[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1723 Reported in Senate (RS)]





                                                       Calendar No. 335

105th CONGRESS

  2d Session

                                S. 1723

_______________________________________________________________________

                                 A BILL

   To amend the Immigration and Nationality Act to assist the United 
States to remain competitive by increasing the access of United States 
firms and institutions of higher education to skilled personnel and by 
expanding educational and training opportunities for American students 
                              and workers.

_______________________________________________________________________

                             April 2, 1998

                       Reported with an amendment





                                                       Calendar No. 335
105th CONGRESS
  2d Session
                                S. 1723

   To amend the Immigration and Nationality Act to assist the United 
States to remain competitive by increasing the access of United States 
firms and institutions of higher education to skilled personnel and by 
expanding educational and training opportunities for American students 
                              and workers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 6, 1998

   Mr. Abraham (for himself, Mr. Hatch, Mr. McCain, Mr. DeWine, Mr. 
  Specter, Mr. Grams, Mr. Brownback, Mr. Thurmond, Mr. Santorum, Mr. 
Ashcroft, Mr. Smith of Oregon, and Mr. Hagel) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

                             April 2, 1998

                Reported by Mr. Hatch, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
   To amend the Immigration and Nationality Act to assist the United 
States to remain competitive by increasing the access of United States 
firms and institutions of higher education to skilled personnel and by 
expanding educational and training opportunities for American students 
                              and workers.

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

<DELETED>SECTION 1. SHORT TITLE; REFERENCES IN ACT.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``American 
Competitiveness Act''.</DELETED>
<DELETED>    (b) References in Act.--Except as otherwise specifically 
provided in this Act, whenever in this Act an amendment or repeal is 
expressed as an amendment to or a repeal of a provision, the reference 
shall be deemed to be made to the Immigration and Nationality Act (8 
U.S.C. 1101 et seq.).</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (1) American companies today are engaged in fierce 
        competition in global markets.</DELETED>
        <DELETED>    (2) Companies across America are faced with severe 
        high skill labor shortages that threaten their 
        competitiveness.</DELETED>
        <DELETED>    (3) The National Software Alliance, a consortium 
        of concerned government, industry, and academic leaders that 
        includes the United States Army, Navy, and Air Force, has 
        concluded that ``The supply of computer science graduates is 
        far short of the number needed by industry.''. The Alliance 
        concludes that the current severe understaffing could lead to 
        inflation and lower productivity.</DELETED>
        <DELETED>    (4) The Department of Labor projects that the 
        United States economy will produce more than 130,000 
        information technology jobs in each of the next 10 years, for a 
        total of more than 1,300,000.</DELETED>
        <DELETED>    (5) Between 1986 and 1995, the number of 
        bachelor's degrees awarded in computer science declined by 42 
        percent. Therefore, any short-term increases in enrollment may 
        only return the United States to the 1986 level of graduates 
        and take several years to produce these additional 
        graduates.</DELETED>
        <DELETED>    (6) A study conducted by Virginia Tech for the 
        Information Technology Association of America estimates that 
        there are more than 340,000 unfilled positions for highly 
        skilled information technology workers in American 
        companies.</DELETED>
        <DELETED>    (7) The Hudson Institute estimates that the 
        unaddressed shortage of skilled workers throughout the United 
        States economy will result in a 5-percent drop in the growth 
        rate of GDP. That translates into approximately 
        $200,000,000,000 in lost output, nearly $1,000 for every 
        American.</DELETED>
        <DELETED>    (8) It is necessary to deal with the current 
        situation with both short-term and long-term 
        measures.</DELETED>
        <DELETED>    (9) In fiscal year 1997, United States companies 
        and universities reached the cap of 65,000 on H-1B temporary 
        visas a month before the end of the fiscal year. In fiscal year 
        1998 the cap is expected to be reached as early as May if 
        Congress takes no action. And it will be hit earlier each year 
        until backlogs develop of such a magnitude as to prevent United 
        States companies and researchers from having any timely access 
        to skilled foreign-born professionals.</DELETED>
        <DELETED>    (10) It is vital that more American young people 
        be encouraged and equipped to enter technical fields, such as 
        mathematics, engineering, and computer science.</DELETED>
        <DELETED>    (11) If American companies cannot find home-grown 
        talent, and if they cannot bring talent to this country, a 
        large number are likely to move key operations overseas, 
        sending those and related American jobs with them.</DELETED>
        <DELETED>    (12) Inaction in these areas will carry 
        significant consequences for the future of American 
        competitiveness around the world and will seriously undermine 
        efforts to create and keep jobs in the United States.</DELETED>

<DELETED>SEC. 3. INCREASED ACCESS TO SKILLED PERSONNEL FOR UNITED 
              STATES COMPANIES AND UNIVERSITIES.</DELETED>

