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April 27, 2000 Immigration News Update
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Business Immigration News Update 
from True, Walsh & Miller 
April 27, 2000

Employer Alert: H-1B Cap Reached; INS Requires New Form to Collect H-1B Information
Congressional News: House Begins H-1B Roller Coaster Ride
Senate H-1B Bill Passes Committee, Heads to Floor
House and Senate Poised to Make Visa Waiver Program Permanent
Backlog Reduction Bills Proposed in Congress
Immigration Advocates Urge Broader Agenda This Congress
INS Audit Confirms Overissuance of H-1B Visas Last Year
State Department Imposes New J Visa Fees

Employer Alert: H-1B Cap Reached; INS Requires New Form to Collect H-1B Information
The INS announced in the Federal Register on March 21 that it had enough approved H-1B petitions and cap-subject cases filed at the four Service Centers to reach the FY 2000 limit of 115,000 new H-1B approvals.  According to the notice, the INS no longer will accept petitions asking for a date before October 1, 2000.  However, due to pending legislation, the INS has agreed that petitioners who state "October 1, 2000 or earlier" on the petition form will be eligible for any new visas made available this year.  The INS also has stated that it will extend the nonimmigrant status of F-1 and J-1 students with pending H-1B change of status petitions.  However, their work authorization will expire with their current practical training permission.

INS also announced in March that a new Form I-129W must be submitted with all H-1B petitions, including change of employer and extension of status cases.  The INS will use this new form to collect information required by the 1998 H-1B law, and to determine whether or not the petitioner is required to pay the $500 "training fee." All petitions filed after March 30, 2000 must include this new form.

Employers are urged to consult with their immigration attorney about the impact of these announcements on any pending or future cases.

Congressional News: House Begins H-1B Roller Coaster Ride
The House of Representatives, following the Senate's lead, took up in March the issue of increasing the H-1B cap.  Representative Lamar Smith (R-TX), Chairman of the House Immigration Subcommittee, along with Representatives Tom Campbell (R-CA), Bob Goodlatte (R-VA), and Chris Cannon (R-UT), introduced H.R. 3814, the Technology Worker Relief Act of 2000.  The employer community strongly denounced this measure, which included provisions that would increase the number of H-1B visas (by only 45,000 visas) for the current fiscal year alone, but tie this increase to the Department of Labor issuing final regulations implementing the 1998 H-1B law, thereby holding the additional visas hostage to bureaucracy.  In addition, in order to apply for the additional visas, an employer must demonstrate that in the last year it has increased its overall employment of U.S. workers, its total payroll provisions in the United States, and its median salary levels. The increased employment and payroll provisions amount to a new no-layoff attestation on all employers and make no sense in the current business climate where many companies need to let go of unprofitable departments and projects, but may still need the particular expertise of an H-1B non-immigrant in a new project.  Other provisions of the bill included permanent changes to the H-1B program, requiring that H-1B non-immigrants only work full-time (at least 35 hours per week) and eliminating experience equivalence to a degree for H-1B beneficiaries.

Following the introduction of the Smith bill, a bi-partisan group of Representatives, led by David Dreier (R-CA) and Zoe Lofgren (D-CA), introduced H.R. 3983 on March 15. The Helping to Improve Technology Education and Achievement (or HI-TECH Act) has strong bi-partisan support from key Representatives, including Dick Armey (R-TX), the Majority Leader, Tom Davis (R-VA), the chairman of the Republican Congressional Campaign Committee, and Representative Patrick Kennedy (D-RI), chairman of the Democratic Congressional Campaign Committee. Minority Leader Richard Gephardt (D-MO) also has indicated his support for the measure.
H.R. 3983 would:
  • Increase the limit on H-1B visas to 200,000 for FYs 2001, 2002 and 2003, and "set aside" 10,000 visas for employees of higher educational institutions, and government and non-profit research institutions, and 60,000 visas for individuals who hold masters or higher degrees (or their equivalent).
         
  • Deal with the problems resulting from the per-country limits in business immigration by allowing unused visas to spill over to over-subscribed countries.
         
