[Federal Register Volume 73, Number 238 (Wednesday, December 10, 2008)]
[Proposed Rules]
[Pages 75015-75027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-29213]


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DEPARTMENT OF STATE

22 CFR Part 62

[Public Notice: 6448]
RIN 1400-AC36


Exchange Visitor Program

AGENCY: United States Department of State.

ACTION: Proposed rule with request for comment.

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SUMMARY: The Department of State is proposing to amend the General 
Provisions (Subpart A) of the existing Exchange Visitor Program 
regulations in order to provide greater specificity regarding program 
administration, sponsor obligations and participant eligibility in the 
Exchange Visitor Program. Certain definitions have been added or 
deleted. New requirements regarding applications for designation and 
redesignation, health insurance, the collection of employment 
authorization information on dependants and the successful completion 
of criminal background checks on all Responsible Officers and Alternate 
Responsible Officers are proposed. In addition, the requirements set 
forth in Subpart F (SEVIS reporting requirements) are consolidated into 
Subpart A.

DATES: The Department will accept comments from the public up to 60 
days from December 10, 2008.

ADDRESSES: You may submit comments, identified by any of the following 
methods:
     Persons with access to the Internet may view this notice 
and provide comments by going to the regulations.gov Web site at: 
http://www.regulations.gov/index.cfm
     Mail (paper, disk, or CD-ROM submissions): U.S. Department 
of State, Office of Designation, SA-44, 301 4th Street, SW., Room 734, 
Washington, DC 20547.
     E-mail: [email protected]. You must include the Title 
and RIN in the subject line of your message.

FOR FURTHER INFORMATION CONTACT: Stanley S. Colvin, Deputy Assistant 
Secretary for Private Sector Exchange, U.S. Department of State, SA-44, 
301 4th Street, SW., Room 734, Washington, DC 20547; or e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: The Department of State is proposing 
modifications to Sec.  62.2 through Sec.  62.16 of the Code of Federal 
Regulations, Title 22: Foreign Relations, Part 62--Exchange Visitor 
Program (Subpart A--General Provisions). Subpart A has remained largely 
unchanged since 1993, when the predecessor agency with oversight of the 
Exchange Visitor Program, the United States Information Agency (USIA), 
substantially rewrote all of the regulations governing the Program. 
(See 58 FR 15196, Mar. 19, 1993, as amended at 59 FR 34761, July 7, 
1994, Redesignated at 64 FR 54539, Oct. 7, 1999). In the intervening 15 
years, the Department of State has modified regulations governing 
certain categories of exchange and has added new categories. 
Significantly, the introduction of the Student and Exchange Visitor 
Information System (SEVIS) in 2003 required major amendments to the 
regulations. Proposed modifications to Subpart A are necessary to bring 
the general regulatory provisions in line with the category-specific 
sections or simply to update the regulations to reflect generic 
business changes that have occurred during the past 15 years.
    The proposed rule includes a new provision requiring all new 
applicants for sponsor designation to be subject to ``on-site'' 
reviews. Such reviews, conducted by the Department of State or a third 
party on its behalf, will be required before a new applicant is 
designated as a sponsor. Site visits of existing sponsors may occur at 
the discretion of the Department. The applicants and/or sponsors will 
bear the cost of these reviews.
    The Department of State also proposes to require potential 
Responsible Officers (``RO'') and Alternate Responsible Officers 
(``ARO'') to undergo a criminal background check. This requirement is 
reflective of the importance of the role of such individuals within 
sponsor organizations and their rights of access to and manipulation of 
data for a controlled Federal Government database. ROs and AROs are the 
only individuals authorized to issue and sign Form DS-2019, the 
``Certificate of Eligibility for Exchange Visitor (J-1) Status.'' 
Foreign nationals who participate in the Exchange Visitor Program must 
obtain Forms DS-2019 in order to apply for a J-visa to gain entry into 
the United States. Thus, it is of vital importance that the individuals 
who have access to a secured Federal Government database (SEVIS) be 
properly vetted. The Department of State introduced without issue, in 
2005, a criminal background check requirement for individuals hosting 
secondary school student participants. Sponsors of these programs 
routinely conduct over 60,000 criminal background checks each year. The 
Department of State anticipates that conducting criminal background 
checks

[[Page 75016]]

on ROs and AROs will be equally successful.
    The Department of State will not require applicants or sponsors to 
submit the results of the criminal background check. Rather, a 
component of the process of obtaining designation or redesignation 
requires the Chief Executive Officer, President, or other similar 
official to submit, as supporting documentation to the application 
package, a certification that the organization's RO and AROs have 
undergone a criminal background check. The proposed regulation does not 
set specific requirements for the sponsors to follow with respect to 
report format, screening company, or assessment of results. The 
Department does anticipate, however, that a thorough criminal 
background check would provide management decision makers with 
sufficient information to determine whether ROs and AROs are citizens 
of the United States or lawful permanent residents, whether any record 
of past criminal activity should disqualify them from the positions, 
and whether there is pertinent information regarding their personal 
credit-worthiness. These three areas of review are generally examined 
matter regarding suitability to hold positions that affect national 
security.
    The Department of State recommends, but does not require, that 
sponsors utilize the services of an accredited background screener. 
Sponsors who do decide to use a background screener are free to choose 
among a number of available options. Some entities that can assist 
sponsors in finding accredited background screeners to conduct their 
investigations include Intellicorp, Choicepoint, and members of the 
National Association of Professional Background Screeners (NAPBS). For 
example, the NAPBS has over 500 members (a list of which is located at 
http://www.NAPBS.com), all of whom are expected to adhere to the NAPBS 
code of conduct governing background investigations and 
confidentiality. Use of an accredited background screener does not 
confirm an individual's suitability to act as an RO or an ARO and is in 
no way a substitution for the sponsor's judgment in making such 
decisions.
    In July 2007, the Department of State implemented an interim final 
rule on Trainees and Interns that required sponsors to screen, vet and 
enter into written agreements with third parties who assist them in 
recruiting, selecting, screening, orienting, placing, training or 
evaluating foreign nationals who participate in training and internship 
programs. This requirement is relevant to sponsors who rely upon ``host 
organizations'' to provide the actual training or intern programs. It 
also affects foreign agents who play a vital role in the selection of 
potential exchange visitors. These trainee and intern regulations 
require all third parties--foreign and domestic alike-- to provide Dun 
& Bradstreet identification numbers. Similarly, this proposed rule 
requires all applicants for sponsor designation to submit current Dun & 
Bradstreet Business Information Reports on themselves. A current Dun 
and Bradstreet Business Information Report is also required of all 
sponsors with the submission of an application for redesignation. 
Further, sponsors seeking redesignation will be required to submit a 
list of all third parties with whom sponsors have executed written 
agreements to act on their behalf and separate certifications that the 
sponsors have obtained Dun & Bradstreet Business Information Reports on 
all of such third parties.
    The proposed rule addresses the current levels of health insurance 
coverage a sponsor must require that its exchange visitor (and spouse 
and dependants) must maintain during the duration of their program 
participation. The Department of State proposes no substantive changes 
to the insurance requirements with the exception of the addition of 
dental insurance coverage. Instead, the Department is proposing to 
increase the levels of coverage so they more accurately align with 
current health and accident costs and industry standards. Over time, 
the Department has found that sponsors have differing interpretations 
regarding the period of time for which insurance coverage is required. 
To eliminate this area of ambiguity, additional language has been added 
to explain the timeframe of required coverage from ``entry to exit''.
    The Department of State proposes to collect information on the 
employment of the accompanying spouse and dependants while in the 
United States. As a security matter, current information on the 
employment entity and work location of dependants is necessary.
    Definitions have been added or modified to clarify or reflect 
changes. New definitions in this proposed rule clarify SEVIS functions 
or fields or reflect changes that have occurred since 1993.
    The term ``accredited educational institution'' has been changed to 
``accredited academic institution.'' In the proposed definition, the 
Department of State clarifies that educational institutions that offer 
primarily vocational or technical courses of study are not considered 
academic. The addition of the ``technical'' distinction parallels the 
Department of Education's replacement of regulations governing purely 
``vocational'' studies with a new ``vocational/technical'' 
classification that acknowledges the new information technology 
curricula that are neither vocational nor academic.
    Three SEVIS-related definitions have been added to the proposed 
regulations: ``actual and current U.S. address,'' ``site of activity,'' 
and ``validation.'' The first two definitions are critical as they 
relate to the physical location of the exchange visitor. Simply put, 
sponsors must maintain current and accurate data in these SEVIS fields 
so that foreign nationals may be located at the site of activity 
(location where the program will take place) or at the actual and 
current U.S. address (residence). Maintaining this information is a 
matter of national security. The SEVIS function of validating a record 
is similarly important. When an exchange visitor enters the United 
States and reports to his or her exchange program, the sponsor must 
note this occurrence in SEVIS through the validation process, thereby 
demonstrating that an exchange visitor is currently present in the 
United States and participating in the exchange visitor program 
identified on the Form DS-2019.
    The term ``Certificate of Good Standing'' has been added and, for 
clarity, the definition for ``Citizen of the United States'' has been 
split into two: one that pertains to individuals and another that 
relates to legal entities.
    This rule reflects changes in technology, and it moves requirements 
previously in Subpart F to Subpart A. The change from paper numbered 
forms to electronically generated Forms DS-2019 requires two 
fundamental alterations to the regulations. First, any requirements 
relating to the physical storage of unused forms are obsolete. Second, 
matters of national security require that circulating Forms DS-2019 
(i.e., those not kept internally in a sponsor's files) must be 
originals. All Forms DS-2019 must be generated through SEVIS. The 
proposed regulations prohibit the use of scanned, copied, or electronic 
versions of Forms DS-2019 except in response to a request from the 
Department of State or the Department of Homeland Security or for 
maintenance of complete exchange visitor records by sponsors. The 
proposed rule also requires sponsors to request that potential program 
participants return unused Forms DS-2019, and that such forms be 
destroyed.
    The proposed rule also clarifies those actions a sponsor must 
undertake to