<DELETED>    (a) Establishment of H1-C Nonimmigrant Category.--
</DELETED>
        <DELETED>    (1) In general.--Section 101(a)(15)(H)(i) (8 
        U.S.C. 1101(a)(15)(H)(i)) is amended--</DELETED>
                <DELETED>    (A) by inserting ``and other than services 
                described in clause (c)'' after ``subparagraph (O) or 
                (P)''; and</DELETED>
                <DELETED>    (B) by inserting after ``section 
                212(n)(1)'' the following: ``, or (c) who is coming 
                temporarily to the United States to perform labor as a 
                health care worker, other than a physician, if the 
                alien qualifies for the exemption from the grounds of 
                inadmissibility described in section 
                212(a)(5)(C)''.</DELETED>
        <DELETED>    (2) Transition rule.--Any petition filed prior to 
        the date of enactment of this Act, for issuance of a visa under 
        section 101(a)(15)(H)(i)(b) of the Immigration and Nationality 
        Act on behalf of an alien described in the amendment made by 
        paragraph (1)(B) shall, on and after that date, be treated as a 
        petition filed under section 101(a)(15)(H)(i)(c) of that Act, 
        as added by paragraph (1).</DELETED>
<DELETED>    (b) Annual Ceilings for H1-B and H1-C Workers.--</DELETED>
        <DELETED>    (1) Amendment of the INA.--Section 214(g)(1) (8 
        U.S.C. 1184(g)(1)) is amended to read as follows:</DELETED>
<DELETED>    ``(g)(1) The total number of aliens who may be issued 
visas or otherwise provided nonimmigrant status during any fiscal 
year--</DELETED>
        <DELETED>    ``(A) under section 101(a)(15)(H)(i)(b)--
        </DELETED>
                <DELETED>    ``(i) for each of fiscal years 1992 
                through 1997, may not exceed 65,000,</DELETED>
                <DELETED>    ``(ii) for fiscal year 1998, may not 
                exceed 2 times the number of aliens issued visas or 
                otherwise provided nonimmigrant status between October 
                1, 1997, and March 31, 1998,</DELETED>
                <DELETED>    ``(iii) for fiscal year 1999, may not 
                exceed the number determined for fiscal year 1998 under 
                such section, minus 10,000, plus the number of unused 
                visas under subparagraph (B) for the fiscal year 
                preceding the applicable fiscal year, and</DELETED>
                <DELETED>    ``(iv) for fiscal year 2000 and each 
                applicable fiscal year thereafter, may not exceed the 
                number determined for fiscal year 1998 under such 
                section, minus 10,000, plus the number of unused visas 
                under subparagraph (B) for the fiscal year preceding 
                the applicable fiscal year, plus the number of unused 
                visas under subparagraph (C) for the fiscal year 
                preceding the applicable fiscal year;</DELETED>
        <DELETED>    ``(B) under section 101(a)(15)(H)(ii)(b), 
        beginning with fiscal year 1992, may not exceed 66,000; 
        or</DELETED>
        <DELETED>    ``(C) under section 101(a)(15)(H)(i)(c), beginning 
        with fiscal year 1999, may not exceed 10,000.</DELETED>
<DELETED>For purposes of determining the ceiling under subparagraph (A) 
(iii) and (iv), not more than 25,000 of the unused visas under 
subparagraph (B) may be taken into account for any fiscal 
year.''.</DELETED>
        <DELETED>    (2) Transition procedures.--Any visa issued or 
        nonimmigrant status otherwise accorded to any alien under 
        clause (i)(b) or (ii)(b) of section 101(a)(15)(H) of the 
        Immigration and Nationality Act pursuant to a petition filed 
        during fiscal year 1998 but approved on or after October 1, 
        1998, shall be counted against the applicable ceiling in 
        section 214(g)(1) of that Act for fiscal year 1998 (as amended 
        by paragraph (1) of this subsection), except that, in the case 
        where counting the visa or the other granting of status would 
        cause the applicable ceiling for fiscal year 1998 to be 
        exceeded, the visa or grant of status shall be counted against 
        the applicable ceiling for fiscal year 1999.</DELETED>

<DELETED>SEC. 4. EDUCATION AND TRAINING IN SCIENCE AND 
              TECHNOLOGY.</DELETED>

<DELETED>    (a) Degrees in Mathematics, Computer Science, and 
Engineering.--Subpart 4 of part A of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070c et seq.) is amended--</DELETED>
        <DELETED>    (1) in section 415A(b)(1) (20 U.S.C. 
        1070c(b)(1))--</DELETED>
                <DELETED>    (A) by striking ``$105,000,000 for fiscal 
                year 1993'' and inserting ``$155,000,000 for fiscal 
                year 1999''; and</DELETED>
                <DELETED>    (B) by inserting ``, of which the amount 
                in excess of $25,000,000 for each fiscal year that does 
                not exceed $50,000,000 shall be available to carry out 
                section 415F for the fiscal year'' before the period; 
                and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>

<DELETED>``SEC. 415F. DEGREES IN MATHEMATICS, COMPUTER SCIENCE, AND 
              ENGINEERING.</DELETED>

<DELETED>    ``(a) Allotments and Grants.--From amounts made available 
to carry out this section under section 415A(b)(1) for a fiscal year, 
the Secretary shall make allotments to States to enable the States to 
pay not more than 50 percent of the amount of grants awarded to low-
income students in the States.</DELETED>
<DELETED>    ``(b) Use of Grants.--Grants awarded under this section 
shall be used by the students for attendance on a full-time basis at an 
institution of higher education in a program of study leading to an 
associate, baccalaureate or graduate degree in mathematics, computer 
science, or engineering.</DELETED>
<DELETED>    ``(c) Comparability.--The Secretary shall make allotments 
and grants shall be awarded under this section in the same manner, and 
under the same terms and conditions, as--</DELETED>
        <DELETED>    ``(1) the Secretary makes allotments and grants 
        are awarded under this subpart (other than this section); 
        and</DELETED>
        <DELETED>    ``(2) are not inconsistent with this 
        section.''.</DELETED>
<DELETED>    (b) Data Bank; Training.--</DELETED>
        <DELETED>    (1) In general.--The Secretary of Labor shall--
        </DELETED>
                <DELETED>    (A) establish or improve a data bank on 
                the Internet that facilitates--</DELETED>
                        <DELETED>    (i) job searches by individuals 
                        seeking employment in the field of technology; 
                        and</DELETED>
                        <DELETED>    (ii) the matching of individuals 
                        possessing technology credentials with 
                        employment in the field of technology; 
                        and</DELETED>
                <DELETED>    (B) provide training in information 
                technology to unemployed individuals who are seeking 
                employment.</DELETED>
        <DELETED>    (2) Authorization of appropriations.--There are 
        authorized to be appropriated for fiscal year 1999 and each of 
        the 4 succeeding fiscal years--</DELETED>
                <DELETED>    (A) $8,000,000 to carry out paragraph 
                (1)(A); and</DELETED>
                <DELETED>    (B) $10,000,000 to carry out paragraph 
                (1)(B).</DELETED>

