended by Pub. L.
105-54, Sec. 3(a), Oct. 6, 1997, 111 Stat. 1175, provided that:
    ``(1) The amendments made by subsection (a) [amending this section]
shall apply with respect to hiring (or recruitment or referral)
occurring on or after such date (not later than 18 months after the date
of the enactment of this Act [Sept. 30, 1996]) as the Attorney General
shall designate.
    ``(2) The amendment made by subsection (b) [amending this section]
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) [amending this section]
shall take effect on the date of the enactment of this Act.
    ``(4) The amendment made by subsection (d) [amending this section]
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
[subsecs. (e) and (f) of this section] for such hiring occurring before
such date.''
    [Section 3(b) of Pub. L. 105-54 provided that: ``The amendment made
by subsection (a) [amending section 412(e) of div. C of Pub. L. 104-208,
set out above] shall take effect as if included in the enactment of the
Illegal Immigration Reform and Immigrant Responsibility Act of 1996
[div. C of Pub. L. 104-208].'']
 

                    Effective Date of 1994 Amendment

    Section 219(z) of Pub. L. 103-416 provided that the amendment made
by subsec. (z)(4) of that section is effective as if included in the
Miscellaneous and Technical Immigration and Naturalization Amendments of
1991, Pub. L. 102-232.
 

                    Effective Date of 1991 Amendment

    Amendment by section 306(b)(2) of Pub. L. 102-232 effective as if
included in the enactment of the Immigration Act of 1990, Pub. L. 101-
649, see section 310(1) of Pub. L. 102-232, set out as a note under
section 1101 of this title.
 

                    Effective Date of 1990 Amendment

    Section 521(b) of Pub. L. 101-649 provided that: ``The amendments
made by subsection (a) [amending this section] shall apply to recruiting
and referring occurring on or after the date of the enactment of this
Act [Nov. 29, 1990].''
    Section 538(b) of Pub. L. 101-649 provided that: ``The amendment
made by subsection (a) [amending this section] shall take effect on the
date of the enactment of this Act [Nov. 29, 1990].''
 

                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-525 effective as if included in enactment
of Immigration Reform and Control Act of 1986, Pub. L. 99-603, see
section 2(s) of Pub. L. 100-525, set out as a note under section 1101 of
this title.
 

Date of Enactment of This Section for Aliens Employed Under Section 8704
                          of Title 46, Shipping

    Date of enactment of this section with respect to aliens deemed
employed under section 8704 of Title 46, Shipping, as the date 180 days
after Jan. 11, 1988, see section 5(f)(3) of Pub. L. 100-239, set out as
a Construction note under section 8704 of Title 46.

                         Delegation of Authority

    Memorandum of President of the United States, Feb. 10, 1992, 57 F.R.
24345, provided:
    Memorandum for the Secretary of Health and Human Services
    Section 205(c)(2)(F) of the Social Security Act (section
405(c)(2)(F) of title 42 of the United States Code) directs the
Secretary of Health and Human Services to issue Social Security number
cards to individuals who are assigned Social Security numbers.
    By the authority vested in me as President by the Constitution and
the laws of the United States of America, including section
274A(d)(3)(A) of the Immigration and Nationality Act (the ``Act'')
(section 1324a(d)(3)(A) of title 8 of the United States Code) and
section 301 of title 3 of the United States Code, and in order to
provide for the delegation of certain functions under the Act [8 U.S.C.
1101 et seq.], I hereby:
    (1) Authorize you to prepare and transmit, to the Committee on the
Judiciary and the Committee on Ways and Means of the House of
Representatives and to the Committee on the Judiciary and the Committee
on Finance of the Senate, a written report regarding the substance of
any proposed change in Social Security number cards, to the extent
required by section 274A(d)(3)(A) of the Act, and
    (2) Authorize you to cause to have printed in the Federal Register
the substance of any change in the Social Security number card so
proposed and reported to the designated congressional committees, to the
extent required by section 274A(d)(3)(A) of the Act.
    The authority delegated by this memorandum may be further
redelegated within the Department of Health and Human Services.
    You are hereby authorized and directed to publish this memorandum in
the Federal Register.
                                                            George Bush.

    Authority of President under subsec. (d)(4) of this section to
undertake demonstration projects of different changes in requirements of
employment verification system delegated to Attorney General by section
2 of Ex. Ord. No. 12781, Nov. 20, 1991, 56 F.R. 59203, set out as a note
under section 301 of Title 3, The President.
 

         Pilot Programs for Employment Eligibility Confirmation

    Subtitle A of title IV of div. C of Pub. L. 104-208 provided that:
``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 [Sept. 30, 1996]. 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 [8 U.S.C. 1324a].
        ``(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 [8
    U.S.C. 1101(a)(36)].
``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) of the Immigration and Nationality Act
    [8 U.S.C. 1324a(e)(4), 1324b(g)] 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 counterfe