[[Page 75017]]

update an exchange visitor's SEVIS record (or the record of any 
accompanying spouse and dependants, if any) when the exchange visitor's 
program participation is ended early (e.g., concluded successfully or 
terminated as a result of violation of program rules, regulations or 
U.S. law). The Department of State is reducing from 21 to ten (10) days 
the time a sponsor has following notification of an exchange visitor's 
change of circumstance to update the exchange visitor's SEVIS record 
(or the records of a spouse or dependants).
    Finally, as a recordkeeping and administrative oversight matter, 
sponsors will be required to maintain current information in SEVIS on 
its exchange visitor program, address, telephone numbers, facsimile 
numbers, or email addresses. All Department communication to sponsors 
related to program oversight, policy, redesignation, etc. sent to ROs 
and AROs are generated from information contained in SEVIS. The 
Department will not recognize non-receipt of notification as grounds 
for appeal if a sponsor does not respond to a request. Sponsors are 
required to ensure that their spam filters do not block reception of 
SEVIS or Department notices. The term, ``in writing'' is expanded to 
include the option for electronic signatures to support movement toward 
a paperless environment.
    The data collection required for management audit templates is 
within the scope of existing data collections (see OMB 1405-0147, Form 
DS-7000, Catalog of Information Collection Requirements under 22 CFR 
Part 62, the Exchange Visitor Program (SEVIS)).

    Note: Current Sec.  62.17 remains unchanged.

Regulatory Analysis

Administrative Procedure Act

    The Department of State has determined that this Proposed Rule 
involves a foreign affairs function of the United States and is 
consequently exempt from the procedures required by 5 U.S.C. 553 
pursuant to 5 U.S.C. 553(a)(1). Nonetheless, because of its importance 
to the public, the Department has elected to solicit comments during a 
60-day comment period.

Small Business Regulatory Enforcement Fairness Act of 1996

    The Proposed Rule has been found not to be a major rule within the 
meaning of the Small Business Regulatory Enforcement Fairness Act of 
1996.

Regulatory Flexibility Act/Executive Order 13272: Small Business

    Since this Proposed Rule is exempt from 5 U.S.C 553, and no other 
law requires the Department of State to give notice of proposed 
rulemaking, it is not subject to the Regulatory Flexibility Act (5 
U.S.C. 601, et seq.) and Executive Order 13272, Sec.  3(b).

Executive Order 12866, as Amended

    The Department of State does not consider this proposed rule to be 
a ``significant regulatory action'' under Executive Order 12866, as 
amended, Sec.  3(f), Regulatory Planning and Review. In addition, the 
Department of State is exempt from Executive Order 12866 except to the 
extent that it is promulgating regulations in conjunction with a 
domestic agency that are significant regulatory actions. The Department 
has nevertheless reviewed the proposed rule to ensure its consistency 
with the regulatory philosophy and principles set forth in that 
Executive Order.

Executive Order 12988

    The Department of State has reviewed this proposed rule in light of 
Sec. Sec.  3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UFMA), 
Public Law 104-4, 109 Stat. 64, 2 U.S.C. 1532, generally requires 
agencies to prepare a statement before proposing any rule that may 
result in an annual expenditure of $100 million or more by state, 
local, or tribal governments, or by the private sector. This rule will 
not result in any such expenditure, nor will it significantly or 
uniquely affect small governments.

Executive Orders 12372 and 13132

    This regulation will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Sec.  6 of 
Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. Executive 
Order 12372, regarding intergovernmental consultation on Federal 
programs and activities, does not apply to this regulation.

Paperwork Reduction Act

    The information collection requirements contained in this proposed 
rulemaking (criminal background screening of Responsible Officers 
(``ROs'') and Alternate Responsible Officers (``AROs'') are pursuant to 
the Paperwork Reduction Act, 44 U.S.C. Chapter 35. Specifically OMB 
Control Number 1405-0147, expiration date: 09/30/2010, applies: Form 
DS-3037--Update of Information on Exchange Visitor Program Sponsor, 
Form DS-7000--Catalog of Information Collection Requirements Under 22 
CFR Part 62, the Exchange Visitor Program (SEVIS).

List of Subjects in 22 CFR Part 62

    Cultural exchange programs, Reporting and recordkeeping 
requirements.

    Accordingly, 22 CFR part 62 is proposed to be amended as follows:

PART 62--EXCHANGE VISITOR PROGRAM

    1. The authority citation for part 62 continues to read as follows:

    Authority: 8 U.S.C. 1101(a)(15)(J), 1182, 1184, 1258; 22 U.S.C. 
1431-1442, 2451 et seq.; Foreign Affairs Reform and Restructuring 
Act of 1998, Public Law 105-277, Div. G, 112 Stat. 2681 et seq.; 
Reorganization Plan No. 2 of 1977, 3 CFR, 1977 Comp. p. 200; E.O. 
12048 of March 27, 1978; 3 CFR, 1978 Comp. p. 168; the Illegal 
Immigration Reform and Immigrant Responsibility Act (IIRIRA) of 
1996, Public Law 104-208, Div. C, 110 Stat. 3009-546, as amended; 
Uniting and Strengthening America by Providing Appropriate Tools 
Required to Intercept and Obstruct Terrorism Act of 2001 (USA 
PATRIOT ACT), Public Law 107-56, Sec. 416, 115 Stat. 354; and the 
Enhanced Border Security and Visa Entry Reform Act of 2002, Public 
Law 107-173, 116 Stat. 543.

    2. Sections 62.2--62.16 are revised as follows:
* * * * *
Sec.
62.2 Definitions.
62.3 Sponsor eligibility.
62.4 Categories of participant eligibility.
62.5 Application procedure.
62.6 Designation.
62.7 Redesignation.
62.8 General program requirements.
62.9 General obligations of sponsors.
62.10 Program administration.
62.11 Duties of Responsible Officers and Alternate Responsible 
Officers.
62.12 Control of Forms DS-2019.
62.13 Notification requirements.
62.14 Insurance.
62.15 Reporting requirements.
62.16 Employment.
* * * * *

[[Page 75018]]

Sec.  62.2  Definitions.