<DELETED>SEC. 5. INCREASED ENFORCEMENT PENALTIES AND IMPROVED 
              OPERATIONS.</DELETED>

<DELETED>    (a) Increased Penalties for Violations of H1-B or H1-C 
Program.--Section 212(n)(2)(C) (8 U.S.C. 1182(n)(2)(C)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``a failure to meet'' and all that 
        follows through ``an application--'' and inserting ``a willful 
        failure to meet a condition in paragraph (1) or a willful 
        misrepresentation of a material fact in an application--''; 
        and</DELETED>
        <DELETED>    (2) in clause (i), by striking ``$1,000'' and 
        inserting ``$5,000''.</DELETED>
<DELETED>    (b) Spot Inspections During Probationary Period.--Section 
212(n)(2) (8 U.S.C. 1182(n)(2)) is amended--</DELETED>
        <DELETED>    (1) by redesignating subparagraph (D) as 
        subparagraph (E); and</DELETED>
        <DELETED>    (2) by inserting after subparagraph (C) the 
        following:</DELETED>
<DELETED>    ``(D) The Secretary of Labor may, on a case-by-case basis, 
subject an employer to random inspections for a period of up to five 
years beginning on the date that such employer is found by the 
Secretary of Labor to have engaged in a willful failure to meet a 
condition of subparagraph (A), or a misrepresentation of material fact 
in an application.''.</DELETED>
<DELETED>    (c) Expedited Reviews and Decisions.--Section 214(c)(2)(C) 
(8 U.S.C. 1184(c)(2)(C)) is amended by inserting ``or section 
101(a)(15)(H)(i)(b)'' after ``section 101(a)(15)(L)''.</DELETED>
<DELETED>    (d) Determinations on Labor Condition Applications To Be 
Made by Attorney General.--</DELETED>
        <DELETED>    (1) In general.--Section 101(a)(15)(H)(i)(b) (8 
        U.S.C. 1101(a)(15)(H)(i)(b)) is amended by striking ``with 
        respect to whom'' and all that follows through ``with the 
        Secretary'' and inserting ``with respect to whom the Attorney 
        General determines that the intending employer has filed with 
        the Attorney General''.</DELETED>
        <DELETED>    (2) Conforming amendments.--Section 212(n) (8 
        U.S.C. 1182(n)(1)) is amended--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) in the first sentence, by 
                        striking ``Secretary of Labor'' and inserting 
                        ``Attorney General'';</DELETED>
                        <DELETED>    (ii) in the sixth and eighth 
                        sentences, by inserting ``of Labor'' after 
                        ``Secretary'' each place it appears;</DELETED>
                        <DELETED>    (iii) in the ninth sentence, by 
                        striking ``Secretary of Labor'' and inserting 
                        ``Attorney General'';</DELETED>
                        <DELETED>    (iv) by amending the tenth 
                        sentence to read as follows: ``Unless the 
                        Attorney General finds that the application is 
                        incomplete or obviously inaccurate, the 
                        Attorney General shall provide the 
                        certification described in section 
                        101(a)(15)(H)(i)(b) and adjudicate the 
                        nonimmigrant visa petition.''; and</DELETED>
                        <DELETED>    (v) by inserting in full measure 
                        margin after subparagraph (D) the following new 
                        sentence: ``Such application shall be filed 
                        with the employer's petition for a nonimmigrant 
                        visa for the alien, and the Attorney General 
                        shall transmit a copy of such application to 
                        the Secretary of Labor.''; and</DELETED>
                <DELETED>    (B) in the first sentence of paragraph 
                (2)(A), by striking ``Secretary'' and inserting 
                ``Secretary of Labor''.</DELETED>
<DELETED>    (e) Prevailing Wage Considerations.--Section 101(a) (8 
U.S.C. 1101(a)) is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(50) The term `prevailing wage' means the 
following:</DELETED>
        <DELETED>    ``(A) If the job opportunity is subject to a wage 
        determination in the area under the Act of March 3, 1931 
        (commonly known as the Davis-Bacon Act (40 U.S.C. 276a et 
        seq.)), or the Service Contract Act of 1965 (41 U.S.C. 351 et 
        seq.), the prevailing wage shall be the rate required under 
        such Acts.</DELETED>
        <DELETED>    ``(B) If the job opportunity is not covered by a 
        prevailing wage determined under the Acts referred to in 
        subparagraph (A), the prevailing wage shall be--</DELETED>
                <DELETED>    ``(i) the rate of wages to be determined, 
                to the extent feasible, by adding the wage paid to 
                workers similarly employed in the area of intended 
                employment and dividing the total by the number of such 
                workers, except that the wage set forth in the 
                application shall be considered as meeting the 
                prevailing wage standard if it is within 5 percent of 
                the average rate of wages; or</DELETED>
                <DELETED>    ``(ii) if the job opportunity is covered 
                by a collective bargaining agreement, the wage rate set 
                forth in the agreement shall be considered as not 
                adversely affecting the wages of United States workers 
                similarly employed and shall be considered the 
                `prevailing wage'.</DELETED>
        <DELETED>    ``(C) A prevailing wage determination made 
        pursuant to this section shall not permit an employer to pay a 
        wage lower than that required under any other Federal, State, 
        or local law.</DELETED>
        <DELETED>    ``(D) For purposes of this section:</DELETED>
                <DELETED>    ``(i) The term `similarly employed' means 
                having substantially comparable jobs in the 
                occupational category in the area of intended 
                employment, except that, if no such workers are 
                employed by employers other than the employer applicant 
                in the area of intended employment, the term `similarly 
                employed' means--</DELETED>
                        <DELETED>    ``(I) having jobs requiring a 
                        substantially similar level of skills within 
                        the area of intended employment; or</DELETED>
                        <DELETED>    ``(II) if there are no 
                        substantially comparable jobs in the area of 
                        intended employment, having substantially 
                        comparable jobs with employers outside of the 
                        area of intended employment.</DELETED>
                <DELETED>    ``(ii) The term `substantially comparable 
                jobs' means jobs with substantially comparable 
                employers, taking into account size, profit or 
                nonprofit classification, start-up or mature business 
                operations, the specific industry, public or private 
                sector, status as an academic institution, or other 
                defining characteristics which the employer can 
                demonstrate result in a distinct wage scale from the 
                industry at large.</DELETED>
                <DELETED>    ``(iii) The term `similarly employed' 
                shall be construed to require separate average rates of 
                wage taking into account such factors as years of 
                experience, academic degree, educational institution 
                attended, grade point average, publications or other 
                distinctions, personal traits deemed essential to job 
                performance, specialized training or skills, 
                competitive market factors, or any other factors 
                typically considered by employers within the 
                industry.</DELETED>
                <DELETED>    ``(iv) Employers may use either government 
                or nongovernment published surveys, including industry, 
                region, or statewide wage surveys, to determine the 
                prevailing wage, which shall be considered correct and 
                valid where the employer has maintained a copy of the 
                survey information.''.</DELETED>
<DELETED>    (f) Posting Requirement.--Section 212(n)(1)(C)(ii) (8 
U.S.C. 1182(n)(1)(C)(ii)) is amended to read as follows:</DELETED>
                <DELETED>    ``(ii) if there is no such bargaining 
                representative, has provided notice of filing to the 
                employer's employees in the occupational classification 
                through such methods as physical posting in a 
                conspicuous location at the employer's place of 
                business, or electronic posting through an internal job 
                bank, or electronic notification available to employees 
                in the occupational classification.''.</DELETED>

