Consequences of failure to participate

(a) In general Section 402(e)(5) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note), as redesignated by section 3(b)(1), is amended to read as follows: (5) Consequences of failure to participate If a person or other entity that is required to participate in E-Verify fails to comply with the requirements under this title with respect to an individual— (A) such failure shall be treated as a violation of section 274A(a)(1)(B) of the Immigration and Nationality Act (8 U.S.C. 1324a) with respect to such individual; and (B) a rebuttable presumption is created that the person or entity has violated section 274A(a)(1)(A) of such Act.. (b) Penalties Section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended— (1) in subsection (e)— (A) 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 clause (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 clause (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 clause (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 such other remedial action as is appropriate.; (B) in paragraph (5)— (i) by striking of not less than $100 and not more than $1,000 and inserting, subject to paragraphs (10) through (12), of not less than $1,000 and not more than $25,000; (ii) by striking the size of the business of the employer being charged, the good faith of the employer and inserting the good faith of the employer being charged; and (iii) by adding at the end the following: Failure by a person or entity to utilize the employment eligibility verification system as required by law, or providing information to the system that the person or entity knows or reasonably believes to be false, shall be treated as a violation of subsection (a)(1)(A).; and (C) by adding at the end the following: (10) Exemption from penalty In the case of the imposition of a civil penalty under paragraph (4)(A) with respect to a violation of paragraph (1)(A) or (2) of subsection (a) for hiring, continuation of employment, recruitment, or referral by a person or entity and, in the case of the imposition of a civil penalty under paragraph (5) for a violation of subsection (a)(1)(B) for hiring, recruitment, or referral by a person or entity, the penalty otherwise imposed may be waived or reduced if the violator establishes that the violator acted in good faith. (11) Authority to debar employers for certain violations (A) In general If a person or entity is determined by the Secretary of Homeland Security to be a repeat violator of paragraph (1)(A) or (2) of subsection (a), or is convicted of a crime under this section, the Secretary of Homeland Security shall debar such person or entity 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 maintained under section 1303(a)(1) of title 41, United States Code. (B) Does not have contract, grant, agreement If the Secretary of Homeland Security debars a person or entity in accordance with this paragraph, and such person or entity does not hold a Federal contract, grant, or cooperative agreement, the Administrator of General Services shall include the person or entity on the List of Parties Excluded From Federal Procurement for 5 years. (C) Has contract, grant, agreement If the Secretary of Homeland Security debars a person or entity in accordance with this paragraph, and such person or entity holds a Federal contract, grant, or cooperative agreement, the Secretary— (i) shall notify all agencies or departments holding a contract, grant, or cooperative agreement with the debarred person or entity of such debarment; and (ii) after soliciting and considering the views of all such agencies and departments, may waive the operation of this paragraph. (D) Review Any decision to debar a person or entity under in accordance with this paragraph shall be reviewable pursuant to part 9.4 of the Federal Acquisition Regulation.; and (2) in subsection (f)— (A) by amending paragraph (1) to read as follows: (1) Criminal penalty Any person or entity which 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 less than 1 year and not more than 10 years, or both, notwithstanding the provisions of any other Federal law relating to fine levels.; and (B) in paragraph (2), by striking Attorney General each place such term appears and inserting Secretary of Homeland Security.