[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3736 Engrossed in House (EH)]


  2d Session

                               H. R. 3736

_______________________________________________________________________

                                 AN ACT

 To amend the Immigration and Nationality Act to make changes relating 
                         to H-1B nonimmigrants.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  2d Session
                                H. R. 3736

_______________________________________________________________________

                                 AN ACT


 
 To amend the Immigration and Nationality Act to make changes relating 
                         to H-1B nonimmigrants.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; AMENDMENTS TO IMMIGRATION 
              AND NATIONALITY ACT.

    (a) Short Title.--This Act may be cited as the ``Temporary Access 
to Skilled Workers and H-1B Nonimmigrant Program Improvement Act of 
1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; amendments to Immigration and 
                            Nationality Act.
           TITLE I--PROVISIONS RELATING TO H-1B NONIMMIGRANTS

Sec. 101. Temporary increase in access to temporary skilled personnel 
                            under H-1B program.
Sec. 102. Protection against displacement of United States workers in 
                            case of H-1B-dependent employers.
Sec. 103. Changes in enforcement and penalties.
Sec. 104. Collection and use of H-1B nonimmigrant fees for scholarships 
                            for low-income math, engineering, and 
                            computer science students and job training 
                            of United States workers.
Sec. 105. Computation of prevailing wage level.
Sec. 106. Improving count of H-1B and H-2B nonimmigrants.
Sec. 107. Report on older workers in the information technology field.
Sec. 108. Report on high technology labor market needs; reports on 
                            economic impact of increase in H-1B 
                            nonimmigrants.
 TITLE II--SPECIAL IMMIGRANT STATUS FOR CERTAIN NATO CIVILIAN EMPLOYEES

Sec. 201. Special immigrant status for certain NATO civilian employees.
                   TITLE III--MISCELLANEOUS PROVISION

Sec. 301. Academic honoraria.
    (c) Amendments to Immigration and Nationality Act.--Except as 
otherwise specifically provided in this Act, whenever in this Act an 
amendment is expressed in terms of an amendment to a section or other 
provision, the reference shall be considered to be made to that section 
or other provision of the Immigration and Nationality Act (8 U.S.C. 
1101 et seq.).

           TITLE I--PROVISIONS RELATING TO H-1B NONIMMIGRANTS

SEC. 101. TEMPORARY INCREASE IN ACCESS TO TEMPORARY SKILLED PERSONNEL 
              UNDER H-1B PROGRAM.

    (a) Temporary Increase in Skilled Nonimmigrant Workers.--Paragraph 
(1)(A) of section 214(g) (8 U.S.C. 1184(g)) is amended to read as 
follows:
            ``(A) under section 101(a)(15)(H)(i)(b), may not exceed--
                    ``(i) 65,000 in each fiscal year before fiscal year 
                1999;
                    ``(ii) 115,000 in fiscal year 1999;
                    ``(iii) 115,000 in fiscal year 2000;
                    ``(iv) 107,500 in fiscal year 2001; and
                    ``(v) 65,000 in each succeeding fiscal year; or''.
    (b) Effective Dates.--The amendment made by subsection (a) applies 
beginning with fiscal year 1998.

SEC. 102. PROTECTION AGAINST DISPLACEMENT OF UNITED STATES WORKERS IN 
              CASE OF H-1B-DEPENDENT EMPLOYERS.