<DELETED>SEC. 6. ANNUAL REPORTS ON H1-B VISAS.</DELETED>

<DELETED>    Section 212(n) (8 U.S.C. 1182(n)) is amended by adding at 
the end the following:</DELETED>
        <DELETED>    ``(3) Using data from petitions for visas issued 
        under section 101(a)(15)(H)(i)(b), the Attorney General shall 
        annually submit the following reports to Congress:</DELETED>
                <DELETED>    ``(A) Quarterly reports on the numbers of 
                aliens who were provided nonimmigrant status under 
                section 101(a)(15)(H)(i)(b) during the previous quarter 
                and who were subject to the numerical ceiling for the 
                fiscal year established under section 
                214(g)(1).</DELETED>
                <DELETED>    ``(B) Annual reports on the occupations 
                and compensation of aliens provided nonimmigrant status 
                under such section during the previous fiscal 
                year.''.</DELETED>

<DELETED>SEC. 7. LIMITATION ON PER COUNTRY CEILING WITH RESPECT TO 
              EMPLOYMENT-BASED IMMIGRANTS.</DELETED>

<DELETED>    (a) Special Rules.--Section 202(a) (8 U.S.C. 1152(a)) is 
amended by adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(5) Rules for employment-based immigrants.--
        </DELETED>
                <DELETED>    ``(A) Employment-based immigrants not 
                subject to per country limitation if additional visas 
                available.--If the total number of visas available 
                under paragraph (1), (2), (3), (4), or (5) of section 
                203(b) for a calendar quarter exceeds the number of 
                qualified immigrants who may otherwise be issued such 
                visas, the visas made available under that paragraph 
                shall be issued without regard to the numerical 
                limitation under paragraph (2) of this subsection 
                during the remainder of the calendar quarter.</DELETED>
                <DELETED>    ``(B) Limiting fall across for certain 
                countries subject to subsection (e).--In the case of a 
                foreign state or dependent area to which subsection (e) 
                applies, if the total number of visas issued under 
                section 203(b) exceeds the maximum number of visas that 
                may be made available to immigrants of the state or 
                area under section 203(b) consistent with subsection 
                (e) (determined without regard to this paragraph), in 
                applying subsection (e) all visas shall be deemed to 
                have been required for the classes of aliens specified 
                in section 203(b).''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 202(a)(2) (8 U.S.C. 1152(a)(2)) is 
        amended by striking ``paragraphs (3) and (4)'' and inserting 
        ``paragraphs (3), (4), and (5)''.</DELETED>
        <DELETED>    (2) Section 202(e)(3) (8 U.S.C. 1152(e)(3)) is 
        amended by striking ``the proportion of the visa numbers'' and 
        inserting ``except as provided in subsection (a)(5), the 
        proportion of the visa numbers''.</DELETED>
<DELETED>    (c) One-Time Protection Under Per Country Ceiling.--
Notwithstanding section 214(g)(4) of the Immigration and Nationality 
Act, any alien who--</DELETED>
        <DELETED>    (1) as of the date of enactment of this Act is a 
        nonimmigrant described in section 101(a)(15)(H)(i) of that 
        Act;</DELETED>
        <DELETED>    (2) is the beneficiary of a petition filed under 
        section 204(a) for a preference status under paragraph (1), 
        (2), or (3) of section 203(b); and</DELETED>
        <DELETED>    (3) would be subject to the per country 
        limitations applicable to immigrants under those paragraphs but 
        for this subsection,</DELETED>
<DELETED>may apply for and the Attorney General may grant an extension 
of such nonimmigrant status until the alien's application for 
adjustment of status has been processed and a decision made 
thereon.</DELETED>