    Accompanying spouse and dependants. The alien spouse and minor 
unmarried children of an exchange visitor who are accompanying or 
following to join the exchange visitor and who seek to enter or have 
entered the United States temporarily on a non-immigrant J-2 visa or 
seeks to acquire or have acquired such status after admission. For the 
purpose of these regulations, a minor is a person under the age of 21.
    Accredited academic institution. Any publicly or privately operated 
primary, secondary, or post-secondary institution in the United States 
that offers primarily academic programs and is duly accredited by the 
appropriate academic accrediting authority of the State in which such 
institution is located; provided, however, that in addition, all post-
secondary institutions must also be accredited by a nationally 
recognized accrediting agency or association as recognized by the 
Secretary of Education. An institution that offers primarily vocational 
or technical programs does not fall within the purview of an academic 
institution for this purpose.
    Act. The Mutual Educational and Cultural Exchange Act of 1961, as 
amended.
    Actual and current U.S. address. The physical, geographic location 
at which an exchange visitor resides while participating in an exchange 
program.
    Alternate Responsible Officer (``ARO''). An employee or officer of 
a designated sponsor who has been nominated by the sponsor, and 
approved by the Department of State to assist the Responsible Officer 
in carrying out the responsibilities outlined in Sec.  62.11. An ARO 
must be a citizen of the United States or a legal permanent resident.
    Certificate of Good Standing. A document issued by an official of 
the Department of State in the State where the organization resides. A 
Certificate of Good Standing confirms that a corporation, partnership 
or other legal entity is in existence or authorized to transact 
business. A Certificate of Good Standing is also known as a Certificate 
of Authorization or a Certificate of Existence.
    Citizen of the United States (individual). A person who:
    (1) Is a citizen of the United States or any of its territories or 
possessions; or
    (2) Has been lawfully admitted for permanent residence, within the 
meaning of Sec.  101(a)(20) of the Immigration and Nationality Act (8 
U.S.C. 1101).
    Citizen of the United States (entity). (1) A general or limited 
partnership created or organized under the laws of the United States, 
or of any state, the District of Columbia, or any territory or 
possession of the United States, of which a majority of the partners 
are citizens of the United States, which:
    (i) Has its principal place of business in the United States; and
    (ii) The majority of its partners, and in instances where the 
partnership is additionally governed by a Board, the majority of its 
officers are citizens of the United States; or
    (2) A for-profit corporation, association, or other legal entity 
created or organized under the laws of the United States, or of any 
state, the District of Columbia, or a territory or possession of the 
United States, whose principal place of business is located in the 
United States, and
    (i) Whose shares or voting interests are publicly traded on a U.S. 
stock exchange; or
    (ii) A majority of whose officers, a majority of whose 
shareholders, and a majority of the members of its Board of Directors 
are citizens of the United States and collectively hold a majority of 
the shares or stock (i.e., the controlling interest); or
    (3) A non-profit corporation, association, or other legal entity 
created or organized under the laws of the United States, or any state, 
the District of Columbia, or any territory or possession of the United 
States; and
    (i) Which is qualified with the Internal Revenue Service as a tax-
exempt organization pursuant to Sec.  501(c)(3) of the Internal Revenue 
Code; and
    (ii) Whose principal place of business is located in the United 
States; and
    (iii) A majority of whose officers and a majority of whose members 
of its Board of Directors, Board of Trustees or other like body vested 
with its management are citizens of the United States; or
    (4) An accredited college, university, or other post-secondary 
academic institution in the United States created or organized under 
the laws of the United States, or of any state, county, municipality, 
or other political subdivision thereof, the District of Columbia, or of 
any territory or possession of the United States; or
    (5) An agency of the United States, or of any State or local 
government, the District of Columbia, or any territory or possession of 
the United States.
    Clerical work. Routine administrative work generally performed in 
an office or office-like setting, such as data entry, filing, typing, 
mail sorting and distribution, and other general administrative or 
support office tasks.
    Consortium. A not-for-profit corporation, partnership, joint 
venture or other association formed by two or more accredited academic 
institutions for the purpose of sharing educational resources, 
conducting research, and/or developing new programs to enrich or expand 
the opportunities offered by its members. An academic institution in 
the United States that participates in a consortium is not barred from 
having separate exchange visitor program designations of its own.
    Country of nationality or last legal permanent residence. The 
country of which the exchange visitor is a national at the time status 
as an exchange visitor was acquired or the last foreign country in 
which the visitor had a legal permanent residence before acquiring 
status as an exchange visitor.
    Cross-cultural activity. An activity designed to promote exposure 
and interchange between exchange visitors and Americans so as to 
increase their understanding of each other's society, culture, and 
institutions.
    Department of State. The United States Department of State.
    Designation. The written authorization given by the Department of 
State to an exchange visitor program applicant to conduct an exchange 
visitor program as a sponsor.
    Employee. An individual who provides services or labor for an 
employer for wages or other remuneration. A third party, as defined in 
this section, or an independent contractor, as defined in 8 CFR 
274a.1(j), is not an employee.
    Exchange visitor. A foreign national who is in the United States 
temporarily on a non-immigrant J-1 visa to participate in an exchange 
visitor program. The term does not include the accompanying spouse and 
dependants of the exchange visitor.
    Exchange Visitor Program. The international exchange program 
administered by the Department of State to implement the Act by means 
of educational and cultural exchange programs. When ``exchange visitor 
program'' is set forth in lower case, it refers to the individual 
program of a sponsor that has been designated by the Department of 
State.
    Exchange visitor's government. The government of the exchange 
visitor's country of nationality or last legal permanent residence.
    Financed directly. Financed in whole or in part by the U.S. 
Government or the exchange visitor's government with funds contributed 
directly to the exchange visitor in connection with his

[[Page 75019]]

or her participation in an exchange visitor program.
    Financed indirectly. (1) Financed by an international organization 
with funds contributed by either the United States or the exchange 
visitor's government for use in financing international educational and 
cultural exchanges, or
    (2) Financed by an organization or institution with funds made 
available by either the United States or the exchange visitor's 
government for the purpose of furthering international educational and 
cultural exchange.
    Foreign Medical Graduate. A foreign national that
    (1) Is a graduate of a school of medicine which is accredited by a 
body or bodies approved for the purpose by the Secretary of Education 
(regardless of whether such school of medicine is in the United States) 
and entering the United States for the purpose of seeking to pursue 
graduate medical education or training at accredited schools of 
medicine or scientific institutions; or, for the purposes of 
observation, consultation, teaching, or research; or,
    (2) Has passed Parts I and II of the National Board of Medical 
Examiners Examination (or an equivalent examination as determined by 
the Secretary of Health and Human Services), has competency in oral and 
written English, will be able to adapt to the educational and cultural 
environment in which he or she will be receiving his/her education or 
training, and has adequate prior education and training to participate 
satisfactorily in the program for which he/she is coming to the United 
States.
    Form DS-2019. A Certificate of Eligibility for Exchange Visitor (J-
1) Status, a controlled document of the Department of State.
    Form DS-3036. Exchange Visitor Program Application, a controlled 
document of the Department of State.
    Form DS-3037. Update of Information on a Sponsor's Exchange Visitor 
Program. A controlled document of the Department of State.
    Form DS-7002. Training/Internship Placement Plan (T/IPP). A 
controlled document of the Department of State. This Form is for use in 
connection with the Trainee, Intern and Student Intern categories only.
    Full course of study. Full-time enrollment in an academic program 
of classroom participation and study and/or doctoral thesis research at 
an accredited academic institution as follows:
    (1) Secondary school students must satisfy the attendance and 
course requirements of the State in which the school they attend are 
located; and
    (2) College and university students must register for and complete 
a full course of study, as defined by the accredited academic 
institution in which the student is registered, unless exempted in 
accordance with Sec.  62.23(e).
    Graduate medical education or training. Participation in a program 
in which a foreign medical graduate will receive graduate medical 
education or training, which generally consists of a residency or 
fellowship program involving health care services to patients, but does 
not include programs involving observation, consultation, teaching or 
research in which there is no or only incidental patient care. This 
program may consist of a medical specialty, a directly related medical 
subspecialty, or both.
    Home-country physical presence requirement. The requirement that an 
exchange visitor (J visa) who is within the purview of section 212(e) 
of the Immigration and Nationality Act and Public Law 94-484 
(substantially quoted in 22 CFR 41.63) must reside and be physically 
present in the country of nationality or last legal permanent residence 
for an aggregate of at least two years following departure from the 
United States before the exchange visitor is eligible to apply for an 
immigrant visa or permanent residence, a non-immigrant H visa as a 
temporary worker or trainee, or a non-immigrant L visa as an 
intracompany transferee, or a non-immigrant H or L visa as the spouse 
or minor child of a person who is a temporary worker or trainee or an 
intercompany transferee. Section 101(a)(15)(H) or section 101(a)(15)(L) 
of the Immigration and Nationality Act, as amended.
    Host organization. A third party in the United States that conducts 
training and internship programs on behalf of a designated sponsor 
pursuant to an executed written agreement between the two parties.
    Internship program. A structured and guided work-based learning 
program as set forth in an individualized T/IPP that reinforces an 
intern's academic study; recognizes the need for work-based experience; 
provides on-the-job exposure to American techniques, methodologies, and 
technologies; and enhances the intern's knowledge of American culture 
and society.
    J visa. A non-immigrant visa issued pursuant to 8 U.S.C. 
1101(a)(15)(J). A J-1 visa is issued to an exchange visitor. A J-2 visa 
is issued to the exchange visitor's accompanying non-immigrant 
immediate family, spouse and minor dependant children.
    Office of Designation. The Department of State office to which the 
Secretary of State delegated the authority to administer the Exchange 
Visitor Program.
    On-the-job training. An individual's observation of and 
participation in given tasks demonstrated by experienced workers for 
the purpose of acquiring competency in such tasks.
    Prescribed course of study. A non-degree academic program with a 
specific educational objective. Such course of study may include 
intensive English language training, classroom instruction, research 
projects, and/or academic training to the extent permitted in Sec.  
62.23.
    Reciprocity. The participation of a U.S. citizen in an educational 
and cultural program in a foreign country in exchange for the 
participation of a foreign national in the Exchange Visitor Program. 
Where used herein, ``reciprocity'' will be interpreted broadly; unless 
otherwise specified, reciprocity does not require a one-for-one 
exchange or that exchange visitors be engaged in the same activity.
    Responsible Officer (``RO''). An employee or officer of a 
designated sponsor who has been nominated by the sponsor, and approved 
by the Department of State to carry out the duties outlined in Sec.  
62.11. An RO must be a citizen of the United States or a legal 
permanent resident.
    Secretary of State. The Secretary of State or an employee of the 
U.S. Department of State acting under a delegation of authority from 
the Secretary of State.
    SEVIS (Student and Exchange Visitor Information System). The 
statutorily mandated system designed to collect information on non-
immigrant students (F and M visa), exchange visitors (J visa), and 
their spouses and dependants (F-2, M-2, ad J-2). SEVIS enables schools 
and program sponsors to electronically transmit information and event 
notifications, via the Internet, to the Department of Homeland Security 
and the Department of State throughout a student's or exchange 
visitor's stay in the United States.
    Site of activity. The physical, geographic location(s) where an 
exchange visitor participates in his or her exchange program. If a 
program takes place at more than one location, the sponsor must list 
all locations in SEVIS and indicate as ``primary'' the one at which the 
exchange visitor is currently located.
    Sponsor. A legal entity designated by the Secretary of State to 
conduct an exchange visitor program.
    Staffing/employment agency. A U.S. business that hires individuals 
for the express purpose of supplying workers to