    (a) Protection Against Layoff and Requirement for Prior Recruitment 
of United States Workers.--
            (1) Additional statements on application.--Section 
        212(n)(1) (8 U.S.C. 1182(n)(1)) is amended by inserting after 
        subparagraph (D) the following:
            ``(E)(i) In the case of an application described in clause 
        (ii), the employer did not displace and will not displace a 
        United States worker (as defined in paragraph (4)) employed by 
        the employer within the period beginning 90 days before and 
        ending 90 days after the date of filing of any visa petition 
        supported by the application.
            ``(ii) An application described in this clause is an 
        application filed on or after the date final regulations are 
        first promulgated to carry out this subparagraph, and before 
        October 1, 2001, by an H-1B-dependent employer (as defined in 
        paragraph (3)) or by an employer that has been found under 
        paragraph (2)(C) or (5) to have committed a willful failure or 
        misrepresentation on or after the date of the enactment of this 
        subparagraph. An application is not described in this clause if 
        the only H-1B nonimmigrants sought in the application are 
        exempt H-1B nonimmigrants.
            ``(F) In the case of an application described in 
        subparagraph (E)(ii), the employer will not place the 
        nonimmigrant with another employer (regardless of whether or 
        not such other employer is an H-1B-dependent employer) where--
                    ``(i) the nonimmigrant performs duties in whole or 
                in part at one or more worksites owned, operated, or 
                controlled by such other employer; and
                    ``(ii) there are indicia of an employment 
                relationship between the nonimmigrant and such other 
                employer;
        unless the employer has inquired of the other employer as to 
        whether, and has no knowledge that, within the period beginning 
        90 days before and ending 90 days after the date of the 
        placement of the nonimmigrant with the other employer, the 
        other employer has displaced or intends to displace a United 
        States worker employed by the other employer.
            ``(G)(i) In the case of an application described in 
        subparagraph (E)(ii), subject to clause (ii), the employer, 
        prior to filing the application--
                    ``(I) has taken good faith steps to recruit, in the 
                United States using procedures that meet industry-wide 
                standards and offering compensation that is at least as 
                great as that required to be offered to H-1B 
                nonimmigrants under subparagraph (A), United States 
                workers for the job for which the nonimmigrant or 
                nonimmigrants is or are sought; and
                    ``(II) has offered the job to any United States 
                worker who applies and is equally or better qualified 
                for the job for which the nonimmigrant or nonimmigrants 
                is or are sought.
            ``(ii) The conditions described in clause (i) shall not 
        apply to an application filed with respect to the employment of 
        an H-1B nonimmigrant who is described in subparagraph (A), (B), 
        or (C) of section 203(b)(1).''.
            (2) Notice on application of potential liability of placing 
        employers.--Section 212(n)(1) (8 U.S.C. 1182(n)(1)) is amended 
        by adding at the end the following: ``The application form 
        shall include a clear statement explaining the liability under 
        subparagraph (F) of a placing employer if the other employer 
        described in such subparagraph displaces a United States worker 
        as described in such subparagraph.''.
            (3) Construction.--Section 212(n)(1) (8 U.S.C. 1182(n)(1)) 
        is further amended by adding at the end the following: 
        ``Nothing in subparagraph (G) shall be construed to prohibit an 
        employer from using legitimate selection criteria relevant to 
        the job that are normal or customary to the type of job 
        involved, so long as such criteria are not applied in a 
        discriminatory manner.''.
    (b) H-1B-Dependent Employer and Other Definitions.--
            (1) In general.--Section 212(n) (8 U.S.C. 1182(n)) is 
        amended by adding at the end the following:
    ``(3)(A) For purposes of this subsection, the term `H-1B-dependent 
employer' means an employer that--
            ``(i)(I) has 25 or fewer full-time equivalent employees who 
        are employed in the United States; and (II) employs more than 7 
        H-1B nonimmigrants;
            ``(ii)(I) has at least 26 but not more than 50 full-time 
        equivalent employees who are employed in the United States; and 
        (II) employs more than 12 H-1B nonimmigrants; or
            ``(iii)(I) has at least 51 full-time equivalent employees 
        who are employed in the United States; and (II) employs H-1B 
        nonimmigrants in a number that is equal to at least 15 percent 
        of the number of such full-time equivalent employees.
    ``(B) For purposes of this subsection--
            ``(i) the term `exempt H-1B nonimmigrant' means an H-1B 
        nonimmigrant who--
                    ``(I) receives wages (including cash bonuses and 
                similar compensation) at an annual rate equal to at 
                least $60,000; or
                    ``(II) has attained a master's or higher degree (or 
                its equivalent) in a specialty related to the intended 
                employment; and
            ``(ii) the term `nonexempt H-1B nonimmigrant' means an H-1B 
        nonimmigrant who is not an exempt H-1B nonimmigrant.
    ``(C) For purposes of subparagraph (A)--
            ``(i) in computing the number of full-time equivalent 
        employees and the number of H-1B nonimmigrants, exempt H-1B 
        nonimmigrants shall not be taken into account during the longer 
        of--
                    ``(I) the 6-month period beginning on the date of 
                the enactment of the Temporary Access to Skilled 
                Workers and H-1B Nonimmigrant Program Improvement Act 
                of 1998; or
                    ``(II) the period beginning on the date of the 
