[Congressional Record Volume 146, Number 11 (Wednesday, February 9, 2000)]
[Senate]
[Pages S542-S545]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH (for himself, Mr. Abraham, Mr. Gramm, Mr. Graham, 
        Mr. Lieberman, Mrs. Feinstein, Mr. Lott, Mr. Nickles, Mr. Mack, 
        Mr. Specter, Mr. DeWine, Mr. McConnell, Mr. Gorton, Mr. Hagel, 
        Mr. Bennett, Mr. Grams, Mr. Ashcroft, Mr. Brownback, Mr. Smith 
        of Oregon, and Mr. Warner):
  S. 2045. A bill to amend the Immigration and Nationality Act with 
respect to H-1B nonimmigrant aliens; to the Committee on the Judiciary.


    american competitiveness in the twenty-first century act of 2000

  Mr. HATCH. Mr. President, I rise today to introduce what I believe is 
one of the most important pieces of legislation the Senate will 
consider this year, the American Competitiveness in the 21st Century 
Act.
  At the outset, I would like to express my gratitude to my two lead 
cosponsors, Senator Abraham and Senator Gramm. Both have worked 
tirelessly with me to craft this legislation. Senator Abraham, of 
course, as chairman of the Immigration Subcommittee, has long led the 
way on this matter. I also thank our Democrat sponsors, Senators 
Graham, Lieberman, and Feinstein, as well as our majority leader and 
assistant majority leader for their contributions to this effort.
  Last month, the national jobless rate hit 4 percent, the lowest level 
in 30 years. That jobless rate is even lower in my home State of Utah 
at 3.3 percent. That's great news; but at the same time, serious labor 
shortages threaten our continued economic prosperity and global 
competitiveness. A recent study, for example, concluded that a shortage 
of high-tech professionals is currently costing the U.S. economy $105 
billion a year.
  A look at last Sunday's Washington Post makes the problem very clear. 
High-tech jobs even have their own separate section of help wanted ads. 
Twenty-one pages of jobs, jobs, jobs.
  The Clinton administration recently projected that in the next 5 
years, high-tech and related employment will grow ``more than twice as 
fast as employment in the economy as a whole.'' The growth of the high-
tech industry is being felt across this country, and nowhere more than 
in my State of Utah. Common sense tells us that we must allow American 
high-tech companies to fill their labor needs in the United States, or 
they will be forced to take these opportunities of growth abroad.
  We want the high tech industry to thrive in the United States and to 
continue to serve as the engine for the growth of jobs and 
opportunities for American workers. If Congress fails to act promptly 
to alleviate today's high-tech labor shortage, today's low jobless rate 
will be a mere precursor to tomorrow's lost opportunities.
  The purpose of our important bipartisan legislation is twofold: (1) 
To allow for a necessary infusion of high-tech workers in the short 
term, and (2) to make prudent investments in our own workforce for the 
long term.
  It is clear that in the short term we need to raise the limits of the 
number of temporary visas for highly skilled labor. Our bill does this 
by increasing the cap to 195,0000 visas over each of the next 3 years. 
We also exempt persons from the cap who come to work in our 
universities and persons who have recently received advanced degrees in 
our educational institutions.
  But this, by itself, is not a satisfactory solution either in the 
short item or long term. Thus, we need to redouble our efforts to 
provide training and educational opportunities for our current and 
future workforce. Thus, we raise an additional $150 million for 
scholarships and training of American workers for these jobs for a 
total of $375 million for education and training under this program 
over 3 fiscal years. Our legislation, in other words, seeks

[[Page S543]]

to address both the short and long term needs.
  My hope is that the administration will come to support this 
important high-tech legislation. In our new knowledge-based economy, 
where ideas and innovations rather than land or natural resources are 
the principal well springs of economy growth, American competitiveness 
depends greatly on intellectual assets and capacity. The most 
successful economics of the 21st century will be those which maximize 
intellectual assets. In recognition of this fact, the administration 
has worked with me over the years to improve intellectual property 
protection and to encourage developing nations to invest in doing 
likewise. For this reason, I believe that the administration 
appreciates the need for this legislation. In the end, I hope they will 
have the smarts to listen to Alan Greenspan--who has testified about 
the need for this bill--and that the administration will support its 
passage.
  I ask unanimous consent that the text of the bill be included in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2045

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Competitiveness in 
     the Twenty-first Century Act of 2000''.

     SEC. 2. TEMPORARY INCREASE IN VISA ALLOTMENTS.

