[Federal Register Volume 82, Number 8 (Thursday, January 12, 2017)]
[Proposed Rules]
[Pages 4120-4147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00107]



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Vol. 82

Thursday,

No. 8

January 12, 2017

Part VI





Department of State





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22 CFR Part 62





 Exchange Visitor Program--Summer Work Travel; Proposed Rule

  Federal Register / Vol. 82 , No. 8 / Thursday, January 12, 2017 / 
Proposed Rules  

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DEPARTMENT OF STATE

22 CFR Part 62

[Public Notice: 9522]
RIN 1400-AD14


Exchange Visitor Program--Summer Work Travel

AGENCY: Department of State.

ACTION: Proposed rule.

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SUMMARY: The U.S. Department of State (Department) proposes to amend 
existing regulations to provide new program requirements for the Summer 
Work Travel category of the Exchange Visitor Program. This rulemaking 
strategy is informed by the Department's comprehensive and ongoing 
review of the Summer Work Travel program that began in mid-2010.
    With this proposed rulemaking, the Department proposes to: Specify 
general program administration requirements for sponsors and their 
third parties; enhance transparency in the recruitment of exchange 
visitors; limit exchange visitor repeat participation to a total of 
three visits; require all exchange visitors to be placed in advance of 
the exchange visitor's arrival in the United States; outline additional 
sponsor responsibilities for use and vetting of host entities; and 
specify host entity requirements for program participation.
    In addition, the proposed rule limits the number of late night and 
early morning hours during which exchange visitors may work; adds a 
section regulating placements in door-to-door sales; explains new 
processes for exchange visitor housing; and introduces Form DS-7007 
(Host Placement Certification). The proposed rule also specifies more 
exactly pre-departure orientation and documentation requirements, 
including with respect to bicycle safety; ensures that sponsors and 
host entities provide exchange visitors with cross-cultural activities; 
and outlines processes for sponsor use and vetting of domestic and 
foreign third parties.

DATES: The Department of State will accept comments on this proposed 
rule until February 27, 2017.

ADDRESSES: You may submit comments by any of the following methods:
     Email: [email protected]. You must include the 
Regulatory Information Number (RIN) 1400-AD14 in the subject line of 
your message.
     Persons with access to the Internet also may view this 
notice and provide comments by going to the regulations.gov Web site 
at: http://www.regulations.gov/and search the RIN 1400-AD14 or docket 
number DOS-2016-0034.
     Mail (paper or CD-ROM submissions): U.S. Department of 
State, Office of Policy and Program Support, SA-5, Floor 5, 2200 C 
Street NW., Washington, DC 20522-0505.
     All comments should include the commenter's name, the 
organization the commenter represents, if applicable, and the 
commenter's address. If the Department is unable to receive or 
understand your comment for any reason, and cannot contact you for 
clarification, the Department may not be able to consider your comment. 
After the conclusion of the comment period, the Department will publish 
a final rule (in which it will address relevant comments) as 
expeditiously as possible.

FOR FURTHER INFORMATION CONTACT: Keri Lowry, Deputy Assistant Secretary 
of State, Office of Private Sector Exchange, Bureau of Educational and 
Cultural Affairs, U.S. Department of State, SA-5, Floor 5, 2200 C 
Street NW., Washington, DC 20522-0505; Email: [email protected].

SUPPLEMENTARY INFORMATION: For the past fifty years, the Summer Work 
Travel program has served as one of the most popular exchange 
opportunities for foreign post-secondary school students to visit and 
learn about the United States. It is also one of the Department's 
largest avenues to influence the opinion and attitudes of foreign post-
secondary students toward the United States through people-to-people 
diplomacy. The program also helps these students improve their English 
language proficiency. In 2015, the Summer Work Travel Program provided 
students from approximately 125 countries the opportunity to earn money 
to help defray some expenses of a short stay in the United States by 
working in seasonal or temporary host placements that require minimal 
training.
    The Summer Work Travel program links university students from every 
region of the world to the people of the United States. In the past 
decade alone, approximately one million foreign post-secondary school 
students have visited the United States, improved their English 
language skills, developed ties with U.S. persons, and experienced U.S. 
culture while sharing their own cultures with those they meet. They 
have returned to their home countries and, after graduation, have begun 
careers in nearly every field. They remain lifelong ambassadors between 
their home countries and the United States.
    The Department views Summer Work Travel as an important and 
uniquely effective mechanism for establishing cross-cultural 
communication and contributing to English language proficiency 
globally. The program represents the largest Department exchange 
opportunity for young adults; most exchange visitors are between the 
ages of 18 and 30. The program reaches diverse exchange audiences, 
including those from non-traditional sending countries and cities and 
towns outside national capitals. Such characteristics make the program 
important to the United States because people-to-people exchanges, and 
especially exchanges for young adults, are one of the most effective 
ways the U.S. forges ties with other nations.
    The decision for exchange visitors to participate in the Summer 
Work Travel program is a significant one involving an adventurous 
spirit, since exchange visitors must live and work in a potentially 
unfamiliar environment in the United States. The decision also involves 
a significant investment of time and money on the part of these 
exchange visitors. It is, therefore, essential that sponsors--and host 
entities and third parties working with sponsors--take all necessary 
steps to ensure that every exchange visitor enjoys a safe, rewarding, 
enjoyable, and memorable U.S. exchange experience.
    Sponsors and host entities play vital roles in the success of the 
program. This proposed rulemaking is intended to promulgate new minimum 
standards, clearly articulate program requirements, and advance 
consistency throughout the program.
    The Department's insight from its monitoring role, as well as from 
complaints, incidents, and lessons learned, informs the contents of 
this rulemaking. The Department has interviewed thousands of exchange 
visitors and host entities taking part in the SWT program and interacts 
regularly with program sponsors. The proposed rule's provisions are 
intended to improve the program as, first and foremost, a cultural 
exchange and public diplomacy program of the highest quality. As a 
private sector exchange model, the program's success is based on 
creating standards of practice common across all sponsors. In many 
cases, the proposed requirements are actions already being taken by 
some sponsors. In others, the Department views the requirement as 
essential to protect the program and/or the exchange visitor.
    As a public diplomacy program, exchange visitors' successful 
experience with this program will create lifelong ambassadors of 
goodwill between the United States and other countries. As

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such, the quality of the program for the exchange visitor is the 
essential goal. In addition, placement at a host entity permits 
exchange visitors of all means to know their host communities, engage 
in cross-cultural activities, and travel. Such exchange visitors also 
are provided the opportunity to gain work and English language skills 
and interact with Americans in the workplace.
    Sponsors must ensure that all parties involved in this exchange 
commit to its success.
    First, sponsors must provide exchange visitors with clear, easy-to-
read orientation materials and transparent information on fees, costs, 
program requirements, and wages; place exchange visitors with only 
those host entities that commit to advance the foreign policy and 
cultural exchange goals of the program; orient host entities to inform 
them fully about the program; place exchange visitors only with 
suitable and permissible host entities that provide appropriate 
compensation; ensure that exchange visitors have easy and convenient 
access to necessary amenities such as grocery stores, post offices, and 
public transportation; monitor exchange visitors regularly as required; 
update exchange visitor site-of-activity information in the Student and 
Exchange Visitor Information System (SEVIS) promptly as required; and 
provide and facilitate cross-cultural activities for all exchange 
visitors. In addition, sponsors must carefully vet and monitor the 
activities of their domestic and third party organizations.
    Second, sponsors must ensure that the host entities they select 
contribute to the program's stated goals and know about and agree to 
their role as part of a U.S. public diplomacy program. This includes 
requiring that host entities ensure the exchange visitor's quality of 
experience in the United States and protect the exchange visitor's 
health, safety, and welfare. Sponsors must place exchange visitors with 
those host entities that respect the benefits and obligations the 
program places on exchange visitors. In addition, sponsors must place 
exchange visitors at host entities that provide an experience where 
exchange visitors have significant contact with U.S. colleagues, 
supervisors, and customers, gain new skills, and increase their English 
language proficiency through regular use in their placements. Exchange 
visitor host placement schedules should accommodate reasonable time 
outside of working hours for exchange visitors to spend time with 
friends, tour the local area, and practice English.
    And third, sponsors must set expectations for the exchange visitors 
they recruit so that they come to the United States already 
understanding the underlying cross-cultural purpose of the program; 
their responsibility to fulfill their program obligations as defined 
through the Exchange Visitor Program regulations by the Department and 
by the rules set by their sponsor; the necessity for them to abide by 
U.S. laws during their programs; and also their responsibilities toward 
their hosts, co-workers, and local U.S. community. Exchange visitors 
who have an enjoyable and productive experience through the program 
become ambassadors of goodwill and understanding between their 
countries and the United States.
    In order to strengthen the Summer Work Travel program, the 
Department reviewed its implementation of the program beginning in mid-
2010. Between 2010 and 2012, the Department identified a number of 
regulatory changes needed to better protect the health, safety, and 
welfare of exchange visitors, enhance the program's cross-cultural 
component, and strengthen overall program administration. The 
Department published an interim final rule (IFR) with a request for 
comment on April 26, 2011 (RIN 1400-AC79; see 76 FR 23177) (2011 IFR). 
Then, after further monitoring program implementation, the Department 
published an IFR with a request for comment on May 11, 2012 (RIN 1400-
AD14); see 77 FR 27593) (2012 IFR). This rule addressed public comments 
submitted to the 2011 IFR and became effective immediately, with the 
exception of one provision regarding prohibited placements, which 
became effective on November 2, 2012 (see also 77 FR 31724).
    In promulgating this and previous rulemakings, the Department 
continues to advance a comprehensive rulemaking strategy to: (i) 
Protect the health, safety, and welfare of exchange visitors on this 
important program; (ii) respond to issues identified during monitoring 
and ongoing oversight; (iii) articulate consistent and robust minimum 
standards for program administration; (iv) prioritize the quality of 
the exchange visitor experience; and (v) fortify the program's purpose 
as an important U.S. public diplomacy tool.

Analysis of Comments Received on the 2012 IFR

    The Department reviewed, analyzed, and fully considered the 
comments submitted for both the 2011 and 2012 IFRs. Comments received 
in response to the 2011 IFR were analyzed and addressed in the 2012 IFR 
(see 77 FR 27598-27600, 27602-27604), which responded to emerging 
program issues requiring monitoring and enforcement. Comments received 
in response to the 2012 IFR are addressed below. The 2012 IFR 
strengthened protections for exchange visitors and reemphasized the 
cross-cultural component of the program, consistent with the 
requirements of the Mutual Educational and Cultural Exchange Act of 
1961, as amended (Pub. L. 87-256) (22 U.S.C. 2451, et seq.) (Fulbright-
Hays Act), and 22 CFR 62.8(d).
    The Department received comments on the 2012 IFR from 171 parties, 
including: 102 former exchange visitors previously hosted in mobile 
concession businesses; 21 leaders of different local, county, and state 
fairs; ten organizations representing and/or advocating for trafficking 
victims, low- to-middle-income, migrant and guest workers, unions, and/
or civil rights; nine mobile concession business owners that have 
employed exchange visitors; eight businesses associated with the mobile 
amusement industry; seven trade associations representing the mobile 
amusement industry and/or mobile concessionaires; one trade association 
representing seafood processors; a membership association of many of 
the largest international educational and cultural exchange 
organizations in the United States; eight Department-designated Summer 
Work Travel program sponsors; two private U.S. persons; one foreign 
entity working with sponsors; and a commercial printing business that 
has hosted exchange visitors.
    The Department received public comment on the following 2012 IFR 
provisions, all in 22 CFR part 62:
    Program dates. The 2012 IFR and its Supplementary section indicated 
that the Department determines the program dates for each country (see 
Sec.  62.32(c)). The Department establishes country-specific program 
start and end dates according to the academic year calendar of each 
country's ministerially-recognized post-secondary institutions and may 
modify them as necessary. The Department received three comments, all 
of which proposed that the Department continue to be open to amendments 
to program start and end dates. One commenting party suggested that the 
Department establish bi-annual reviews of the calendar for summer and 
winter placements.
    The Department currently conducts a regular review of country-
specific program start- and end-dates and believes that this review 
addresses these comments by allowing sufficiently for amendment of 
program dates. The Department is always open to hearing

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from sponsors, participants, and other members of the public about how 
country-specific program dates affect Summer Work Travel program 
participants.
    Termination of programs of unresponsive exchange visitors. The 2012 
IFR (see Sec.  62.32(e)(9)) required sponsors to provide exchange 
visitors with information explaining that sponsors will terminate the 
programs of participants who fail to comply with enumerated program 
regulations (e.g., reporting their arrivals, reporting changes of 
residence, not starting work at un-vetted jobs, responding to sponsor 
monthly outreach/monitoring efforts). The Department explained in the 
Supplementary section of that rulemaking that sponsors should terminate 
the programs of exchange visitors who do not report their arrival in 
the United States within ten days. The Department received six 
comments, five of which disagreed with this provision as overly 
punitive. They explained that most exchange visitors are at an age 
where it is common not to follow administrative rules carefully, that 
exchange visitors sometimes face difficulties in contacting sponsors 
upon arrival, and that port of entry information is unreliable if an 
exchange visitor arrives before his/her program start date, rendering 
consistent enforcement of this provision impossible. One sponsor 
suggested that exchange visitors should be terminated only after they 
demonstrate a pattern of uncommunicativeness.
    The Department does not agree with these comments. In order for 
sponsors to ensure that an exchange visitor is physically located at 
the site of program placement, as is required by the Department of 
Homeland Security, and in order that sponsors may monitor the health, 
safety, and welfare of that exchange visitor at the placement site, 
sponsors must know that the exchange visitor is indeed present there. 
This requires the exchange visitor to report his or her arrival, as 
well as any subsequent sites of activity, for example, if the exchange 
visitor changes host entities.
    Sponsors can enhance the timeliness of exchange visitor reporting 
by giving them an effective pre-arrival orientation about the necessity 
of and usable methods for reporting U.S arrival to their sponsor. 
Sponsors must explain to exchange visitors as part of their orientation 
that site of activity notification in SEVIS is a Department of Homeland 
Security requirement and that the sponsor is also authorized under 
Sec.  62.40(a)(3) to terminate exchange visitors who violate the 
Exchange Visitor Program regulations and sponsors' rules governing the 
program. Exchange visitors are assigned by their sponsors to report to 
their initial assignment on the date they are expected to report and 
then have ten days to notify their sponsor that they have arrived. In 
addition, exchange visitors have this same period of time to notify 
their sponsor to update their contact information each time they 
undergo a host entity or housing change, which the Department believes 
is a sufficient time-period for such notification. This provision has 
not changed in this proposed rule.
    Cross-cultural component. The 2012 IFR required that sponsors plan, 
initialize, and carry out events or other activities that provide 
exchange visitors exposure to U.S. culture (Sec.  62.32(f); see also 
Sec.  62.8(d)). The Department received nine comments, four of which 
disagreed with this provision. Two commenting parties supported this 
new requirement, but recommended that the Department provide for a two-
year unofficial pilot period of the cross-cultural component to test 
ways sponsors can most effectively provide and facilitate these cross-
cultural experiences. Other commenters disagreed with or expressed 
reservations about the cross-cultural component requirement, stating 
that the Department failed to take into account the natural cross-
cultural exchange of day-to-day work life and interactions provided by 
the Summer Work Travel program. In contrast, another party commented 
that this provision is critical to protecting the exchange visitors and 
the integrity of the Summer Work Travel program. Another commenter 
agreed with the addition of a cross-cultural component, but contended 
that the cross-cultural requirement is so vaguely defined as to be 
meaningless.
    The Department maintains its strong belief that an organized cross-
cultural component is necessary for the fulfillment of the Summer Work 
Travel category's purpose as a cultural and educational exchange and 
U.S. public diplomacy program. Following the publication of the 2012 
IFR, the Department provided all sponsors with a guide to cross-
cultural programming, and the Department has consistently sought and 
highlighted examples of successful cross-cultural programming to share 
with the sponsor community. The Department requires sponsors and their 
host entities to create opportunities to provide cross-cultural 
programming for exchange visitors. In the proposed rule, this 
requirement has been set at a minimum of once per month in order to 
more clearly define the requirement and respond to sponsor inquiries 
since publication of the 2012 IFR about what was an adequate amount of 
cross-cultural programming. The Department will continue to work with 
sponsors to facilitate successful implementation of cross-cultural 
programming requirements, including by issuing guidance outlining best 
practices.
    Since the 2012 IFR went into effect, many sponsors (approximately 
42 percent according to Department records) have already put policies 
in place to implement, either directly or through host entities, cross-
cultural activities for exchange visitors. Organizing a cross-cultural 
activity for exchange visitors is not especially complex; there are 
many possible activities that can make use of local resources and 
community events and that are not especially costly. Some examples 
organized by either sponsors or host entities over the last year of the 
Summer Work Travel program are noted under point 16 of the proposed 
rule discussion below.
    72-hour deadline for vetting host placements. The 2012 IFR required 
that sponsors confirm initial host placements and re-placements for all 
exchange visitors before exchange visitors could start work by 
verifying, at a minimum, the terms and conditions of such employment 
and fully vetting their host entities as set forth at Sec.  
62.32(g)(2). If an exchange visitor in in the United States finds his 
or her own host re-placement, sponsors must vet that host re-placement 
within 72-hours. The Department received nine comments, all in 
opposition to the 72-hour deadline, which they viewed as unrealistic. 
Commenters explained that host re-placement vetting is a time-consuming 
and multi-step process, and it is particularly challenging when the 72-
hour timeframe falls over a weekend when host entities are difficult to 
contact and sponsor staff is not available to carry out all required 
steps of proper vetting; they proposed changing the deadline to three 
business days.
    The Department agrees to propose a change to the vetting deadline 
to three business days, as provided in proposed paragraph Sec.  
62.32(h)(1). Sponsors have systems in place for vetting host entities, 
and the Department believes that three days are sufficient for the 
sponsor to check a host entity's location and suitability and conduct a 
background check on that entity, so that the exchange visitor can begin 
his or her new placement as soon as possible thereafter.
    Housing and transportation. The 2012 IFR required that sponsors 
actively and