                enactment of the Temporary Access to Skilled Workers 
                and H-1B Nonimmigrant Program Improvement Act of 1998 
                and ending on the date final regulations are issued to 
                carry out this paragraph; and
            ``(ii) any group treated as a single employer under 
        subsection (b), (c), (m), or (o) of section 414 of the Internal 
        Revenue Code of 1986 shall be treated as a single employer.
    ``(4) For purposes of this subsection:
            ``(A) The term `area of employment' means the area within 
        normal commuting distance of the worksite or physical location 
        where the work of the H-1B nonimmigrant is or will be 
        performed. If such worksite or location is within a 
        Metropolitan Statistical Area, any place within such area is 
        deemed to be within the area of employment.
            ``(B) In the case of an application with respect to one or 
        more H-1B nonimmigrants by an employer, the employer is 
        considered to `displace' a United States worker from a job if 
        the employer lays off the worker from a job that is essentially 
        the equivalent of the job for which the nonimmigrant or 
        nonimmigrants is or are sought. A job shall not be considered 
        to be essentially equivalent of another job unless it involves 
        essentially the same responsibilities, was held by a United 
        States worker with substantially equivalent qualifications and 
        experience, and is located in the same area of employment as 
        the other job.
            ``(C) The term `H-1B nonimmigrant' means an alien admitted 
        or provided status as a nonimmigrant described in section 
        101(a)(15)(H)(i)(b).
            ``(D) The term `lays off', with respect to a worker--
                    ``(i) means to cause the worker's loss of 
                employment, other than through a discharge for 
                inadequate performance, violation of workplace rules, 
                cause, voluntary departure, voluntary retirement, or 
                the expiration of a grant or contract (other than a 
                temporary employment contract entered into in order to 
                evade a condition described in subparagraph (E) or (F) 
                of paragraph (1)); but
                    ``(ii) does not include any situation in which the 
                worker is offered, as an alternative to such loss of 
                employment, a similar employment opportunity with the 
                same employer (or, in the case of a placement of a 
                worker with another employer under paragraph (1)(F), 
                with either employer described in such paragraph) at 
                equivalent or higher compensation and benefits than the 
                position from which the employee was discharged, 
                regardless of whether or not the employee accepts the 
                offer.
            ``(E) The term `United States worker' means an employee 
        who--
                    ``(i) is a citizen or national of the United 
                States; or
                    ``(ii) is an alien who is lawfully admitted for 
                permanent residence, is admitted as a refugee under 
                section 207, is granted asylum under section 208, or is 
                an immigrant otherwise authorized, by this Act or by 
                the Attorney General, to be employed.''.
            (2) Conforming amendments.--Section 212(n)(1) (8 U.S.C. 
        1182(n)(1)) is amended by striking ``a nonimmigrant described 
        in section 101(a)(15)(H)(i)(b)'' each place it appears and 
        inserting ``an H-1B nonimmigrant''.
    (c) Improved Posting of Notice of Application.--Section 
212(n)(1)(C)(ii) (8 U.S.C. 1182(n)(1)(C)(ii)) is amended to read as 
follows:
                    ``(ii) if there is no such bargaining 
                representative, has provided notice of filing in the 
                occupational classification through such methods as 
                physical posting in conspicuous locations at the place 
                of employment or electronic notification to employees 
                in the occupational classification for which H-1B 
                nonimmigrants are sought.''.
    (d) Requirements Relating to Benefits.--
            (1) In general.--Section 212(n)(1)(A) (8 U.S.C. 
        1182(n)(1)(A)) is amended--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``, and''; and
                    (C) by adding at the end the following:
                    ``(iii) is offering and will offer to H-1B 
                nonimmigrants, during the period of authorized 
                employment, benefits and eligibility for benefits 
                (including the opportunity to participate in health, 
                life, disability, and other insurance plans; the 
                opportunity to participate in retirement and savings 
                plans; cash bonuses and noncash compensation, such as 
                stock options (whether or not based on performance)) on 
                the same basis, and in accordance with the same 
                criteria, as the employer offers benefits and 
                eligibility for benefits to United States workers.''.
            (2) Orders to provide benefits.--Section 212(n)(2)(D) (8 
        U.S.C. 1182(n)(2)(D)) is amended--
                    (A) by inserting ``or has not provided benefits or 
                eligibility for benefits as required under such 
                paragraph,'' after ``required under paragraph (1),''; 
                and
                    (B) by inserting ``or to provide such benefits or 
                eligibility for benefits'' after ``amounts of back 
                pay''.
    (e) Effective Dates.--The amendments made by subsections (a) and 
(c) apply to applications filed under section 212(n)(1) of the 
Immigration and Nationality Act on or after the date final regulations 
are issued to carry out such amendments, and the amendments made by 
subsection (b) take effect on the date of the enactment of this Act.
    (f) Reduction of Period for Public Comment.--In first promulgating 
regulations to implement the amendments made by this section in a 
timely manner, the Secretary of Labor and the Attorney General may 
reduce to not less than 30 days the period of public comment on 
proposed regulations.

