[Congressional Record Volume 154, Number 42 (Wednesday, March 12, 2008)]
[Senate]
[Pages S2006-S2008]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself and Mr. Specter):
  S. 2751. A bill to facilitate foreign investment by permanently 
reauthorizing the EB-5 regional center program, and for other purposes; 
to the Committee on the Judiciary.
  Mr. LEAHY. Mr. President, today, I am introducing legislation to 
strengthen and make permanent the Regional Center pilot program at the 
U.S. Citizenship and Immigration Services, USCIS. l am pleased that 
Senator Specter has joined me in this effort, and I commend him for his 
recognition of this program's importance. The Regional Center program 
has had tremendous success in creating American jobs and infusing 
investment capital into many economically challenged areas across the 
country, and I urge all Senators to join us in building upon this 
success.
  The Regional Center pilot program was created in 1993 by the 
Departments of Commerce, Justice, and State, the Judiciary, and Related 
Agencies Appropriations Act. In 1993, I worked to reauthorize the 
program for an additional five years as part of the Basic Pilot Program 
Extension and Expansion Act. The Regional Center pilot program is set 
to expire in September of 2008. Should Congress fail to act before 
then, millions of dollars in capital and thousands of potential 
American jobs will be forfeited. The legislation I introduce today 
would make this pilot program permanent, and would make other important 
changes to strengthen its solid foundation.
  The Regional Center program allows a regional governmental agency or 
private enterprise within a State to apply for designation as a 
Regional Center through USCIS. This designation allows the enterprise 
to recruit foreign investors to a discrete project or projects, and 
provides USCIS with an additional layer of screening against 
immigration fraud. The process for a foreign citizen to gain legal 
permanent residence through the Regional Center program is a rigorous 
one. Prior to applying to invest in a Regional Center, a foreign 
investor must pledge a minimum of $500,000 and independently apply for 
an EB-5 visa through USCIS, which solely determines the potential 
investor's eligibility for a visa. If approved, the investor is given a 
2-year conditional green card. At the end of the conditional period and 
in order to continue legal residence in the United States, the investor 
must demonstrate that his or her investment created a minimum of 10 
jobs within the Regional Center, and that his or her investment was 
fully obligated to the targeted project.
  This program's continuation promises a bright future for job creation 
and capital investment in participating communities. The Regional 
Center program has resulted in millions of dollars of direct investment 
and the creation of thousands of jobs in the U.S. Moreover, foreign 
investment serves to attract additional domestic private sector 
capital, further increasing the program's beneficial economic effects. 
There are 17 Regional Centers across the country--and several more with 
pending applications--which manage investments in a diverse range of 
projects from energy production to resort development. Making this 
successful program permanent will provide significant economic benefits 
to participating States at no cost to the taxpayer.

  My home State of Vermont has benefited tremendously from this 
program, with foreign investments committed to local projects ranging 
in the millions of dollars. As a result of these ongoing developments, 
many new jobs are being created for Vermont's residents. For example, 
two of Vermont's premier ski resorts are active participants in this 
program, and have been successful in attracting foreign investment to 
help make ambitious development projects a reality. In a rural State 
like Vermont, which depends heavily on tourism and its natural 
resources, the Regional Center program has been instrumental in 
supporting projects that take advantage of Vermont's natural beauty and 
outdoor recreation opportunities.
  In addition to making the Regional Center program permanent, the bill 
also makes a number of other improvements to ensure its efficiency and 
to accommodate expected expansion. The bill provides a premium 
processing option for potential investors, allowing expedited 
processing for an additional fee to USCIS, as well as concurrent 
processing of a potential investor's application for designation as an 
immigrant investor and his or her adjustment of status application to 
obtain

[[Page S2007]]

conditional permanent residency. Finally, the bill creates a $2,500 fee 
for those domestic entities applying for Regional Center status, and 
directs USCIS to re-invest this additional revenue back into the 
Regional Center program to allow the agency to accommodate future 
growth in the program.
  Because the pilot program is set to expire in 2008, potential 
investors are feeling a chill stemming from uncertainty about the 
Regional Center Program's future. Permanently authorizing this program 
will create certainty and predictability for potential investors 
interested in the numerous projects currently in development across the 
country. This non-controversial program has enjoyed broad bipartisan 
support, and I strongly believe that we would do well to increase 
American job creation and capital investment by matching American 
ingenuity with the desire of those who seek not only to invest in the 
U.S., but who seek to share in our country's promise as eventual 
citizens.
  In a time of severe economic turbulence, and in an era where 
Americans are witnessing the outsourcing of too many good jobs 
overseas, this bill builds upon a proven record of success and 
encourages investment and job creation in the States and local 
communities of our Nation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2751

       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 ``State Foreign Investment 
     Improvement Act''.

     SEC. 2. PERMANENT REAUTHORIZATION OF EB-5 REGIONAL CENTER 
                   PROGRAM; APPLICATION FEE.