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immediately assist exchange visitors with arranging appropriate housing 
and identifying appropriate local transportation when host entities do 
not offer housing and local transportation (see Sec.  62.32(g)(9)(i)), 
or when exchange visitors decide to ask for assistance after initially 
declining host entity-provided housing. The Department received four 
comments from sponsors on the topic of housing. Some sought 
clarification on what specific measures the Department intends with 
regard to sponsors' assisting exchange visitors with their housing, 
while others questioned the feasibility of sponsors' providing an 
additional level of housing assistance.
    One commenter expressed support for the requirement that sponsors 
assist exchange visitors to ensure appropriate housing and suitable 
local transportation. However, others disagreed. One commenting party 
explained that sponsor assistance should be limited in scope to 
informing exchange visitors of their rights, explaining types of 
housing and local transportation, reasonably investigating allegations 
of unsafe or inadequate housing, and offering additional assistance and 
guidance as appropriate. Other commenters worried about increased costs 
if sponsors are required to provide exchange visitors with suitable 
housing. Some noted that sponsors may have to put down deposits to 
secure housing even before knowing whether exchange visitors have 
received visas. Still other commenters stated that exchange visitors 
are not minors and may willingly choose substandard housing to save 
money unless the Department imposes penalties on exchange visitors who 
choose to do so.
    The Department continues to respond to serious concerns about 
housing and local transportation. The Department maintains that a 
placement is appropriate only if it includes safe and affordable 
housing accommodation, as well as readily available local 
transportation. Host entities are a resource for identifying both 
housing and local transportation options. Due to the reality that poor 
housing and lack of local transportation may prove disastrous to an 
exchange visitor's experience or well-being, sponsors must only approve 
placements for exchange visitors that include an identification of safe 
and affordable housing that is within reasonable distance from the 
exchange visitor's host entity(ies), in a location that is neither 
isolated nor difficult to access, and in reasonable proximity to 
commercial infrastructure and necessities. Sponsors or their host 
entities must identify, but are not obligated to fund, such housing and 
local transportation as part of the placement selection. Sponsors 
placing exchange visitors in remote national park, summer camp, or 
resort locations must document the host entity's written arrangement 
for transportation for those exchange visitors during their off hours 
and in case of emergency. At times, exchange visitors will identify 
housing themselves. Sponsors must verify that any housing option 
selected is safe, affordable, and otherwise appropriate, including from 
a local transportation perspective.
    The Department proposes a number of changes to better ensure access 
to appropriate housing and local transportation, as set forth in 
proposed paragraph 62.32(l) and discussed later in this section.
    Expansion of excluded host placements. The 2012 IFR expanded the 
program exclusion list of host placements (see Sec.  62.32(h)) by 
adding to that list host placements that raise concerns for the health, 
safety, and welfare of exchange visitors and the integrity of the 
Summer Work Travel program, and that generally cannot meet the cross-
cultural exchange requirement (see, for example, proposed paragraph 
62.32(o)). Comments on specific prohibitions follow:
    Exclusion of host placements requiring driver's licenses. The 2012 
IFR excluded positions that require driving or operating vehicles for 
which driver's licenses are required (Sec.  62.32(h)(5)). The 
Department received 11 comments, seven of which disagreed with this 
prohibition. Some commenters understood the prohibition of driving-
intensive host placements, but did not believe it necessary to exclude 
host placements that require occasional driving on non-public roads or 
host placements that incidentally require exchange visitors to drive, 
such as positions as bellhops and valet parking attendants.
    In the Department's view, prohibiting exchange visitors, on behalf 
of their host entity, from driving or operating vehicles on public 
roads for which a driver's license is required, however incidental this 
driving activity may be, helps mitigate the risk to the health, safety 
and welfare of the exchange visitors. Moreover, should an exchange 
visitor collide with another driver or a pedestrian while driving or be 
hit by another vehicle on a public road, the exchange visitor may 
become involved with insurance companies and/or law enforcement, 
leading to potentially serious consequences for the exchange visitor. 
(See proposed paragraph 62.32(k)(10)).
    Exclusion of host placements deemed hazardous to youth. The 2012 
IFR prohibited positions and activities declared hazardous to youth by 
the U.S. Secretary of Labor (Sec.  62.32(h)(9)). The Department 
received five comments, two of which disagreed with this prohibition. 
One commenter disagreed with the prohibition of such host placements 
because the Secretary of Labor's list is intended for minors, while the 
majority of exchange visitors on the Summer Work Travel program are not 
minors. While a second commenter generally disagreed with these 
exclusions, three other commenters stated that the Secretary's list 
provides a useful guide for sponsors in making appropriate placements. 
A commenter also noted that the Department should not bar host 
placements in which exchange visitors conduct hair braiding and henna 
tattooing, activities generally not seen as dangerous but that are 
incidental to some summer host placements.
    One of the primary goals of the 2012 IFR was to mitigate risks to 
the health, safety and welfare of exchange visitors. The Department 
believes that, regardless of the fact that most exchange visitors are 
not minors, the Secretary of Labor's list provides a sensible, easy-to-
use directory of host placements that are potentially dangerous and are 
thus inappropriate for post-secondary students working in the United 
States on a cultural and educational exchange program. Proposed 
paragraph 62.32(k)(13) continues to refer to the Secretary of Labor's 
list at 29 CFR part 570 (http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title29/29cfr570_main_02.tpl), and puts in place additional 
prohibited positions to those specified in the 2012 Summer Work Travel 
program interim final rule.
    Exclusion of placements with traveling fairs and itinerant 
concessionaires. The 2012 IFR prohibited placements in positions with 
traveling fairs and itinerant concessionaires (Sec.  62.32(w)(14)). 
Host placements in the mobile amusement and mobile concession 
industries are overly burdensome to monitor, and have, in specific 
instances, created unacceptably high risks to the health, safety, and 
welfare of exchange visitors, largely as a consequence of the mobile 
nature of the worksite. The Department received 151 comments, 147 of 
which disagreed with this prohibition. Comments in opposition were 
submitted by: 102 former exchange visitors employed by mobile 
concessionaires; 21 heads of different local, county and state fairs; 
eight businesses associated with the mobile

[[Page 4124]]

amusement industry; seven organizations representing the mobile 
amusement industry and/or mobile concessionaires; and nine mobile 
concession business owners.
    Commenters argued that the prohibition of host placements in an 
entire industry because of the actions of a few businesses within that 
industry is unfair; that the traveling nature of such host placements 
provides excellent cross-cultural experiences; that modern technology 
and the submittal of the businesses' itineraries make it possible for 
exchange visitors to be accurately tracked in SEVIS; that fairs' 
charitable, technological and agricultural contributions depend on 
mobile concessionaires and that this relationship could be damaged by 
the provisions of the 2012 IFR; and that the timing of the 2012 IFR's 
effective date was unnecessarily and unacceptably disruptive. 
Commenters also argued that every host placement comes with risks, and 
that the 2012 IFR's prohibitions were overreactions to negative press.
    The Department respectfully disagrees with these comments. The 
purpose of the Exchange Visitor Program, including the Summer Work 
Travel category, is not to satisfy the labor needs of any industry. The 
Department also has received and cannot ignore serious complaints about 
substandard housing and other related inadequacies associated with 
almost all host placements in the mobile amusement and mobile 
concession industries. In addition, placement in these industries 
entails frequent address changes that require exchange visitors and 
their sponsors to update SEVIS records frequently to ensure accuracy 
and maintain compliance with both Department of State and Department of 
Homeland Security regulations. Many sponsors' demonstrated lack of 
compliance with these SEVIS reporting requirements added to the 
Department's determination that these placements pose a sufficiently 
high risk to the health, safety, and welfare of exchange visitors. 
Finally, if a sponsor does not know where an exchange visitor is 
residing, security risks arise for both the exchange visitor and the 
general public. A prohibition is, therefore, appropriate (see proposed 
paragraph 62.32(k)(17)). The Department does not propose substantial 
changes to this section in response to comments. It proposes only to 
change the term to identify this industry as ``traveling fairs and 
itinerant concessionaires,'' rather than ``mobile amusement or mobile 
concessionaire industries.''
    Exchange visitor compensation. The 2012 IFR reinserted language 
inadvertently omitted in the 2011 IFR that mandates exchange visitor 
compensation at the highest of the applicable federal, state, or local 
minimum wage (see Sec.  62.32(i)(1) and proposed paragraph 
62.32(f)(6)(i)). The Department received five comments urging further 
protections to ensure adequate exchange visitor compensation. Three 
commenters expressed concern that the language as written does not 
explicitly guarantee compensation equal to federal, state, or local 
wages in host placements exempt from minimum wage requirements in the 
Fair Labor Standards Act (FLSA) of 1938. Two commenting parties stated 
that, unless sponsors are actually penalized for placing exchange 
visitors with host entities that fail to provide exchange visitors with 
sufficient pay, no additional compensation rules will be effective. In 
addition, the Department received two comments suggesting that exchange 
visitor wage levels be set at the same level that U.S. persons receive 
for doing the same work.
    The Department wishes to ensure that exchange visitors on the 
Summer Work Travel program will be able to meet the financial 
obligations they incur as part of their exchange experience. The 
Department proposes to retain the requirement from the 2012 IFR, with 
slight editorial changes. Proposed paragraph 62.32(m)(1)(i) requires 
that sponsors must inform exchange visitors of federal, state, and 
local minimum wage requirements, and proposed paragraph 62.32(f)(6)(i)-
(ii) requires that, in their host placement(s), exchange visitors 
receive pay and benefits commensurate with those offered to their U.S. 
counterparts and/or those on another class of nonimmigrant visa, as 
applicable, doing the same or similar work in the same work setting, 
and not less than the federal, state, or local minimum wage, whichever 
is highest, for all hours worked (including overtime) in conformance 
with federal, state, and local laws, including the Fair Labor Standards 
Act. Host entities may reasonably offer an exchange visitor wages 
commensurate with those of a qualified, experienced, or fully competent 
U.S. worker or worker on another visa class, only after considering the 
experience, education, and skill requirements of the position.
    Additional protections for U.S. workers. The 2012 IFR introduced 
new protections for U.S. workers by requiring sponsors to confirm that 
host entities of exchange visitors: (1) Do not displace U.S. workers at 
the worksite in which exchange visitors are placed (Sec.  
62.32(n)(3)(ii)); (2) have not experienced layoffs in the past 120 days 
(Sec.  62.32(n)(3)(iii)); and (3) do not have workers on lockout or on 
strike (Sec.  62.32(n)(3)(iii)). The Department received eight 
comments, all of which agree with the new provisions or call for 
further protections for U.S. workers. One commenting party proposed 
requiring a Department of Labor-certified prevailing wage that protects 
U.S. workers from the depressive effects of foreign labor.
    The Department agrees with the need to have exchange visitors' 
compensation and benefits be commensurate with those offered to their 
U.S. counterparts doing the same or similar work in the same work 
setting and having similar qualifications and experience (and that 
exchange visitors should receive the same compensation and benefits as 
those on another class of nonimmigrant visa if they are doing the same 
or similar work in the same work setting and have similar 
qualifications and experience), as well as providing for greater 
transparency in wages and work-related costs. See changes set forth in 
proposed paragraph 62.32(f)(6)(i) and (ii).

Proposed Changes

    The Department has worked to engage Summer Work Travel 
stakeholders, listening to their views about program improvement and 
considering their comments in drafting this proposed rule. The 
Department was represented at annual international conferences attended 
by a large number of sponsors and foreign partners throughout the 2012-
2016 period. It hosted sponsor conference calls in June and August 
2012, and again in January 2013 and May 2014, for all Summer Work 
Travel program sponsors to discuss program administration improvements, 
best practices, host and housing placement concerns, and the 
Department's notional timeline of this proposed rulemaking. The 
Department held two dialogue meetings for Summer Work Travel sponsors 
in late summer and in early fall 2013, and another dialogue session in 
fall 2015.
    Furthermore, the Department has observed a great variety of Summer 
Work Travel placements through a monitoring program that it instituted 
in 2012. Throughout summer 2012, the Department conducted 650 Summer 
Work Travel site visits in 31 U.S. states. In summer 2013, the 
Department visited 667 sites in 32 states. In summer 2014, the 
Department visited 676 sites in 33 states. In 2015, the Department 
visited 985 sites in 42 states and the District of Columbia. In summer 
2016, the Department visited sites of activity hosting 1,246 Summer 
Work Travel participants in 36 states. Program

[[Page 4125]]

monitoring through site visits includes interviewing exchange visitors 
and visiting their host placement sites and housing. In addition, in 
August 2013, the Department sent surveys directly to some 15,000 
exchange visitors in the Summer Work Travel program in order to learn 
about exchange visitor perspectives on their program and received 
nearly 4,000 responses, for a 25 percent response rate. The Department 
has made a determined effort to catalogue program successes, and in 
2014 and 2015 publicly highlighted these success stories. Observations 
from site visits, the study of best practices, and the Department's 
robust interaction with sponsors contributed directly to the content of 
this proposed rulemaking.
    The Department invites public comment on the proposed regulatory 
changes set forth below. Provisions of the proposed regulation have 
been organized to follow the general sequence of administering the 
Summer Work Travel program. In your response, please number comments to 
coincide with the following topics:
    1. Definitions. The Department includes in proposed paragraph 
62.32(b) definitions of ``host entity,'' ``host placement,'' ``seasonal 
nature,'' and ``temporary nature.'' These definitions provide clarity 
in areas important to the Summer Work Travel program that are in common 
use by the Department and the sponsor community, but which, up until 
now, have not been defined. The Department in this rulemaking seeks to 
define these terms narrowly in terms of their application only to the 
Summer Work Travel category of exchange.
    2. General sponsor responsibilities. Due to the variations in 
sponsor program administration, particularly with respect to 
relationships with third parties, the Department delineates in proposed 
paragraph 62.32(d) a sponsor's general program responsibilities and 
those responsibilities it is permitted to delegate to its foreign and 
domestic third parties. Sponsors are directly responsible for 
screening; making the final selection of exchange visitors; placing and 
re-placing exchange visitors; issuing Forms DS-7007 and DS-2019; 
orienting host entities; finding, approving and verifying exchange 
visitor housing; and conducting monitoring of exchange visitors and 
their host placements within the United States. These activities must 
be done by employees of the sponsor. In addition, the sponsor must make 
provision for pre-departure and post-arrival orientations in accordance 
with Sec.  62.10(b) and (c). A sponsor may conduct a pre-arrival 
orientation directly and/or through a foreign third party. A sponsor 
may conduct a post-arrival orientation directly and/or through the host 
entity. Sponsors should encourage their host entities to provide 
exchange visitors with a post-arrival local orientation in order to 
acquaint exchange visitors with resources, financial institutions, 
possible cross-cultural activities, evacuation and other safety 
procedures, and so forth, in their specific host community.
    The use of third parties may serve as an important benefit to a 
program; however, it represents some risk to sponsors, who are 
responsible for the actions of their third parties. A sponsor may use 
foreign third parties for recruitment, initial identification of host 
entities, and overseas orientation of exchange visitors. A sponsor may 
use domestic third parties for initial identification of host entities, 
implementation of cross-cultural activities for exchange visitors, 
providing a local point of contact or local orientation for exchange 
visitors, providing housing assistance, and offering transportation 
options for exchange visitors.
    A host entity (i.e., where exchange visitors are placed) is not 
considered to be a domestic third party. There are separate regulatory 
requirements that apply to a sponsor's selection of and relationship 
with host entities.
    The Department reminds sponsors that third parties that work with 
sponsors in administering the program are always deemed to be acting on 
that sponsor's behalf when conducting aspects of the sponsor's exchange 
visitor program, and their actions are imputed to the sponsor as set 
forth in Sec.  62.2 (Definitions; Third party) and as provided in 
proposed paragraph 62.32(d)(5). Sponsors must ensure that any fees they 
or their third parties charge are legal. For example, fees that 
sponsors charge to provide program services to participants, such as 
application fees or related document translation fees to prove program 
eligibility as a student or a very recent student, would be permitted. 
But any fees that require an exchange visitor to remit a portion of his 
or her earnings in the United States to overseas private entities are 
not permitted. Sponsors must ensure that fees be clearly disclosed and 
that they and their third parties document all aspects of their 
administration of the exchange visitor program, retaining this 
documentation on file for three years.
    3. Exchange visitor recruitment. Because the Department of State 
authorizes this program for the purposes of public diplomacy and global 
engagement with young adults, the Department is particularly mindful of 
sponsor or foreign third party marketing and promotional efforts that 
inaccurately characterize the program as solely one with a work 
component. This program is an international cultural and educational 
exchange program, not a program to recruit aliens to work in U.S. 
businesses. The success of this program derives from exchange visitors' 
acquiring cross-cultural knowledge, gaining English language skills, 
and making ties that benefit the United States and the countries to 
which they return after their exchange. In order to create consistency 
and appropriate industry practice, the Department has included a 
requirement in proposed paragraph 62.32(d)(8) that would ensure 
sponsors promote the Summer Work Travel program as a cultural and 
educational program and recruit applicants and host entities 
appropriately. Sponsors must cooperate only with foreign third parties 
that abide by this requirement through both their communications with, 
and the marketing materials they distribute to, potential exchange 
visitors abroad.
    In addition, in the proposed rule, the Department addresses 
recurring issues regarding the lack of transparency in program costs, 
including fees charged to exchange visitors by sponsors, foreign and 
domestic third parties, and host entities, deductions from wages, and 
other program-related costs. The General Provisions (Subpart A) of 22 
CFR part 62 create an initial requirement regarding fee transparency 
for the Exchange Visitor Program in general (as set forth in Sec.  
62.9(d)), and the Department proposes to create additional 
administrative requirements for the Summer Work Travel category. 
Exchange visitors recruited into the program must be made aware, at the 
time of their recruitment, what fees are charged by sponsors and any 
third party organizations with which sponsors work and estimated other 
costs the exchange visitor will likely incur. Proposed paragraph 
62.32(d)(9), therefore, would require each sponsor to include in its 
recruiting material, and post on its main Web site (e.g., with a 
visible link to such a page on the sponsor's homepage), examples of the 
typical monthly budgets of exchange visitors placed in various regions 
of the United States to illustrate wages (based on the required weekly 
minimum of 32-hours of work at a typical host placement) balanced 
against itemized fees and estimated costs. Providing exchange visitors 
with such information better ensures that they fully understand the 
financial

[[Page 4126]]

obligations they assume when choosing to participate in the program. 
This is especially important since the earnings of exchange visitors 
are likely to defray only some of the costs they will incur during 
their exchange opportunity.
    4. Exchange visitor screening and selection. The Summer Work Travel 
Program requires exchange visitors to exercise great responsibility 
while in the United States. Exchange visitors must adjust to life in a 
new culture, accustom themselves to a new work environment, and 
understand all their rights and responsibilities as exchange visitors 
in a workplace setting. The Department, therefore, has included in 
proposed paragraph 62.32(e)(1), the following eligibility requirements: 
Exchange visitors must be at least 18 years old by their Summer Work 
Travel program start date. In addition, at the time they file their 
program applications, prospective exchange visitors must be foreign 
nationals enrolled in and actively pursuing a full-time course of study 
toward a degree at a classroom-based post-secondary academic 
institution that is physically located outside the United States and 
ministerially-recognized within the national education system where the 
student is enrolled (including final year students).
    Repeat participation has both benefits and drawbacks. In seeking to 
create the appropriate balance, the Department proposes at Sec.  
62.32(e)(1)(iii) to limit to three the total number of times an 
exchange visitor is permitted to participate in the Summer Work Travel 
program during his or her post-secondary education career. The 
Department has observed the value of repeat participation, including 
solidifying a relationship between a host and exchange visitor, and 
enabling an exchange visitor to continue building skills while gaining 
exposure to an even greater diversity of U.S. culture, society and 
tourism. The Department also has observed the drawbacks of repeat 
participation, where some exchange visitors with more knowledge of the 
United States and the Summer Work Travel program have been encouraged 
to repeat their program participation in order to organize for host 
entities or other entities activities forbidden by regulation. In 
limiting participation in the program to three visits, the Department 
notes that the working holiday programs of 20 other countries, the 
programs that are most comparable to the Summer Work Travel program, 
restrict participation to a single work and travel visit. In several 
other countries, working holiday programs are restricted to two visits. 
The Department is interested in maximizing the number of individuals 
who gain exposure to the Summer Work Travel program, given its nature 
as an exchange program. Moreover, previous participation in the program 
will not limit exchange visitors from participating in other applicable 
categories of the Exchange Visitor Program.
    The Summer Work Travel program permits exchange visitors to 
practice and enhance their English language skills; effectuates both 
the Department's public diplomacy goals and the legislative intent of 
the Fulbright-Hays Act, which enables the U.S. government to establish 
programs that promote mutual understanding between the people of the 
United States and people of other countries by means of educational and 
cultural exchange (22 U.S.C. 2451). The Department requires sponsors to 
review the applications of, interview, and select those applicants who 
have a level of English language proficiency that would enable them to 
be understood by co-workers and community members, discuss their 
personal backgrounds, and comprehend safety, work, housing, and 
transportation-related instructions. In addition, because participation 
in cross-cultural activities is a main purpose for the Summer Work 
Travel program, proposed paragraph 62.32(e)(1)(v) requires sponsors to 
select exchange visitors who evidence an intention, for example, in 
their written application or interview, to participate in such 
activities while in the United States. This requirement is important 
toward ensuring that exchange visitors participate in the program for 
the correct reasons, and will have the interest and prior learning 
experience necessary to succeed in the program to which they applied.
    Proposed paragraph 62.32(e)(2) specifies that, prior to selecting 
exchange visitors, sponsors must conduct interviews with them in person 
or by video-conference and, upon request, facilitate videoconferences 
between exchange visitors and host entities in order that these parties 
can learn about one another prior to the exchange.
    5. Exchange visitor placement. Finding an appropriate host 
placement for each exchange visitor is one of the most important 
decisions a sponsor must make. In proposed paragraph 62.32(f), the 
Department summarizes the responsibilities of sponsors in securing a 
host placement for each exchange visitor. Among these requirements are 
that host placements be seasonal and temporary in nature, require 
minimal training, and be interactive. Interaction and use of English 
language during the regular course of the day can help achieve the 
central goals of the Summer Work Travel program: Relationship-building, 
cultural exchange, and English language proficiency. Thus, as provided 
in proposed paragraph 62.32(f)(iii), sponsors must ensure that all 
placements permit daily personal interaction with customers and/or 
American co-workers as an integral part of the placement. The 
Department seeks to avoid, as part of this program, positions that 
provide little to no language exposure or skill acquisition, and that 
are inappropriate for a cultural and educational exchange program. Such 
positions do not fulfill the stated goals of the program. Sponsors must 
be able to ensure that host entities make appropriate accommodation to 
meet this objective.
    For example, one observed best practice was a host entity that, 
rather than retain one individual solely on dishwashing, a task the 
host felt offered little interpersonal interaction, rotated restaurant 
staff and exchange visitors through this task in order to offer each 
person a variety of assignments. Additionally, the Department has no 
objection to exchange visitors working alongside foreign nationals in 
other visa categories, as long as the exchange visitors with similar 
qualifications and experience receive the same compensation and 
exchange visitor employment does not have an adverse effect on U.S. 
workers. The Summer Work Travel program serves to create long-term 
relationships between Americans and program participants, and working 
alongside U.S. workers is essential to the achievement of that goal.
    Pre-placement. The Department engages with host communities where 
exchange visitors are housed. It has learned that overcrowding in some 
communities can become a major problem where exchange visitors who are 
not pre-placed arrive unannounced and unexpected. Seasonal communities 
struggle to identify affordable and appropriate housing for those who 
are pre-placed. In the worst cases, exchange visitors live in 
overcrowded accommodations, and some even have been left homeless. 
These situations defeat the purposes of the exchange visitor program, 
bring notoriety, and can generate tensions within communities. 
Accordingly, the Department proposes in paragraph 62.32(f)(1) to extend 
the applicability of existing pre-placement requirements so that they 
pertain to exchange visitors from all countries, rather than only 
exchange visitors from non-Visa Waiver Program countries, as is 
currently so under Sec.  62.32(g)(10).