SEC. 103. CHANGES IN ENFORCEMENT AND PENALTIES.

    (a) Increased Enforcement and Penalties.--Section 212(n)(2)(C) (8 
U.S.C. 1182(n)(2)(C)) is amended to read as follows:
    ``(C)(i) If the Secretary finds, after notice and opportunity for a 
hearing, a failure to meet a condition of paragraph (1)(B), (1)(E), or 
(1)(F), a substantial failure to meet a condition of paragraph (1)(C), 
(1)(D), or (1)(G)(i)(I), or a misrepresentation of material fact in an 
application--
            ``(I) the Secretary shall notify the Attorney General of 
        such finding and may, in addition, impose such other 
        administrative remedies (including civil monetary penalties in 
        an amount not to exceed $1,000 per violation) as the Secretary 
        determines to be appropriate; and
            ``(II) the Attorney General shall not approve petitions 
        filed with respect to that employer under section 204 or 214(c) 
        during a period of at least 1 year for aliens to be employed by 
        the employer.
    ``(ii) If the Secretary finds, after notice and opportunity for a 
hearing, a willful failure to meet a condition of paragraph (1), a 
willful misrepresentation of material fact in an application, or a 
violation of clause (iv)--
            ``(I) the Secretary shall notify the Attorney General of 
        such finding and may, in addition, impose such other 
        administrative remedies (including civil monetary penalties in 
        an amount not to exceed $5,000 per violation) as the Secretary 
        determines to be appropriate; and
            ``(II) the Attorney General shall not approve petitions 
        filed with respect to that employer under section 204 or 214(c) 
        during a period of at least 2 years for aliens to be employed 
        by the employer.
    ``(iii) If the Secretary finds, after notice and opportunity for a 
hearing, a willful failure to meet a condition of paragraph (1) or a 
willful misrepresentation of material fact in an application, in the 
course of which failure or misrepresentation the employer displaced a 
United States worker employed by the employer within the period 
beginning 90 days before and ending 90 days after the date of filing of 
any visa petition supported by the application--
            ``(I) the Secretary shall notify the Attorney General of 
        such finding and may, in addition, impose such other 
        administrative remedies (including civil monetary penalties in 
        an amount not to exceed $35,000 per violation) as the Secretary 
        determines to be appropriate; and
            ``(II) the Attorney General shall not approve petitions 
        filed with respect to that employer under section 204 or 214(c) 
        during a period of at least 3 years for aliens to be employed 
        by the employer.
    ``(iv) It is a violation of this clause for an employer who has 
filed an application under this subsection to intimidate, threaten, 
restrain, coerce, blacklist, discharge, or in any other manner 
discriminate against an employee (which term, for purposes of this 
clause, includes a former employee and an applicant for employment) 
because the employee has disclosed information to the employer, or to 
any other person, that the employee reasonably believes evidences a 
violation of this subsection, or any rule or regulation pertaining to 
this subsection, or because the employee cooperates or seeks to 
cooperate in an investigation or other proceeding concerning the 
employer's compliance with the requirements of this subsection or any 
rule or regulation pertaining to this subsection.
    ``(v) The Secretary of Labor and the Attorney General shall devise 
a process under which an H-1B nonimmigrant who files a complaint 
regarding a violation of clause (iv) and is otherwise eligible to 
remain and work in the United States may be allowed to seek other 
appropriate employment in the United States for a period (not to exceed 
the duration of the alien's authorized admission as such a 
nonimmigrant).
    ``(vi) It is a violation of this clause for an employer who has 
filed an application under this subsection to require an H-1B 
nonimmigrant to pay a penalty (as determined under State law) for 
ceasing employment with the employer prior to a date agreed to by the 
nonimmigrant and the employer. If the Secretary finds, after notice and 
opportunity for a hearing, that an employer has committed such a 
violation, the Secretary may impose a civil monetary penalty of $1,000 
for each such violation and issue an administrative order requiring the 
return to the nonimmigrant of any amount required to be paid in 
violation of this clause, or, if the nonimmigrant cannot be located, 
requiring payment of any such amount to the general fund of the 
Treasury.''.
    (b) Use of Arbitration Process for Disputes Involving 
Qualifications of United States Workers Not Hired.--
            (1) In general.--Section 212(n) (8 U.S.C. 1182(n)), as 
        amended by section 102(b), is further amended by adding at the 
        end the following:
    ``(5)(A) This paragraph shall apply instead of subparagraphs (A) 
through (E) of paragraph (2) in the case of a violation described in 
subparagraph (B).
    ``(B) The Attorney General shall establish a process for the 
receipt, initial review, and disposition in accordance with this 
paragraph of complaints respecting an employer's failure to meet the 
condition of paragraph (1)(G)(i)(II) or a petitioner's 
misrepresentation of material facts with respect to such condition. 
Complaints may be filed by an aggrieved individual who has submitted a 
resume or otherwise applied in a reasonable manner for the job that is 
the subject of the condition. No proceeding shall be conducted under 
this paragraph on a complaint concerning such a failure or 
misrepresentation unless the Attorney General determines that the 
complaint was filed not later than 12 months after the date of the 
failure or misrepresentation, respectively.
    ``(C) If the Attorney General finds that a complaint has been filed 
in accordance with subparagraph (B) and there is reasonable cause to 
believe that such a failure or misrepresentation described in such 
complaint has occurred, the Attorney General shall initiate binding 
arbitration proceedings by requesting the Federal Mediation and 
Conciliation Service to appoint an arbitrator from the roster of 
arbitrators maintained by such Service. The procedure and rules of such 
Service shall be applicable to the selection of such arbitrator and to 
such arbitration proceedings. The Attorney General shall pay the fee 
and expenses of the arbitrator.
    ``(D)(i) The arbitrator shall make findings respecting whether a 
failure or misrepresentation described in subparagraph (B) occurred. If 
the arbitrator concludes that failure or misrepresentation was willful, 
the arbitrator shall make a finding to that effect. The arbitrator may 
not find such a failure or misrepresentation (or that such a failure or 
misrepresentation was willful) unless the complainant demonstrates such 
a failure or misrepresentation (or its willful character) by clear and 
convincing evidence. The arbitrator shall transmit the findings in the 
form of a written opinion to the parties to the arbitration and the 
Attorney General. Such findings shall be final and conclusive, and, 
except as provided in this subparagraph, no official or court of the 
United States shall have power or jurisdiction to review any such 
findings.
    ``(ii) The Attorney General may review and reverse or modify the 