       In addition to the number of aliens who may be issued visas 
     or otherwise provided nonimmigrant status under section 
     101(a)(15)(H)(i)(b) (8 U.S.C. 1101 (a)(15)(H)(i)(b)), the 
     following number of aliens may be issued such visas or 
     otherwise provided such status for each of the following 
     fiscal years:
       (1) 80,000 for fiscal year 2000;
       (2) 87,500 for fiscal year 2001; and
       (3) 130,000 for fiscal year 2002.

     SEC. 3. SPECIAL RULE FOR UNIVERSITIES, RESEARCH FACILITIES, 
                   AND GRADUATE DEGREE RECIPIENTS.

       Section 214(g) of the Immigration and Nationality Act (8 
     U.S.C. 1184(g)) is amended by adding at the end the following 
     new paragraphs:
       ``(5) The numerical limitations contained in paragraph 
     (1)(A)(iii) shall not apply to any nonimmigrant alien issued 
     a visa or otherwise provided status under section 
     101(a)(15)(H)(i)(b)--
       ``(A) who is employed (or has received an offer of 
     employment) at--
       ``(i) an institution of higher education (as defined in 
     section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1001(a))), or a related or affiliated nonprofit entity; or
       ``(ii) a nonprofit research organization or a governmental 
     research organization; or
       ``(B) for whom a petition is filed not more than 90 days 
     before or not more than 180 days after the nonimmigrant has 
     attained a master's degree or higher degree from an 
     institution of higher education (as defined in section 101(a) 
     of the Higher Education Act of 1965 (20 U.S.C. 1001(a))).''.
       ``(6) Any alien who ceases to be employed by an employer 
     described in paragraph (5)(A) shall, if employed as a 
     nonimmigrant alien described in section 101(a)(15)(H)(i)(b), 
     be counted toward the numerical limitations contained in 
     paragraph (1)(A)(iii) the first time the alien is employed by 
     an employer other than one described in paragraph (5)(A).''.

     SEC. 4. 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) 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
       (2) 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. 5. INCREASED PORTABILITY OF H-1B STATUS.

       (a) In General.--Section 214 of the Immigration and 
     Nationality Act (8 U.S.C. 1184) is amended by adding at the 
     end the following new subsection:
       ``(m)(1) A nonimmigrant alien described in paragraph (2) 
     who was previously issued a visa or otherwise provided 
     nonimmigrant status under section 101(a)(15)(H)(i)(b) is 
     authorized to accept new employment upon the filing by the 
     prospective employer of a new petition on behalf of such 
     nonimmigrant as provided under subsection (a). Employment 
     authorization shall continue for such alien until the new 
     petition is adjudicated. If the new petition is denied, 
     employment authorization shall cease.
       ``(2) A nonimmigrant alien described in this paragraph is a 
     nonimmigrant alien--
       ``(A) who has been lawfully admitted into the United 
     States;
       ``(B) on whose behalf an employer has filed a nonfrivolous 
     application for new employment or extension of status before 
     the date of expiration of the period of stay authorized by 
     the Attorney General; and
       ``(C) who has not been employed without authorization in 
     the United States before or during the pendency of such 
     petition for new employment.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to petitions filed before, on, or after the date 
     of enactment of this Act.

     SEC. 6. EXTENSION OF AUTHORIZED STAY IN CASES OF LENGTHY 
                   ADJUDICATIONS.

       (a) Exemption from Limitation.--The limitation contained in 
     section 214(g)(4) of the Immigration and Nationality Act with 
     respect to the duration of authorized stay shall not apply to 
     any nonimmigrant alien previously issued a visa or otherwise 
     provided nonimmigrant status under section 
     101(a)(15)(H)(i)(b) of the Immigration and Nationality Act on 
     whose behalf a petition under section 204(b) to accord the 
     alien immigrant status under section 203(b), or an 
     application for adjustment of status under section 245 to 
     accord the alien status under section 203(b), has been filed, 
     if 365 days or more have elapsed since the filing of a labor 
     certification application on the alien's behalf, if required 
     for the alien to obtain status under section 203(b), or the 
     filing of the petition under section 204(b).
       (b) Extension of H1-B Worker Status.--The Attorney General 
     shall extend the stay of an alien who qualifies for an 
     exemption under subsection (a) in one-year increments until 
     such time as a final decision is made on the alien's lawful 
     permanent residence.

     SEC. 7. EXTENSION OF CERTAIN REQUIREMENTS AND AUTHORITIES 
                   THROUGH FISCAL YEAR 2002.