[[Page 4127]]

    Prior to July 15, 2011 (the effective date of the 2011 IFR), 
sponsors were required to allow no more than half of their Summer Work 
Travel exchange visitors to enter the United States without pre-
arranged host placements. Since July 15, 2011, sponsors have been 
required to pre-place all exchange visitors except those from Visa 
Waiver Program countries. Requiring uniform pre-placement in positions 
with a vetted host placement prior to exchange visitor receipt of a 
Form DS-2019 will permit host entities and local communities to prepare 
for exchange visitor arrival, allow sponsors to ensure that each 
placement is with a host who has been oriented in advance and is 
committed to the goals of the program, and reduce the potential for 
temporary housing or overcrowding. Finally, requiring pre-placement 
will reduce the number of exchange visitors from Visa Waiver Program 
countries who never get host placements during their stay in the United 
States, estimated according to Department records to be around 10 
percent of exchange visitors from all Visa Waiver Program countries. 
The Department also believes that a 100 percent pre-placement 
requirement will better ensure that proposed expanded host placement 
requirements are met.
    Host entity orientation. A sponsor's engaging the host entity in 
welcoming the exchange visitor, providing the exchange visitor with a 
positive experience while in the United States, and connecting with 
that exchange visitor to provide cross-cultural activities are all 
fundamental elements of the Summer Work Travel program's mission as one 
of exchange. Many sponsors have created orientations for host entities. 
The Department sees this as a positive trend, and proposes in paragraph 
62.32(f)(1)(x) that all sponsors be required to orient host entities 
(e.g., in person, online, through CD or DVD, through teleconference), 
clearly explaining to them the public diplomacy purpose and 
requirements of the program and the host entity's duties during the 
program and toward the exchange visitor. Sponsors must explain program 
regulations and policy to host entities so that they may be well-
informed at all times about the program.
    Remote placements. The Department receives reports of emergencies 
and urgent situations from sponsors, exchange visitors, host entities, 
and members of the public. If serious incidents occur regarding the 
host placement, host entities are responsible for supervision of and 
immediate assistance to their exchange visitors in such circumstances. 
However, sponsors with a presence near and/or that have arrived 
immediately to the location of an emergency have had the most success 
in assisting all parties, including host entities, in such situations, 
during which major programmatic decisions may need to be made. The 
Department proposes in paragraph 62.32(f)(1)(xii) that each exchange 
visitor be placed in a location that the sponsor's employee or 
representative is able to reach in-person within eight hours (i.e., 
within one business day), through any reliable transportation means. 
Each sponsor should plan how its staff or representatives would reach 
exchange visitors placed in more isolated locations where there is 
limited transportation, and who in the sponsor organization is to be 
responsible for reaching the exchange visitor in such circumstances.
    The Department has monitored placements that are isolated, with 
little to no infrastructure nearby, and where a sponsor has not visited 
prior to the placement. The Department has concluded that sponsors 
should take great care when placing exchange visitors in locations that 
are far from commercial infrastructure and transportation options, and 
in those instances, host entities should assume responsibility for 
ensuring sufficient local transportation for the exchange visitor to 
meaningfully experience U.S. culture and cross-cultural activities.
    The Department has seen successful placement of exchange visitors 
at summer camps and national parks, which may be a distance from 
commercial infrastructure. In those instances, the host entities made 
arrangements for cross-cultural outings, shopping excursions, emergency 
evacuation if needed, and so forth.
    Sponsor ownership by host entity. Host entities that either 
partially or wholly own the sponsor, and sponsors that wholly or partly 
own the host entity, must under proposed paragraph 62.32(f)(2) divulge 
that relationship to the Department and retain or make available an 
independent and neutral entity, such as an ombudsperson, to act as an 
advocate for the exchange visitor should the Department determine there 
is a need. This is important because a sponsor that is owned by the 
host entity at which the exchange visitor is placed may not be able to 
act impartially or advocate for the exchange visitor in a dispute 
between the exchange visitor and the host entity. For example, if an 
exchange visitor were to complain of alleged legally non-compliant 
conduct on the part of the host entity (such as requiring the exchange 
visitor to conduct unauthorized activities in the host placement) and 
seek redress from the sponsor, the host entity that owns the sponsor 
could exert pressure on that sponsor not to respond to the exchange 
visitor's request. In this and other cases, an independent or neutral 
entity could serve as an advocate for the exchange visitor, as the 
sponsor and host entity are not well placed to adopt this role since, 
by definition, the sponsor and the host entity have an inseparable 
business relationship with each other.
    Strikes at the host entity. At proposed paragraph 62.32(f)(3), 
during the pre-placement phase, sponsors must not match exchange 
visitors with host entities at which there is a strike (or other labor 
dispute that the sponsor reasonably believes would have a negative 
impact on the exchange visitor's program) at the placement site. If a 
strike (or other similar labor dispute) occurs at the host entity in 
the location where an exchange visitor's host placement has been 
finalized pending the arrival of the exchange visitor or where an 
exchange visitor is currently carrying out the program, sponsors must 
re-place the exchange visitor at a different host entity immediately, 
to the extent possible, but in any event, within five business days. 
Exchange visitors placed where there is a strike or other such labor 
dispute will likely be subjected daily to a tense work environment that 
requires them either to cross picket lines and work in the place of 
striking employees or choose to join a strike, which could lead to 
conflict with management. Such work environments at a host entity are 
not conducive to the cross-cultural program experience the Department 
wishes to provide for its exchange visitors.
    Hours. The Department has learned that gaining sufficient work 
hours is a significant concern to exchange visitors on the Summer Work 
Travel program. Many exchange visitors participate with the intention 
of maximizing their days and experiences, and become despondent if they 
have too few hours of work. Too few hours also may lead exchange 
visitors to experience difficulties with their financial obligations. 
On the other hand, too many hours may exhaust the exchange visitor and 
leave little time for any other activities.
    The ideal situation would be for exchange visitors to work 40-hour 
work weeks, as is common in the United States for full-time employees, 
but the Department also understands that seasonal employment ebbs and 
flows. In order to create appropriate standards and transparency, as 
well as protect exchange visitors who expend significant personal 
investment to

[[Page 4128]]

participate, the Department proposes at paragraph 62.32(f)(4) that 
sponsors place exchange visitors only with host entities that commit to 
provide exchange visitors with no less than 32-hours and no more than 
65-hours of permissible work per calendar week, averaged over a two-
week period, for all work weeks of their placement. The Department will 
allow a calculation of hours averaged over a two-week period to 
accommodate a measure of potential irregularity in working hours from 
week to week. Exchange visitors must be paid overtime for hours 
completed, calculated on a weekly basis, in accordance with applicable 
federal, state, and local laws. Because exchange visitors have various 
motivations, the Department will permit an opt-out provision for the 
lower limit of hours (32), if requested in writing by the exchange 
visitor and acknowledged by the sponsor. Recognizing that certain host 
entities may not be able to guarantee 32-hours consistently, the 
Department would find appropriate placement at two authorized host 
entities simultaneously in order to meet the 32-hour minimum. Each 
placement must follow all regulatory requirements.
    Over the years, the Department has been made aware that an exchange 
visitor's hours may decline over the course of the placement, causing 
exchange visitors to seek other unauthorized host placements. Should an 
exchange visitor's hours, averaged over a two-week period, fall below 
the 32-hour weekly minimum for longer than two weeks, the sponsor must 
assist the exchange visitor to increase his or her hours at the current 
host placement or find a re-placement or an additional placement to 
meet the required hour minimum. If the exchange visitor's hours 
averaged over a two-week period fall below the 32-hour weekly minimum, 
the exchange visitor also has the option to accept the below-minimum 
hours by indicating such to the sponsor in writing; the sponsor must 
acknowledge the communication.
    Although the Department proposes at paragraph 62.32(f)(4) to 
require a minimum of 32-hours and a maximum of 65-hours per calendar 
week for authorized placements in the program, the Department does 
allow for some flexibility within that range in order to accommodate 
the special needs of seasonal placements. An exchange visitor's written 
consent is essential for work below or beyond previously agreed-upon 
hours. The importance of mutual agreement and clarity in hours and 
placement conditions is the motivation for an amended Form DS-7007.
    Both the host entity and the exchange visitor will be subject to 
the requirement of two weeks' notice as set forth in proposed paragraph 
62.32(f)(4)(iii)) and (iv) before changing central terms of the host 
placement agreement. The Department has learned that exchange visitor 
no-shows or abandonment of jobs are a major risk to the program, as 
host entities are counting on and have prepared for exchange visitor 
arrival. Likewise, the Department has too often been made aware of 
exchange visitors who arrive at the agreed placement only to be told 
that they have no job, or the job they are provided upon arrival is not 
the job to which they agreed. In order to instill greater commitment 
and, thus, higher quality exchange experiences, consequences for 
failure to fulfill requirements must exist on both sides.
    An exchange visitor who abandons the placement, has a delayed 
arrival, or fails to arrive at the placement without first notifying 
the sponsor and gaining sponsor permission may be terminated from the 
program. Similarly, a sponsor may terminate from hosting exchange 
visitors any host entity that fails to provide the exchange visitor and 
sponsor two-weeks of notice before ending the placement, decreasing 
hours below the 32-hour weekly minimum, averaged over a two-week 
period, or otherwise significantly changing agreed-upon terms of the 
placement. The two-week notice provision does not apply to host 
entities in cases where the exchange visitor fails to report to work on 
a sustained basis (i.e., for longer than ten days and without 
contacting the sponsor and host entity supervisor and receiving 
permission to be absent). The above requirements are intended to 
respond to sponsor concerns of no-shows, and exchange visitor concerns 
of significant changes to their placements without their knowledge or 
advance consent. (Proposed paragraph(f)(4)(iv) states that the two-week 
requirement does not apply to credible allegations of conduct that 
could result in sanctions.)
    In addition, once notified, the exchange visitor must be given at a 
minimum 72-hours to consider any significant additional requirements or 
changes that host entities wish to make to the exchange visitor's host 
placement, such as new duties, departmental relocation, or geographic 
relocation. An exchange visitor cannot be required to accept major 
program changes without consent. As set forth in proposed paragraph 
62.32(m)(3), the sponsor must inform host entities and exchange 
visitors that, if an exchange visitor does not agree to such 
requirements or changes, he or she may continue with his or her 
previous host placement duties or, if this is not possible, request a 
re-placement by the sponsor. In the Department's experience, most 
sponsors are able to complete the re-placement vetting process for 
exchange visitors (i.e., verifying the terms and conditions of such 
employment and fully vetting host entities) within the three day period 
required by this proposed rulemaking, so that the exchange visitor may 
begin the re-placement position as soon as possible thereafter. 
Sponsors should expedite re-placements of exchange visitors who refuse 
to take on additional work requirements and wish, as a consequence, to 
be re-placed, so that exchange visitors are not required by 
circumstances to stay in host placements where they cannot or do not 
wish to conduct additional or alternative work requirements to those 
listed on their Form DS-7007.
    6. Compensation. The 2012 IFR required sponsors to ensure that all 
exchange visitors are compensated at ``the applicable Federal, State, 
or Local Minimum Wage (including overtime)'' (77 FR 27610; Sec.  
62.32(i)). The Department reiterates that sponsors must ensure that 
host entities pay exchange visitors an hourly wage not less than the 
federal, state, or local minimum wage, whichever is higher, for all 
hours worked (including overtime) in conformance with applicable 
federal, state, and local laws, including the Fair Labor Standards Act. 
This requirement is retained in proposed paragraph 62.32(f)(6)(i), 
which will, in addition, require sponsors to place exchange visitors 
with host entities that agree to provide exchange visitors with pay, 
benefits, and working conditions commensurate with those offered to 
their U.S. counterparts and/or those on another class of nonimmigrant 
visa doing the same or similar work in the same work setting if they 
have similar qualifications and experience (see proposed paragraph 
62.32(f)(6)(ii)). The Department does not wish host entities to use 
exchange visitors as a way of undercutting the wages of U.S. workers or 
the wages of those workers who have come to the United States after 
having been accepted into non-immigrant labor programs. Any host entity 
employing exchange visitors should be advancing the public diplomacy 
goal of the program and willing to offer exchange visitors an 
experience that is in keeping with this program purpose. The sponsor 
also must ensure that each exchange visitor has advance knowledge of 
his or her expected hourly earnings, enabling the exchange visitor to 
plan accordingly for living expenses (see proposed paragraph 
62.32(d)(9)). The hourly wage

[[Page 4129]]

requirement is particularly important for sponsors to monitor in 
certain placements, such as summer camps, where the exchange visitor's 
room and board are covered by the camp and where hours of work may 
become extended due to the setting.
    Sponsors or host entities must compensate eligible exchange 
visitors for time spent in required training, including applicable 
overtime (if the exchange visitor is working more than 40-hours in a 
single work week), in accordance with all applicable federal, state, 
and local laws (see proposed paragraph 62.32(f)(6)(i) and (ii)). For 
trainings held in a city that is farther than 60 miles away from the 
exchange visitor's site of activity (see proposed paragraph 
62.32(f)(11)), or where exchange visitors are required by the sponsor 
or host entity to stay overnight at the training site, the sponsor or 
host entity must compensate (either themselves pay or reimburse the 
exchange visitor) for related lodging during the training.
    In addition, as set forth in proposed paragraph 62.32(f)(8), 
sponsors, in accordance with the Fair Labor Standards Act, must ensure 
that host entities provide exchange visitors, without charge or 
deposit, all uniforms, tools, supplies, and equipment needed to perform 
placement-required activities. Finally, because the Summer Work Travel 
Program is cultural and educational, and not a work program, and 
because exchange visitors are not in the United States for sufficient 
time to make use of union services, sponsors must reimburse exchange 
visitors any union dues that are required as part of their host 
placement.
    7. Door-to-door sales positions. The Department is concerned that 
door-to-door sales positions may create unsuitable risks for exchange 
visitors because such positions involve living in different housing 
from time to time and visiting homes unannounced and unrequested to 
sell products. Because door-to-door sales have become highly infrequent 
in this age of online sales, household reaction to the exchange 
visitor's outreach may be uncertain. The Department is aware that these 
positions are highly interactive, offer professional skills some 
exchange visitors are seeking, and offer daily English language usage. 
However, they tend to require some travel of the exchange visitor, 
usually within a pre-defined area, and may require long and/or 
irregular hours.
    The Department thus requires in proposed paragraph 62.32(g) that 
sponsors placing exchange visitors in door-to-door sales positions 
execute an agreement with each exchange visitor in advance of the 
exchange visitor's acceptance of the host placement. This agreement 
must explain host placement duties and expectations, the geographical 
area the placement will encompass, how the purchase of any necessary 
state or local permits will be handled, how exchange visitors may 
access pre-arranged housing while traveling, and how, in accordance 
with the Fair Labor Standards Act, exchange visitors will be paid an 
hourly wage for time spent in their arrival orientation and be timely 
reimbursed for housing and other necessary business costs incurred 
while traveling on behalf of their host entity. Sponsors also must 
provide exchange visitors with an orientation containing information on 
safety considerations while selling door-to-door, how they will be 
supervised, how to react when faced with possible adverse situations 
(e.g., if potential customers do not wish to buy offered products), and 
how products that customers do purchase will be delivered, especially 
in light of the fact that, in accordance with proposed paragraph 
62.32(k)(10), exchange visitors are not permitted to drive.
    Sponsors of exchange visitors working in door-to-door sales must 
ensure, as set forth in proposed paragraph 62.32(g)(2)(ii), that these 
exchange visitors earn in each calendar week of their program, averaged 
over a two-week period, the equivalent of the applicable federal, 
state, or local minimum wage per hour through hourly pay or sales 
profits, and receive pay and benefits commensurate with those offered 
to their U.S. counterparts and/or those on another class of 
nonimmigrant visa with similar qualifications and experience doing the 
same or similar work in the same work setting. The Department will 
allow a calculation over a two-week period to accommodate some 
fluctuation in sales profits week-by-week. Exchange visitors engaged in 
door-to-door sales must begin their sales calls no earlier than 9:00 
a.m. and end their last sales call no later than 8:00 p.m. in their 
respective time zones.
    In order to protect exchange visitors from a situation where they 
may be mistakenly taxed on funds collected for a host entity's business 
purposes, sponsors must ensure, as set forth in proposed paragraph 
62.32(g)(2)(iii), that customers make all checks and other forms of 
payment directly payable to the host entity, not to the exchange 
visitor. In addition, proposed paragraph 62.32(g)(3) requires that 
sponsors honor an exchange visitor's reasonable request for re-
placement at a non-door-to-door assignment.
    8. Exchange visitor host re-placement. In paragraph 62.32(h), the 
Department proposes to change the deadline for sponsors to complete, at 
a minimum, the vetting of host re-placements (i.e., verifying the terms 
and conditions of such employment and fully vetting the host entity) 
from 72-hours to three business days. Sponsors also are required to 
complete and secure the requisite signatures on a new Form DS-7007 
prior to an exchange visitor's beginning work at a host re-placement. 
The Department is of the view that because exchange visitors have 
already paid their sponsor to find them a viable Summer Work Travel 
placement, sponsors may not charge exchange visitors additional fees at 
the time of re-placement.
    9. Sponsor vetting of host entities. The private sector exchange 
model succeeds only if sponsors respect their role as an objective 
party seeking the best interests of the program and commit to advancing 
U.S. public diplomacy goals. Sponsors must become knowledgeable about 
host entity third parties through the vetting process. Annual host 
entity vetting, as currently required under the 2012 IFR (Sec.  
62.32(n)(2)) and as retained in proposed paragraph 62.32(i)(1), works 
to ensure that all placements are with legitimate and reputable 
entities that have reputable managers and supervisors working with the 
exchange visitor. As set forth in proposed paragraph 62.32(j)(3), the 
Department will impute to the sponsor the actions of the host entity 
and any third parties hired by a host entity to carry out the exchange 
visitor's program, whether or not the host entity has disclosed that 
third party to the sponsor.
    10. Host entity cooperation. Because the conditions of an exchange 
visitor's placement at his or her host entity may have a significant 
impact upon the opinion that exchange visitor develops of the Summer 
Work Travel program and of the United States, the Department sees it as 
vital to create consistent minimum standards to which sponsors must 
adhere in their authorization of host entities. The Department proposes 
in paragraph 62.32(j)(1) and (2) that sponsors be required to ensure 
that host entities understand program regulations and arrange or permit 
time for sponsor- or host-entity-organized cross-cultural activities 
for exchange visitors designed to meet the Department's cross-cultural 
activity requirements. If hosts understand their role in this public 
diplomacy initiative, they are likely to be more successful in hosting 
exchange visitors.