findings of an arbitrator only on the same bases as an award of an 
arbitrator may be vacated or modified under section 10 or 11 of title 
9, United States Code.
    ``(iii) With respect to the findings of an arbitrator, a court may 
review only the actions of the Attorney General under clause (ii) and 
may set aside such actions only on the grounds described in 
subparagraph (A), (B), or (C) of section 706(a)(2) of title 5, United 
States Code. Notwithstanding any other provision of law, such judicial 
review may only be brought in an appropriate United States court of 
appeals.
    ``(E) If the Attorney General receives a finding of an arbitrator 
under this paragraph that an employer has failed to meet the condition 
of paragraph (1)(G)(i)(II) or has misrepresented a material fact with 
respect to such condition, unless the Attorney General reverses or 
modifies the finding under subparagraph (D)(ii)--
            ``(i) the Attorney General may impose administrative 
        remedies (including civil monetary penalties in an amount not 
        to exceed $1,000 per violation or $5,000 per violation in the 
        case of a willful failure or misrepresentation) as the Attorney 
        General determines to be appropriate; and
            ``(ii) the Attorney General is authorized to not approve 
        petitions filed with respect to that employer under section 204 
        or 214(c) during a period of not more than 1 year for aliens to 
        be employed by the employer.
    ``(F) The Attorney General shall not delegate, to any other 
employee or official of the Department of Justice, any function of the 
Attorney General under this paragraph, until 60 days after the Attorney 
General has submitted a plan for such delegation to the Committees on 
the Judiciary of the United States House of Representatives and the 
Senate.''.
            (2) Conforming amendment.--The first sentence of section 
        212(n)(2)(A) (8 U.S.C. 1182(n)(2)(A)) is amended by striking 
        ``The Secretary'' and inserting ``Subject to paragraph (5)(A), 
        the Secretary''.
    (c) Liability of Petitioning Employer in Case of Placement of H-1B 
Nonimmigrant With Another Employer.--Section 212(n)(2) (8 U.S.C. 
1182(n)(2)) is amended by adding at the end the following:
    ``(E) If an H-1B-dependent employer places a nonexempt H-1B 
nonimmigrant with another employer as provided under paragraph (1)(F) 
and the other employer has displaced or displaces a United States 
worker employed by such other employer during the period described in 
such paragraph, such displacement shall be considered for purposes of 
this paragraph a failure, by the placing employer, to meet a condition 
specified in an application submitted under paragraph (1); except that 
the Attorney General may impose a sanction described in subclause (II) 
of subparagraph (C)(i), (C)(ii), or (C)(iii) only if the Secretary of 
Labor found that such placing employer--
            ``(i) knew or had reason to know of such displacement at 
        the time of the placement of the nonimmigrant with the other 
        employer; or
            ``(ii) has been subject to a sanction under this 
        subparagraph based upon a previous placement of an H-1B 
        nonimmigrant with the same other employer.''.
    (d) Spot Investigations During Probationary Period.--Section 
212(n)(2) (8 U.S.C. 1182(n)(2)), as amended by subsection (c), is 
further amended by adding at the end the following:
    ``(F) The Secretary may, on a case-by-case basis, subject an 
employer to random investigations for a period of up to 5 years, 
beginning on the date that the employer is found by the Secretary to 
have committed a willful failure to meet a condition of paragraph (1) 
(or has been found under paragraph (5) to have committed a willful 
failure to meet the condition of paragraph (1)(G)(i)(II)) or to have 
made a willful misrepresentation of material fact in an application. 
The preceding sentence shall apply to an employer regardless of whether 
or not the employer is an H-1B-dependent employer. The authority of the 
Secretary under this subparagraph shall not be construed to be subject 
to, or limited by, the requirements of subparagraph (A).''.
    (e) Additional Investigative Authority.--
             (1) In General.--Section 212(n)(2) (8 U.S.C. 1182(n)(2)), 
        as amended by subsection (d), is further amended by adding at 
        the end the following:
    ``(G)(i) If the Secretary receives specific credible information 
from a source, who is likely to have knowledge of an employer's 
practices or employment conditions, or an employer's compliance with 
the employer's labor condition application under paragraph (1), and 
whose identity is known to the Secretary, and such information provides 
reasonable cause to believe that the employer has committed a willful 
failure to meet a condition of paragraph (1)(A), (1)(B), (1)(E), 
(1)(F), or (1)(G)(i)(I), has engaged in a pattern or practice of 
failures to meet such a condition, or has committed a substantial 
failure to meet such a condition that affects multiple employees, the 
Secretary may conduct a 30-day investigation into the alleged failure 
or failures. The Secretary (or the Acting Secretary in the case of the 
Secretary's absence or disability) shall personally certify that the 
requirements for conducting such an investigation have been met and 
shall approve commencement of the investigation. At the request of the 
source, the Secretary may withhold the identity of the source from the 
employer, and the source's identity shall not be subject to disclosure 
under section 552 of title 5, United States Code.
    ``(ii) The Secretary shall establish a procedure under which any 
person who desires to provide to the Secretary information described in 
clause (i) that may be used, in whole or in part, as the basis for 
commencement of an investigation described in the clause is required to 
provide the information in writing on a form developed and provided by 
the Secretary and completed by or on behalf of the person.
    ``(iii) The Secretary shall provide notice to an employer with 
respect to whom the Secretary has received information described in 
clause (i), prior to the commencement of an investigation under such 
clause, of the receipt of the information and of the potential for an 
investigation. The notice shall be provided in such a manner, and shall 
contain sufficient detail, to permit the employer to respond to the 
allegations before an investigation is commenced. The Secretary is not 
required to comply with this clause if the Secretary determines that to 
do so would interfere with an effort by the Secretary to secure 
compliance by the employer with the requirements of this subsection.
    ``(iv) Nothing in this subparagraph shall be construed as 
authorizing the Secretary to initiate, or approve the initiation of, an 
investigation under clause (i) without the receipt, from a person or 
persons who are not employed by the Department of Labor, of information 
described in such clause that provides the reasonable cause described 
in such clause. The receipt by the Secretary of information submitted 
by an employer to the Attorney General or the Secretary for purposes of 
securing the employment of an H-1B nonimmigrant shall not be considered 
a receipt of information for purposes of this subparagraph.''.
            (2) Sunset.--The amendment made by paragraph (1) shall 
        cease to be effective on September 30, 2001.