[[Page 75020]]

other businesses. Typically, the other businesses where workers are 
placed pay an hourly fee per employee to the staffing/employment 
agency, of which the worker receives a percentage.
    Student internship program. A structured and guided work-based 
learning program as set forth in an individualized Form DS-7002 that 
fulfills a student's academic degree requirements, recognizes the need 
for work-based experience, provides on-the-job exposure to American 
techniques, methodologies, and technologies, and enhances a student 
intern's knowledge of American culture and society.
    Third party. A person or legal entity with whom a sponsor has 
executed a written agreement for the person or entity to act on behalf 
of the sponsor in the conduct of the sponsor's exchange visitor 
program. A third party under contract with a sponsor may not 
subcontract or delegate its Exchange Visitor Program obligations to 
another party. Sponsors are required to take all reasonable steps to 
ensure that third parties know and comply with all applicable 
provisions of these regulations. The Department of State imputes to 
sponsors all actions a third party takes in acting on their behalf.
    Training program. A structured and guided work-based learning 
program, as set forth in Form DS-7002, that develops new and advanced 
skills in a trainee's occupational field through exposure to American 
techniques, methodologies, and technologies; and enhances a trainee's 
understanding of American culture and society.
    Validation. The process by which a Responsible Officer or Alternate 
Responsible Officer updates a SEVIS record of an exchange visitor to 
show that the prospective exchange visitor entered the United States, 
reported to his or her sponsor, and is participating in the exchange 
visitor program, at the site of activity identified on the Form DS-
2019.


Sec.  62.3  Sponsor eligibility.

    (a) Entities eligible to apply for designation as a sponsor of an 
exchange visitor program are the following:
    (1) U.S. local, State and Federal Government agencies; and 
government agencies of any U.S. territories and possessions; and 
government agencies of the District of Columbia;
    (2) International agencies or organizations of which the United 
States is a member and that have an office in the United States; or
    (3) Reputable organizations that are ``citizens of the United 
States,'' as that term is defined in Sec.  62.2.
    (b) To be eligible for designation as a sponsor, an entity is 
required to:
    (1) Demonstrate, to the Department of State's satisfaction, its 
ability to comply and remain in continual compliance with all 
applicable provisions of 22 CFR part 62;
    (2) Meet at all times its financial obligations and 
responsibilities attendant to successful sponsorship of its exchange 
visitor program;
    (3) Demonstrate that the organization or its proposed RO has no 
fewer than three years experience in international exchange; and
    (4) Has successfully completed an ``on-site'' inspection conducted 
by the Department of State or its agent, the cost for which will be 
born by the applicant.


Sec.  62.4  Categories of participant eligibility.

    Sponsors select foreign nationals to participate in exchange 
visitor program(s) in the United States. Participation is limited to 
foreign nationals who meet the following criteria for each of the 
following categories:
    (a) Student. A foreign national who is:
    (1) Studying in the United States and:
    (i) Pursuing a full course of study at a secondary accredited 
academic institution;
    (ii) Pursuing a full course of study leading to or culminating in 
the award of a U.S. degree from a post-secondary accredited academic 
institution; or
    (iii) Engaged full-time in a prescribed course of study of up to 24 
months (non-degree) duration conducted by:
    (A) A post-secondary accredited academic institution; or
    (B) An institute approved by or acceptable to the post-secondary 
accredited academic institution, where the student is to be enrolled 
upon completion of the non-degree program;
    (2) Engaged in academic training as permitted in Sec.  62.23(f);
    (3) Engaged in English language training at:
    (i) A post-secondary accredited academic institution, or
    (ii) An institute approved by or acceptable to the post-secondary 
accredited academic institution where the college/university student is 
to be enrolled upon completion of the language training; or
    (4) Engaged full-time in a student internship program conducted by 
a post-secondary accredited educational institution.
    (b) Short-term scholar. A foreign national who is a professor, 
research scholar, or person with similar education or accomplishments 
who enters the United States for a short-term visit for the purpose of 
lecturing, observing, consulting, training, or demonstrating special 
skills at research institutions, museums, libraries, post-secondary 
accredited academic institutions, or similar types of institutions.
    (c) Trainee. A foreign national participating in a structured and 
guided work-based training program in his or her specific occupational 
field and who has either:
    (1) A degree or professional certificate from a foreign post-
secondary academic institution and at least one year of prior related 
work experience in his or her occupational field acquired outside the 
United States; or
    (2) Five years of work experience in his or her occupational field 
acquired outside the United States. Training is limited to the 
occupational category or categories for which a sponsor has obtained 
designation.
    (d) Teacher. A foreign national with a minimum of three years of 
teaching experience for the purpose of teaching full-time in a primary 
or secondary accredited academic institution.
    (e) Professor. A foreign national whose primary purpose is 
teaching, lecturing, observing, or consulting at post-secondary 
accredited academic institutions, museums, libraries, or similar types 
of institution. A professor may also conduct research, unless 
prohibited by the sponsor.
    (f) Research scholar. A foreign national whose primary purpose is 
conducting research, observing, or consulting in connection with a 
research project at research institutions, corporate research 
facilities, museums, libraries, post-secondary accredited academic 
institutions, or similar types of institutions. A research scholar may 
also lecture, unless prohibited by the sponsor.
    (g) Specialist. A foreign national who is an expert in a field of 
specialized knowledge or skills who enters the United States for the 
purpose of observing, consulting, or demonstrating special knowledge or 
skills.
    (h) Other person of similar description. A foreign national of 
description similar to those set forth in paragraphs (a) through (g) of 
this section coming to the United States as a participant in an 
exchange visitor program designated by the Department of State under 
this category, for the purpose of teaching, instructing or lecturing, 
studying, observing, conducting research, consulting, demonstrating 
special skills, or receiving training. The programs designated by the 
Department of State in this category consist of:

[[Page 75021]]

    (1) Alien physician. A foreign national who is a graduate of a 
school of medicine who is coming to the United States under a program 
in which he or she will receive graduate medical education or training 
conducted by accredited U.S. schools of medicine or scientific 
institutions.
    (2) International visitor. A foreign national who is a recognized 
or potential leader, selected by the Department of State for the 
purpose of consulting, observing, conducting research, training, or 
demonstrating special skills in the United States.
    (3) Government visitor. A foreign national who is an influential or 
distinguished person, selected by a U.S. Federal, State, or local 
government agency for the purpose of consulting, observing, training, 
or demonstrating special skills in the United States.
    (4) Camp counselor. A foreign national selected to be a counselor 
in a summer camp in the United States (e.g., during the U.S. summer 
months).
    (5) Au pair. A foreign national who comes to the United States for 
a period of one year for the purpose of residing with an American host 
family and participate directly in their home life, while providing 
limited childcare services, and fulfilling an educational requirement.
    (6) Summer Work and Travel. A foreign national who is a bona fide 
foreign post-secondary student currently enrolled in and actively 
pursuing a degree or a full-time course of study at a foreign 
accredited post-secondary academic institution whose purpose is work 
and travel in the United States for up to four months during his or her 
summer vacation.
    (7) Intern. A foreign national participating in a structured and 
guided work-based internship program in his or her specific academic 
field and who is either:
    (i) Currently enrolled full time in and actively pursuing studies 
at a degree-or certificate-granting post-secondary academic institution 
outside the United States; or
    (ii) Graduated from such an institution no more than 12 months 
prior to the exchange visitor program begin date reflected on the Form 
DS-2019.


Sec.  62.5  Application procedure.