<DELETED>SEC. 8. ACADEMIC HONORARIA.</DELETED>

<DELETED>    Section 212 (8 U.S.C. 1182) is amended by adding at the 
end the following new subsection:</DELETED>
<DELETED>    ``(p) 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, as defined by the Attorney 
General in consultation with the Secretary of Education, if such 
payment is offered by an institution of higher education (as defined in 
section 1201(a) of the Higher Education Act of 1965) or other nonprofit 
entity and is made for services conducted for the benefit of that 
institution or entity.''.</DELETED>

SECTION 1. SHORT TITLE; REFERENCES IN ACT.

    (a) Short Title.--This Act may be cited as the ``American 
Competitiveness Act''.
    (b) References in Act.--Except as otherwise specifically provided 
in this Act, whenever in this Act an amendment or repeal is expressed 
as an amendment to or a repeal of a provision, the reference shall be 
deemed to be made to the Immigration and Nationality Act (8 U.S.C. 1101 
et seq.).

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) American companies today are engaged in fierce 
        competition in global markets.
            (2) Companies across America are faced with severe high 
        skill labor shortages that threaten their competitiveness.
            (3) The National Software Alliance, a consortium of 
        concerned government, industry, and academic leaders that 
        includes the United States Army, Navy, and Air Force, has 
        concluded that ``The supply of computer science graduates is 
        far short of the number needed by industry.''. The Alliance 
        concludes that the current severe understaffing could lead to 
        inflation and lower productivity.
            (4) The Department of Labor projects that the United States 
        economy will produce more than 130,000 information technology 
        jobs in each of the next 10 years, for a total of more than 
        1,300,000.
            (5) Between 1986 and 1995, the number of bachelor's degrees 
        awarded in computer science declined by 42 percent. Therefore, 
        any short-term increases in enrollment may only return the 
        United States to the 1986 level of graduates and take several 
        years to produce these additional graduates.
            (6) A study conducted by Virginia Tech for the Information 
        Technology Association of America estimates that there are more 
        than 340,000 unfilled positions for highly skilled information 
        technology workers in American companies.
            (7) The Hudson Institute estimates that the unaddressed 
        shortage of skilled workers throughout the United States 
        economy will result in a 5-percent drop in the growth rate of 
        GDP. That translates into approximately $200,000,000,000 in 
        lost output, nearly $1,000 for every American.
            (8) It is necessary to deal with the current situation with 
        both short-term and long-term measures.
            (9) In fiscal year 1997, United States companies and 
        universities reached the cap of 65,000 on H-1B temporary visas 
        a month before the end of the fiscal year. In fiscal year 1998 
        the cap is expected to be reached as early as May if Congress 
        takes no action. And it will be hit earlier each year until 
        backlogs develop of such a magnitude as to prevent United 
        States companies and researchers from having any timely access 
        to skilled foreign-born professionals.
            (10) It is vital that more American young people be 
        encouraged and equipped to enter technical fields, such as 
        mathematics, engineering, and computer science.
            (11) If American companies cannot find home-grown talent, 
        and if they cannot bring talent to this country, a large number 
        are likely to move key operations overseas, sending those and 
        related American jobs with them.
            (12) Inaction in these areas will carry significant 
        consequences for the future of American competitiveness around 
        the world and will seriously undermine efforts to create and 
        keep jobs in the United States.

SEC. 3. INCREASED ACCESS TO SKILLED PERSONNEL FOR UNITED STATES 
              COMPANIES AND UNIVERSITIES.