[[Page 4130]]

    11. Protections for exchange visitors. The Department is of the 
view, as reflected in proposed paragraph 62.32(j)(6) that, in order for 
the exchange visitor to be secure in his or her possessions and have 
freedom of movement, it is never appropriate for a host entity to hold 
or withhold an exchange visitor's personal documents without the 
exchange visitor's advance written permission. The Department, through 
its program monitoring, has seen instances where the host entity seeks 
to retain exchange visitor documents or forbid exchange visitor 
communication until the exchange visitor meets certain work 
requirements. The Department believes that such host entity conduct has 
largely ended as a result of its monitoring, but wishes to make clear 
that no sponsor or host entity may retain the exchange visitor's Forms 
DS-2019 and DS-7007, money, identification (including passport and 
social security card), cellphone, flight tickets, or any other personal 
property, unless specifically requested in writing (to include an 
itemized list), by the exchange visitor. Such exchange visitor 
authorization may be withdrawn at any time in writing, at which time, 
the sponsor or host entity must release the documents and other items 
within 48-hours. In addition, under proposed paragraph 62.32(j)(5), a 
host entity must never stand in the way of communication between the 
exchange visitor and his or her sponsor, or prevent communication 
between the exchange visitor and his or her family and friends, or 
prevent communication with any other person, while the exchange visitor 
is not on duty. Finally, sponsors or employees of a sponsor must 
continue to follow the requirements set forth in Sec.  62.10(d) 
regarding non-retaliation against an exchange visitor.
    12. Program exclusions. The Department has witnessed improvement in 
sponsor administration of the program since its 2012 IFR, and the 
quality of placements has improved since the Department provided 
greater clarity regarding appropriate working conditions and 
inappropriate placements. This regulation proposes to expand the list 
of ``program exclusions'' as set forth in paragraph 62.32(k). In both 
the 2011 and 2012 IFRs, the Department increased the types of host 
placements in which sponsors were no longer permitted to place exchange 
visitors. The Department deemed such host placements as either being 
fundamentally unsuitable for a cultural and educational exchange 
program or posing an unacceptably high risk to the health, safety or 
welfare of exchange visitors. The Department proposes in this 
rulemaking to expand this list to include the following host 
placements:
    Locations without possibility for regular contact. The Department 
expects sponsors to remain in contact with their exchange visitors. 
Therefore, sponsors, in accordance with proposed paragraph 62.32(k)(4), 
must not place exchange visitors where regular and convenient telephone 
and Internet communication is not accessible. This is especially 
important with regard to placements in national parks and summer camps.
    Staffing agencies. As set forth in proposed paragraph 62.32(k)(7), 
a sponsor must ensure that staffing/employment agencies or similar 
entities do not become inactive intermediaries between the exchange 
visitor and the host entity. In accordance with proposed paragraph 
(k)(7), when such an agency places exchange visitors, it must provide 
daily supervision and primary and onsite monitoring of the exchange 
visitor's work environment at his or her host entity, and it must pay 
the exchange visitor directly. If such an agency is involved in the 
exchange visitor's program, it, along with the host entity, must be 
vetted in accordance with proposed paragraph 62.32(i).
    Mobile amusement. Since publication of the 2012 IFR, the Department 
has become aware that the term ``mobile amusement'' is used more widely 
and is clearer than existing regulatory language prohibiting positions 
in ``traveling fairs.'' The Department accordingly proposes in 
paragraph 62.32(k)(17) to replace the term ``traveling fairs'' with 
``mobile amusement.'' This regulation retains the prohibition on 
placements in the above industries due to a failure of host entities in 
these industries in the past to regularly update the exchange visitors' 
sites of activity, which is a basic requirement of the program, and to 
the fact that such exchange visitors, through heavy travel in these 
industries, never become established in a U.S. host community where 
they may make U.S. friends and engage in cultural activities on a 
sustained basis.
    Movers. The Department in paragraph 62.32(k)(20) proposes to 
prohibit host placements in positions where exchange visitors' primary 
activity is the movement of household or office goods. Such positions 
can place exchange visitors at risk of serious injury.
    Repetitive motion jobs. The Department in paragraph 62.32(k)(21) 
proposes to prohibit host placements in positions requiring repetitive 
motion, including on an assembly line or in certain factory-like 
settings. Host placements that require exchange visitors to engage in 
repetitive motion activities generally do not offer exchange visitors 
the required opportunity to interact frequently and substantially with 
American co-workers or customers. In addition, some repetitive motion 
jobs, including certain jobs on an assembly line or in certain factory-
like conditions, require working with heavy machinery or dangerous 
chemicals. These positions require a great deal of focus on the task at 
hand to avoid injury, which also takes away from the opportunity for 
interaction with American co-workers.
    Waste management and custodian/janitorial positions. The Department 
proposes in paragraph 62.32(k)(22) to prohibit host placements in any 
waste management, janitorial, or custodial positions or in any position 
that involves more than a small percentage (five percent of the hours 
or less) of waste management duties or keeping the premises of a 
building clean, tending to the heating, plumbing or air-conditioning 
system, or making building repairs. Such positions are not suitable for 
a cultural and educational exchange program. The above types of duties 
may be acceptable only if they are incidental to other types of service 
placements and comprise no more than the noted small percentage of 
duties performed by the exchange visitor.
    Placements in non-seasonal or non-temporary positions: The Summer 
Work Travel program permits sponsors to place exchange visitors in 
seasonal or temporary positions. The nature of the position is 
determined by such factors as whether a host entity has a supplemental 
need for assistance; whether it has an increase in financial revenue, 
tourist, or seasonal customer numbers; the number of months such a peak 
includes within one calendar year; the nature of recreational or cross-
cultural activities in the area or other factors that might cause the 
peak need; and whether the host entity has conducted outreach to local 
residents for employment.
    Sole responsibility for safety of others. In situations where an 
exchange visitor would be solely responsible for the safety of others, 
such as working as lifeguards at single lifeguard pools, exchange 
visitors may not be placed at such host entities where the host entity 
does not provide regular on-site or on-call supervision and reasonable 
time off for exchange visitor breaks and meals. (See proposed paragraph 
62.32(k)(24)).
    13. Exchange visitor housing and local transportation. Issues 
involving housing and local transportation (between place of residence 
and place of work) raise constant concerns both for

[[Page 4131]]

the Department and for exchange visitors, who file housing-related 
complaints each year. In 2015, 16 percent of exchange visitors on the 
Summer Work Travel program, according to Department monitoring surveys, 
said they were dissatisfied with their housing and described their 
housing as dirty, run-down, too crowded, and unsuitable, and often 
without cooking facilities. In some instances, the Department received 
complaints that exchange visitors arrived in the United States to find 
that the housing listed on their pre-departure documents was 
unavailable or at capacity. The Department also received complaints 
about landlords who engaged in rent-gouging, withheld security 
deposits, and charged exchange visitors outrageous amounts for normal 
wear and tear at the end of the exchange period before they left for 
home so that they did not have to return exchange visitor security 
deposits. Unavailable and unsuitable housing appears to have been the 
top issue of concern for exchange visitors in both the 2014 and 2015 
Summer Work Travel program years.
    The Department proposes to require in paragraph 62.32(l)(1) that 
sponsors may only authorize placements that include options for safe 
and affordable housing accommodation and accessible modes of local 
transportation. Housing options must have reasonable proximity to the 
host entity and regular, safe, and affordable local transportation 
options leading to commercial infrastructure and to the host entity, 
unless the sponsor or host entity provides such transportation. 
Possible housing and local transportation options must be identified 
before the placement is approved as part of the sponsor's program. The 
specific conditions of the housing option selected for the exchange 
visitor by either the sponsor or sponsor's host entity, as applicable, 
must be reflected on the Housing Addendum to Form DS-7007 in accordance 
with proposed paragraph 62.32(m).
    The Department proposes to retain the option for exchange visitors 
to self-identify housing, but both the sponsor and the exchange visitor 
must document such a selection in writing (proposed paragraph 
62.32(l)(5)), and the sponsor may deny the housing if it does not 
include the characteristics set forth in proposed paragraph 
62.32(l)(2). All housing, whether provided or found by the exchange 
visitor, must meet all applicable housing codes and ordinances. It also 
must be affordable for the exchange visitor; in a safe location; within 
reasonable distance from the exchange visitor's site of activity at the 
host entity(ies); in an area with regular, safe, and affordable 
transportation options; in a location that is neither isolated nor 
difficult to access; and in reasonable proximity to commercial 
infrastructure. Likewise, sponsors may not approve a placement if the 
associated housing option does not include those same characteristics.
    Recent summers have seen an increased number of severe exchange 
visitor bicycle accidents. If an exchange visitor bicycles to and from 
the host entity or to reach commercial infrastructure, sponsors, in 
accordance with proposed paragraph 62.32(l)(7) must ensure that the 
exchange visitor is informed that he or she must wear a helmet and 
other appropriate protective gear and that he or she must check that 
the bicycle is in working order (e.g., brakes functional, frame not 
bent, all tires inflated properly, bicycle chain and gears functional). 
All sponsors must provide bicycle safety information in pre-arrival 
materials and during orientation, including the Department-generated 
bicycle safety flyer, and place a bicycle safety video on their Web 
site. No exchange visitor should be expected by sponsors or host 
entities to ride a bicycle to work on a highway or other major road 
without bicycle lanes. Likewise, no exchange visitor should be expected 
to ride a bicycle over distances of longer than a total of eight miles 
per day in order to travel to and from the host entity or reach 
commercial infrastructure.
    Sponsors placing exchange visitors in national parks, ski resorts, 
and summer camps must have on file, in accordance with paragraph 
62.32(l)(3), the host entity's written arrangement for transportation 
for those exchange visitors in their off-duty hours or in case of 
emergency.
    14. Form DS-7007 (Host Placement Certification). Proposed paragraph 
62.32(m) contains the requirement of the Summer Work Travel Host 
Placement Certification Form (Form DS-7007). The Department believes 
certain host placement information must be agreed upon by the three 
primary parties--the exchange visitor, host entity, and sponsor--before 
issuance of a visa.
    Provision of Forms DS-7007 to exchange visitors will ensure that 
they are fully aware, before traveling to the United States, of the 
details of their individual Summer Work Travel program. As set forth in 
proposed paragraph 62.32(m)(1)(i), these details must include 
information about location and description of the host placement; 
number of employees and other exchange visitors on location; hours of 
work each week that will be offered the exchange visitor; duties, 
wages, and expectations of overtime; expected training period, if any; 
physical demands of the host placement; benefits each exchange visitor 
will receive from the host placement; total itemized fees and costs of 
the program charged by sponsors, host entities, and third parties 
(noting clearly which of those that are mandatory and those that are 
optional) that the exchange visitor will incur; itemized costs to each 
exchange visitor for benefits and mandatory and optional deductions 
(such deductions must be noted on the form); and any meals included at 
the host entity. Deductions taken from wages must be disclosed in 
advance to the exchange visitor.
    The Department further proposes, in paragraph 62.32(m)(1)(i), to 
require sponsors to complete Form DS-7007 for every initial and 
subsequent host placement the exchange visitor accepts, and to update 
the form if the terms of the host placement(s) changes significantly. 
Sponsors must provide each signatory an executed copy of the Form DS-
7007 (excluding the Housing Addendum) before the sponsor issues the 
exchange visitor a Form DS-2019 and the exchange visitor makes his or 
her visa application; and inform the exchange visitor that he or she 
must have his or her fully executed Form DS-7007 (excluding the Housing 
Addendum) available (along with his or her Form DS-2019) should it be 
requested during the visa interview.
    In accordance with proposed paragraph 62.32 (m)(2), sponsors also 
must provide details about any sponsor- or host entity-arranged housing 
on the Housing Addendum to Form DS-7007, including the type of housing 
(house, apartment, dormitory, or other); distance to the exchange 
visitor's site of activity, and local transportation type and cost; 
cost of housing either weekly or monthly; need for an exchange visitor 
housing deposit; utilities covered in rent and those that the exchange 
visitor must pay separately; number of other tenants; housing features 
and description (including numbers of bedrooms and bathrooms); and type 
of housing contract, if any, that the exchange visitor must sign.
    For protection of exchange visitors under proposed paragraph 
62.32(m)(3), sponsors must give exchange visitors 72-hours to consider 
any significant additional requirements or changes proposed by the host 
entity to their host placement or housing after the DS-7007 or Housing 
Addendum is initially executed. If the exchange visitor disagrees in 
writing with the proposed

[[Page 4132]]

changes to his or her placement or does not respond at all about 
suggested changes, he or she must be permitted to continue with the 
duties in the original placement, unless the host entity requests that 
the sponsor re-place the exchange visitor. An exception to the 72-hour 
rule may be made if such a change must be implemented before 48-hours 
to protect the health, safety, and welfare of the exchange visitor.
    If the sponsor or host entity arranges housing for the exchange 
visitor, the Housing Addendum to Form DS-7007 must be completed and 
sent to the exchange visitor prior to the visitor's departure for the 
United States in accordance with proposed paragraph 62.32(m)(2). 
Sponsors must update the DS-7007 and/or Housing Addendum if exchange 
visitors move to other sponsor-provided (including host entity-
provided) housing. If exchange visitors find their own housing or opt 
out of sponsor-provided housing (including host entity-provided), which 
they must do in writing, the sponsor need not complete the Housing 
Addendum, but must vet the housing address and its suitability before 
the exchange visitor can move in. Sponsors must keep the DS-7007 on 
file for three years, as set forth in proposed paragraph 62.32(m)(4).
    15. Exchange visitor pre-departure orientation. The Department 
believes that an orientation for each exchange visitor is of the utmost 
importance in order to inform the exchange visitor about the role of 
the sponsor and the host entity, exchange visitor requirements during 
the program, and benefits and protections offered. Sponsors must 
fulfill the pre-arrival information and orientation requirements as set 
forth at Sec.  62.10(b)-(c). In addition, pursuant to proposed 
paragraph 62.32(n), sponsors would be required to provide, prior to 
each exchange visitor's departure from his or her home country, an 
orientation, either in person or online, or a combination of both, that 
includes the following: An explanation of the sponsor's role during the 
program, including monitoring, and of host entity responsibilities; the 
Department of State's Summer Work Travel Exchange Visitor Welcome 
Letter and Diversity Flyer; the sponsor's 24/7 immediate (i.e., non-
answering machine) contact telephone number; a description of exchange 
visitor and host entity obligations and responsibilities, including a 
list of program obligations and responsibilities; information 
explaining the cross-cultural component of the Summer Work Travel 
program, including the exchange visitor's obligation to participate in 
sponsor- and/or host entity-arranged cross-cultural activities, and how 
best to experience local or national U.S. culture; information on how 
to identify and report workplace abuse, sexual abuse, sexual 
harassment, bullying, and exploitation; information on how to identify 
and report wage violations, housing violations, poor housing 
conditions, and instances of host entity retaliation against the 
exchange visitor for reporting problems; information on general 
personal, pedestrian, transportation, including bicycle safety 
information (i.e., providing the Department-generated bicycle safety 
flyer and placing a bicycle safety video on the sponsor's Web site); an 
identification card with a photo of the exchange visitor listing the 
exchange visitor's name, the sponsor's name, and main office and 
emergency telephone numbers, 911, the telephone number of the 
Department's J-1 visa toll-free emergency help line, the J-1 visa email 
address, and the name and policy number of the sponsor's health 
insurance provider, if applicable; and information on how to seek 
medical care in the United States (e.g., information on insurance 
deductibles, the differences between emergency room visits and regular 
hospital visits), and locations of the nearest medical facilities (e.g. 
hospitals, clinics, for general medicine).
    The orientation must additionally include information to exchange 
visitors on the process of monitoring and on their obligation to notify 
their sponsor within ten days of arrival in the United States and of 
any changes to the terms agreed to in Form DS-7007. Sponsors must 
describe the circumstances that may lead to termination of an exchange 
visitor's program under rules governing the program.
    All of the proposed requirements for the pre-departure orientation 
are those that cover major aspects of the program, including the 
responsibilities of each party involved in the exchange; what reporting 
is required; necessary communications among the sponsor, host entity, 
and exchange visitor; workplace violations to which the exchange 
visitor should be alert; and what to do in case of emergencies. The 
Department is also aware that many parents of exchange visitors attend 
pre-departure orientation, although this is not a requirement, and 
believes that such information is also helpful for exchange visitors' 
families to know.
    16. Cross-cultural activities. The Department proposes at paragraph 
62.32(o)(1) to require all sponsors to ensure that exchange visitors in 
the Summer Work Travel Program work with U.S. persons and actually 
engage in cross-cultural activities, as opposed to merely having, as 
the 2012 IFR required, the opportunity to do so. This proposed 
requirement more properly reflects the Department's intent, i.e., that 
exchange visitors are on an exchange program, the goals of which are to 
have them both work alongside U.S. persons and learn about U.S. culture 
through and outside of work. The Department proposes at paragraph 
62.32(o)(2)-(3) that sponsors must themselves plan, initiate action, 
and/or assist host entities, domestic third parties, or local community 
groups, to provide each of their exchange visitors with at least one 
cross-cultural activity per calendar month in addition to their work 
activities, thereby giving him or her exposure to U.S. culture and/or 
the opportunity for interaction with U.S. persons. Sponsors may include 
in their agreements with host entities a provision that the host entity 
plan and implement cross-cultural activities each calendar month during 
which it has exchange visitors under its supervision.
    Cross-cultural programming opportunities should provide exchange 
visitors on the Summer Work Travel program at least one of the 
following benefits. They should enable exchange visitors to: (1) Learn 
about U.S. society, higher education, and culture outside of their 
placement; (2) share their own culture, traditions, and views with U.S. 
residents; (3) experience the United States and its geographical 
diversity; (4) see the world or the United States from another 
perspective; (5) better understand the history and heritage of a 
diverse U.S. population; and/or (6) appreciate similarities that bring 
people of different nationalities and backgrounds together.
    Cross-cultural activities can range from small and informal to 
large-scale and organized activities. A cultural activity does not need 
to be a trip to another city or a large or expensive event that takes 
weeks of planning. It can be something small and relatively 
spontaneous, making use of local resources. Some examples that occurred 
over the last program year were: Having the exchange visitor come to an 
already-planned staff picnic; organizing a potluck dinner at the 
supervisor's house with colleagues; going to a state fair; organizing a 
building-a-bonfire-on-the-beach event; having a group visit a natural 
resource, such as a cave or a federal, state, or local park nearby; 
playing softball with fellow employees; going with the exchange visitor 
to a local sporting event such as baseball (including having a contest 
about who can best describe the rules of baseball);

[[Page 4133]]

bowling; or a trip to a downtown area, museum, library, or outdoor 
concert that is either free of charge or has a nominal charge. Around 
42 percent of sponsors and their host entities already arrange such 
cultural activities for exchange visitors. Sponsors should be prepared 
to provide guidance to host entities not yet offering cultural 
activities on how to fulfill this requirement.
    17. Exchange visitor monitoring and assistance. The Department will 
continue to require, as set forth in proposed paragraph 62.32(p), that 
sponsors maintain, at a minimum, monthly personal contact with exchange 
visitors. The Department wishes to clarify that sponsors should make 
actual contact with each exchange visitor and ascertain how his or her 
program is progressing. The sponsor must communicate in a way that 
elicits an exchange visitor response (in writing through email or by 
telephone or telephone message) that provides clarity as to the 
exchange visitor's well-being. In addition, the Department intends for 
sponsors to be proactive during their monitoring in assessing exchange 
visitors' overall health, safety, and welfare and address appropriately 
and in a timely manner issues identified through their monitoring; 
provide assistance to exchange visitors as requested; and serve as 
information resources, facilitators, and counselors upon an exchange 
visitor's request. (See proposed paragraph 62.32(p)(2)-(6)).
    Sponsors must document all efforts to resolve problematic 
placements and efforts to contact non-responsive exchange visitors 
before termination. Sponsors must conduct monitoring of their exchange 
visitors and facilitate Department oversight and visits to placement 
locations. In addition, sponsors should inform host entities about the 
Department's monitoring process. Sponsors must be prepared to 
incorporate additional monitoring steps at the suggestion of the 
Department in order to resolve efficiently any problems that come to 
the Department's attention regarding the Summer Work Travel program.
    18. Sponsor use and vetting of foreign third parties. The 
Department expects that sponsor use of foreign third parties be as 
transparent as possible and that sponsors be substantially 
knowledgeable of and closely oversee the actions of any foreign third 
parties with which they work. The Department has seen instances of 
sponsors delegating most of the responsibility for their Summer Work 
Travel program to third parties, many of which are domiciled abroad. 
Because many third parties recruit exchange visitors in an exchange 
visitor's home country, these third parties are known first to the 
exchange visitor. But this should not remain the case throughout the 
exchange. Sponsors, which are designated by the Department to 
facilitate the Exchange Visitor Program, are expected to develop and 
have the primary relationship with host entities in the United States, 
even though host placement leads may have been initially recommended to 
the sponsor by a foreign third party. In addition, sponsors should 
develop their own forms and other information-gathering documents when 
they work with host entities in the United States; these should not be 
provided by third party entities.
    Because the Summer Work Travel program is first and foremost a 
public diplomacy and cultural exchange program, if utilizing the 
services of foreign third parties, sponsors must, under proposed 
paragraph 62.32(q)(1), select only those that market the Summer Work 
Travel program as a cultural and educational program with a 32- to 65-
hour per week work component rather than a labor program.
    As proposed in paragraph 62.32(q)(1)(ii), sponsors must use only 
foreign third parties that have a fixed office address, employees with 
professional experience in the service(s) the foreign third party 
provides, an organizational mission applicable to cultural and 
educational exchange, and a secure system to collect, protect, and 
dispose of the personal data of potential and actual program exchange 
visitors (e.g., a digital security system for intrusions if the data is 
maintained electronically, a securely locked file cabinet if collected 
in paper format). Of great importance is that third parties have a 
secure system in place to dispose of exchange visitor applications and 
other documents that have personal data on them (e.g., through 
shredding).
    As proposed in paragraph 62.32(q)(1)(iv), sponsors must ensure that 
their foreign third parties charge exchange visitors only fees and 
costs that are permissible under regulation, transparent, justifiable 
in terms of services provided, and legal. In accordance with proposed 
paragraph 62.32(d)(9), it is not permissible to require an exchange 
visitor to remit a portion of his or her income earned in the United 
States to an overseas business entity.
    Sponsors must adequately orient their foreign third parties on the 
purpose and intent of the Exchange Visitor Program, as set forth in 
proposed paragraph 62.32(q)(3), as well as provide regulatory updates 
about the Exchange Visitor Program when these are announced by the 
Department. In addition, as proposed in paragraph 62.32(q)(4), sponsors 
must require, review and approve annually the marketing materials for 
exchange visitor programs marketed on the sponsor's behalf by each of 
their foreign third parties. These marketing materials must include 
updated itemized price lists that adhere to any Department-initiated 
template.
    In order to promote transparency for potential exchange visitors, 
the Department proposes in paragraph 62.32(q)(6) that a sponsor place 
information about each of its foreign third parties on the sponsor's 
main Web site (i.e., with a visible link to this page on the sponsor's 
homepage). The Web site entry must include the foreign third party's 
official name, headquarters address, and specific program functions 
performed (e.g., recruitment and overseas orientation of exchange 
visitors, initial identification of host entities). This will give 
potential applicants to the program a way to check that any third party 
or outside entity that approaches them plays a legitimate role in the 
sponsor's program administration.
    In accordance with Sec.  62.2 and as provided in proposed paragraph 
62.32(q)(8), failure by any foreign third party to comply with the 
regulations or with any additional terms and conditions governing 
administration of the Exchange Visitor Program will be imputed to the 
sponsor by the Department. And, pursuant to proposed paragraph 
62.32(q)(8), sponsors are required to ensure that foreign third parties 
know and comply with all applicable Departmental regulations and 
guidance.
    The Department proposes in paragraph 62.32(r) that sponsors 
thoroughly vet their foreign third parties. At a minimum, a sponsor 
must annually review current documentation for each of its foreign 
third parties as part of the vetting process to ensure that the third 
party is legally authorized to conduct business where it operates; is 
solvent, as determined through an examination of its recent financial 
statements; is reputable, as evidenced by references from business 
associates or partner organizations; does not have legal judgments 
against it or pending legal actions or complaints; and has staff all of 
whom have undergone criminal background checks. These are very 
important aspects for sponsors to consider as they select and vet 
foreign third parties. Such foreign third parties come into direct 
contact with exchange visitor program applicants and