       (a) Attestation Requirements.--Section 212(n)(1)(E)(ii)) of 
     the Immigration and Nationality Act (8 U.S.C. 
     1182(n)(1)(E)(ii)) is amended by striking ``October 1, 2001'' 
     and inserting ``October 1, 2002''.
       (b) Fee Requirements.--Section 212(c)(9)(A) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(c)(9)(A)) is 
     amended in the text above clause (i) by striking ``October 1, 
     2001'' and inserting ``October 1, 2002''.
       (c) Department of Labor Investigative Authorities.--Section 
     413(e)(2) of the American Competitiveness and Workforce 
     Improvement Act of 1998 (as contained in title IV of division 
     C of Public Law 105-277) is amended by striking ``September 
     30, 2001'' and inserting ``September 30, 2002''.

     SEC. 8. RECOVERY OF VISAS USED FRAUDULENTLY.

       Section 214(g)(3) of the Immigration and Nationality Act (8 
     U.S.C. 1184 (g)(3)) is amended to read as follows:
       ``(3) Aliens who are subject to the numerical limitations 
     of paragraph (1) shall be issued visas (or otherwise provided 
     nonimmigrant status) in the order in which petitions are 
     filed for such visas or status. If an alien who was issued a 
     visa or otherwise provided nonimmigrant status and counted 
     against the numerical limitations of paragraph (1) is found 
     to have been issued such visa or otherwise provided such 
     status by fraud or willfully misrepresenting a material fact 
     and such visa or nonimmigrant status is revoked, then one 
     number shall be restored to the total number of aliens who 
     may be issued visas or otherwise provided such status under 
     the numerical limitations of paragraph (1) in the fiscal year 
     in which the petition is revoked, regardless of the fiscal 
     year in which the petition was approved.''.

     SEC. 9. NSF STUDY AND REPORT ON THE ``DIGITAL DIVIDE''.

       (a) Study.--The National Science Foundation shall conduct a 
     study of the divergence

[[Page S544]]

     in access to high technology (commonly referred to as the 
     ``digital divide'') in the United States.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Director of the National Science 
     Foundation shall submit a report to Congress setting forth 
     the findings of the study conducted under subsection (a).