  • Allow "carryover visas" from FY 99 that were counted against the FY 2000 cap to go back to FY 99, thereby freeing additional visas for this year.
         
  • Allow extension of H-1B status for those hitting the six-year limit due to INS and Department of Labor (DOL) delays in processing immigrant visa cases or the per country limit.
         
  • Recapture employment-based immigrant visas that were "lost" in the last two fiscal years because of INS delays in processing
         
  • Allow companies that must document U.S. recruiting to use Internet recruiting exclusively; mandate that INS and DOL institute Web-based case tracking systems within one year, and institute a Technology Advisory Council for those agencies to look at developing web-based case filing systems.
         
  • Require employers to file annually with DOL copies of the W-2 forms for their H-1B employees.
         
  • Increase the "training" fee to $1000 for initial H-1B petitions-the fee remains $500 for extensions and change of employers.
The bill also redirects the H-1B fees to student loan forgiveness for math and science teachers, "Upward Bound" projects in science and mathematics education, low-income college scholarships, and regional skills training alliances.

The business community hailed this bill as a balanced approach that would allow for a reasonable increase in the cap while also emphasizing the continuing need to educate and train U.S. workers for future high-tech positions.  While some proponents still are concerned about the impact of the increased visa fees on non-profits, small businesses and state and local governments that are increasingly using the H-1B program, H.R. 3983 offers the best chance to successfully move an H-1B bill through the House.  In fact, this measure continues to generate bipartisan support as evidenced by growing a list of co-sponsors from both sides of the aisle.

However, Chairman Smith is continuing to try to exert his influence. He recently introduced a "new" version of his H-1B bill, H.R. 4227, and scheduled a markup in the Immigration Subcommittee directly after introduction. Still named the Technology Worker Temporary Relief Act, the bill is very similar to the earlier H.R. 3814.  While this new bill would eliminate the H-1B cap through FY 2002, it also would maintain most of the same restrictive provisions on the use of these visas that were in his earlier bill: tying additional visa numbers to the INS and Department of Labor (DOL) issuing regulations from ACWIA; requiring employers to attest that they have hired more U.S. workers and have a higher total and average payroll than in the previous year; eliminating part-time H-1Bs and work experience equivalencies; and requiring employers to have gross assets of at least $250,000. H.R. 4227 also adds additional poison pills, including requiring DOL to post on the Internet the name and personal data of all H-1B recipients, setting a minimum pay of $40,000 for recipients, and eliminating the use of B-1 visas in lieu of H-1Bs.  The bill also would mandate that the State Department count H-1Bs and certify foreign degrees. Finally, H.R. 4227 would require that all H-1B professionals in teaching positions demonstrate English language proficiency.

In his opening statement at the subcommittee markup, Representative Smith reiterated that "there is still no objective, credible study that documents a shortage of American high-tech workers," and called for increasing the skill levels of family-based immigrants.  Democratic members urged Chairman Smith to address other important immigration issues this year, including granting relief to Central Americans who were bypassed by recent laws and individuals who were unfairly blocked by the government from applying for the amnesty program in the mid-eighties.  Other members of the subcommittee urged that agricultural worker issues be addressed as well.  While Representative Lofgren offered H.R. 3983 as a substitute for the Chairman's bill, the amendment was withdrawn on a technicality, and H.R. 4227 was passed by a voice vote, although many Democrats voted against the bill.
Following the markup, employer groups announced that H.R. 4227 does not respond to the need for educated professionals because it makes any additional numbers virtually inaccessible, and reiterated their support of H.R. 3983.  Since Representative Dreier (who is Chairman of the House Rules Committee -- which functions as the arbiter for how and which bills get to the floor for a vote)  is the original sponsor of H.R. 3983, employer advocates are hopeful that his bill will be the vehicle that ultimately passes the House.  However, advocacy is needed to ensure this happens.  Business immigration advocates should urge their Representatives to co-sponsor H.R. 3983 and pressure House leadership to move that bill to the floor as soon as possible.