[[Page 4134]]

participants, and the reputation of the Summer Work Travel program is 
dependent upon the financial and operational stability of those third 
parties. As proposed in paragraph 62.32(q)(9), a sponsor may not use a 
foreign third party if the Department has determined and informed the 
sponsor that the third party does not meet the requirements of proposed 
paragraph 62.32(q)(1).
    19. Sponsor use and vetting of domestic third parties. In proposed 
paragraphs 62.32(d)(4) and 62.32(s)(2), domestic third parties 
providing initial identification of host entities, implementing cross-
cultural activities for exchange visitors, serving as a local point of 
contact and orientation for exchange visitors, or providing housing 
assistance and transportation for the program now must be covered under 
written agreement with the sponsor. In proposed paragraph 62.32(s)(4), 
these third parties also must be listed on the sponsor's main Web site, 
noting each party's official name, headquarters address, and the 
specific program functions performed. As proposed in paragraph 
62.32(s)(1), sponsors must use only domestic third parties that have a 
fixed office address; employees with professional experience in the 
service(s) the domestic third party provides; a willingness to learn 
about and contribute through provided services to the public diplomacy 
mission of the Summer Work Travel program; and, if the organization 
collects applications or other materials with the personal data of 
prospective or actual exchange visitors, a secure system to collect, 
protect, and properly dispose of such data.
    Sponsors will be required to supervise and monitor carefully their 
third parties' program-related activities to ensure that the third 
party is in compliance with the Exchange Visitor Program regulations. 
Sponsors must not refer any potential exchange visitor applicants to a 
domestic third party that is not covered by a written agreement. 
Sponsors that engage another designated sponsor as a third party do not 
need to vet that sponsor, but must require that the third party sponsor 
provide proof of current Department designation.
    Sponsors must vet domestic third parties in accordance with the 
requirements set forth in proposed paragraph 62.32(t). These are very 
important aspects for sponsors to consider as they select and vet 
domestic third parties. Such domestic third parties may initially 
identify host entities where exchange visitors are placed, which 
placement will materially impact the exchange visitor's experience in 
the United States; implement cross-cultural activities for the exchange 
visitor, which is a central aspect of such a public diplomacy program; 
orient the exchange visitor on what is permitted and not permitted on 
the program; serve as a point of contact throughout that exchange 
visitor's time in the United States; or provide transportation for the 
exchange visitor. The experience of the exchange visitor and the 
reputation of the Summer Work Travel program are protected by assessing 
whether the third party, at a minimum, legally operates in the United 
States; has disclosed any bankruptcy, complaints, pending legal 
actions, or adverse judgments; and has liability insurance sufficient 
to cover the activities it provides in connection to the Summer Work 
Travel program.
    Requiring sponsors to enter into a fully executed written agreement 
with both foreign and domestic third party entities (proposed 
paragraphs 62.32(q)(2) and (s)(2)) will provide more oversight than the 
previously informal agreements sponsors may have relied upon for such 
services, and will better protect the health, safety, and welfare of 
exchange visitors. It will also ensure that the sponsor acknowledges in 
writing that the third party is in a legal relationship with that 
sponsor in regard to that third party's contribution to the Exchange 
Visitor Program and what specific services that sponsor expects the 
third party to provide to exchange visitors.
    20. Reporting requirements. As proposed in paragraph 62.32(u)(1), 
sponsors must report to the Department, within 30 days of conclusion, 
any new written agreement they have made with a foreign third party and 
the name of and contact information for that foreign third party. A 
sponsor also must notify the Department within 30 days after ceasing to 
work with a foreign third party previously reported. Each sponsor must 
keep the list of foreign third parties up-to-date with the Department 
so that the Department can ensure program office and consular office 
worldwide awareness of whether or not foreign third parties are 
operating on behalf of the Summer Work Travel program, both within the 
United States and abroad. It also will require sponsors to submit each 
year by December 1 a report of itemized exchange visitor price lists 
with breakdowns of the costs that exchange visitors must pay each 
sponsor and foreign third party by country in order to participate in 
the program.
    21. Re-evaluation of exchange visitor cap and moratorium on 
sponsors. On November 7, 2011, the Office of Private Sector Exchange 
published a notice in the Federal Register (Public Notice 7677) stating 
that, until further notice, Summer Work Travel program sponsors in 
business for the full 2011 calendar year would not be permitted to 
expand their number of program participants beyond their actual total 
2011 participant program size (a cap) and that no new applications from 
prospective sponsors for Summer Work Travel program designation would 
be accepted (a moratorium). The cap has meant that designated sponsors 
may not increase the number of exchange visitors participating in their 
Summer Work Travel programs beyond their current allotment of Forms DS-
2019 (i.e., they cannot request program expansion under Sec.  
62.12(d)(2)). The Department intends to re-evaluate the cap and the 
moratorium upon completion of this rulemaking and invites public 
comment.

Regulatory Analysis

Administrative Procedure Act

    The Department of State is of the opinion that administration of 
the Exchange Visitor Program, including the Summer Work Travel program 
category, is a foreign affairs function of the U.S. Government and that 
rules implementing this function are exempt from Section 553 
(Rulemaking) and Section 554 (Adjudications) of the Administrative 
Procedure Act (APA). As reflected in the Fulbright-Hays Act, the 
purpose of such programs is to increase ``mutual understanding'' 
between the people of the United States and those of other countries, 
``unite us with other nations,'' and ``promote international 
cooperation.'' Pursuant to law, policy, and longstanding practice, the 
Department of State has supervised, either directly or through private 
sector program sponsors or grantee organizations, those foreign 
nationals who come to the United States as exchange visitors in 
exchange visitor programs, one of which is the Summer Work Travel 
Program. Exchange visitors in the Summer Work Travel Program come to 
the United States currently from approximately 125 countries. When 
problems occur in a program such as this, foreign governments often 
directly engage the Department of State regarding the treatment of 
their nationals, regardless of who is responsible for the problems.
    A major purpose of this rulemaking is to put in place extra 
measures to protect the health, safety, and welfare of foreign 
nationals entering the United States to participate in the Summer Work 
Travel Program then returning to their countries of nationality or last 
legal permanent residence upon completion

[[Page 4135]]

of their programs. A number of foreign governments have informed the 
Department that they regard this program as important to their 
bilateral relationship with the United States and to their nationals 
who seek to participate. Participating countries look to the Department 
to protect their nationals. The Department is of the view that failure 
to protect the health and welfare of these foreign nationals can have 
direct and substantial adverse effects on the foreign affairs of the 
United States.
    The Department emphasizes that many provisions of this proposed 
rule--indeed, the majority--reflect careful consideration of public 
comments received on two previous Interim Final Rules issued on May 11, 
2012, and April 26, 2011 (see the citations in the ``Supplemental 
Information'' section of this Notice, above). Members of the public 
submitted detailed comments, and this proposed rule has benefited from 
those comments. A number of provisions within this proposed rule are 
new, based on additional monitoring of the program that the Department 
has conducted and meetings with sponsors about their current experience 
in conducting this program.
    Although the Department is of the opinion that this rule is exempt 
from the rulemaking provisions of the APA, the Department is publishing 
this rule as a proposed rule, with a 45-day provision for public 
comment and without prejudice to its determination that the Exchange 
Visitor Program is a foreign affairs function.

Small Business Regulatory Enforcement Fairness Act of 1996

    This proposed rule is not a major rule as defined by 5 U.S.C. 804 
for the purposes of Congressional review of agency rulemaking under the 
Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 
801 et seq.).

Unfunded Mandates Reform Act of 1995

    This proposed rule will not result in the expenditure by State, 
local and tribal governments, in the aggregate, or by the private 
sector, of $100 million in any year and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

Executive Order 13175--Consultation and Coordination with Indian Tribal 
Governments

    The Department has determined that this rulemaking will not have 
tribal implications, will not impose substantial direct compliance 
costs on Indian tribal governments, and will not preempt tribal law. 
Accordingly, the requirements of Executive Order 13175 do not apply to 
this rulemaking.

Regulatory Flexibility Act/Executive Order 13272: Small Business 
Impacts

    Since the Department is of the opinion that this rule is exempt 
from 5 U.S.C. 553, the Department is also of the view that this rule is 
not subject to the Regulatory Flexibility Act (5 U.S.C. 601, et seq.) 
and Executive Order 13272. However, to inform the public as to the 
costs and burdens of the this rule upon designated program sponsors, 
the Department notes that, if adopted in full, the changes proposed 
herein will affect the operations of 41 corporate, academic, and tax-
exempt program sponsors designated by the Department to conduct the 
Summer Work Travel Program. Further information follows.
Numbers of Small Businesses
    Of the 41 current designated sponsors in the Summer Work Travel 
category, 29 sponsors or 70 percent of the total had annual revenues of 
less than $7 million in 2015. These 29 small program sponsors accounted 
for approximately 26,000 exchange visitors on the Summer Work Travel 
program in 2015, or 28.8% of the average total number (90,000) of 
exchange visitors on the Summer Work Travel program (averaged over the 
past three calendar years (2013-2015)).
     Transparency: Proposed fee and wage transparency 
requirements include the requirement to provide sample budgets and a 
breakdown of all fees that an exchange visitor pays. The Department 
estimates cost for 29 small sponsors multiplied by 1 burden hour at $26 
weighted wage (i.e., including staff benefits), in accordance with 
Bureau of Labor Statistics (National Compensation Survey, Monthly Labor 
Review, January 2016) and the salary figures for entry-to-junior-level 
or ``other services'' staff at non-profit or for profit organizations 
(also junior contractors) working on administering daily program 
activities, or $754. This is a new cost to sponsors.
     Sponsor screening of candidates for eligibility and 
selection. The Department estimates the cost at 0.5 hours per exchange 
visitor (26,000 exchange visitors under the purview of small sponsors) 
multiplied by $26 per weighted wage, or $338,000. This is not a new 
cost for sponsors. However, the cost, now set forth in proposed 
paragraph (e)(1) of the proposed rule, was previously calculated as 
part of placement (paragraph (g) of the 2012 IFR) and has now been 
separated out.
     Exchange visitor pre-placement at host entities. The 
Department estimates that there will be no new costs and that the cost 
will be $260,000 (26,000 exchange visitors under the purview of small 
sponsors multiplied by 1 hour multiplied by $10 per exchange visitor). 
Placement includes finding a host entity at which the exchange visitor 
may conduct the work component of the exchange and identifying 
information about the work component, such as hourly wage, activities 
of the job, whether any heavy lifting or other physical labor is 
involved, whether there are any training requirements, whether there 
are any meals that may be taken onsite, whether there are costs to the 
exchange visitors for the host entity placement, and so forth.
     Exchange visitor host re-placement. It is estimated that 
there may be as many as 725 re-placements or additional placements by 
small sponsors and the cost to small sponsors will be 0.5 hours of 
sponsor administrative staff time multiplied by $10 (Bureau of Labor 
Statistics estimated hourly wages for seasonal administrative workers) 
multiplied by 725 or a total of $3,625. This is not a new cost to 
sponsors. However, the cost was previously calculated as part of 
placement and has now been separated out.
     Sponsor vetting of host entities. The Department estimates 
that the cost for vetting host entities will be $91,000 for all 
sponsors collectively (7,000 host entities associated with small 
sponsors multiplied by 0.5 man hours multiplied by $26). This is not a 
new cost.
     Facilitating the placement of exchange visitors in 
appropriate and affordable housing. The Department estimates the cost 
at $260,000 (26,000 exchange visitors multiplied by 1 hour multiplied 
by $10 per hour for administrative staff wage). This is not a new cost.
     Preparing and disseminating Form DS-7007. The Department 
estimates that it will take sponsors a total of 1.25 hours to complete 
both parts of the form at a cost of $868,563 (26,725 exchange visitors 
(including re-placements) multiplied by 1.25 hours multiplied by $26 
weighted wage per hour). This cost includes completion of both the main 
form and the housing addendum. This is a new cost for sponsors.
     Orientation documentation for exchange visitors: The 
Department estimates the cost of sponsors' providing orientation-
related materials to 26,000 exchange visitors under the purview of 
small sponsors at 0.5 hours multiplied by $26 weighted wage per hour, 
or $338,000. This is not a new cost.

[[Page 4136]]

     Cross-cultural activities. Small sponsors (or their host 
entities) must plan cross-cultural activities for exchange visitors, 
with one cross-cultural activity being planned each calendar month 
during which exchange visitors are on program. Exchange visitors are, 
on average, in the program for a period of four months. Planning and 
carrying out the cross-cultural activities is calculated at 7,000 small 
business host entities of exchange visitors multiplied by six hours 
(four for planning and two for implementation of one activity) over the 
course of the summer (one per calendar month of the summer work travel 
program period equals four total) at $10 per hour administrative staff 
wage; this equals $1,680,000. The time commitment to plan an activity 
for exchange visitors could be less for many host entities, given that 
the entity is not required to plan a complex cultural activity. This is 
a new cost.
     Exchange visitor monitoring and assistance: It is 
estimated that small sponsors will spend 30 minutes per exchange 
visitor to monitor exchange visitor activities throughout the program 
cycle, including checking on exchange visitor health, safety and 
welfare, resolving placement problems, and contacting less responsive 
participants, at an annual cost of $130,000 for sponsors collectively 
(26,000 exchange visitors multiplied by 0.5 multiplied by $10 per hour 
administrative staff wage). This is not a new cost to sponsors.
     Sponsor use and vetting of foreign and domestic third 
parties. The Department estimates that small sponsors will use and vet 
around 252 foreign and 280 domestic third parties. The Department 
estimates that it will cost small sponsors two hours to conclude an 
agreement and vet each third party at a cost of $26 weighted wage per 
hour, or $27,664. This is not a new cost.
     Reporting requirement. Sponsors will only need to submit 
the foreign third party (formerly foreign entity) names and contact 
information and their price lists. The twice-yearly placement report is 
no longer required, as the Department can retrieve this information 
from existing SEVIS files. It is estimated that the 29 small sponsors 
will spend one hour on each of two reporting requirements multiplied by 
$26 per man hour, or $1,508. This is not a new cost.
    The total cost of all regulatory provisions per small sponsor 
exchange visitor is $154; total cost of all new regulatory provisions 
per small sponsor exchange visitor is $98. Last calendar year, there 
were 13 small sponsors having fewer than 500 exchange visitors in the 
Summer Work Travel category. The largest of this number had permission 
from the Department to host 477 exchange visitors and would under the 
proposed regulation incur total costs of $73,458, and new costs of 
$46,746, or four percent of revenue. The smallest of this number had 
permission to host five exchange visitors and would under the proposed 
regulation incur total new costs of $490, or less than one percent of 
revenue.
    Last calendar year, there were twelve sponsors with permission to 
host between 500 and 2,000 exchange visitors in the Summer Work Travel 
category. Of these, the largest had permission to host 1,934 exchange 
visitors and would under the proposed regulation incur a total cost of 
$297,836, and total new costs of $189,532, or around nine percent of 
revenue. The smallest sponsor in this group had permission to host 555 
exchange visitors and under the proposed regulation would incur a total 
cost of $85,470 or around eight percent of revenue and new costs of 
$54,390, or around six percent of revenue.
    Last calendar year, there were five sponsors with permission to 
host more than 2,000 exchange visitors. The largest of these were able 
to host 5,569 exchange visitors and would under the proposed regulation 
incur a total cost of $857,626, or eight percent of revenue and total 
new costs of $545,762, or six percent of revenue. The smallest of these 
were permitted to host 2,311 and would incur under the proposed 
regulation total costs of $355,894 and total new costs of $226,478.
    The Department considered whether alternative approaches for small 
businesses could adequately protect the safety and welfare of exchange 
visitors while reducing costs to small entities. For example, the 
Department considered requiring cross-cultural activities less 
frequently for small sponsors and/or host entities. However, the 
Department has a mandate to ensure cross-cultural engagement for all 
visitors, and a monthly requirement provides a minimum level of cross-
cultural engagement to meet the objectives of the Fulbright-Hays Act. 
The Department also considered the requirement to complete a DS-7007 on 
housing and host entity placement for small businesses and considered 
whether small entities could be given additional time for compliance. 
The Department decided against this proposal due to the need to provide 
adequate information about the host entity and housing available to all 
visitors to the United States. The requirements for the Summer Work 
Travel category, as well as all Exchange Visitor Program categories, 
are driven almost exclusively by considerations of the health and 
safety of the exchange visitor, and any impact on foreign relations 
with the visitor's home country. These considerations constrain the 
number of feasible alternatives to the requirements proposed in this 
Notice of Proposed Rulemaking. That said, the Department requests 
comment on other possible alternatives that would meet the objectives 
of this rulemaking in a less costly manner for small entities.
Executive Order 12866 and Executive Order 13563
    As discussed above, the Department is of the opinion that the 
subject of this rulemaking constitutes a foreign affairs function of 
the United States, and thus is exempt from the provisions of Executive 
Order 12866. The Department has nevertheless reviewed this rulemaking 
to ensure its consistency with the regulatory philosophy and principles 
set forth in Executive Orders 12866 and 13563. This rulemaking has been 
reviewed by the Office of Information and Regulatory Affairs, which has 
designated it a significant rule pursuant to Executive Order 12866.
    In order to inform the public as to the costs and benefits of this 
rule, the Department presents the following information.
    Affected Population. The Department estimates that this rule will 
affect 41 current designated sponsors hosting approximately 90,000 
exchange visitors annually and working with an estimated 26,000 host 
entities and 1,900 foreign and domestic third parties. Sponsors 
facilitate the Exchange Visitor Program and provide the necessary 
information, support, and guidance for exchange visitors.
    Costs. Implementation of certain provisions set forth in this 
proposed rule may result in costs for sponsors. A cost breakdown of old 
and new costs is noted below:
     Transparency: Proposed fee and wage transparency 
requirements, including the requirement to provide sample budgets and a 
breakdown of all fees and estimated costs that an exchange visitor 
pays. The Department estimates cost at 41 sponsors multiplied by 1 hour 
at $26 weighted wage, in accordance with Bureau of Labor Statistics 
salary figures for entry-to-junior-level non-profit organization staff 
or contractors working on administering daily program activities, or 
$1,066. This is a new cost to sponsors.