    (a) Establishment of H1-C Nonimmigrant Category.--
            (1) In general.--Section 101(a)(15)(H)(i) (8 U.S.C. 
        1101(a)(15)(H)(i)) is amended--
                    (A) by inserting ``and other than services 
                described in clause (c)'' after ``subparagraph (O) or 
                (P)''; and
                    (B) by inserting after ``section 212(n)(1)'' the 
                following: ``, or (c) who is coming temporarily to the 
                United States to perform labor as a health care worker, 
                other than a physician, in a specialty occupation 
                described in section 214(i)(1), who meets the 
                requirements of the occupation specified in section 
                214(i)(2), who qualifies for the exemption from the 
                grounds of inadmissibility described in section 
                212(a)(5)(C), and with respect to whom the Attorney 
                General certifies that the intending employer has filed 
                with the Attorney General an application under section 
                212(n)(1).''.
            (2) Conforming amendments.--
                    (A) Section 212(n)(1) is amended by inserting ``or 
                (c)'' after ``section 101(a)(15)(H)(i)(b)'' each place 
                it appears.
                    (B) Section 214(i) is amended by inserting ``or 
                (c)'' after ``section 101(a)(15)(H)(i)(b)'' each place 
                it appears.
            (3) Transition rule.--Any petition filed prior to the date 
        of enactment of this Act, for issuance of a visa under section 
        101(a)(15)(H)(i)(b) of the Immigration and Nationality Act on 
        behalf of an alien described in the amendment made by paragraph 
        (1)(B) shall, on and after that date, be treated as a petition 
        filed under section 101(a)(15)(H)(i)(c) of that Act, as added 
        by paragraph (1).
    (b) Annual Ceilings for H1-B and H1-C Workers.--
            (1) Amendment of the INA.--Section 214(g)(1) (8 U.S.C. 
        1184(g)(1)) is amended to read as follows:
    ``(g)(1) The total number of aliens who may be issued visas or 
otherwise provided nonimmigrant status during any fiscal year--
            ``(A) under section 101(a)(15)(H)(i)(b)--
                    ``(i) for each of fiscal years 1992 through 1997, 
                may not exceed 65,000,
                    ``(ii) for fiscal year 1998, may not exceed 95,000,
                    ``(iii) for fiscal year 1999, may not exceed the 
                number determined for fiscal year 1998 under such 
                section, minus 10,000, plus the number of unused visas 
                under subparagraph (B) for the fiscal year preceding 
                the applicable fiscal year, and
                    ``(iv) for fiscal year 2000, and each applicable 
                fiscal year thereafter through fiscal year 2002, may 
                not exceed the number determined for fiscal year 1998 
                under such section, minus 10,000, plus the number of 
                unused visas under subparagraph (B) for the fiscal year 
                preceding the applicable fiscal year, plus the number 
                of unused visas under subparagraph (C) for the fiscal 
                year preceding the applicable fiscal year;
            ``(B) under section 101(a)(15)(H)(ii)(b), beginning with 
        fiscal year 1992, may not exceed 66,000; or
            ``(C) under section 101(a)(15)(H)(i)(c), beginning with 
        fiscal year 1999, may not exceed 10,000.
For purposes of determining the ceiling under subparagraph (A) (iii) 
and (iv), not more than 20,000 of the unused visas under subparagraph 
(B) may be taken into account for any fiscal year.''.
            (2) Transition procedures.--Any visa issued or nonimmigrant 
        status otherwise accorded to any alien under clause (i)(b) or 
        (ii)(b) of section 101(a)(15)(H) of the Immigration and 
        Nationality Act pursuant to a petition filed during fiscal year 
        1998 but approved on or after October 1, 1998, shall be counted 
        against the applicable ceiling in section 214(g)(1) of that Act 
        for fiscal year 1998 (as amended by paragraph (1) of this 
        subsection), except that, in the case where counting the visa 
        or the other granting of status would cause the applicable 
        ceiling for fiscal year 1998 to be exceeded, the visa or grant 
        of status shall be counted against the applicable ceiling for 
        fiscal year 1999.

SEC. 4. EDUCATION AND TRAINING IN SCIENCE AND TECHNOLOGY.

    (a) Degrees in Mathematics, Computer Science, and Engineering.--
Subpart 4 of part A of title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070c et seq.) is amended--
            (1) in section 415A(b)(1) (20 U.S.C. 1070c(b)(1))--
                    (A) by striking ``$105,000,000 for fiscal year 
                1993'' and inserting ``$155,000,000 for fiscal year 
                1999''; and
                    (B) by inserting ``, of which the amount in excess 
                of $25,000,000 for each fiscal year that does not 
                exceed $50,000,000 shall be available to carry out 
                section 415F for the fiscal year'' before the period; 
                and
            (2) by adding at the end the following:

``SEC. 415F. DEGREES IN MATHEMATICS, COMPUTER SCIENCE, AND ENGINEERING.

    ``(a) Allotments and Grants.--From amounts made available to carry 
out this section under section 415A(b)(1) for a fiscal year, the 
Secretary shall make allotments to States to enable the States to pay 
not more than 50 percent of the amount of grants awarded to low-income 
students in the States.
    ``(b) Use of Grants.--Grants awarded under this section shall be 
used by the students for attendance on a full-time basis at an 
institution of higher education in a program of study leading to an 
associate, baccalaureate or graduate degree in mathematics, computer 
science, or engineering.
    ``(c) Comparability.--The Secretary shall make allotments and 
grants shall be awarded under this section in the same manner, and 
under the same terms and conditions, as--
            ``(1) the Secretary makes allotments and grants are awarded 
        under this subpart (other than this section); and
            ``(2) are not inconsistent with this section.''.
    (b) Data Bank; Training.--
            (1) In general.--The Secretary of Labor shall--
                    (A) establish or improve a data bank on the 
                Internet that facilitates--
                            (i) job searches by individuals seeking 
                        employment in the field of technology; and
                            (ii) the matching of individuals possessing 
                        technology credentials with employment in the 
                        field of technology; and
                    (B) provide training in information technology to 
                unemployed individuals who are seeking employment.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated for fiscal year 1999 and each of the 4 
        succeeding fiscal years--
                    (A) $8,000,000 to carry out paragraph (1)(A); and
                    (B) $10,000,000 to carry out paragraph (1)(B).

SEC. 5. INCREASED ENFORCEMENT PENALTIES AND IMPROVED OPERATIONS.