    (a) An entity meeting the eligibility requirements set forth in 
Sec.  62.3 may apply to the Department of State for designation as an 
Exchange Visitor Program sponsor. Designation will not be considered if 
an applicant cannot meet the eligibility requirements set forth in 
Sec.  62.3. An applicant must first complete and submit Form DS-3036 in 
SEVIS. The complete application must consist of:
    (1) A completed copy of Form DS-3036 signed by the applicant's 
Chief Executive Officer, President, or equivalent;
    (2) Required supporting documentation and certifications as set 
forth herein; and
    (3) Confirmation of payment of the required fee through pay.gov as 
set forth in Sec.  62.17.
    Applicants should also refer to the Department of State's website 
for further guidance on the application process.
    (b) The complete application must set forth, in detail, the 
applicant's proposed exchange program activity and must demonstrate, to 
the Department of State's sole satisfaction, the applicant's ability to 
meet the designation requirements set forth in Sec.  62.3 and the 
sponsor obligations set forth in Sec.  62.9.
    (c) Applications must be accompanied by the following supporting 
documents:
    (1) Evidence of legal status of the applicant as a U.S. 
corporation, partnership, or other legal entity (e.g., charter, proof 
of incorporation, partnership agreement, as applicable) as set forth in 
Sec.  62.3(a);
    (2) Evidence of experience in operating a successful business, 
including a minimum of three years of experience in international 
exchange by the organization or by the proposed RO;
    (3) Evidence of the applicant's financial viability as set forth in 
Sec.  62.9(e) and any supplemental or explanatory financial information 
the Department of State may request.
    (i) An established organization must present a current audit report 
with audit notes prepared by an independent certified public accounting 
firm.
    (ii) A newly formed organization must present a compilation (a 
balance sheet, statement of cash flows and all disclosures, revenues, 
expenditures, and notes to financial statements) prepared by an 
independent certified public accounting firm demonstrating that the 
organization has been capitalized with sufficient funds to cover 
general operating expenses and costs associated with an exchange;
    (iii) The Department of State may, in its sole discretion, 
condition its approval of the acceptance of full financial 
responsibility by the non-governmental sponsor by requiring such 
sponsor to secure a payment bond in favor of the Department 
guaranteeing the sponsor's obligations hereunder.
    (4) A current Certificate of Good Standing or Certificate of 
Existence;
    (5) A current Business Information Report on the applicant 
organization from Dun & Bradstreet;
    (6) Evidence of current accreditation if the applicant is a 
secondary or post-secondary academic institution;
    (7) Evidence of current licensure, if required by local, state, or 
Federal law, to carry out the activity for which it is seeking 
designation;
    (8) A statement signed by the Chief Executive Officer, President, 
or equivalent certifying that:
    (i) The applicant is a citizen of the United States as defined in 
Sec.  62.2,
    (ii) The proposed RO and all proposed ARO(s) are United States 
citizens or legal permanent residents.
    (iii) The sponsor has completed a criminal background check on the 
potential RO and all ARO(s) and has determined their suitability for 
these positions;
    (iv) The RO will be provided sufficient staff and resources to 
fulfill his or her duties and obligations on behalf of the applicant;
    (9) Evidence that the proposed RO and ARO(s) are citizens of the 
United States or legal permanent residents (e.g. passport, birth 
certificate);
    (10) A completed SEVIS generated Citizenship Certification for the 
proposed RO and all proposed ARO(s);
    (11) An organizational chart which identifies the staff in place to 
administer the proposed exchange visitor program. If the applicant is 
currently designated as a sponsor in another category of exchange and 
the staff is involved with the administration of other exchange 
programs, identify the staff person, their position/role and the 
percentage of time spent on each exchange program;
    (12) A copy of an on-site inspection report; and
    (13) Such additional information or documentation that the 
Department of State may deem necessary to evaluate the application.


Sec.  62.6  Designation.

    (a) Upon its favorable determination that an applicant meets all 
statutory and regulatory requirements, the Department of State may, in 
its sole discretion, designate the applicant as an Exchange Visitor 
Program sponsor. Initial designations are effective for one or two 
years at the sole discretion of the Department. The initial designation 
period for a newly formed organization will be limited to one year.
    (b) Designation will confer upon a sponsor the authority to engage 
in one or more activities specified in Sec.  62.4. A sponsor may engage 
only in the activity or activities specifically authorized in its 
written letter of designation.

[[Page 75022]]

    (c) Designations are not transferable or assignable.


Sec.  62.7  Redesignation.

    (a) A sponsor must file for redesignation no more than six months 
and no fewer than three months before the designation expiration date 
as set forth in the sponsor's letter of designation or its most recent 
letter of redesignation. Failure to apply for redesignation according 
to this schedule is cause for termination pursuant to Sec.  62.60(g).
    (b) A sponsor seeking redesignation as an Exchange Visitor Program 
sponsor must first complete and submit Form DS-3036 in SEVIS. The 
complete application must consist of:
    (1) A completed copy of Form DS-3036, signed by the sponsor's Chief 
Financial Officer, President or equivalent;
    (2) Required supporting documentation and certifications as set 
forth herein; and
    (3) Confirmation of payment of the required non-refundable fee 
through pay.gov as set forth in Sec.  62.17.
    (c) The complete application must include the following supporting 
documentation and certifications:
    (1) A copy of the sponsor's most recent ``on-site'' inspection, if 
required by the Department of State;
    (2) A current Business Information Report from Dun & Bradstreet on 
the sponsor;
    (3) A list of all third parties (foreign and domestic) with whom 
the sponsor has executed a written agreement for the person or entity 
to act on behalf of the sponsor in the conduct of the sponsor's 
exchange visitor program and, if requested by the Department of State, 
a separate certification that the sponsor has obtained a Dun & 
Bradstreet Business Information Report for each third party. The list 
should include the name of the third party organization, address of the 
third party organization, purpose for agreement, and contact 
information;
    (4) A copy of the most recent year-end financial statements;
    (5) A copy of the most recent letter of accreditation if the 
sponsor is a secondary or post-secondary academic institution;
    (6) A list of the names, addresses and citizenship of the current 
members of its Board of Directors or the Board of Trustees or other 
like body, vested with the management of the organization or 
partnership, and/or the percentage of stocks/shares held, as 
applicable;
    (7) For a non-profit organization, a signed copy of the sponsor's 
most recent Form 990 filed with the Internal Revenue Service; and
    (8) Such additional information or documentation that the 
Department of State may request.
    (9) A statement signed by the Chief Executive Officer, President, 
or equivalent certifying that the sponsor has completed a criminal 
background check on the RO and all AROs and has determined their 
suitability for these positions;
    (10) Such additional information or documentation that the 
Department of State may deem necessary to evaluate the application.
    (d) Upon its favorable determination that a sponsor meets all 
statutory and regulatory requirements, the Department of State may, in 
its sole discretion, redesignate the organization as an Exchange 
Visitor Program sponsor for one or two years.


Sec.  62.8  General program requirements.

    (a) Size of program. A sponsor, other than a Federal Government 
agency, must have no fewer than five actively participating exchange 
visitors during the annual reporting cycle (e.g., academic, calendar or 
fiscal) as stated in its letter of designation or redesignation. The 
Department of State may, in its sole discretion and for good cause 
shown, waive this requirement.
    (b) Minimum duration of program. A sponsor, other than a Federal 
Government agency, must provide each exchange visitor, except those 
sponsored in the short-term scholar category, with a minimum period of 
participation in the United States of no less than three weeks.
    (c) Reciprocity. In conducting its exchange visitor program, a 
sponsor must make a good faith effort to develop and implement, to the 
fullest extent possible, a reciprocal exchange of persons.
    (d) Cross-cultural activities. A sponsor must:
    (1) Offer or make available to exchange visitors and the 
accompanying spouse and dependants, if any, a variety of appropriate 
cross-cultural activities. The extent and type of the cross-cultural 
activities will be determined by the needs and interests of the 
particular category of exchange visitor. A sponsor will be responsible 
for determining the appropriate type and number of such cross-cultural 
programs. The Department of State encourages sponsors to give their 
exchange visitors the broadest exposure to American society, culture 
and institutions; and
    (2) Encourage exchange visitors to participate voluntarily in 
activities that are for the purpose of sharing the language, culture, 
or history of their home country with Americans, provided such 
activities do not delay the completion of the exchange visitors' 
program.


Sec.  62.9  General obligations of sponsors.

    (a) Adherence to Department of State regulations. A sponsor is 
required to adhere to all regulations set forth in this part. A sponsor 
who willfully or negligently fails to comply will be subject to the 
sanctions set forth in Sec.  62.50 or termination as set forth in Sec.  
62.60.
    (b) Legal status. A sponsor must maintain legal status or its 
designation will terminate pursuant to Sec.  62.60(e). A sponsor's 
change in legal status (e.g., from partnership to corporation, non-
profit to for-profit) requires the submission of a new application for 
designation of the successor legal entity within 45 days of the change 
in legal status.
    (c) Accreditation and licensure. A sponsor must remain in 
compliance with all local, State, and Federal laws, and professional 
requirements necessary to carry out the activities for which it is 
designated, including accreditation and licensure, if applicable.
    (d) Representations and disclosures. A sponsor must:
    (1) Provide accurate and complete information, to the extent 
lawfully permitted, to the Department of State and the Department of 
Homeland Security regarding its exchange visitor program, exchange 
visitors, and accompanying spouse and dependants (if any);
    (2) Provide accurate information to the public when advertising its 
exchange visitor program(s) or responding to public inquiries;
    (3) Provide informational materials to prospective exchange 
visitors, and host families, if applicable, that clearly explain the 
activities, costs, conditions, and restrictions of its exchange visitor 
program(s);
    (4) Not use the program number(s) assigned by the Department of 
State at time of designation on any advertising materials or 
publications intended for general circulation, including sponsor Web 
sites; and
    (5) Not represent that its exchange visitor program is endorsed, 
sponsored, or supported by the Department of State or the U.S. 
Government, except for U.S. Government sponsors or exchange visitor 
programs financed directly by the U.S. Government to promote 
international educational exchanges. A sponsor may, however, represent 
that it is designated by the Department of State as a sponsor of an 
exchange visitor program.