[[Page 4137]]

     Sponsor screening for candidate eligibility and selection: 
The Department estimates the cost at 0.5 hours per exchange visitor 
(90,000) multiplied by $26 per weighted wage or $1,170,000. This is not 
a new cost for sponsors; it was previously calculated as part of 
placement, and has now been separated out.
     Exchange visitors for providing required eligibility and 
screening information: The Department estimates the cost at 1 hour per 
exchange visitor (90,000) multiplied by $1 or $90,000. This is not a 
new cost, but has been added to cost calculations for the first time 
and is thus calculated as a new cost. The exchange visitors submitting 
eligibility information to the program are students in their home 
countries and are unlikely to be paid an hourly wage.
     Exchange visitor pre-placement at host entities: The 
Department estimates that there will be no new costs and that the cost 
will be $900,000 (90,000 exchange visitors multiplied by 1 hour 
multiplied by $10 per exchange visitor). Sponsors generally place 
exchange visitors from a contact list that is used year-to-year and 
updated through public notice or current contacts.
     Door-to-door sales placements: The Department estimates 
that the cost to the one sponsor making such placements to execute an 
agreement explaining in detail 1,325 exchange visitor's duties will be 
0.5 hours multiplied by $5 per exchange visitor, or $3,313. This is a 
new cost to one current sponsor.
     Exchange visitor host re-placement: It is estimated that 
there may be as many as 2,500 re-placements or additional placements 
and the cost to sponsors will be 0.5 hours of sponsor administrative 
staff time multiplied by $10 Bureau of Labor Statistics estimated 
hourly wages for seasonal administrative workers multiplied by 2,500 or 
a total of $12,500. This is not a new cost to sponsors; it was 
previously calculated as part of placement and has now been separated 
out.
     Sponsor vetting of host entities: The Department estimates 
that the cost for vetting host entities will remain at $338,000 for all 
sponsors collectively (26,000 host entities multiplied by 0.5 man hours 
multiplied by $26). This is not a new cost.
     Facilitating the placement of exchange visitors in 
appropriate and affordable housing: The Department estimates the cost 
at $900,000 (90,000 exchange visitors multiplied by 1 hour multiplied 
by $10 per hour). This is not a new cost.
     Preparing and disseminating Form DS-7007: The Department 
estimates that it will take sponsors (or their host entities) a total 
of 1.25 hours to complete both parts of the form at a cost of 
$3,006,250 (92,500 exchange visitors (including re-placements) 
multiplied by 1.25 multiplied by $26 weighted wage per hour). This cost 
includes completion of both the main form and the housing addendum by 
the sponsor (or the host entity). This is a new cost for sponsors.
     Orientation documentation: The Department estimates the 
cost of sponsors' providing orientation-related materials to 90,000 
exchange visitors at 0.5 hours multiplied by $26 weighted wage per 
hour, or $1,170,000. This is not a new cost.
     Cross-Cultural activities: Sponsors (or their host 
entities) must plan cross-cultural activities for exchange visitors, 
with one cross-cultural activity being planned each calendar month 
during which exchange visitors are on program. Exchange visitors are, 
on average, on program for a period of four months. Planning and 
carrying out the cross-cultural activities is calculated at 26,000 host 
entities for exchange visitors multiplied by six hours (four for 
planning and two for implementation of one activity) over the course of 
the summer (one event per calendar month of the summer work travel 
program period equals four total) at $10 per hour administrative staff 
wage equals $6,240,000. This is a new cost.
     Exchange visitor monitoring and assistance: It is 
estimated that sponsors will spend 30 minutes per exchange visitor to 
monitor exchange visitor activities throughout the program cycle, 
including checking on exchange visitor health, safety and welfare, 
resolving placement problems, and contacting less responsive 
participants, at an annual cost of $450,000 for sponsors collectively 
(90,000 exchange visitors multiplied by 0.5 multiplied by $10 per hour 
administrative staff wage). This is not a new cost to sponsors.
     Sponsor use and vetting of foreign and domestic third 
parties: The Department estimates that sponsors will make agreements 
with and vet around 900 foreign and 1000 domestic third parties. The 
Department estimates that it will cost sponsors two hours to conclude 
an agreement and vet each third party at a cost of $26 weighted wage 
per hour, or $98,800. This is not a new cost.
     Reporting requirements: There will be a decrease in 
reporting requirements. Sponsors will only need to submit the foreign 
third party (formerly foreign entity) names and contact information as 
sponsors make agreements with such third parties, and also submit third 
party price lists. The twice-yearly placement report is no longer 
required, as the Department can retrieve this information from existing 
SEVIS files. It is estimated that sponsors will spend one hour on each 
of two reporting requirements multiplied by $26 per man hour, or 
$2,132. This is not a new cost.
    Total Costs. The Department estimates the total cost of this 
proposed rule to all designated sponsors in the Summer Work Travel 
program category at $14,382,061 each year, of which up to $9,340,629 
would be new costs, mainly having to do with better documenting the 
host placement and ensuring that cross-cultural activities are part of 
the program for all exchange visitors. Total costs of the proposed 
regulation per exchange visitor would be $160 and total new costs per 
exchange visitor would be $104.
    Benefits. This proposed rule is a continuation of Department 
efforts based on a comprehensive review of the current Summer Work 
Travel program category of the Exchange Visitor Program. The rule 
predominantly enhances sponsor requirements for programmatic, 
partnership, and fee/cost transparency and vetting of domestic 
entities. These enhancements are necessary to continue the reform 
efforts of the Summer Work Travel category that began with the 2011 and 
2012 IFRs.
    Events that occurred prior to 2011 led the Department to enhance 
its scrutiny of the Summer Work Travel category and amend regulations 
to protect exchange visitors. Additionally, in recent years, the work 
component of the Summer Work Travel category has too often overshadowed 
the cultural component required by the Fulbright-Hays Act.
    Accordingly, the Department issued the 2012 IFR to address issues 
most directly affecting the health, safety, and welfare of the exchange 
visitors and to reinforce the cultural exchange aspects of the program 
to promote mutual understanding in accordance with the purpose of the 
Fulbright-Hays Act. Changes made by 2012 IFR were intended to protect 
the health, safety, and welfare of exchange visitors by reducing the 
number of improper or unsafe job placements, fraudulent job offers, 
post-arrival job cancellations, inappropriate work hours, and problems 
regarding housing and transportation.
    However, as the Department has increased its monitoring of the 
program and received additional sponsor input, it also has seen the 
need to make the proposed rule more specific than the 2012 IFR in 
certain sections, so that

[[Page 4138]]

exchange visitors are provided assurance that sponsors have a formal 
agreement with each of the domestic and foreign entities that work with 
exchange visitors; certainty in what their host placement will entail 
and in what housing will be provided; and transparency about the total 
cost of the program balanced against wages they can expect to earn 
while in the United States.
    For the reasons outlined above, the Department considers that the 
costs of this proposed rulemaking are outweighed by: (1) The benefits 
of increased protection and transparency for exchange visitors, 
enhancing both their experiences and U.S. foreign policy; and (2) 
closer adherence to the purpose of the Fulbright-Hays Act.

 Executive Order 12988

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

Executive Orders 12372 and 13132

    This proposed regulation will not have substantial direct effect 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, it is determined that this 
proposed 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--DS-7000

    The information collection requirements contained in this proposed 
rule are pursuant to the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq., and OMB Control Number 1405-0147, Form DS-7000. As part of this 
rulemaking, the Department is seeking comment regarding the additional 
administrative burden placed on sponsors due to the corresponding 
requirements for the sponsors to disclose, collect, and maintain 
information in the administration of their programs (see 22 CFR 
62.10(f)). You should include the DS form number (if applicable), 
information collection title, and/or OMB control number in any 
correspondence about burden.

Form DS-7000

    Title: Recording, Reporting, and Data Collection Requirements--
Student and Exchange Visitor Information System (SEVIS), Form DS-7000.

FOR FURTHER INFORMATION CONTACT: Direct requests for additional 
information regarding the collection listed in this notice, including 
copies of the proposed collection instrument and supporting documents, 
to the U.S. Department of State, Office of Policy and Program Support, 
SA-5, 2200 C Street NW., Floor 5, Washington, DC 20522.

SUPPLEMENTARY INFORMATION: 
     Title of Information Collection: 45-Day Notice of 
Recording, Reporting, and Data Collection Requirements--Student and 
Exchange Visitor Information System (SEVIS), DS-7000.
     OMB Control Number: 1405-0147.
     Type of Request: Revision of a Currently Approved 
Collection.
     Originating Office: Bureau of Educational and Cultural 
Affairs, ECA/EC.
     Form Number: Form DS-7000.
     Respondents: Exchange Visitors, host entities, and 
entities designated by the Department of State as Exchange Visitor 
Program sponsors in the Summer Work Travel category.
     Estimated Total Number of Respondents for the Exchange 
Visitor Program: 191,675 (DS-3036--60; DS-3037--1,415; DS-7000--
190,200). The total respondent summary for Summer Work Travel 
requirements is as follows:

------------------------------------------------------------------------
                       Respondent                            Estimate
------------------------------------------------------------------------
Exchange visitor........................................          90,000
Sponsor.................................................              41
Host entities...........................................          26,000
                                                         ---------------
    Total...............................................         116,041
------------------------------------------------------------------------

     Estimated Number of Responses for the Exchange Visitor 
Program: 1,952,655 (DS-3036--60; DS-3037--2,830; DS-7000--1,949,765 
(SEVIS = 20,977 and non-SEVIS = 1,928,788 responses)). Number of 
responses for the Summer Work Travel Program: 690,307. For a complete 
analysis of the number of responses for Exchange Visitor Program 
requirements, please refer to the Supporting Statement titled Form DS-
7000--Recording, Reporting and Data Collection Requirements--Student 
and Exchange Visitor Information System (SEVIS) (OMB No. 1405-014) and 
``SEVIS'' and ``Non-SEVIS'' spreadsheets included in docket number DOS-
2016-0038.
     Average Hours per Response for the Exchange Visitor 
Program: 68 minutes.
     Average Hours per Response for the Summer Work Travel 
Program: 92 minutes.
     Total Estimated Burden Time for the Exchange Visitor 
Program: 2,182,518 hours (DS-3036--480 hours; DS-3037--943 hours; DS-
7000--2,181,095 hours (SEVIS = 9,144 and Non-SEVIS = 2,171,951 hours).
     Total Estimated Burden Time for the Summer Work Travel 
Program: 1,061,062. For a complete analysis of the estimated burden for 
Exchange Visitor Program requirements, please refer to the Supporting 
Statement titled Form DS-7000--Recording, Reporting and Data Collection 
Requirements--Student and Exchange Visitor Information System (SEVIS) 
(OMB No. 1405-014) and ``SEVIS'' and ``Non-SEVIS'' spreadsheets 
included in docket number DOS-2016-0038.
     Frequency: On occasion.
     Obligation to Respond: Required for participation in the 
program.
    We are soliciting public comments to permit the Department to:
     Evaluate whether the proposed information collection is 
necessary for the proper functions of the Department;
     Evaluate the accuracy of our estimates of the time and 
cost burden for this proposed collection;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the reporting burden on those who are to respond, 
including the use of automated collection techniques or other forms of 
information technology.
    Please note that the comments submitted in response to this rule 
are public record. Before including any detailed personal information, 
you should be aware that your comments as submitted, including your 
personal information, will be available for public review.
    Abstract of proposed collection: The collection is the continuation 
of information collected and needed by the Bureau of Educational and 
Cultural Affairs in administering the Exchange Visitor Program. The 
changes proposed are only to Form DS-7000.
    Methodology: The collection will be submitted to the Department by 
mail or fax as requested by the Department during the review of program 
sponsor files, re-designations, incidents, etc.

Form DS-7007

    Title: 45-Day Notice of Proposed Information Collection: Form DS-
7007, Summer Work Travel--Host Placement Certification, OMB Control 
Number 1405-xxxx.

[[Page 4139]]


ACTION: Notice of request for public comments.

SUMMARY: The Department of State is seeking Office of Management and 
Budget (OMB) approval for the information collection described below. 
In accordance with the Paperwork Reduction Act of 1995, we are 
requesting comments from all interested individuals and organizations 
on this collection as it relates to proposed changes to 22 CFR 62.32. 
The purpose of this notice is to allow 45 days for public comment in 
the Federal Register preceding submission to OMB.

DATE(S):  The Department will accept comments from the public up to 45 
days from February 27, 2017.

ADDRESSES: You may submit comments identified by any of the following 
methods:
     Web: Persons with access to the Internet may view and 
comment on this notice by going to www.regulations.gov.You can search 
for the document by entering ``Docket Number: DOS-2016-0005'' in the 
Search Field. Then click the ``Comment Now'' button and complete the 
comment form.
     Email: [email protected].
     Mail (paper, disk, or CD-ROM submissions): U.S. Department 
of State, Office of Policy and Program Support, SA-5, 2200 C Street 
NW., Floor 5, Washington, DC 20522.

You must include the form number (DS-7007 or 7000), information 
collection title, and OMB control number (if any) in any 
correspondence.

FOR FURTHER INFORMATION CONTACT: Direct requests for additional 
information regarding the collections listed in this notice, including 
copies of the proposed collection instruments and supporting documents, 
to the U.S. Department of State, Office of Policy and Program Support, 
SA-5, 2200 C Street NW., Floor 5, Washington, DC 20522.

SUPPLEMENTARY INFORMATION: 
     Title of Information Collection: Exchange Visitor 
Program--Summer Work Travel Host Placement Certification.
     OMB Control Number: 1405-xxxx.
     Type of Request: New Collection.
     Originating Office: Bureau of Educational and Cultural 
Affairs, ECA/EC.
     Form Number: Form DS-7007.
     Respondents: Entities designated by the Department of 
State as Exchange Visitor Program sponsors in the Summer Work Travel 
category.
     Estimated Number of Respondents: 41.
     Estimated Number of Responses: 92,500.
     Average Hours per Response: 1.25 hours.
     Total Estimated Burden Time: 115,625 hours.
     Frequency: On occasion.
     Obligation to Respond: Mandatory.
    We are soliciting public comments to permit the Department to:
     Evaluate whether the proposed information collection is 
necessary for the proper functions of the Department;
     Evaluate the accuracy of our estimates of the time and 
cost burden for this proposed collection;
     Enhance the quality, utility, and clarity of the 
information to be collected;
     Minimize the reporting burden on those who are to respond, 
including the use of automated collection techniques or other forms of 
information technology.
    Please note that the comments submitted in response to this Notice 
are public record. Before including any detailed personal information, 
you should be aware that your comments as submitted, including your 
personal information, will be available for public review.
    Abstract of proposed collection: This collection of information is 
needed by the Bureau of Educational and Cultural Affairs in 
administering the Exchange Visitor Program (J-Visa) under the 
provisions of the Mutual Educational and Cultural Exchange Act of 1961, 
as amended. Summer Work Travel Host Placement Certification Forms are 
to be completed by designated program sponsors (with reference to some 
information provided by host entities).
    A Host Placement Certification (Form DS-7007) is required for each 
Summer Work Travel participant. It will set forth: Location and 
description of the host placement; number of employees and other 
exchange visitors on location; hours of work each week that will be 
offered the exchange visitor; duties, wages, expected training period, 
if any; physical demands of the host placement; any placement-related 
benefits or amenities; total itemized fees and estimated costs of the 
program charged by sponsors, host entities, and third parties (noting 
those that are mandatory and optional), that that exchange visitor will 
incur; explanation of costs and deductions for benefits and mandatory 
and optional deductions (noting those that are mandatory and optional); 
and meals included at host entity. Form DS-7007 must be signed by the 
sponsor, the sponsor's host entity, and the exchange visitor.
    The Housing Addendum will describe the housing and local 
transportation and cost (either weekly or monthly), distance to the 
site of activity at the host entity, need for an exchange visitor 
housing deposit; utilities covered in rent and those that the exchange 
visitor must pay separately; whether deductions for housing or local 
transportation will be taken from exchange visitors' wages, number of 
other tenants; housing features and description (including numbers of 
bedrooms and bathrooms); and whether there is a firm contract for the 
housing that the exchange visitor must sign for a fixed period of time. 
The Housing Addendum page must state the market value of housing and/or 
local transportation.
    Upon request, Summer Work Travel applicants must present a fully 
executed Summer Work Travel Host Placement Certification (Form DS-7007) 
to any Consular Official interviewing them in connection with the 
issuance of a J-1 visa.
    Methodology: The collection will be submitted to the Department by 
mail or fax as requested by the Department during the review of program 
sponsor files, re-designations, incidents, etc.

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

0
1. The authority citation for Part 62 is revised to read as follows:

    Authority:  8 U.S.C. 1101(a)(15)(J), 1182, 1184, 1258; 22 U.S.C. 
1431 et seq.; 22 U.S.C. 2451 et seq.; 22 U.S.C. 2651a; Pub. L. 105-
277, Div. G, 112 Stat. 2681 et seq.; Reorganization Plan No. 2 of 
1977, 42 FR 62461, 3 CFR, 1977 Comp. p. 200; E.O. 12048 of March 27, 
1978; Pub. L. 104-208, Div. C, 110 Stat. 3009-546, as amended; 
section 416 of Pub. L. 107-56, 115 Stat. 354; and Pub. L. 107-173, 
116 Stat. 543.

0
2. Section 62.32 is revised to read as follows:


Sec.  62.32   Summer Work Travel.

    (a) Purpose. Together with other applicable provisions of 22 CFR 
part 62, the regulations in this section govern participation in the 
Summer Work Travel program category conducted by U.S. Department of 
State-designated sponsors. The purpose of this program is to provide 
foreign college or university students (or those recently graduated) 
the opportunity, during their breaks between or immediately following 
academic years, to:

[[Page 4140]]

    (1) interact with U.S. persons and experience the culture and 
customs of the United States through authorized placements and cross-
cultural activities;
    (2) share their individual cultural experiences and background with 
U.S. friends, colleagues and communities;
    (3) improve their command of the English language;
    (4) earn funds to help defray a portion of their expenses by 
working in seasonal or temporary host placements that require minimal 
training; and
    (5) travel in the United States.
    (b) Definitions. In addition to those definitions set forth in 
Sec.  62.2, the following definitions apply to the Summer Work Travel 
category of the Exchange Visitor Program:
    (1) Host entity. A person or organization that employs an exchange 
visitor. Host entities are not considered ``third parties'' as that 
term is used in this Part.
    (2) Host placement. The location of an exchange visitor at a host 
entity and any related sponsor-or host entity-arranged housing of such 
exchange visitor.
    (3) Seasonal nature. A host placement is of a seasonal nature when 
the required service is utilized only at a certain time of the year 
(e.g., summer or winter) when the host entity increases labor levels to 
accommodate its seasonal increase in business.
    (4) Temporary nature. A host placement is of a temporary nature 
when a host entity's need for the duties to be performed is a one-time 
occurrence, a peak load need (e.g., the need for workers is tied to one 
or more seasons or other short-term demand), or an intermittent need. 
It is the nature of a host entity's need, not the nature of the duties, 
which is controlling.
    (c) Duration of participation. Exchange visitors on the Summer Work 
Travel Program may participate for no more than four months. The 
program must coincide with the official break between the exchange 
visitor's academic years or the break immediately following his or her 
final academic term. In permitting exchange visitor participation, a 
sponsor must adhere to the earliest allowable program start date and 
the latest allowable program end date for each country for its exchange 
visitors, as communicated to sponsors by the Department. Extensions 
beyond Department-approved program dates are not permitted.
    (d) General sponsor responsibilities.
    (1) A sponsor is responsible for screening prospective exchange 
visitors as set forth in Sec.  62.32(e); making the final selection of 
exchange visitors; placing (and re-placing, as necessary) exchange 
visitors; issuing Forms DS-7007 and DS-2019; providing an orientation 
for host entities; finding, approving, and verifying (as applicable) 
exchange visitor housing; and conducting monitoring of exchange 
visitors and their host placements within the United States. These 
activities must be conducted by employees of the sponsor.
    (2) A sponsor must provide for a pre- and post-arrival orientation 
for exchange visitors. The pre-arrival orientation may be conducted by 
sponsor employees or through a foreign third party with which the 
sponsor has a written agreement (pursuant to Sec.  62.32(q)(2)), or 
both. The post-arrival orientation may be conducted by sponsor 
employees or by the host entity, or both.
    (3) A sponsor may use foreign third parties, in accordance with 
Sec.  62.32(q), for recruitment and overseas orientation of exchange 
visitors, and initial identification of host entities.
    (4) A sponsor may use domestic third parties, in accordance with 
Sec.  62.32(s), to provide for initial identification of host entities, 
implementation of cross-cultural activities for exchange visitors, a 
local point of contact for exchange visitors, orientation of exchange 
visitors, housing assistance, and exchange visitor transportation.
    (5) A sponsor's third party or host entity acts on a sponsor's 
behalf in the conduct of the sponsor's exchange visitor program, and 
failure by any third party or host entity to comply with the 
regulations set forth in this part will be imputed to the sponsor.
    (6) A sponsor and its third parties shall not pay or otherwise 
provide financial incentive to host entities to accept exchange 
visitors for host placements.
    (7) A sponsor must ensure that any fees it or its third parties 
charge are legal, justifiable, and permitted under this Part.
    (8) Sponsor promotional materials must characterize the Summer Work 
Travel Program as a cultural and educational program with a work 
component.
    (9) A sponsor must include in its recruiting material, and post on 
its main Web site, examples of the typical monthly budgets of exchange 
visitors placed in various regions of the United States to illustrate 
wages (based on the minimum-required 32 hours of work at a typical host 
placement) balanced against fees and estimated costs. A sponsor must 
itemize fees that it and its third parties will charge, or provide 
within the sponsor's fee list a specific link to a third party's fee 
list on the third party's Web site, and estimate other typical exchange 
visitor costs, including estimated housing costs and estimated costs 
for cultural activities, in its posting. Actual fees that should be 
itemized include the following, as applicable: Program fee (with an 
explanation of what this includes); fees for recruitment, interview and 
screening, placement, arrival/orientation services; vetting of re-
placement or additional jobs; health insurance; expedited application 
review; document translation; and fees related to program 
administration and the Form DS-2019 (such as expedited form changes, 
program extensions within allowable program windows, health insurance 
extension during grace period, reinstatement, re-placement of lost Form 
DS-2019, SEVIS adjustments, and travel validation). No sponsor or third 
party may require an exchange visitor to remit a portion of his or her 
earnings in the United States to an overseas private entity.
    (10) A sponsor must ensure that any host entity at which it places 
an exchange visitor hires, remunerates, and provides supervision for 
that exchange visitor and is willing and able to assist the exchange 
visitor in the absence of the sponsor in cases of emergency.
    (11) A sponsor must ensure that an exchange visitor does not change 
his or her site of activity at the host entity, type of position within 
the current host placement, or residence without first notifying the 
sponsor.
    (e) Exchange visitor screening and selection.
    (1) A sponsor must verify and document, prior to each exchange 
visitor's selection, that each exchange visitor:
    (i) Will be at least 18 years of age by the program start date;
    (ii) Is, at the time of application, a foreign national post-
secondary student (including a student in his/her final year) who is 
enrolled in and actively pursuing a full-time course of study toward a 
degree at a classroom-based post-secondary academic institution that is 
physically located outside the United States and is ministerially-
recognized within the national education system where the student is 
enrolled; applicants must have successfully completed at least one 
term, or equivalent, of post-secondary academic study at the time of 
application.
    (iii) Has not participated in more than two previous Summer Work 
Travel program exchanges to the United States;
    (iv) Has at a minimum a level of English language proficiency, 
verified in accordance with Sec.  62.10(a)(2), that allows him or her 
to communicate