    (a) Increased Penalties for Violations of H1-B or H1-C Program.--
Section 212(n)(2)(C) (8 U.S.C. 1182(n)(2)(C)) is amended--
            (1) by striking ``a failure to meet'' and all that follows 
        through ``an application--'' and inserting ``a willful failure 
        to meet a condition in paragraph (1) or a willful 
        misrepresentation of a material fact in an application--''; and
            (2) in clause (i), by striking ``$1,000'' and inserting 
        ``$5,000''.
    (b) Spot Inspections During Probationary Period.--Section 212(n)(2) 
(8 U.S.C. 1182(n)(2)) is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (2) by inserting after subparagraph (C) the following:
    ``(D) The Secretary of Labor may, on a case-by-case basis, subject 
an employer to random inspections for a period of up to five years 
beginning on the date that such employer is found by the Secretary of 
Labor to have engaged in a willful failure to meet a condition of 
subparagraph (A), or a misrepresentation of material fact in an 
application.''.
    (c) Layoff Protection for United States Workers.--Section 212(n)(2) 
(8 U.S.C. 1182(n)(2)), as amended by subsection (b), is further amended 
by adding at the end the following:
                    ``(F)(i) If the Secretary finds, after notice and 
                opportunity for a hearing, a willful failure to meet a 
                condition in paragraph (1) or a willful 
                misrepresentation of a material fact in an application, 
                in the course of which the employer has replaced a 
                United States worker with a nonimmigrant described in 
                section 101(a)(15)(H)(i) (b) or (c) within the 6-month 
                period prior to, or within 90 days following, the 
                filing of 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 $25,000 per violation) 
                        as the Secretary determines to be appropriate; 
                        and
                            ``(II) the Attorney General shall not 
                        approve petitions filed with respect to the 
                        employer under section 204 or 214(c) during a 
                        period of at least 2 years for aliens to be 
                        employed by the employer.
                    ``(ii) For purposes of this subparagraph:
                            ``(I) The term `replace' means the 
                        employment of the nonimmigrant at the specific 
                        place of employment and in the specific 
                        employment opportunity from which a United 
                        States worker with substantially equivalent 
                        qualifications and experience in the specific 
                        employment opportunity has been laid off.
                            ``(II) The term `laid off', with respect to 
                        an individual, means the individual's loss of 
                        employment other than a discharge for 
                        inadequate performance, violation of workplace 
                        rules, cause, voluntary departure, voluntary 
                        retirement, or the expiration of a grant, 
                        contract, or other agreement. The term `laid 
                        off' does not include any situation in which 
                        the individual involved is offered, as an 
                        alternative to such loss of employment, a 
                        similar employment opportunity with the same 
                        employer at the equivalent or higher 
                        compensation and benefits as the position from 
                        which the employee was discharged, regardless 
                        of whether or not the employee accepts the 
                        offer.
                            ``(III) The term `United States worker' 
                        means--
                                    ``(aa) a citizen or national of the 
                                United States;
                                    ``(bb) an alien who is lawfully 
                                admitted for permanent residence; or
                                    ``(cc) an alien authorized to be 
                                employed by this Act or by the Attorney 
                                General.''.
    (d) Expedited Reviews and Decisions.--Section 214(c)(2)(C) (8 
U.S.C. 1184(c)(2)(C)) is amended by inserting ``or section 
101(a)(15)(H)(i)(b)'' after ``section 101(a)(15)(L)''.
    (e) Determinations on Labor Condition Applications To Be Made by 
Attorney General.--
            (1) In general.--Section 101(a)(15)(H)(i)(b) (8 U.S.C. 
        1101(a)(15)(H)(i)(b)) is amended by striking ``with respect to 
        whom'' and all that follows through ``with the Secretary'' and 
        inserting ``with respect to whom the Attorney General 
        determines that the intending employer has filed with the 
        Attorney General''.
            (2) Conforming amendments.--Section 212(n) (8 U.S.C. 
        1182(n)(1)) is amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by striking 
                        ``Secretary of Labor'' and inserting ``Attorney 
                        General'';
                            (ii) in the sixth and eighth sentences, by 
                        inserting ``of Labor'' after ``Secretary'' each 
                        place it appears;
                            (iii) in the ninth sentence, by striking 
                        ``Secretary of Labor'' and inserting ``Attorney 
                        General'';
                            (iv) by amending the tenth sentence to read 
                        as follows: ``Unless the Attorney General finds 
                        that the application is incomplete or obviously 
                        inaccurate, the Attorney General shall provide 
                        the certification described in section 
                        101(a)(15)(H)(i)(b) and adjudicate the 
                        nonimmigrant visa petition.''; and
                            (v) by inserting in full measure margin 
                        after subparagraph (D) the following new 
                        sentence: ``Such application shall be filed 
                        with the employer's petition for a nonimmigrant 
                        visa for the alien, and the Attorney General 
                        shall transmit a copy of such application to 
                        the Secretary of Labor.''; and
                    (B) in the first sentence of paragraph (2)(A), by 
                striking ``Secretary'' and inserting ``Secretary of 
                Labor''.
    (f) Prevailing Wage Considerations.--Section 101 (8 U.S.C. 1101) is 
amended by adding at the end the following new subsection:
    ``(i)(1) In computing the prevailing wage level for an occupational 
classification in an area of employment for purposes of section 
212(n)(1)(A)(i)(II) and section 212(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 or Federal research institute or agency,
the prevailing wage level shall only take into account employees at 
such institutions, entities, and agencies in the area of employment.
    ``(2) With respect to a professional athlete (as defined in section 
212(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.
    ``(3) To determine the prevailing wage, employers may use either 
government or nongovernment published surveys, including industry, 
region, or statewide wage surveys, to determine the prevailing wage, 
which shall be considered correct and valid if the survey was conducted 
in accordance with generally accepted industry standards and the 
employer has maintained a copy of the survey information.''.
    (g) Posting Requirement.--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 a conspicuous location, or 
                electronic posting through an internal job bank, or 
                electronic notification available to employees in the 
                occupational classification.''.