[[Page 75023]]

    (e) Financial responsibility. (1) A sponsor must maintain the 
financial capability to meet at all times its financial obligations and 
responsibilities attendant to successful sponsorship of its exchange 
visitor program.
    (2) The Department of State may require a non-government sponsor to 
provide evidence satisfactory to the Department that funds necessary to 
fulfill all obligations and responsibilities attendant to sponsorship 
of its exchange visitor program are readily available and in the 
sponsor's control, including such supplementary or explanatory 
financial information as the Department may deem appropriate.
    (3) The Department of State may require a non-government sponsor to 
secure a payment bond in favor of the Department guaranteeing all 
financial obligations arising from the sponsorship of its exchange 
visitor program.
    (f) Staffing and support services. A sponsor must ensure that:
    (1) Adequate staffing and sufficient support services are provided 
to administer its exchange visitor program; and
    (2) Its employees, officers, agents, independent contractors, third 
parties, volunteers or other individuals associated with the 
administration of its exchange visitor program are adequately 
qualified, appropriately trained, and comply with the Exchange Visitor 
Program regulations and immigration laws pertaining to the 
administration of its exchange visitor program(s).
    (g) Appointment of Responsible Officers and Alternate Responsible 
Officers. (1) A sponsor must appoint a RO and a minimum of one (1) or a 
maximum of ten (10) AROs to assist the RO in performing the duties set 
forth at Sec.  62.11. A sponsor must ensure that the potential RO and 
AROs have undergone a criminal background check to determine their 
suitability for these positions. ROs and AROs must be citizens of the 
United States or legal permanent residents.
    (2) ROs and AROs must be employees or officers of the designated 
sponsor. Upon written sponsor request, the Department of State may, in 
its sole discretion, authorize the appointment of an individual who is 
not an employee or officer to serve as an ARO.
    (3) In the event of the departure of a RO or ARO, the sponsor must 
file a request for the approval of a replacement in SEVIS and forward 
the required documentation to the Department of State within ten (10) 
calendar days from the date of the RO's or ARO's departure.
    (4) Requests to replace the RO or add an ARO must be submitted in 
SEVIS and a signed Form DS-3037 mailed to the Department of State with 
the required completed Citizenship Certification, along with 
certification that the individual has undergone a criminal background 
check.
    (5) The Department of State reserves the right, in its sole 
discretion, to deny the appointment of an RO or ARO.


Sec.  62.10  Program administration.

    A sponsor is responsible for the effective administration of its 
exchange visitor program(s). These responsibilities include:
    (a) Selection of exchange visitors. A sponsor must establish and 
utilize a method to screen and select prospective exchange visitors to 
ensure that they are eligible for program participation, and that:
    (1) The program is suitable to the exchange visitor's background, 
needs, and experience; and
    (2) The exchange visitor possesses sufficient proficiency in the 
English language as measured by an objective measurement of English 
language proficiency to participate successfully in his or her exchange 
visitor program.
    (b) Pre-arrival information. A sponsor must provide exchange 
visitors with pre-arrival materials including, but not limited to, 
information on:
    (1) The purpose of the Exchange Visitor Program;
    (2) The home-country physical presence requirement (e.g., section 
212(e) of the Immigration and Nationality Act, as amended, 8 U.S.C. 
1182, set forth substantially at 22 CFR 41.63);
    (3) Travel and entry into the United States (e.g., procedures to be 
followed by exchange visitors and accompanying spouse and dependants, 
if any, in obtaining a visa for entry to the United States, paying the 
SEVIS fee, procedures for obtaining a visa including the information/
documentation needed for the interview; travel arrangements to the 
United States, what to expect at the port of entry, including the 
necessity of having and presenting their travel documents at the port 
of entry);
    (4) Housing;
    (5) A breakdown of all fees to be paid by potential exchange 
visitors (i.e., paid to the sponsor or a third party);
    (6) Other costs that the exchange visitor will likely incur (e.g., 
insurance, living expenses, transportation expenses) while in the 
United States;
    (7) Health care and insurance requirements for exchange visitors 
and their accompanying spouse and dependants, as applicable; and
    (8) Arrival notification requirements. Procedures exchange 
visitors, spouses and dependants are to follow upon entry into the 
United States in reporting their arrival to the sponsor and reporting 
to the location of their program.
    (9) Other information that will assist exchange visitors to prepare 
for their stay in the United States (e.g., how and when to apply for a 
social security number, if applicable; how to apply for a driver's 
license; how to open a bank account; how to remain in lawful non-
immigrant status).
    (c) Orientation. A sponsor must offer an appropriate orientation 
for all exchange visitors. Sponsors are encouraged to provide 
orientation for the exchange visitor's immediate family, especially for 
those exchange visitors who are expected to be in the United States for 
more than one year. Orientation must include, but is not limited to, 
information concerning:
    (1) Life and customs in the United States;
    (2) Local community resources (e.g., public transportation, medical 
centers, schools, libraries, recreation centers, and banks), to the 
fullest extent possible;
    (3) Available healthcare, emergency assistance, and health 
insurance coverage;
    (4) A description of the exchange visitor program in which the 
exchange visitor is participating (e.g., information on the length and 
location of the program, a summary of the significant components of the 
program, and any stipend (payment or wage) an exchange visitor will 
receive);
    (5) Sponsor rules that the exchange visitors are required to follow 
while participating in their exchange visitor program;
    (6) Name and address of the sponsor and the name, e-mail address 
and telephone number of the RO and ARO(s);
    (7) The Department of State's Office of Designation's address, 
telephone number, facsimile number, Web site and e-mail address, and a 
copy of the Exchange Visitor Program brochure or other Department 
materials as appropriate or required; and
    (8) The requirement that an exchange visitor must promptly report 
to the sponsor or sponsor designee any changes in his or her telephone 
number, email address, actual and current U.S. address, and site of 
activity (if permitted to change without sponsor authorization).
    (d) Monitoring of exchange visitors. A sponsor must monitor, 
through its employees, officers, agents, or third

[[Page 75024]]

parties, the exchange visitor's participation in its exchange visitor 
program(s). A sponsor must:
    (1) Ensure that the activity in which the exchange visitor is 
engaged is consistent with the category and activity listed on the 
exchange visitor's Form DS-2019;
    (2) Monitor the physical location (site of activity), and the 
progress and welfare of the exchange visitor to the extent appropriate 
for the category;
    (3) Require that exchange visitors report to the sponsor within ten 
(10) calendar days, any changes in their telephone numbers, e-mail 
addresses, actual and current U.S. addresses (e.g., physical 
residence), and site(s) of activity address (if permitted to change 
without sponsor authorization);
    (4) Report in SEVIS within ten (10) calendar days of notification 
by an exchange visitor any change in the exchange visitor's actual and 
current U.S. address, telephone number, email addresses, and/or primary 
site of activity (if the exchange visitor is permitted) to make such 
change without prior sponsor authorization;
    (5) Report the actual and current U.S. address and email address 
for each accompanying spouse and dependants.
    (6) Report Employment Authorization Document (EAD) information in 
SEVIS for the accompanying spouse and each dependant, if applicable, by 
entering the EAD number, validation and expiration dates as issued by 
the Department of Homeland Security.
    (e) Requests by the Department of State. A sponsor must, to the 
extent lawfully permitted, furnish the Department within a reasonable 
time all information, reports, documents, books, files, and other 
records or information requested by the Department on all matters 
related to its exchange visitor program. All submissions relative to a 
request must contain the sponsor's program number.
    (f) Inquiries and investigations. A sponsor must cooperate with any 
inquiry or investigation that may be undertaken by the Department of 
State or the Department of Homeland Security.
    (g) Retention of records. A sponsor must retain all records related 
to its exchange visitor program and its participants (to include 
accompanying spouse and dependants, if any) for a minimum of three 
years following the completion of each participant's exchange visitor 
program.


Sec.  62.11  Duties of Responsible Officers and Alternate Responsible 
Officers.

    The RO must train and supervise AROs and ensure that these 
officials are in compliance with the Exchange Visitor Program 
regulations. ROs and AROs must:
    (a) Be thoroughly familiar with the Exchange Visitor Program 
regulations, relevant immigration laws and all Federal and State 
regulations pertaining to the administration of its exchange visitor 
program(s), including the Department of State's and the Department of 
Homeland Security's policies, manuals, instructions, guidance and SEVIS 
operations relevant to the Exchange Visitor Program;
    (b) Ensure that the exchange visitor obtains sufficient advice and 
assistance to facilitate the successful completion of his or her 
exchange visitor program;
    (c) Conduct all official communications relating to their sponsor's 
exchange visitor program with the Department of State and the 
Department of Homeland Security. A sponsor must include its exchange 
visitor program number on all correspondence submitted to the 
Department of State and to the Department of Homeland Security;
    (d) Ensure that sponsor spam filters do not block reception of 
SEVIS or Department of State and Department of Homeland Security 
notices; and
    (e) Control and issue Forms DS-2019 as set forth in Sec.  62.12.


