`SEC. 453A. STATE DIRECTORY OF NEW HIRES.

`(a) ESTABLISHMENT-

`(1) IN GENERAL-

`(A) REQUIREMENT FOR STATES THAT HAVE NO DIRECTORY- Except as provided in subparagraph (B), not later than October 1, 1997, each State shall establish an automated directory (to be known as the `State Directory of New Hires') which shall contain information supplied in accordance with subsection (b) by employers on each newly hired employee.

`(B) STATES WITH NEW HIRE REPORTING LAW IN EXISTENCE- A State which has a new hire reporting law in existence on the date of the enactment of this section may continue to operate under the State law, but the State must meet the requirements of subsection (g)(2) not later than October 1, 1997, and the requirements of this section (other than subsection (g)(2)) not later than October 1, 1998.

`(2) DEFINITIONS- As used in this section:

`(A) EMPLOYEE- The term `employee'--

`(i) means an individual who is an employee within the meaning of chapter 24 of the Internal Revenue Code of 1986; and

`(ii) does not include an employee of a Federal or State agency performing intelligence or counterintelligence functions, if the head of such agency has determined that reporting pursuant to paragraph (1) with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.

`(B) EMPLOYER-

`(i) IN GENERAL- The term `employer' has the meaning given such term in section 3401(d) of the Internal Revenue Code of 1986 and includes any governmental entity and any labor organization.

`(ii) LABOR ORGANIZATION- The term `labor organization' shall have the meaning given such term in section 2(5) of the National Labor Relations Act, and includes any entity (also known as a `hiring hall') which is used by the organization and an employer to carry out requirements described in section 8(f)(3) of such Act of an agreement between the organization and the employer.

`(b) EMPLOYER INFORMATION-

`(1) REPORTING REQUIREMENT-

`(A) IN GENERAL- Except as provided in subparagraphs (B) and (C), each employer shall furnish to the Directory of New Hires of the State in which a newly hired employee works, a report that contains the name, address, and social security number of the employee, and the name and address of, and identifying number assigned under section 6109 of the Internal Revenue Code of 1986 to, the employer.

`(B) MULTISTATE EMPLOYERS- An employer that has employees who are employed in 2 or more States and that transmits reports magnetically or electronically may comply with subparagraph (A) by designating 1 State in which such employer has employees to which the employer will transmit the report described in subparagraph (A), and transmitting such report to such State. Any employer that transmits reports pursuant to this subparagraph shall notify the Secretary in writing as to which State such employer designates for the purpose of sending reports.

`(C) FEDERAL GOVERNMENT EMPLOYERS- Any department, agency, or instrumentality of the United States shall comply with subparagraph (A) by transmitting the report described in subparagraph (A) to the National Directory of New Hires established pursuant to section 453.

`(2) TIMING OF REPORT- Each State may provide the time within which the report required by paragraph (1) shall be made with respect to an employee, but such report shall be made--

`(A) not later than 20 days after the date the employer hires the employee; or