[[Page 4141]]

effectively when speaking with co-workers and community members, to 
understand work requirements, to discuss autobiographical information, 
and to comprehend both written and oral instructions related to work, 
housing, and transportation; and
    (v) Intends to participate in sponsor, host-entity, and/or self-
initiated cross-cultural activities while in the United States.
    (2) Prior to selecting an exchange visitor, a sponsor must conduct 
an interview with each prospective exchange visitor either in-person or 
by video-conference and, where requested by the host entity or exchange 
visitor, facilitate a video-conference between the host entity and the 
exchange visitor.
    (3) A sponsor must communicate to prospective exchange visitors 
that they may not be accompanied by spouses and dependents unless these 
spouses and dependents secure the requisite immigration status. Spouses 
and dependents of an exchange visitor in the Summer Work Travel program 
category are not eligible for J-2 (derivative) status.
    (f) Exchange visitor placement.
    (1) Before issuing a Form DS-2019, a sponsor must secure for each 
prospective exchange visitor a host placement(s):
    (i) That is seasonal or temporary in nature;
    (ii) Requiring only minimal training;
    (iii) Entailing daily interaction with, and work alongside, 
American guests, customers, co-workers, and supervisors, as an integral 
part of the host placement;
    (iv) Providing the exchange visitor with hours of work numbering 
between the allowable minimum and maximum, in no more than two host 
placements in accordance with Sec.  62.32(f)(4);
    (v) Meeting the requirements for compensation in accordance with 
Sec.  62.32(f)(6);
    (vi) Provided by a host entity that has been vetted in accordance 
with Sec.  62.32(i);
    (vii) Provided by a host entity informed of its responsibilities 
pursuant to Sec.  62.32(j);
    (viii) Not on the program exclusions list set forth in Sec.  
62.32(k);
    (ix) Satisfying the standard for exchange visitor housing and local 
transportation as set forth in Sec.  62.32(l);
    (x) Provided by a host entity that has been fully oriented by the 
sponsor about the public diplomacy purpose of the Exchange Visitor 
Program, federal regulations (including updates), and other 
requirements of the Exchange Visitor Program;
    (xi) Provided by a host entity that accepts responsibility for the 
exchange visitor as necessary in case of emergency; and
    (xii) Located where an employee of the sponsor can reach the 
exchange visitor in-person within eight hours through any reliable 
means of transportation.
    (2) A sponsor must divulge to the Department where a partial or 
full ownership relationship exists between the sponsor and the host 
entity. In these instances, the sponsor must identify an individual who 
will act as an independent advocate for the exchange visitor, such as 
an ombudsperson.
    (3) A sponsor must not place exchange visitors with host entities 
if there is a strike or lockout, at the placement site, or other labor 
dispute at the placement site that the sponsor reasonably believes 
would have a negative impact on the exchange visitor's program. If a 
strike, lockout, or other such labor dispute occurs at the host entity 
in the location where an exchange visitor's host placement has been 
finalized pending the arrival of the exchange visitor, or where an 
exchange visitor is currently carrying out the program, a sponsor must 
place the exchange visitor at a different host entity as soon as 
possible and no later than five business days after the occurrence of 
such dispute.
    (4) Hours.
    (i) A sponsor must place the exchange visitor only with one or two 
host entities that, taken together, commit to provide a total minimum 
of 32-hours and a total maximum of 65-hours of permissible work per 
exchange visitor per calendar week averaged over a two-week period, as 
accepted by the exchange visitor on Form DS-7007. Should the exchange 
visitor's hours fall below the required 32-hour minimum per week for 
longer than two weeks (except in cases where the exchange visitor is 
ill or otherwise has been authorized an absence), the sponsor must 
assist that exchange visitor within three business days to raise his/
her placement hours at the host entity or be re-placed, or, if the 
exchange visitor does not already have two placements, an additional 
placement. Should the exchange visitor's hours increase beyond the 65-
hour maximum for more than two weeks, the sponsor, in consultation with 
the host entity, must require the exchange visitor to reduce his or her 
hours. The exchange visitor may opt out of the 32-hour weekly minimum 
work requirement if requested in writing by the exchange visitor and 
acknowledged by the sponsor after consultation with the host entity.
    (ii) A sponsor may place an exchange visitor with no more than two 
host entities at the same time to meet the 32-hour minimum and 65-hour 
maximum requirements; the two host placements must be located in close 
proximity to each other. An exchange visitor may, if he or she so 
desires, take on additional sponsor-authorized work placements above 
the 32-hour minimum and below the 65-hour maximum per week work 
requirement, that conform to all applicable requirements of this Part.
    (iii) A sponsor must ensure that a host entity provides the 
exchange visitor two-weeks' notice if the exchange visitor's job 
placement will (A) conclude earlier than the end-date indicated on Form 
DS-7007 or (B) fall below a total of 32-hours per week averaged over a 
two-week period. The two-week notice provision does not apply to host 
entities in cases where the exchange visitor fails to report to work 
for a sustained period (i.e., more than 10 consecutive workdays and 
without contacting the sponsor or host entity supervisor and receiving 
permission to be absent). In such cases, the sponsor must fully 
document the issue that caused the exchange visitor's hours to be 
reduced or the exchange visitor to be dismissed; the sponsor must 
assess information provided by the exchange visitor and host entity 
objectively. A sponsor must inform the Department of such incident 
within 24-hours of its notification.
    (iv) A sponsor must ensure that the exchange visitor gives the host 
entity two weeks' notice if the exchange visitor's host placement will 
(A) conclude earlier than the end-date indicated on Form DS-7007 or (B) 
fall below the 32-hour weekly minimum averaged over a two-week period 
(if the exchange visitor has not formally opted out of the 32-hour 
requirement). The two-week notice provision does not apply to exchange 
visitors in cases where the exchange visitor can credibly allege 
workplace abuse, sexual abuse, sexual harassment, bullying, 
exploitation, wage violations, criminal activity, and instances of 
retaliation against the exchange visitor for reporting problems in the 
workplace; a sponsor must inform the Department of such incident within 
24-hours of its being notified.
    (5) Notification. A sponsor must ensure that host entities notify 
the exchange visitor and sponsor within 24-hours of exigent 
circumstances affecting the exchange visitor's placement.
    (6) Compensation. A sponsor must only place the exchange visitor in 
a host placement that compensates the exchange visitor:

[[Page 4142]]

    (i) At not less than the federal, state, or local minimum wage, 
whichever is higher, for all hours worked (including overtime hours 
worked and applicable overtime wage), in conformance with applicable 
federal, state, and local laws, including the Fair Labor Standards Act; 
and
    (ii) With pay and benefits commensurate with those offered to their 
U.S. counterparts and/or those on another class of nonimmigrant visa, 
as applicable, doing the same or similar work in the same work setting. 
Host entities may reasonably offer different wages to an employee 
commensurate with a qualified, experienced, or fully competent worker 
only after considering the experience, education, and skill 
requirements of the position.
    (7) A sponsor must inform its host entities that, when hosting an 
exchange visitor, they are required by law to follow applicable 
employer recordkeeping requirements under federal, state, and local 
law, including the Fair Labor Standards Act and Department of Labor 
regulations (e.g., 29 CFR part 516);
    (8) A sponsor must ensure that host entities provide exchange 
visitors, without charge or deposit, all uniforms, tools, supplies, and 
equipment needed to perform placement-required activities.
    (9) Prior to placing an exchange visitor at a host entity, the 
sponsor must inquire whether the host entity has displaced or intends 
to displace a U.S. worker with an exchange visitor. Sponsors must 
ensure that host entities have not rejected qualified U.S. applicants 
for the same position within 90 days of the date on which the sponsor 
has confirmed the host entity's formal acceptance of that exchange 
visitor for the host placement as indicated on Form DS-7007.
    (10) A sponsor must reimburse exchange visitors for any union dues 
required by their host placement.
    (11) A sponsor must ensure that exchange visitors are not charged 
for any host entity promotional material used by the exchange visitor 
on the job, and must compensate, or ensure that the exchange visitor's 
host entity compensates, the exchange visitor for travel time from the 
site of activity to any training site, and for the time spent in 
training; if the sponsor or host entity holds the training in a city 
that is farther than 60 miles away from the exchange visitor's site of 
activity, or the sponsor or host entity requires the exchange visitor 
to stay overnight at the training site, then the sponsor or host entity 
must pay the exchange visitor for the cost of lodging.
    (g) Door-to-door sales placements: A sponsor placing an exchange 
visitor in a door-to-door sales position must, in addition to the 
requirements set forth in Sec.  62.32(f):
    (1) Fully execute an agreement that explains in detail the exchange 
visitor's placement duties and expectations, who will obtain and pay or 
reimburse the exchange visitor for any necessary state or local 
permits, the geographic area the host placement encompasses, and how 
exchange visitors, while traveling, may access housing that has been 
pre-arranged by the sponsor or host entity. The agreement must be 
included as an appendix to Form DS-7007 and must be accepted in writing 
by the exchange visitor before he or she receives a Form DS-2019.
    (2) Ensure that:
    (i) The host entity provides the exchange visitor with a post-
arrival orientation that, at a minimum, includes information on safety 
considerations while selling door-to-door; how to contact a supervisor 
while traveling on duty; how to react when faced with possible adverse 
situations; how exchange visitors will be reimbursed for housing costs 
incurred while traveling on behalf of their host entity; and how 
products will be delivered to customers;
    (ii) The exchange visitor in each calendar week of his or her 
program, averaged over a two-week period, earns not less than the 
equivalent of the applicable federal, state, or local minimum wage per 
hour through hourly pay or sales profits, in conformance with 
applicable federal, state, and local laws, including the Fair Labor 
Standards Act, and receives pay and benefits commensurate with those 
offered to his or her U.S. counterparts and/or those on another class 
of nonimmigrant visa doing the same or similar work in the same work 
setting and having similar qualifications and experience. Hours that an 
exchange visitor spends in orientation constitute hours worked;
    (iii) Customers make all checks and other forms of payment directly 
payable to the host entity, not to the exchange visitor, for sponsor or 
host entity products; and
    (iv) The exchange visitor begins selling door-to-door no earlier 
than 9:00 a.m. and finishes his/her last sales call no later than 8:00 
p.m. in the time zone covering his or her location.
    (3) Permit an exchange visitor's reasonable request for re-
placement at a non-door-to-door assignment and issue the exchange 
visitor a new Form DS-7007.
    (4) Pre-authorize and document on the appendix to the DS-7007 any 
additional types of exchange visitor sales activities.
    (h) Exchange visitor host re-placement. A sponsor must:
    (1) Find and fully vet a new host entity for the exchange visitor 
(i.e., verify, at a minimum, the terms and conditions of the exchange 
visitor's employment at that host entity) within three business days in 
response to an exchange visitor's reasonable request to change host 
placements, provided the request is made before the final four weeks of 
the exchange visitor's program. Considerations in determining the 
reasonableness of a request may include whether the new placement would 
be consistent with the exchange visitor's abilities, is located in the 
same city or a nearby city to the previous placement, and is within an 
economic sector where host entities are hiring. Sponsors may not charge 
the exchange visitor a fee for re-placement.
    (2) Ensure that a host re-placement meets the requirements 
applicable to the original placement(s).
    (3) Complete and secure the requisite signatures on a new Form DS-
7007 prior to the exchange visitor's beginning work at a host re-
placement.
    (i) Sponsor vetting of host entities. A sponsor must:
    (1) Exercise due diligence in vetting a host entity, its owners, 
and its managers and supervisors who work with exchange visitors. In 
conducting such vetting, a sponsor must confirm that a host entity is a 
legitimate and reputable business by taking, at a minimum, the 
following steps annually:
    (i) Check, through direct contact in person or by telephone, the 
names of the entity's owner(s), and manager(s), names of the 
supervisor(s) for the exchange visitor, business telephone numbers, 
email addresses, street addresses, and professional activities;
    (ii) Use publicly available information (e.g., state registries, 
advertisements, brochures, Web sites, court registries, state sex-
offender registries) and available information from prior exchange 
visitor placements to confirm that all host entities and their owners 
are of good reputation and financially viable, and that all managers 
and supervisors of the exchange visitor are reputable and have each 
undergone a criminal background check that the sponsor may review;
    (iii) Record a potential host entity's Employer Identification 
Number (EIN) and obtain copies of its current business or professional 
license or permit, or certificate issued by the jurisdiction where the 
business operates, granting the host entity the right to operate in 
that jurisdiction;

[[Page 4143]]

    (iv) Check whether the host entity will use any third parties 
(including staffing agencies) to conduct the exchange visitor program 
and verify using publicly available information (e.g., the kind of 
information noted in subparagraph (i)(1)(i)) to check whether such 
third parties are legitimate and reputable and that their managers and 
supervisors working with exchange visitors have each had a criminal 
background check that the sponsor may review. Failure of a third party 
engaged by a sponsor's host entity to comply with the regulations 
governing administration of the Exchange Visitor Program will be 
imputed to the sponsor, whether or not such third party has been 
disclosed by the host entity to the sponsor.
    (v) Verify that each potential host entity will have Workers' 
Compensation Insurance coverage or its equivalent, as applicable, in 
the appropriate U.S. state during the time when the exchange visitor 
will be placed there, or, if applicable, evidence of that state's 
exemption from requirement of such coverage;
    (vi) Obtain verification at the beginning of each season that a 
host entity with which an exchange visitor is planned to be placed will 
not displace U.S. workers, has not experienced layoffs in the past 120 
days, and does not have workers on lockout or strike; and
    (vii) Review the U.S. Department of Labor Web site and state 
resources for judgments and debarments and revocations pertaining to 
the host entity or business owner.
    (2) Discontinue cooperation with a host entity that fails to 
disclose information that may affect exchange visitor health, safety, 
or welfare, or bring the Exchange Visitor Program into notoriety or 
disrepute.
    (j) Host entity cooperation.
    (1) A sponsor must inform a host entity and its relevant managers 
and supervisors of program regulations, regularly monitor the host 
entity's compliance with such regulations, and take action if it 
becomes aware of a violation.
    (2) A sponsor must inform a host entity that it may be required to 
arrange cross-cultural activities for its exchange visitor, or that it 
must permit time for the exchange visitor to engage in sponsor-arranged 
cross-cultural activities, as defined in Sec.  62.2.
    (3) Failure by any host entity (or any disclosed or undisclosed 
third party) to follow the requirements governing administration of the 
Exchange Visitor Program will be imputed to the sponsor.
    (4) A sponsor must require a host entity to notify it within 24-
hours of the following events:
    (i) The exchange visitor arrives at his/her site of activity to 
begin his/her program;
    (ii) There are significant deviations in the host placement during 
an exchange visitor's program;
    (iii) The exchange visitor is not meeting the requirements of his/
her host placement as detailed on Form DS-7007;
    (iv) The exchange visitor leaves his/her position ahead of the 
planned departure;
    (v) There are serious incidents involving an exchange visitor, 
including any situations that have or could have the effect of 
endangering his or her health, safety, or welfare.
    (5) No sponsor or host entity may prevent communication between an 
exchange visitor and his or her sponsor, family or friends, or any 
other person while the exchange visitor is not on duty;
    (6) A sponsor shall terminate the participation of a host entity 
that is found to have, without the exchange visitor's advance written 
permission, held or withheld the exchange visitor's money, 
identification (including passport and social security card), cell-
phone, flight tickets, or other personal property during his or her 
program; or held or withheld an exchange visitor's Forms DS-2019 or DS-
7007. Any exchange visitor who wishes the sponsor or sponsor's host 
entity to retain important documents must make this request in writing, 
including an itemized list of the documents. The exchange visitor may 
revoke this authorization in writing at any time, whereupon such 
documents or property must be returned within 48-hours of the written 
revocation's documented submission to the sponsor.
    (k) Program exclusions. A sponsor must not place an exchange 
visitor in a host placement that is:
    (1) Inconsistent with U.S. law or that could bring notoriety or 
disrepute to the Department or to the Exchange Visitor Program, as 
determined by the Department;
    (2) Lacking acceptable housing and local transportation, (as set 
forth in Sec.  62.32(l)), including safe local transportation that is 
accessible during late night or early morning hours if the exchange 
visitor will work during such hours;
    (3) Requiring more than four hours of work between 10:00 p.m. and 
6:00 a.m.;
    (4) In locations where telephone and Internet communication is not 
accessible;
    (5) Requiring licensing of the exchange visitor;
    (6) Compensating the exchange visitor on a ``piece work basis'' 
(i.e., based on the number of objects produced or rooms cleaned);
    (7) Resulting in the exchange visitor being supervised by a 
staffing agency, unless the sponsor vets the staffing agency as well as 
the host entity where that agency places exchange visitors, and the 
staffing agency's role meets the following criteria:
    (i) The staffing agency provides daily supervision and primary 
onsite monitoring of the exchange visitor's work environment at his or 
her host entity;
    (ii) The exchange visitor is an employee of, and paid by, the 
staffing agency; and
    (iii) The staffing agency effectively controls the host placement 
(i.e., has hands-on management responsibility for the exchange visitor 
at his or her site of activity);
    (8) Entailing domestic help in private homes (e.g., child care 
provider, elder care provider, housekeeper, gardener, chauffeur);
    (9) Requiring the exchange visitor to operate or drive a pedicab, 
rolling chair, or other vehicle powered by physical exercise;
    (10) Requiring the exchange visitor to operate or drive a vehicle 
or vessel for which a driver's license is required, regardless of 
whether the vehicle carries passengers;
    (11) Related to clinical care that involves physical contact with 
patients;
    (12) In the adult entertainment industry or the commercial sex 
trade (e.g., placements at escort services, adult book or video stores, 
strip or exotic dance clubs);
    (13) Requiring the exchange visitor to engage in work that is 
declared hazardous to youth by the Secretary of Labor at Subpart E of 
29 CFR part 570;
    (14) Requiring sustained physical contact with other people (e.g., 
hair care, manicure, henna tattooing) and/or adherence to the Centers 
for Disease Control and Prevention's Universal Blood and Body Fluid 
Precautions guidelines;
    (15) Requiring the exchange visitor to operate gaming, gambling, 
wagering, or betting activities;
    (16) In chemical pest control, warehousing, or a catalogue/online 
order distribution center;
    (17) In the mobile amusement and itinerant concessionaires 
industries;
    (18) Meeting the criteria of another Exchange Visitor Program 
category (e.g., camp counselor, intern, trainee);
    (19) In the North American Industry Classification System's (NAICS) 
Goods-

[[Page 4144]]