Sec.  62.12  Control of Forms DS-2019.

    (a) Issuance of Forms DS-2019. A sponsor must:
    (1) Ensure that only the RO and AROs have access to SEVIS;
    (2) Ensure that information input into SEVIS is accurate, current, 
and updated pursuant to regulations herein; and
    (3) Issue Forms DS-2019 only for the following authorized purposes:
    (i) To facilitate the initial entry of the exchange visitor and 
accompanying spouse and dependants, if any, into the United States;
    (ii) To extend the duration of participation of an exchange 
visitor, when permitted by the regulations;
    (iii) To facilitate program transfers, when permitted by the 
regulations and/or authorized in writing by the Department of State;
    (iv) To replace lost, stolen, or damaged Forms DS-2019;
    (v) To facilitate the re-entry of an exchange visitor and 
accompanying spouse and dependants, if any, who travel outside the 
United States during the exchange visitor's program;
    (vi) To facilitate a change of category, when permitted by the 
Department of State;
    (vii) To update information when significant changes take place in 
regard to the exchange visitor's program (e.g., a substantial change in 
funding or a change in the primary site of activity or actual and 
current U.S. address);
    (viii) To facilitate the correction of a minor or technical 
infraction; or
    (ix) To facilitate a ``reinstatement'' or a ``reinstatement update 
SEVIS status'' when permitted by the Department of State.
    (b) Verification. (1) Prior to issuing Forms DS-2019, a sponsor 
must verify that each prospective exchange visitor:
    (i) Is eligible, qualified, and accepted for the program in which 
he or she will participate (e.g., has an offer letter from a camp, a 
written acceptance from a secondary school);
    (ii) Possesses adequate financial resources to participate in and 
complete his or her exchange visitor program; and
    (iii) Possesses adequate financial resources to support an 
accompanying spouse and dependants, if any.
    (2) The sponsor must ensure that:
    (i) Only the RO or ARO who is physically present in the United 
States or in a U.S. territory may print and sign Forms DS-2019; and
    (ii) Only the RO or ARO whose name is printed on the Form DS-2019, 
is permitted to sign the document. The Form DS-2019 must be signed in 
blue ink to denote that it is the original document.
    (iii) Sponsors for whom the RO or AROs have been found to have 
violated the requirements of this section will be subject to sanctions 
as set forth in Sec.  62.50(a)(2).
    (c) Distribution of Forms DS-2019. The sponsor must ensure that 
completed Forms DS-2019 are distributed directly to the exchange 
visitor and accompanying spouse and dependants, if any, (or to an 
individual designated by the exchange visitor) only via the sponsor's 
employees, officers, agents, independent contractors, third parties, 
volunteers, or other individuals acting on behalf of the sponsor in the 
administration of its exchange visitor program.
    (d) Allotment requests. (1) Annual Form DS-2019 allotment. A 
sponsor must submit an electronic request via SEVIS to the Department 
of State for an annual allotment of Forms DS-2019 based on the annual 
reporting cycle (e.g., academic, calendar or fiscal year) stated in its 
letter of designation or redesignation. A sponsor should allow up to 
four weeks for the processing of the allotment request. The Department 
has the sole discretion to determine the number of Forms DS-2019 to be 
issued to a sponsor.
    (2) Expansion of Program. A request for program expansion must 
include information such as, but not limited to,

[[Page 75025]]

the source of program growth, staff increases, confirmation of 
adequately trained employees, current financial information, additional 
overseas affiliates, and explanations of how the sponsor will 
accommodate the anticipated program growth. The Department of State 
will take into consideration the current size of a sponsor's program 
and the projected expansion of the program in the coming 12 months and 
may consult with the RO and/or ARO prior to determining the number of 
Forms DS-2019 to issue to a sponsor.
    (e) Safeguards and controls. (1) ROs and AROs must secure their 
SEVIS logon Identification Numbers (IDs) and passwords at all times 
(i.e., not share IDs and passwords with any other person). Sponsors 
whose ROs or AROs have been found to have willfully or negligently 
violated the requirements of this section will be subject to sanctions 
as set forth in Sec.  62.50(a).
    (2) A sponsor, its employees, officers, agents, or other third 
parties acting on behalf of the sponsor, may not forward to any 
unauthorized party (via facsimile or other electronic means) copies or 
Portable Document Formats (PDFs) of signed or unsigned Forms DS-2019. 
However, a sponsor must forward such copies and/or PDFs to the 
Department of State or the Department of Homeland Security upon 
request.
    (3) A sponsor must use the reprint function in SEVIS in the event 
the exchange visitor's Form DS-2019 has been lost or stolen.
    (4) Destroy damaged and unusable Form DS-2019 on the sponsor's 
premises after making a record of such forms (e.g., forms with errors 
or forms damaged by a printer).
    (5) Request exchange visitors and prospective exchange visitors to 
return any unused Form DS-2019 sent to them.


Sec.  62.13  Notification requirements.

    (a) Valid program status of exchange visitor. A sponsor must notify 
the Department of State via SEVIS of the following:
    (1) Validation of program participation. A sponsor must promptly 
validate an exchange visitor's participation in his or her program. 
This will change the status of the exchange visitor's SEVIS record from 
``Initial'' to ``Active.'' SEVIS records with program durations of 30 
days or more (e.g., the period between the ``Program Begin Date'' to 
``Program End Date'') must be validated within 30 days following the 
``Program Begin Date'' identified in SEVIS. SEVIS records with program 
durations that are less than 30 days must be validated prior to the 
``Program End Date'' reflected in SEVIS. Prior to validation, a sponsor 
may amend the program start date and must update the SEVIS record to 
reflect the actual and current U.S. address and site of activity in 
SEVIS. The status of SEVIS records that are not validated according to 
this schedule will automatically change to ``Invalid'' or ``No Show''.
    (2) Failure of exchange visitor to begin program. A sponsor must 
report in SEVIS, no later than 30 calendar days after the ``Program 
Begin Date'' listed in SEVIS, the failure of an exchange visitor to 
report to his or her sponsor upon entry in the United States (i.e., 
failure of exchange visitor to begin an exchange visitor program as 
scheduled). This will change the status of the exchange visitor's SEVIS 
record from ``Initial'' to ``No Show''.
    (3) End of exchange visitor's program. A sponsor must report in 
SEVIS any withdrawal from or early completion of an exchange visitor's 
program that occurs prior to the ``Program End Date'' listed in SEVIS 
on the exchange visitor's Form DS-2019. The sponsor must not alter the 
``Program End Date'' field, but should enter the date of program 
completion in the ``Effective Date of Completion'' field. This will 
change the status of the exchange visitor's SEVIS record from 
``Active'' to ``Inactive.'' Such notification in SEVIS ends a sponsor's 
programmatic obligations to the exchange visitor and/or his or her 
accompanying spouse and dependants.
    (4) Accompanying spouse and dependant records. A sponsor must 
report in SEVIS if an accompanying spouse and/or dependants depart from 
the United States prior to the exchange visitor's departure date.
    (5) Termination of an exchange visitor's program. A sponsor must 
promptly report in SEVIS the involuntary termination of an exchange 
visitor's program. The sponsor must not alter the ``Program End Date'' 
field, but should enter the date of program termination in the 
``Effective Date of Termination'' field. This will change the status of 
the SEVIS record from ``Active'' to ``Terminated''. Such notification 
in SEVIS ends a sponsor's programmatic obligation to the exchange 
visitor and spouse and dependants, if any, and prevents the sponsor 
from thereafter extending the exchange visitor's duration of 
participation, transferring the exchange visitor to another program, or 
changing the exchange visitor's category. Sponsors must not terminate 
the program of an exchange visitor who voluntarily ends his or her 
program.
    (b) Change of circumstance of an exchange visitor. A sponsor must 
promptly notify the Department of State via SEVIS of any of the 
following circumstances:
    (1) Change in the actual and current U.S. address. A sponsor must 
ensure that the actual and current U.S. addresses of an exchange 
visitor are reported in SEVIS:
    (i) A sponsor must update the actual and current U.S. address 
information in SEVIS for an exchange visitor within 10 days of being 
notified by an exchange visitor of a change in address. A sponsor who 
is responsible for the placement or housing of such exchange visitors 
must promptly update a change in the actual and current U.S. address in 
SEVIS;
    (ii) A sponsor must report the U.S. mailing address (i.e., provide 
a P.O. Box number) in SEVIS in those limited cases where mail cannot be 
delivered to the exchange visitor's actual and current U.S. address 
(e.g., the exchange visitor resides in a campus setting);
    (iii) If a U.S. mailing address is reported to SEVIS, a sponsor 
must also maintain records in SEVIS of actual and current U.S. 
addresses (e.g., dormitory, building and room number) for such exchange 
visitors; and
    (iv) Failure to update the actual and current U.S. addresses of 
their exchange visitors as required, may be grounds for revocation of a 
sponsor's exchange visitor program designation, as set forth in Sec.  
62.50(a).
    (2) Change in site of activity. A sponsor must report in SEVIS any 
change to an exchange visitor's site of activity by entering the new 
site within ten (10) calendar days of notification of such a change 
where sponsor rules or regulations permit such a change. A sponsor must 
promptly enter any change in the site of activity in those instances 
where the sponsor is responsible for the placement. A sponsor must 
identify the ``primary'' site of activity of an exchange visitor if 
multiple sites of activity are reported in SEVIS.
    (c) Change in sponsor's circumstance. A sponsor must report within 
ten (10) days in SEVIS or directly to the Department of State, if 
appropriate, any material changes to its exchange visitor program as 
follows:
    (1) Change of business and/or mailing address, telephone number, 
facsimile number, or e-mail address;
    (2) Change in the composition of the sponsor organization that 
affects its U.S. citizenship status as defined in Sec.  62.2;
    (3) Change of RO or ARO;
    (4) Major change of ownership or control of the sponsor's 
organization as defined in Sec.  62.60(e);