SEC. 104. COLLECTION AND USE OF H-1B NONIMMIGRANT FEES FOR SCHOLARSHIPS 
              FOR LOW-INCOME MATH, ENGINEERING, AND COMPUTER SCIENCE 
              STUDENTS AND JOB TRAINING OF UNITED STATES WORKERS.

    (a) Imposition of Fee.--Section 214(c) (8 U.S.C. 1184(c)) is 
amended by adding at the end the following:
    ``(9)(A) The Attorney General shall impose a fee on an employer 
(excluding an employer described in subparagraph (A) or (B) of section 
212(p)(1) and an employer filing for new concurrent employment) as a 
condition for the approval of a petition filed on or after October 1, 
1998, and before October 1, 2001, under paragraph (1)--
            ``(i) initially to grant an alien nonimmigrant status 
        described in section 101(a)(15)(H)(i)(b); or
            ``(ii) to extend for the first time the stay of an alien 
        having such status.
    ``(B) The amount of the fee shall be $500 for each such 
nonimmigrant.
    ``(C) Fees collected under this paragraph shall be deposited in the 
Treasury in accordance with section 286(s).
    ``(D)(i) An employer may not require an alien who is the subject of 
the petition for which a fee is imposed under this paragraph to 
reimburse, or otherwise compensate, the employer for part or all of the 
cost of such fee.
    ``(ii) Section 274A(g)(2) shall apply to a violation of clause (i) 
in the same manner as it applies to a violation of section 
274A(g)(1).''.
    (b) Establishment of Account; Use of Fees.--Section 286 (8 U.S.C. 
1356) is amended by adding at the end the following:
    ``(s) H-1B Nonimmigrant Petitioner Account.--
            ``(1) In general.--There is established in the general fund 
        of the Treasury a separate account, which shall be known as the 
        `H-1B Nonimmigrant Petitioner Account'. Notwithstanding any 
        other section of this title, there shall be deposited as 
        offsetting receipts into the account all fees collected under 
        section 214(c)(9).
            ``(2) Use of fees for job training.--63 percent of amounts 
        deposited into the H-1B Nonimmigrant Petitioner Account shall 
        remain available to the Secretary of Labor until expended for 
        demonstration programs and projects described in section 104(c) 
        of the Temporary Access to Skilled Workers and H-1B 
        Nonimmigrant Program Improvement Act of 1998.
            ``(3) Use of fees for low-income scholarship program.--32 
        percent of the amounts deposited into the H-1B Nonimmigrant 
        Petitioner Account shall remain available to the Director of 
        the National Science Foundation until expended for scholarships 
        described in section 104(d) of the Temporary Access to Skilled 
        Workers and H-1B Nonimmigrant Program Improvement Act of 1998 
        for low-income students enrolled in a program of study leading 
        to a degree in mathematics, engineering, or computer science.
            ``(4) Use of fees for application processing and 
        enforcement.--2.5 percent of the amounts deposited into the H-
        1B Nonimmigrant Petitioner Account shall remain available to 
        the Secretary of Labor until expended for decreasing the 
        processing time for applications under section 212(n)(1), and 
        2.5 percent of such amounts shall remain available to such 
        Secretary until expended for carrying out section 212(n)(2). 
        Notwithstanding the preceding sentence, both of the amounts 
        made available for any fiscal year pursuant to the preceding 
        sentence shall be available to such Secretary, and shall remain 
        available until expended, only for carrying out section 
        212(n)(2) until the Secretary submits to the Congress a report 
        containing a certification that, during the most recently 
        concluded calendar year, the Secretary substantially complied 
        with the requirement in section 212(n)(1) relating to the 
        provision of the certification described in section 
        101(a)(15)(H)(i)(b) within a 7-day period.''.
    (c) Demonstration Programs and Projects To Provide Technical Skills 
Training for Workers.--
            (1) In general.--Subject to paragraph (3), in establishing 
        demonstration programs under section 452(c) of the Job Training 
        Partnership Act (29 U.S.C. 1732(c)), as in effect on the date 
        of the enactment of this Act, or demonstration programs or 
        projects under section 171(b) of the Workforce Investment Act 
        of 1998, the Secretary of Labor shall establish demonstration 
        programs or projects to provide technical skills training for 
        workers, including both employed and unemployed workers.
            (2) Grants.--Subject to paragraph (3), the Secretary of 
        Labor shall award grants to carry out the programs and projects 
        described in paragraph (1) to--
                    (A)(i) private industry councils established under 
                section 102 of the Job Training Partnership Act (29 
                U.S.C. 1512), as in effect on the date of the enactment 
                of this Act; or
                    (ii) local boards that will carry out such programs 
                or projects through one-stop delivery systems 
                established under section 121 of the Workforce 
                Investment Act of 1998; or
                    (B) regional consortia of councils or local boards 
                described in subparagraph (A).
            (3) Limitation.--The Secretary of Labor shall establish 
        programs and projects under paragraph (1), including awarding 
        grants to carry out such programs and projects under paragraph 
        (2), only with funds made available under section 286(s)(2) of 
        the Immigration and Nationality Act, and not with funds made 
        available under the Job Training Partnership Act or the 
        Workforce Investment Act of 1998.
    (d) Low-Income Scholarship Program.--
            (1) Establishment.--The Director of the National Science 
        Foundation (referred to in this subsection as the ``Director'') 
        shall award scholarships to low-income individuals to enable 
        such individuals to pursue associate, undergraduate, or 
        graduate level degrees in mathematics, engineering, or computer 
        science.
            (2) Eligibility.--
                    (A) In general.--To be eligible to receive a 
                scholarship under this subsection, an individual--
                            (i) must be a citizen or national of the 
                        United States or an alien lawfully admitted to 
                        the United States for permanent residence;
                            (ii) shall prepare and submit to the 
                        Director an application at such time, in such 
                        manner, and containing such information as the 
                        Director may require; and
                            (iii) shall certify to the Director that 
                        the individual intends to use amounts received 
                        under the scholarship to enroll or continue 
                        enrollment at an institution of higher 
                        education (as defined in section 1201(a) of the 
                        Higher Education Act of 1965) in order to 
                        pursue an associate, undergraduate, or graduate 
                        level degree in mathematics, engineering, or 
                        computer science.
                    (B) Ability.--Awards of scholarships under this 
                subsection shall be made by the Director solely on the 
                basis of the ability of the applicant, except that in 
                any case in which 2 or more applicants for scholarships 
                are deemed by the Director to be possessed of 
                substantially equal ability, and there are not 
                sufficient scholarships available to grant one to each 
                of such applicants, the available scholarship or 
                scholarships shall be awarded to the applicants in a 
                manner that will tend to result in a geographically 
                wide distribution throughout the United States of 
                recipients' places of permanent residence.
            (3) Limitation.--The amount of a scholarship awarded under 
        this subsection shall be determined by the Director, except 
        that the Director shall not award a scholarship in an amount 
        exceeding $2,500 per year.
            (4) Funding.--The Director shall carry out this subsection 
        only with funds made available under section 286(s)(3) of the 
        Immigration and Nationality Act.