Producing Industries occupational categories industry sectors 11, 21, 
23, 31-33 numbers (set forth at http://www.bls.gov/bls/naics.htm); see 
http://siccode.com/en/naicscode/list/directory for code look-up;
    (20) Employing the exchange visitor as a mover or in any position 
where the primary work duty is the movement of household or office 
goods;
    (21) Employing the exchange visitor in a position requiring 
repetitive motion such as that found on an assembly line or in certain 
factory-like settings;
    (22) Employing the exchange visitor in waste management, 
janitorial, or custodial positions, or in any position where more than 
five percent of the duties as defined by time spent involve waste 
management or keeping the premises of a building and supplementary 
machinery (e.g., heating, air-conditioning) clean and in working order, 
or involve making building repairs;
    (23) In a position with a host entity that participates in the 
Summer Work Travel Program on a basis other than seasonal or temporary 
(e.g., for more than two seasons during the year, or that covers a 
total period of employment longer than eight months in a single 
calendar year);
    (24) In a position where an exchange visitor is solely responsible 
for the safety of others (e.g., as a lifeguard); does not have regular 
on-site or timely on-call supervision by the host entity and/or would 
be without reasonable time off for breaks and meals; or
    (25) In a position with a host entity that does not inform the 
exchange visitor about, and enforce the use of, applicable workplace 
health and safety laws (e.g., regulations issued by the Occupational 
Safety and Health Administration), does not provide equipment that 
meets relevant safety standards, or otherwise fails to take reasonable 
precautions to safeguard the health, safety or welfare of an exchange 
visitor.
    (l) Exchange visitor housing and local transportation.
    (1) Every sponsor-approved placement must include identification of 
acceptable housing and local transportation before that sponsor 
approves the placement and issues a Form DS-2019. Housing must be fully 
and accurately described on the Housing Addendum of Form DS-7007 in 
accordance with Sec.  62.32(m).
    (2) Acceptable housing must meet all applicable housing codes and 
ordinances and be:
    (i) Affordable for the exchange visitor;
    (ii) provided in compliance with applicable federal, state, and 
local laws, including 29 CFR part 531 (if the host entity plans to 
deduct housing costs from the exchange visitor's wages);
    (iii) in a safe location;
    (iv) within a reasonable distance of the exchange visitor's site of 
activity at the host entity(ies);
    (v) in an area with regular, safe and affordable local 
transportation options to commercial infrastructure and to his or her 
site of activity at the host entity; and
    (vi) in a location that is neither isolated, nor difficult to 
access.
    (3) The requirements in subparagraphs (iv), (v) and (vi) above are 
waived if the sponsor or host entity provides reliable, safe, and 
affordable local transportation to the exchange visitor during his/her 
on- and off-hours, and has a transportation plan in case of emergency. 
A sponsor placing an exchange visitor in a remote national park, ski or 
mountain resort, or summer camp must document the host entity's written 
arrangement for transportation for that exchange visitor during his/her 
off hours and in case of emergency.
    (4) Neither a sponsor nor its host entity is permitted to require 
an exchange visitor to pay a separate fee to identify housing in excess 
of any fee charged for the exchange visitor's placement at the host 
entity.
    (5) In the event that the exchange visitor chooses to secure his or 
her own housing, both the sponsor and the exchange visitor must 
document such choice in writing and the sponsor must verify compliance 
with the requirements of paragraph (2) prior to the exchange visitor's 
arrival in the United States, or the sponsor may deny the housing or 
the entire host placement.
    (6) If either the sponsor or the Department determines that an 
exchange visitor's housing situation is unacceptable or otherwise 
problematic (e.g., excessive noise, serious conflict among housemates), 
the sponsor must identify new acceptable housing and notify the 
exchange visitor of that alternative within one week of this 
determination; if the exchange visitor opts not to accept the new 
housing, the sponsor may determine that the placement is in violation 
of this regulation.
    (7) If an exchange visitor bicycles to and from the host entity or 
to reach commercial infrastructure, his or her sponsor must ensure that 
the exchange visitor is informed that he or she must wear a helmet and 
other appropriate protective gear and that he or she must check that 
the bicycle is in working order (e.g., brakes functional, frame not 
bent, all tires inflated properly, bicycle chain and gears functional). 
All sponsors must provide exchange visitors in pre-arrival materials 
and during orientation with bicycle safety information, including the 
Department-generated bicycle safety flyer, and place the Department-
generated bicycle safety video on their Web site. No exchange visitor 
should be expected by his or her sponsor or host entity to ride a 
bicycle to his or her site of activity at the host entity if he or she 
chooses not to do so, or be expected to ride a bicycle to his or her 
site of activity on a highway or other major road without bicycle 
lanes; likewise, no exchange visitor should be expected to ride a 
bicycle over distances of longer than a total of eight miles per day in 
order to travel to and from the host entity or reach commercial 
infrastructure.
    (m) Form DS-7007 (Host Placement Certification). The purpose of 
this form is to ensure a common understanding among all parties 
(through required signature of the sponsor, exchange visitor, and host 
entity) about the terms of the host placement and arranged housing 
before the exchange visitor begins work at his or her host entity.
    (1) A sponsor must:
    (i) Fully complete a Form DS-7007 for each exchange visitor 
placement, which must include: Location and description of the host 
entity; number of employees and other exchange visitors on location; 
hours of work each week that will be offered the exchange visitor; 
duties, wages (including expectations for overtime), expected training 
period, if any; physical demands of the host placement; any placement-
related benefits or amenities; total itemized fees charged by sponsors, 
host entities, and third parties, that the exchange visitor will incur, 
identifying clearly which are mandatory and which are optional; other 
estimated costs to the exchange visitor of the placement at the host 
entity or for other aspects of the program (e.g., costs and deductions 
for benefits, mandatory and optional deductions, meals included at host 
entity). Deductions taken from wages must be disclosed in advance to 
the exchange visitor. A DS-7007 must be executed for each placement the 
exchange visitor accepts and be updated according to Department 
guidance if the terms of a placement change significantly;
    (ii) Fully execute a Form DS-7007 (excluding Housing Addendum) 
before completing and signing a Form DS-2019 for each exchange visitor;
    (iii) Provide each signatory an executed copy of the Form DS-7007 
(excluding Housing Addendum) before

[[Page 4145]]

the exchange visitor makes his or her visa application; and
    (iv) Inform the exchange visitor that he or she must have his or 
her fully-executed Form DS-7007 (excluding Housing Addendum) available 
(along with his or her Form DS-2019) for the visa interview.
    (2) A sponsor must ensure that the Housing Addendum of the Form DS-
7007 is completed (including by the host entity), if relevant, and that 
a copy is sent to the exchange visitor prior to the exchange visitor's 
departure to the United States and if the exchange visitor changes 
housing. A sponsor must include a description of the housing; 
information about local transportation type and cost, and distance to 
the host entity; cost of housing (either weekly or monthly); need for 
an exchange visitor housing deposit; utilities covered in rent and 
those that the exchange visitor must pay separately; whether deductions 
for housing or local transportation will be taken from exchange 
visitors' wages; number of other tenants; housing features and 
description (including numbers of bedrooms and bathrooms); and whether 
there is a firm contract for the housing that the exchange visitor must 
sign for a fixed period of time. The Housing Addendum page must state 
the market value of housing and/or local transportation. Deductions 
from wages may only be made in accordance with Fair Labor Standards Act 
regulations set forth at 29 CFR part 531.
    (3) A sponsor must give each exchange visitor 72-hours to consider 
any substantive additional requirements or changes made by his or her 
host entity to the host placement after the DS-7007 or Housing Addendum 
is initially executed; a sponsor must require the exchange visitor and 
host entity to sign a new Form DS-7007 if the exchange visitor agrees 
to the changes. If an exchange visitor determines that he or she does 
not wish to add requirements or make changes, or is unresponsive, he or 
she must be allowed to continue to do those tasks at the host entity 
specified on his or her most recent DS-7007, unless the host entity 
makes a request to the sponsor that the exchange visitor be placed 
elsewhere, in which case, the exchange visitor must be given two-weeks' 
notice of program termination. An exception to the 72-hour rule may be 
made if such changes must be implemented before 72-hours to protect the 
health, safety, and welfare of the exchange visitor.
    (4) A sponsor must keep each DS-7007 on file for three years.
    (n) Exchange visitor pre-departure orientation and documentation.
    (1) In addition to satisfying the requirements set forth at Sec.  
62.10(b)-(c), a sponsor must provide to each exchange visitor prior to 
departure from his or her home country, an orientation in-person, 
online, or a combination of both that includes the following 
information and documentation:
    (i) An explanation of the sponsor's role during the program, 
including monitoring, and of host entity responsibilities;
    (ii) The Department of State's Summer Work Travel Exchange Visitor 
Welcome Letter and Diversity Flyer;
    (iii) The sponsor's 24/7 immediate (i.e., non-answering machine) 
contact telephone number;
    (iv) A description of exchange visitor and host entity obligations 
and responsibilities, including a list of program obligations and 
responsibilities as set forth in subparagraph (2) below;
    (v) Information explaining the cross-cultural component of the 
Summer Work Travel program, including the exchange visitor's obligation 
to participate in sponsor- and host entity-arranged cross-cultural 
activities, and how best to experience local or national U.S. culture;
    (vi) Information on how to identify and report workplace abuse, 
sexual abuse, sexual harassment, bullying, exploitation, wage 
violations, housing violations, poor housing conditions, and instances 
of retaliation against the exchange visitor for reporting problems, 
including how to access whistleblower protection. The orientation also 
must include information for exchange visitors on the sponsor 
monitoring process, and inform exchange visitors that they must notify 
their sponsor within ten days of arrival in the United States and of 
any changes to the terms agreed to in Form DS-7007;
    (vii) Information on general personal, pedestrian, and 
transportation safety, including bicycle safety information (i.e., 
providing the Department-generated bicycle safety flyer and placing a 
bicycle safety video on the sponsor's Web site);
    (viii) An identification card with a photo of the exchange visitor 
listing the exchange visitor's name, the sponsor's name, and main 
office and emergency telephone numbers, 911, the telephone number of 
the Department's J-1 visa toll-free emergency help line, the J-1 visa 
email address, and the name and policy number of the sponsor's health 
insurance provider, if applicable; and
    (ix) Information on medical care in the United States (e.g., 
information on insurance deductibles, differences between emergency 
room visits and regular hospital visits, how generally to seek medical 
care in the United States) and locations of the nearest medical 
facilities.
    (2) Information on exchange visitor and host entity obligations and 
responsibilities must include the following:
    (i) The exchange visitor must notify his or her sponsor within ten 
days of arrival in the United States, as set forth in Sec.  
62.10(c)(9);
    (ii) The exchange visitor must notify his or her sponsor of any 
changes to the terms agreed to in Form DS-7007, as set forth in Sec.  
62.32(m)(1)(i);
    (iii) An exchange visitor must not change his or her host site of 
activity at the host entity, type of position within his or her current 
host placement, or residence without first notifying the sponsor, as 
set forth in Sec.  62.32(d)(11);
    (iv) The host entity must not permit an exchange visitor to begin 
working for an additional host entity, or at a different host entity, 
until the sponsor has vetted such host entity, as set forth at Sec.  
62.32(i), and provided the exchange visitor and host entity a fully 
executed Form DS-7007 for such a placement in accordance with paragraph 
(m);
    (v) A description of the circumstances that may lead to termination 
of the exchange visitor's program under rules governing the program, 
including, but not limited to, the following: Engaging in more than 
three Summer Work Travel programs during the exchange visitor's 
academic career; failure of an exchange visitor to report to his or her 
sponsor within ten days of arrival in the United States; failure to 
appear timely at the initial host placement without notifying the 
sponsor in advance of any inability to appear on time; beginning 
employment at a non-vetted host entity or at a host placement on the 
program exclusions list set forth at paragraph (k); engaging in illegal 
activities (e.g., fraud, distribution of illegal substances); failure 
to give two-weeks' notice of departure to the current host entity, 
except in cases where health, safety, or welfare of the exchange 
visitor is endangered; failure to report change of position or change 
of title within the current host placement or change of residence; a 
pattern of unresponsiveness to sponsor communications; and violation of 
sponsor-specific rules regarding the exchange visitor program;
    (vi) The circumstances that may lead to program termination of the 
host entity; and
    (vii) The exchange visitor is prohibited from engaging in any 
activities that could bring the Exchange Visitor Program into notoriety 
or disrepute.

[[Page 4146]]

    (o) Cross-cultural activities. A sponsor must:
    (1) Ensure that the exchange visitor's placement at the host entity 
requires regular interaction with co-workers and customers and that the 
exchange visitor's host entity also facilitates the regular interaction 
of the exchange visitor with U.S. persons during the workday portion of 
their program;
    (2) Plan and initiate cross-cultural activities, and/or act as a 
resource for host entities, domestic third parties, or local community 
groups in arranging cross-cultural activities that provide the exchange 
visitor exposure to U.S. culture and/or interaction with U.S. persons 
throughout his or her program;
    (3) Ensure that, at a minimum, it or its host entity or entities 
arrange one cross-cultural activity within each calendar month for the 
exchange visitor; and
    (4) Facilitate additional cross-cultural activities throughout the 
duration of the exchange visitor's program, and document such 
activities.
    (p) Exchange visitor monitoring and assistance. A sponsor must:
    (1) Maintain, at a minimum, monthly personal contacts with the 
exchange visitor. Such sponsor contact is permitted to be in-person, by 
telephone, or via exchanges of email (communications via email and 
voicemail messages must elicit a response from the exchange visitor 
that provides information on the exchange visitor's well-being);
    (2) Gauge the exchange visitor's overall health, safety, and 
welfare and appropriately address issues identified through monitoring 
that involve the suitability of employment, housing and transportation, 
and any other issues affecting, or that could affect, the exchange 
visitor's health, safety, and welfare;
    (3) Be available to the exchange visitor as a facilitator, 
counselor, and information resource and provide appropriate assistance 
on an as-needed basis;
    (4) Document all efforts to resolve any issue that could result in 
program termination, including problematic placements and inability to 
contact a non-responsive exchange visitor, before pursuing program 
termination;
    (5) Prepare any host entity to facilitate Department oversight and 
visits to placement locations; and
    (6) Incorporate additional monitoring steps at the suggestion of 
the Department in the case of Department-noted problems in the 
sponsor's Summer Work Travel program.
    (q) Sponsor use of foreign third parties. A sponsor must, in 
addition to the description set forth in Sec.  62.2 in the definition 
of Third party, satisfy the following requirements if it elects to use 
a foreign third party:
    (1) Select only a foreign third party that:
    (i) The sponsor has vetted in accordance with Sec.  62.32(r);
    (ii) has a fixed office address, employees with professional 
experience in the service(s) the foreign third party provides, an 
organizational mission applicable to cultural and educational exchange, 
and a secure system to collect, protect, and dispose of the personal 
data of potential and actual exchange visitors;
    (iii) markets the Summer Work Travel program as a cultural and 
educational program with a work component;
    (iv) has fees and other charges that are permissible under this 
Part, transparent, justifiable in terms of services provided, and 
legal;
    and
    (v) would not bring the Exchange Visitor Program into notoriety or 
dispute, or engage in actions that would endanger the health, safety or 
welfare of an exchange visitor;
    (2) Fully execute a written agreement, with documented review every 
three years, with the foreign third party and work only with foreign 
third parties with which the sponsor has concluded such written 
agreements; agreements must specifically authorize the foreign third 
party to carry out certain program functions;
    (3) Adequately orient any foreign third party it engages on the 
purpose of the Exchange Visitor Program and all applicable regulations 
in this Part and updates and related guidance;
    (4) Require, review, and approve annually the third party's 
marketing materials, including updated price lists based on any 
Department-required template, for programs marketed on the sponsor's 
behalf. The price lists must include itemization of all fees charged to 
the exchange visitor and estimated costs the exchange visitor might 
incur, as set forth in Sec.  62.9(d)(3);
    (5) Ensure that the foreign third party does not permit the use of 
any other third party (including staffing or employment agencies or 
subcontractors) to work directly with any prospective or current 
exchange visitor for the purpose of programmatic planning, or otherwise 
cooperate or contract with any such other third party;
    (6) Place information about each of its foreign third parties on 
the sponsor's main Web site, including the official name, headquarters 
address, and specific program functions performed;
    (7) Establish and implement internal controls to ensure that each 
foreign third party complies with the terms of its agreement with the 
sponsor;
    (8) Ensure the foreign third party knows and complies with all 
applicable provisions of these regulations. Failure by any foreign 
third party to comply with the regulations will be imputed to the 
sponsor; and
    (9) Not use a foreign third party if the Department has determined 
and informed that sponsor that the third party does not meet the 
requirements of subparagraph (1).
    (r) Sponsor vetting of foreign third parties. A sponsor must:
    (1) Ensure that any foreign third party it utilizes or intends to 
utilize is legitimate and employs only reputable individuals or 
organizations qualified to perform agreed program functions;
    (2) At a minimum, review annually current documentation for each of 
its foreign third parties, including:
    (i) Proof that it is legally authorized to conduct business in 
every location in which it operates;
    (ii) Any bankruptcy filing, adverse legal judgment, or pending 
legal action or complaint against such foreign third party relevant to 
its conduct of the exchange visitor program;
    (iii) Written references from three current business associates or 
partner organizations;
    (iv) A criminal background-check report (including originals and 
English translations, as applicable) for each owner and officer of the 
foreign third party; and
    (v) A copy of the foreign third party's recent financial statements 
certified by an independent public accountant.
    (s) Sponsor use of domestic third parties.
    A sponsor must, in addition to the description set forth in Sec.  
62.2 (definition of Third party), satisfy the following requirements if 
it elects to use a domestic third party:
    (1) Select only a domestic third party that:
    (i) The sponsor has vetted in accordance with Sec.  62.32(t), 
unless the selected entity serving as a domestic third party is another 
designated sponsor; in that case, the sponsor must require that the 
domestic third party sponsor provide proof of current Department 
designation;
    (ii) has a fixed office address, employees with professional 
experience in the service(s) the domestic third party provides, an 
organizational mission applicable to cultural and educational exchange, 
and a secure system to collect, protect, and dispose of the personal 
data of potential and actual exchange visitors;
    (iii) has fees and other charges that are permissible under this 
Part, transparent,

[[Page 4147]]

justifiable in terms of services provided, and legal; and
    (iv) would not bring the Exchange Visitor Program into notoriety or 
dispute, or engage in actions that would endanger the health, safety, 
or welfare of exchange visitors.
    (2) Fully execute a written agreement, with documented review every 
three years, with the domestic third party and work only with domestic 
third parties with which the sponsor has concluded such written 
agreements;
    (3) Orient adequately any domestic third party it engages on the 
purpose of the Exchange Visitor Program and all applicable regulations 
in this Part and updates and related guidance;
    (4) Place information about each domestic third party it engages on 
the sponsor's main Web site, including its official name, headquarters 
address, and specific program functions performed;
    (5) Establish and implement controls to ensure that the domestic 
third party complies with the terms of its agreement with the sponsor;
    (6) Ensure the domestic third party knows and complies with all 
applicable provisions of these regulations. Failure by any domestic 
third party to comply with the regulations will be imputed to the 
sponsor; and
    (7) Not use a domestic third party if the Department has determined 
and informed that sponsor that the third party does not meet the 
requirements of subparagraph(1).
    (t) Sponsor vetting of domestic third parties. A sponsor must:
    (1) Ensure that any domestic third party it utilizes or intends to 
utilize is legitimate and employs only reputable individuals or 
organizations qualified to perform agreed program functions; and
    (2) At a minimum, review annually current documentation for each of 
its domestic third parties:
    (i) Proof that it is legally authorized to conduct business in 
every location in which it operates;
    (ii) Any bankruptcy filing, adverse legal judgment, or pending 
legal action or complaint against such domestic third party relevant to 
its conduct of the exchange visitor program; and
    (iii) Proof of sufficient liability insurance to cover the 
activities provided to the sponsor.
    (u) Reporting requirements.
    (1) Foreign third party reporting: Within 30 days of its conclusion 
of a new written agreement with a foreign third party, a sponsor must 
provide the Department with that third party's name and contact 
information (i.e., telephone number, email address, street address, 
city address, point of contact, and Web site address). The sponsor also 
must provide the Department with updated contact information for its 
foreign third party within 30 days after receiving notice of any change 
in that party's contact information. A sponsor also must notify the 
Department no later than 30 days after ceasing to work with a foreign 
third party previously reported.
    (2) Price lists: A sponsor must submit to the Department each year, 
no later than December 1, itemized exchange visitor price lists (in 
accordance with any Department template) which identify the costs that 
exchange visitors must pay each sponsor and foreign third party on a 
country-specific basis in order to participate in the program.

Keri Lowry,
Deputy Assistant Secretary of State, Office of Private Sector Exchange, 
Bureau of Educational and Cultural Affairs.
[FR Doc. 2017-00107 Filed 1-11-17; 8:45 am]
 BILLING CODE 4710-05-P