Senate H-1B Bill Passes Committee, Heads to Floor
The Senate Judiciary Committee on March 9 marked-up and passed (by a 16-2 vote) S. 2045, the American Competitiveness in the 21st Century Act.  S. 2045 is sponsored by Judiciary Committee Chairman Orrin Hatch (R-UT) and Senator Spencer Abraham (R-MI), among others. The two Senators voting against the bill were Edward Kennedy (D-MA) and Russ Feingold (D-WI).  The bill may come to the Senate floor soon.

During debate, the committee adopted two amendments to the base bill: a Feinsten/Abraham provision that would redirect H-1B fees to K-12 education and National Science Foundation-run low-income college scholarship programs; and one offered by Joseph Biden (D-DE) that would address the so-called "digital divide" by providing funds to install computers and hire computer trainers at Boys and Girls Clubs nationwide.  Both of these amendments, and the debate they generated, suggest the importance of education and training of U.S. workers and the need to retool our education system.
The committee also defeated (by a 10-8 vote) a substitute amendment offered by Senator Kennedy.  The substitute, which the Senator may introduce as a stand-alone bill, would:
     

  • Increase the H-1B cap to only 145,000 for the next three fiscal years, while providing an exemption from the cap for advanced degree holders. Additionally, the bill would require at least 45,000 visas in FY 2000, 50,000 in FY 2001, and 55,000 in FY 2002 go to advanced degree holders.
         
  • Increase the so-called "training" fee for H-1B petitions introduced by the American Competitiveness and Workforce Improvement Act of 1998 (ACWIA).  The fee would be on a sliding scale, with employers of 150 or less paying $1000, employers of 150-500 employees paying $2000, and the largest employers paying $3000. The substitute also would require smaller H-1B dependent employers (with at least 51 employees and 15% H-1Bs) to pay $3000.  The fees would be directed primarily to new, short-term training programs under the Department of Labor.
         
  • Extend the no-layoff attestation required of dependent employers under ACWIA to six months before and after the filing of an H-1B visa petition and require employers to "make efforts to continually train and update the existing skills of incumbent employees and to promote such employees where possible."
         
  • Require the Department of Labor to conduct "an ongoing survey of the level of compliance by employers" with the provisions of the H-1B program.  This "survey" would be conducted on a random sample of petitioning employers.
    Business advocates should continue to contact their Senators and urge their support for S. 2045 when it comes to the floor for a vote.

House and Senate Poised to Make Visa Waiver Program Permanent
On April 11, the House passed H.R. 3767, the Visa Waiver Permanent Program Act, introduced in early March by Representatives Smith and Sheila Jackson-Lee (D-TX).  H.R. 3767, which travel and tourism groups strongly support, makes permanent the Visa Waiver Pilot Program enacted in 1986.  The Visa Waiver Program allows nationals of designated countries to apply to enter the United States as temporary visitors for business or pleasure for up to 90 days without first obtaining a visa from a consular office.  Under this program, which Congress several times has routinely extended, the Attorney General designates countries to participate based on their reciprocal treatment to U.S. citizens, low denial rate at consulates for visitors visas, and low "overstay" rate in the United States for their nationals.  The Visa Waiver Program hosts about 17 million visitors each year, according to the INS.

In addition to making the program permanent, H.R. 3767 requires the Attorney General to develop an automated system to track the entries and departures of visa waiver program participants at airports and seaports.  The bill also places increased restrictions on the ability of the Attorney General to parole inadmissible visa waiver applicants into the country, absent "compelling reasons in the public interest or compelling health considerations."

The Senate Judiciary Committee, by voice vote on April 13, passed its version of the visa waiver bill, S. 2367.  That measure, sponsored by Senator Spencer Abraham (R-MI), Chairman of the Immigration Subcommittee, does not contain the provisions of the House bill relating to entry-exit tracking, parole restrictions, or rescission of a country's visa waiver status.  The Senate bill is expected to go to the floor in late April or May.

Backlog Reduction Bills Proposed in Congress




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