[[Page 75026]]

    (5) Change of the sponsor's principal place of business to a 
location outside the United States;
    (6) Change in financial circumstances that may render the sponsor 
unable to comply with its obligations as set forth in Sec.  62.9(e);
    (7) Loss of licensure or accreditation;
    (8) Loss or theft of Forms DS-2019, in which case a sponsor must 
notify the Department of State promptly by telephone (confirmed 
promptly in writing by facsimile or e-mail) of the SEVIS identification 
numbers of such Forms DS-2019 that have been lost or stolen;
    (9) Any litigation related to a sponsor's exchange visitor program, 
in which the sponsor or an exchange visitor is a named party;
    (10) A decision by the sponsor to voluntarily cancel (withdraw) its 
exchange visitor program designation; or,
    (11) Any other material facts or events that may have an impact on 
the sponsor's ability to properly administer or conduct its exchange 
visitor program.
    (d) Serious problem or controversy. A sponsor must inform the 
Department of State on or before the next business day by telephone 
(confirmed promptly in writing by facsimile or e-mail) of any serious 
problem or controversy which could be expected to bring the Department, 
the Exchange Visitor Program or the sponsor's exchange visitor program 
into notoriety or disrepute.


Sec.  62.14  Insurance.

    (a) A sponsor must require that all exchange visitors and their 
spouse and dependants, if any, have insurance in effect that covers the 
exchange visitors for sickness or accidents during the period of time 
that they participate in the sponsor's exchange visitor program. A 
sponsor may offer insurance, but is not required, to ensure that 
exchange visitors have ``entry to exit'' coverage. The period of 
required coverage is the actual duration of the exchange visitor's 
participation in the sponsor's exchange visitor program, Minimum 
coverage must provide:
    (1) Medical benefits of at least $200,000 per accident or illness;
    (2) Repatriation of remains in the amount of $25,000;
    (3) Expenses associated with the medical evacuation of exchange 
visitors to his or her home country in the amount of $50,000;
    (4) Deductibles not to exceed $500 per accident or illness; and
    (5) Dental insurance in the amount of $10,000.
    (b) Insurance policies secured to fulfill the requirements of this 
section:
    (1) May require a waiting period for pre-existing conditions that 
is reasonable as determined by current industry standards;
    (2) May include provisions for co-insurance under the terms of 
which the exchange visitor may be required to pay up to 25% of the 
covered benefits per accident or illness; and
    (3) Must not unreasonably exclude coverage for perils inherent to 
the activities of the exchange program in which the exchange visitor 
participates.
    (c) Any policy, plan, or contract secured to fill the above 
requirements must, at a minimum, be:
    (1) Underwritten by an insurance corporation having an A.M. Best 
rating of ``A-'' or above; an Insurance Solvency International, Ltd. 
(ISI) rating of ``A-i'' or above; a Standard & Poor's Claims-paying 
Ability rating of ``A-'' or above, a Weiss Research, Inc. rating of B+ 
or above, or such other rating as the Department of State may from time 
to time specify; or
    (2) Backed by the full faith and credit of the government of the 
exchange visitor's home country; or
    (3) Part of a health benefits program offered on a group basis to 
employees or enrolled students by a designated sponsor; or
    (4) Offered through or underwritten by a federally qualified Health 
Maintenance Organization or eligible Competitive Medical Plan as 
determined by the Health Care Financing Administration of the U.S. 
Department of Health and Human Services.
    (d) Federal, State or local government agencies; State colleges and 
universities; and public community colleges may, if permitted by law, 
self-insure any or all of the above-required insurance coverage.
    (e) At the request of a non-governmental sponsor of an exchange 
visitor program, and upon a showing that such sponsor has funds readily 
available and under its control sufficient to meet the requirements of 
this section, the Department of State may permit the sponsor to self-
insure or to accept full financial responsibility for such 
requirements.
    (f) The Department of State may, in its sole discretion, condition 
its approval of self-insurance or the acceptance of full financial 
responsibility by the non-governmental sponsor by requiring such 
sponsor to secure a payment bond in favor of the Department 
guaranteeing the sponsor's obligations hereunder.
    (g) An accompanying spouse and/or dependant is required to be 
covered by insurance in the amounts set forth in paragraph (a) of this 
section. A sponsor must inform exchange visitors of this requirement, 
in writing, in advance of the exchange visitor's arrival in the United 
States.
    (h) An exchange visitor who willfully fails to maintain the 
insurance coverage set forth above while a participant in an exchange 
visitor program or who makes material misrepresentations to the sponsor 
concerning such coverage will be deemed to be in violation of these 
regulations and will be subject to termination as a participant.
    (i) A sponsor must terminate an exchange visitor's participation in 
its program if the sponsor determines that the exchange visitor or any 
accompanying spouse or dependant willfully fails to remain in 
compliance with this section.


Sec.  62.15  Reporting requirements.

    Sponsors must submit an annual report to the Department of State 
which is to be generated through SEVIS. Such report must be filed on an 
academic, calendar or fiscal year basis, as directed the Department of 
State, and must contain the following:
    (a) Program report and evaluation. A brief summary of the 
activities in which exchange visitors were engaged, including an 
evaluation of program effectiveness;
    (b) Reciprocity. A description of the nature and extent of 
reciprocity occurring in the sponsor's exchange visitor program during 
the reporting year;
    (c) Cross-cultural activities. A summary of the cross-cultural 
activities provided for its exchange visitors during the reporting 
year;
    (d) Proof of insurance. Certification of compliance with insurance 
coverage requirements set forth in 62.14.
    (e) Certification. All annual reports must include the following 
certification:
    ``I have reviewed this report of my organization's operation of a 
Department of State designated exchange visitor program and hereby 
certify that adequate staff and resources are devoted to the 
administration and oversight of this program and that internal controls 
adequate to ensure regulatory compliance are in place.''
    (1) For exchange visitor programs classified as ``Government 
Programs,'' this certification will be signed by RO.
    (2) For exchange visitor programs classified as P-1 or P-2 
``Academic Programs,'' this certification will be signed by the 
institution's Chief Financial Officer.
    (3) For exchange visitor programs classified as P-3 and P-4 
``Private Sector Programs,'' this certification will be signed by the 
organization's Chief

[[Page 75027]]

Financial Officer. In addition to the Annual Report required above, all 
P-3 and P-4 ``Private Sector'' programs must file a program specific 
management audit (in a format approved by the Department of State).
    (f) Program participation. A numerical count, by category, of all 
exchange visitors participating in the sponsor's program for the 
reporting year (active status).


Sec.  62.16  Employment.

    (a) An exchange visitor may receive compensation from the sponsor 
or the sponsor's appropriate designee for employment when such 
activities are part of the exchange visitor's program.
    (b) An exchange visitor who engages in unauthorized employment 
shall be deemed to be in violation of his or her program status and is 
subject to termination as a participant in an exchange visitor program.
    (c) The acceptance of employment by an accompanying spouse or 
dependant of an exchange visitor is governed by Department of Homeland 
Security regulations. An exchange visitor must report to his or her 
sponsor the Employment Authorization Document (EAD) number and the 
validation and expiration dates of the authorized period of employment 
for any accompanying spouse and each dependant. As required by 
62.10(d)(6), sponsors must report accompanying spouse and dependant EAD 
information in SEVIS.

    Dated: December 4, 2008.
Stanley S. Colvin,
Deputy Assistant Secretary, Office of Private Sector Exchange, Bureau 
of Educational and Cultural Affairs, Department of State.
 [FR Doc. E8-29213 Filed 12-9-08; 8:45 am]
BILLING CODE 4710-05-P