SEC. 105. COMPUTATION OF PREVAILING WAGE LEVEL.

    (a) In General.--Section 212 (8 U.S.C. 1182) is amended by adding 
at the end the following:
    ``(p)(1) In computing the prevailing wage level for an occupational 
classification in an area of employment for purposes of subsections 
(n)(1)(A)(i)(II) and (a)(5)(A) in the case of an employee of--
            ``(A) an institution of higher education (as defined in 
        section 1201(a) of the Higher Education Act of 1965), or a 
        related or affiliated nonprofit entity; or
            ``(B) a nonprofit research organization or a Governmental 
        research organization,
the prevailing wage level shall only take into account employees at 
such institutions and organizations in the area of employment.
    ``(2) With respect to a professional athlete (as defined in 
subsection (a)(5)(A)(iii)(II)) when the job opportunity is covered by 
professional sports league rules or regulations, the wage set forth in 
those rules or regulations shall be considered as not adversely 
affecting the wages of United States workers similarly employed and be 
considered the prevailing wage.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
to prevailing wage computations made for applications filed on or after 
the date of the enactment of this Act.

SEC. 106. IMPROVING COUNT OF H-1B AND H-2B NONIMMIGRANTS.

    (a) Ensuring Accurate Count.--The Attorney General shall take such 
steps as are necessary to maintain an accurate count of the number of 
aliens subject to the numerical limitations of section 214(g)(1) of the 
Immigration and Nationality Act (8 U.S.C. 1184(g)(1)) who are issued 
visas or otherwise provided nonimmigrant status.
    (b) Revision of Petition Forms.--The Attorney General shall take 
such steps as are necessary to revise the forms used for petitions for 
visas or nonimmigrant status under clause (i)(b) or (ii)(b) of section 
101(a)(15)(H) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)) so as to ensure that the forms provide the Attorney 
General with sufficient information to permit the Attorney General 
accurately to count the number of aliens subject to the numerical 
limitations of section 214(g)(1) of such Act (8 U.S.C. 1184(g)(1)) who 
are issued visas or otherwise provided nonimmigrant status.
    (c) Reports.--Beginning with fiscal year 1999, the Attorney General 
shall provide to the Congress--
            (1) on a quarterly basis a report on the numbers of 
        individuals who were issued visas or otherwise provided 
        nonimmigrant status during the preceding 3-month period under 
        section 101(a)(15)(H)(i)(b) of the Immigration and Nationality 
        Act (8 U.S.C. 1101(a)(15)(H)(i)(b)); and
            (2) on an annual basis a report on the countries of origin 
        and occupations of, educational levels attained by, and 
        compensation paid to, individuals issued visas or provided 
        nonimmigrant status under such sections during such period.
Each report under paragraph (2) shall include the number of individuals 
described in paragraph (1) during the year who were issued visas 
pursuant to petitions filed by institutions or organizations described 
in section 212(p)(1) of such Act (as added by section 105 of this Act).

SEC. 107. REPORT ON OLDER WORKERS IN THE INFORMATION TECHNOLOGY FIELD.

    (a) Study.--The Secretary of Commerce shall enter into a contract 
with the President of the National Academy of Sciences to conduct a 
study, using the best available data, assessing the status of older 
workers in the information technology field. The study shall consider 
the following:
            (1) The existence and extent of age discrimination in the 
        information technology workplace.
            (2) The extent to which there is a difference, based on 
        age, in--
                    (A) promotion and advancement;
                    (B) working hours;
                    (C) telecommuting;
                    (D) salary; and
                    (E) stock options, bonuses, and other benefits.
            (3) The relationship between rates of advancement, 
        promotion, and compensation to experience, skill level, 
        education, and age.
            (4) Differences in skill level on the basis of age.
    (b) Report.--Not later than October 1, 2000, the Secretary of 
Commerce shall submit to the Committees on the Judiciary of the United 
States House of Representatives and the Senate a report containing the 
results of the study described in subsection (a).

SEC. 108. REPORT ON HIGH TECHNOLOGY LABOR MARKET NEEDS; REPORTS ON 
              ECONOMIC IMPACT OF INCREASE IN H-1B NONIMMIGRANTS.