SEC. 6. ANNUAL REPORTS ON H1-B VISAS.

    Section 212(n) (8 U.S.C. 1182(n)) is amended by adding at the end 
the following:
            ``(3) Using data from petitions for visas issued under 
        section 101(a)(15)(H)(i)(b), the Attorney General shall 
        annually submit the following reports to Congress:
                    ``(A) Quarterly reports on the numbers of aliens 
                who were provided nonimmigrant status under section 
                101(a)(15)(H)(i)(b) during the previous quarter and who 
                were subject to the numerical ceiling for the fiscal 
                year established under section 214(g)(1).
                    ``(B) Annual reports on the occupations and 
                compensation of aliens provided nonimmigrant status 
                under such section during the previous fiscal year.''.

SEC. 7. STUDY AND REPORT ON HIGH-TECHNOLOGY LABOR MARKET NEEDS.

    (a) Study.--The National Science Foundation shall oversee the 
National Academy of Sciences in establishing a government-industry 
panel, including representatives from academia, government, and 
business, to conduct a study, using sound analytical methods, to assess 
the labor market needs for workers with high technology skills during 
the 10-year period beginning on the date of enactment of this Act. The 
study shall focus on the following issues:
            (1) The future training and education needs of the high-
        technology sector over that 10-year period, including projected 
        job growth for high-technology issues.
            (2) Future training and education needs of United States 
        students to ensure that their skills, at various levels, are 
        matched to the needs of the high technology and information 
technology sector over that 10-year period.
            (3) 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, and engineering since 1998.
            (4) An analysis of the number of United States workers 
        currently or projected to work overseas in professional, 
        technical, and managerial capacities.
            (5) The following additional issues:
                    (A) The need by the high-technology sector for 
                foreign workers with specific skills.
                    (B) The potential benefits gained by the 
                universities, employers, and economy of the United 
                States from the entry of skilled professionals in the 
                fields of science and engineering.
                    (C) The extent to which globalization has increased 
                since 1998.
                    (D) The needs of the high-technology sector to 
                localize United States products and services for export 
                purposes in light of the increasing globalization of 
                the United States and world economy.
                    (E) An examination of the amount and trend of high 
                technology work that is out-sourced from the United 
                States to foreign countries.
    (b) Report.--Not later than October 1, 2000, the National Science 
Foundation shall submit a report containing the results of the study 
described in subsection (a) to the Committees on the Judiciary of the 
House of Representatives and the Senate.
    (c) Availability of Funds.--Funds available to the National Science 
Foundation shall be made available to carry out this section.

SEC. 8. LIMITATION ON PER COUNTRY CEILING WITH RESPECT TO EMPLOYMENT-
              BASED IMMIGRANTS.

    (a) Special Rules.--Section 202(a) (8 U.S.C. 1152(a)) is amended by 
adding at the end the following new paragraph:
            ``(5) Rules for employment-based immigrants.--
                    ``(A) Employment-based immigrants not subject to 
                per country limitation if additional visas available.--
                If the total number of visas available under paragraph 
                (1), (2), (3), (4), or (5) of section 203(b) for a 
                calendar quarter exceeds the number of qualified 
                immigrants who may otherwise be issued such visas, the 
                visas made available under that paragraph shall be 
                issued without regard to the numerical limitation under 
                paragraph (2) of this subsection during the remainder 
                of the calendar quarter.
                    ``(B) Limiting fall across for certain countries 
                subject to subsection (e).--In the case of a foreign 
                state or dependent area to which subsection (e) 
                applies, if the total number of visas issued under 
                section 203(b) exceeds the maximum number of visas that 
                may be made available to immigrants of the state or 
                area under section 203(b) consistent with subsection 
                (e) (determined without regard to this paragraph), in 
                applying subsection (e) all visas shall be deemed to 
                have been required for the classes of aliens specified 
                in section 203(b).''.
    (b) Conforming Amendments.--
            (1) Section 202(a)(2) (8 U.S.C. 1152(a)(2)) is amended by 
        striking ``paragraphs (3) and (4)'' and inserting ``paragraphs 
        (3), (4), and (5)''.
            (2) Section 202(e)(3) (8 U.S.C. 1152(e)(3)) is amended by 
        striking ``the proportion of the visa numbers'' and inserting 
        ``except as provided in subsection (a)(5), the proportion of 
        the visa numbers''.
    (c) One-Time Protection Under Per Country Ceiling.--Notwithstanding 
section 214(g)(4) of the Immigration and Nationality Act, any alien 
who--
            (1) as of the date of enactment of this Act is a 
        nonimmigrant described in section 101(a)(15)(H)(i) of that Act;
            (2) is the beneficiary of a petition filed under section 
        204(a) for a preference status under paragraph (1), (2), or (3) 
        of section 203(b); and
            (3) would be subject to the per country limitations 
        applicable to immigrants under those paragraphs but for this 
        subsection,
may apply for and the Attorney General may grant an extension of such 
nonimmigrant status until the alien's application for adjustment of 
status has been processed and a decision made thereon.

SEC. 9. ACADEMIC HONORARIA.

    Section 212 (8 U.S.C. 1182) is amended by adding at the end the 
following new subsection:
    ``(p) 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, as defined by the Attorney General in 
consultation with the Secretary of Education, if such payment is 
offered by an institution of higher education (as defined in section 
1201(a) of the Higher Education Act of 1965) or other nonprofit entity 
and is made for services conducted for the benefit of that institution 
or entity.''.