       (a) In General.--Section 610 of the Departments of 
     Commerce, Justice, and State, the Judiciary, and Related 
     Agencies Appropriations Act, 1993 (8 U.S.C. 1153 note) is 
     amended--
       (1) by striking ``pilot'' each place it appears;
       (2) in subsection (b), by striking ``for 15 years''; and
       (3) by adding at the end the following:
       ``(e) In addition to any other fees authorized by law, the 
     Secretary of Homeland Security shall impose a fee of $2,500 
     to apply for designation as a regional center under this 
     section. Fees collected under this subsection shall be 
     deposited in the Treasury in accordance with section 286(w) 
     of the Immigration and Nationality Act (8 U.S.C. 1356(w)).''.
       (b) Establishment of Account; Use of Fees.--Section 286 of 
     the Immigration and Nationality Act (8 U.S.C. 1356) is 
     amended by adding at the end the following:
       ``(w) Immigrant Entrepreneur Regional Center Account.--
       ``(1) In general.--There is established in the general fund 
     of the Treasury a separate account, which shall be known as 
     the `Immigrant Entrepreneur Regional Center Account'. 
     Notwithstanding any other provision of law, there shall be 
     deposited as offsetting receipts into the account all fees 
     collected under section 610(b) of the Departments of 
     Commerce, Justice, and State, the Judiciary, and Related 
     Agencies Appropriations Act, 1993 (8 U.S.C. 1153 note).
       ``(2) Use of fees.--Fees collected under this section may 
     only be used by the Secretary of Homeland Security to 
     administer and operate the EB-5 immigrant investor 
     program.''.
       (c) Rulemaking.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Homeland Security 
     shall prescribe regulations to implement the amendments made 
     by this section.
       (d) Effective Date.--The amendments made by subsections 
     (a)(3) and (b) shall take effect on the effective date of the 
     regulations prescribed pursuant to subsection (c).

     SEC. 3. PREMIUM PROCESSING FEE FOR EB-5 IMMIGRANT INVESTORS.

       (a) In General.--Section 286(u) of the Immigration and 
     Nationality Act (8 U.S.C. 1356(u)) is amended by striking 
     ``$1,000,'' and inserting ``$1,000 per petition. If the 
     petition is filed under section 203(b)(5), the fee shall be 
     set at $2,000 and may only be used by the Secretary of 
     Homeland Security to administer and operate the EB-5 
     immigrant investor program. Fees collected under this 
     subsection''.
       (b) Rulemaking.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Homeland Security 
     shall prescribe regulations to implement the amendment made 
     by subsection (a).

     SEC. 4. CONCURRENT FILING OF EB-5 PETITIONS AND APPLICATIONS 
                   FOR ADJUSTMENT OF STATUS.

       Section 245 of the Immigration and Nationality Act (8 
     U.S.C. 1255) is amended by adding at the end the following:
       ``(n) If, at the time a petition is filed for 
     classification through a regional center under section 
     203(b)(5), approval of the petition would make a visa 
     immediately available to the alien beneficiary, the alien 
     beneficiary's adjustment application under this section shall 
     be considered to be properly filed whether the application is 
     submitted concurrently with, or subsequent to, the visa 
     petition.''.

  Mr. SPECTER. Mr. President, I seek recognition to speak on the State 
Foreign Investment Improvement Act, which I am cosponsoring with 
Senator Leahy. This bill will make permanent the Immigrant Investor 
Pilot Program, an innovative and successful program which has been in 
existence for 15 years. Under this program, State and local 
governments, and private entities, are able to apply to the U.S. 
Citizenship and Immigration Service for ``regional center'' status 
which enables them to attract the job-creating dollars of immigrant 
investor visa holders.
  The immigrant investor visa--known as the EB-5 visa--was created in 
1990 and grants lawful permanent residency to individuals willing to 
invest at least $1 million in an enterprise that directly employs at 
least 10 legal workers in the United States. In certain rural or high-
unemployment areas, however, the dollar amount is reduced to at least 
$500,000, though the job-creation requirements remain the same.
  In 1992, to stimulate interest in these immigrant investor visas, 
Congress created the Immigrant Investor Pilot Program. By investing in 
the designated ``regional centers'' instead of creating their own 
enterprises or partnerships, immigrant investors can meet the job-
creation requirements of their visas more easily, since they need only 
show the indirect creation of 10 jobs through a ``regional center.'' 
Otherwise, an immigrant investor would have to show that his or her 
investment directly created the jobs.
  The Immigrant Investor Pilot Program has proven to be an attractive 
option for potential immigrant investors, being chosen by an estimated 
75 percent to 80 percent of all immigrant investors since its 
inception. Indeed, in my home state of Pennsylvania, the two regional 
centers--one in western Pennsylvania and one in Philadelphia--have 
generated millions of dollars in foreign investment. However, this 
program is set to expire at the end of the 2008 fiscal year.
  The Immigrant Investor Pilot Program has thus become a vital 
component of the immigrant investor visa, a category of visa whose 
benefits are difficult to overstate. The Government Accountability 
Office estimates that immigrant investors were responsible for over $1 
billion in job-creating investments between 1992 and mid-2004. These 
investments have aided enterprises as diverse as the growth of dairy 
and meat-packing industries in South Dakota and improvements to the 
shipyard in Philadelphia. However, the most important contribution of 
the immigrant investor visa has been the creation of jobs within the 
United States. And in this aim, the immigrant investor visa has been 
very successful, creating jobs in the thousands.
  In addition to preserving the current successful status quo of the 
Immigrant Investor Pilot Program by making it permanent, this bill 
makes minor improvements to the immigrant investor visa application 
procedure. It establishes an application fee for entities seeking 
designation as a ``regional center'' under the Pilot Program, and it 
provides premium processing fees for immigrant investor applications. 
Both of these fees will enable the U.S. Citizenship and Immigration 
Service to devote more resources to adjudicating these applications 
rapidly. Finally, this bill allows for concurrent filing of the 
immigrant investor petition and application for adjustment to lawful 
permanent resident, thereby providing for a shorter processing time for 
``regional center'' applicants.
  Last November, the Wall Street Journal stated that the immigrant 
investor visa is ``pumping millions of dollars from foreign investors 
into dilapidated inner cities and employment-starved rural areas across 
the U.S.'' At a time when Congress is weighing how it will address 
economic instability, it would be unwise to neglect such an 
economically beneficial program. Accordingly, I am pleased to co-
sponsor this piece of legislation with Senator Leahy and I urge my 
colleagues to support it.

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