    (a) National Science Foundation Study and Report.--
            (1) In general.--The Director of the National Science 
        Foundation shall conduct a study to assess labor market needs 
        for workers with high technology skills during the next 10 
        years. The study shall investigate and analyze the following:
                    (A) Future training and education needs of 
                companies in the high technology and information 
                technology sectors and future training and education 
                needs of United States students to ensure that 
                students' skills at various levels are matched to the 
                needs in such sectors.
                    (B) An analysis of progress made by educators, 
                employers, and government entities to improve the 
                teaching and educational level of American students in 
                the fields of math, science, computer science, and 
                engineering since 1998.
                    (C) An analysis of the number of United States 
                workers currently or projected to work overseas in 
                professional, technical, and managerial capacities.
                    (D) The relative achievement rates of United States 
                and foreign students in secondary schools in a variety 
                of subjects, including math, science, computer science, 
                English, and history.
                    (E) The relative performance, by subject area, of 
                United States and foreign students in postsecondary and 
                graduate schools as compared to secondary schools.
                    (F) The needs of the high technology sector for 
                foreign workers with specific skills and the potential 
                benefits and costs to United States employers, workers, 
                consumers, postsecondary educational institutions, and 
                the United States economy, from the entry of skilled 
                foreign professionals in the fields of science and 
                engineering.
                    (G) The needs of the high technology sector to 
                adapt products and services for export to particular 
                local markets in foreign countries.
                    (H) An examination of the amount and trend of 
                moving the production or performance of products and 
                services now occurring in the United States abroad.
            (2) Report.--Not later than October 1, 2000, the Director 
        of the National Science Foundation shall submit to the 
        Committees on the Judiciary of the United States House of 
        Representatives and the Senate a report containing the results 
        of the study described in paragraph (1).
            (3) Involvement.--The study under paragraph (1) shall be 
        conducted in a manner that ensures the participation of 
        individuals representing a variety of points of view.
    (b) Reporting on Studies Showing Economic Impact of H-1B 
Nonimmigrant Increase.--The Chairman of the Board of Governors of the 
Federal Reserve System, the Director of the Office of Management and 
Budget, the Chair of the Council of Economic Advisers, the Secretary of 
the Treasury, the Secretary of Commerce, the Secretary of Labor, and 
any other member of the Cabinet, shall promptly report to the Congress 
the results of any reliable study that suggests, based on legitimate 
economic analysis, that the increase effected by section 101(a) of this 
Act in the number of aliens who may be issued visas or otherwise 
provided nonimmigrant status under section 101(a)(15)(H)(i)(b) of the 
Immigration and Nationality Act has had an impact on any national 
economic indicator, such as the level of inflation or unemployment, 
that warrants action by the Congress.

 TITLE II--SPECIAL IMMIGRANT STATUS FOR CERTAIN NATO CIVILIAN EMPLOYEES

SEC. 201. SPECIAL IMMIGRANT STATUS FOR CERTAIN NATO CIVILIAN EMPLOYEES.

    (a) In General.--Section 101(a)(27) (8 U.S.C. 1101(a)(27)) is 
amended--
            (1) by striking ``or'' at the end of subparagraph (J);
            (2) by striking the period at the end of subparagraph (K) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(L) an immigrant who would be described in clause (i), 
        (ii), (iii), or (iv) of subparagraph (I) if any reference in 
        such a clause--
                    ``(i) to an international organization described in 
                paragraph (15)(G)(i) were treated as a reference to the 
                North Atlantic Treaty Organization (NATO);
                    ``(ii) to a nonimmigrant under paragraph 
                (15)(G)(iv) were treated as a reference to a 
                nonimmigrant classifiable under NATO-6 (as a member of 
                a civilian component accompanying a force entering in 
                accordance with the provisions of the NATO Status-of-
                Forces Agreement, a member of a civilian component 
                attached to or employed by an Allied Headquarters under 
                the `Protocol on the Status of International Military 
                Headquarters' set up pursuant to the North Atlantic 
                Treaty, or as a dependent); and
                    ``(iii) to the Immigration Technical Corrections 
                Act of 1988 or to the Immigration and Nationality 
                Technical Corrections Act of 1994 were a reference to 
                the Temporary Access to Skilled Workers and H-1B 
                Nonimmigrant Program Improvement Act of 1998.''.
    (b) Conforming Nonimmigrant Status for Certain Parents of Special 
Immigrant Children.--Section 101(a)(15)(N) (8 U.S.C. 1101(a)(15)(N)) is 
amended--
            (1) by inserting ``(or under analogous authority under 
        paragraph (27)(L))'' after ``(27)(I)(i)''; and
            (2) by inserting ``(or under analogous authority under 
        paragraph (27)(L))'' after ``(27)(I)''.

                   TITLE III--MISCELLANEOUS PROVISION

SEC. 301. ACADEMIC HONORARIA.

    (a) In General.--Section 212 (8 U.S.C. 1182), as amended by section 
105, is further amended by adding at the end the following:
    ``(q) Any alien admitted under section 101(a)(15)(B) may accept an 
honorarium payment and associated incidental expenses for a usual 
academic activity or activities (lasting not longer than 9 days at any 
single institution), as defined by the Attorney General in consultation 
with the Secretary of Education, if such payment is offered by an 
institution or organization described in subsection (p)(1) and is made 
for services conducted for the benefit of that institution or entity 
and if the alien has not accepted such payment or expenses from more 
than 5 institutions or organizations in the previous 6-month period.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to activities occurring on or after the date of the enactment of 
this Act.

            Passed the House of Representatives September 24, 1998.

            Attest:

                                                                 Clerk.