  Mr. ABRAHAM. Mr. President, I rise to join Senator Hatch in 
introducing the American Competitiveness in the 21st Century Act.
  Mr. President, no company can grow if it fails to find enough 
employees with the skills needed to get the job done. And that is 
precisely the situation faced by our high-tech companies today. A Joint 
Venture: Silicon Valley study found that a lack of skilled workers is 
costing Silicon Valley companies $3 to $4 billion every year. A 
Computer Technology Industry Association study concluded that a 
shortage of information technology professionals is costing the U.S. 
economy as a whole $105 billion per year.
  These costs should not be seen as mere abstractions. Because of 
skilled labor shortages, an increasing number of highly productive 
firms have had to curtail their economic activities and/or move 
offshore. At an October 21, 1999 Senate Immigration Subcommittee 
hearing, Susan DeFife, CEO of womenCONNECT.com, noted that ``as 
investment capital flows into start-ups and puts them on a fast growth 
track, the demand for workers will continue to far exceed the supply. 
In order to fill these positions, the options for tech companies are 
not particularly attractive: we can limit our growth, but then we lose 
the ability to compete; we can `steal' employees from other companies, 
which makes none of us stronger and forces us to constantly look over 
our shoulders; or, in the case of larger companies I know, move 
operations off-shore.''
  None of these solutions is good for our economy or our workers. As e-
commerce and other forms of high technology become increasingly 
integrated throughout our economy, the long-term solution to our 
dilemma will be for earlier and better training for our young people to 
qualify them for high-tech tasks. But we are losing productivity and 
opportunities for growth right now. If we are to maintain our high-tech 
edge in an increasingly competitive global market, we must find the 
skilled workers we need wherever we can.
  We must meet our training and education needs. And we need wise and 
careful reforms to our immigration laws. This is not an either/or 
proposition. We have studied this approach for some time. In February 
of 1998 the Senate Judiciary Committee held a hearing on high 
technology workforce issues. This hearing demonstrated that many 
companies could not find enough qualified professionals to fill key 
jobs. It also showed that the foreign-born individuals hired by 
companies on H-1B temporary visas typically many additional jobs for 
Americans through their skills and motivations.
  Mr. President, shortly after that hearing, Congress raised the cap on 
H-1B visas from 65,000 to 115,000 in FY1999 and 2000, and 107,500 in 
2001. A number of provisions in this legislation increased enforcement 
efforts and established a $500 fee per visa--currently generating $75 
million per year--for training and scholarships to encourage Americans 
to enter high-tech related fields.
  Unfortunately, this was not enough. Despite the raised cap, a tight 
labor market, increasing globalization and burgeoning economic growth 
all combined to increase demand for skilled workers. The 1999 cap on H-
1B visas was reached by June of last year.
  We must do more to enable American employers to hire job-creating 
high-tech professionals. That is why I have sponsored this legislation 
that would:
  Provide a temporary increase in H-1B visas. Caps would be increased 
by 80,000 for FY 2000; 87,500 for FY 2001; and 130,000 for FY 2002.
  Create exemptions for universities, research facilities, and graduate 
degree recipients to help keep in the country top graduates and those 
who help educate Americans.
  Modify per-country limits on permanent employment visas to allow 
companies to hire talent without regard to nationality.
  Increase labor mobility by allowing H-1B professionals to change jobs 
as soon as the new employer files the initial paperwork, instead of 
waiting for a new H-1B application to be approved.
  Continue and extend the $500 per visa fee to provide over $150 
million in additional funding over three years for training and 
scholarships. Counting the existing money brought in by the fee, this 
will raise the total to over $375 million over three years and will 
help over 50,000 American students receive scholarships in math, 
science or engineering.
  These provisions will increase our economic competitiveness, sustain 
our economic growth, and provide new opportunities for workers and 
entrepreneurs. Julie Holdren, President and CEO of the Olympus Group, 
told the Immigration Subcommittee that ``For every H-1B worker I 
employ, I am able to hire ten more American workers.'' A study for the 
Public Policy Institute of California by U.C. Berkeley Professor 
Annalee Saxenian bears this testimony out. It found that Chinese and 
Indian immigrant entrepreneurs in northern California alone were 
responsible for employing 58,000 people, with annual sales of nearly 
$17 billion.
  Critics of the last H-1B visa increase have been proven spectacularly 
wrong, as the U.S. economy added 387,000 new jobs in January and the 
unemployment rate dropped to a 30-year low of 4 percent. Specialty jobs 
in the computer industry alone are projected to grow by 1.5 million 
between 1998 and 2008, according to the Department of Labor.
  President Clinton's former chief economic advisor, Laura D'Andrea 
Tyson argues that ``it's time to raise the cap on H-1B visas yet again 
and to provide room for further increases as warranted. Silicon 
Valley's experience reveals that the results will be more jobs and 
higher incomes for both Americans and immigrant workers.''
  Mr. President, the final word should belong to Federal Reserve 
Chairman Alan Greenspan. At a Budget Committee hearing last month he 
was asked ``Do you believe we should do something with our laws--
immigration--that would allow high tech . . . labor to come into the 
country to ease the burden'' on our labor force?
  Chairman Greenspan responded: ``I would certainly agree with that. 
It's clear that under existing circumstance . . . aggregate demand is 
putting very significant pressures on an ever-decreasing available 
supply of unemployed labor. The one obvious means that one can use to 
offset that is expanding the number of people we allow in, either 
generally or in a specifically focused area.''
  By increasing the number of highly skilled professionals we allow to 
work in America, and providing additional funding for training and 
scholarships, we will create jobs for all Americans and keep our high-
tech driven economic expansion on the move.
  Mr. GRAMM. Mr. President, today I am proud to join in the 
introduction of legislation which will increase the number of H-1B 
temporary work visas used to recruit and hire workers with very 
specialized skills, particularly in high technology fields. This bill 
will ensure that the dramatic U.S. economic expansion will not be 
stalled by a lack of skilled workers in critical positions. It retains 
the language of current law which protects qualified U.S. workers from 
being displaced by H-1B visa holders.
  With record low unemployment, U.S. companies already have been forced 
to slow their expansion or even to cancel projects, and some may be 
forced to move their operations overseas because of an inability to 
find qualified individuals to fill job vacancies. We will achieve our 
full economic potential only if we ensure that high-technology 
companies can find and hire the people whose unique qualifications and 
skills are critical to America's future.
  Last year, the Congress temporarily increased the number of annual H-
1B visas from 65,000 to 115,000 for Fiscal Years 1999 and 2000, and to 
107,500 in 2001. The number of H-1B visas is scheduled to drop back to 
65,000 for Fiscal Year 2002 and subsequent years. Our legislation will 
increase the H-1B visa cap to 195,000 for Fiscal Years 2000, 2001, and 
2002. By the end of that period, we will have the data we need to make 
an informed decision on the number of such visas required beyond 2002.
  According to a recent study by the American Electronics Association 
(AEA), Texas has the fastest growing

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high technology industry in the country and is second only to 
California in the number of high technology workers. This legislation 
would ensure that these companies have access to highly educated 
workers, in order that America can continue to grow and prosper, and in 
doing so, create more jobs and opportunity for U.S. workers.
  I believe that this legislation represents a fair and effective way 
to address a critical need in our Nation's economy, and I hope my 
colleagues will quickly approve this important proposal.
                                 ______