To amend the Immigration and Nationality Act to provide greater protections to domestic and foreign workers under the H-1B nonimmigrant worker program.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Defend the 
American Dream Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Wage determination.
Sec. 3. Good faith recruitment requirement.
Sec. 4. Notice requirement.
Sec. 5. Reduction of period of authorized admission as H-1B 
                            nonimmigrant.
Sec. 6. Removal of exemption from H-1B numerical limitation for certain 
                            aliens.
Sec. 7. Requirement of a degree from certain institutions for H-1B 
                            specialty occupation nonimmigrants.
Sec. 8. Tripling H-1B nonimmigrant petitioner fee.
Sec. 9. Labor enforcement.
Sec. 10. Private right of action.
Sec. 11. Application of nondisplacement requirement to all H-1B 
                            employers.

SEC. 2. WAGE DETERMINATION.

    (a) Change in Minimum Wages.--Section 212(n)(1)(A) of the 
Immigration and Nationality Act (8 U.S.C. 1182(n)(1)(A)) is amended to 
read as follows:
            ``(A) The employer--
                    ``(i) is offering and will offer during the period 
                of authorized employment to aliens admitted or provided 
                status as an H-1B nonimmigrant wages that are at 
                least--
                            ``(I) the locally determined prevailing 
                        wage level for the occupational classification 
                        in the area of employment;
                            ``(II) the median average wage for all 
                        workers in the occupational classification in 
                        the area of employment; or
                            ``(III) the median wage for skill level two 
                        in the occupational classification found in the 
                        most recent Occupational Employment Statistics 
                        survey;
                whichever is greatest, based on the best information 
                available as of the time of filing of the application; 
                and
                    ``(ii) will provide working conditions for such 
                nonimmigrant that will not adversely affect the working 
                conditions of workers similarly employed.
         The wage determination methodology used under clause (i) shall 
        be submitted with the application.''.
    (b) Provision of W-2 Forms.--Section 212(n)(1) of such Act (8 
U.S.C. 1182(n)(1)) is amended by inserting after subparagraph (G) the 
following new subparagraph:
            ``(H) If the employer employed, in such previous period as 
        the Secretary shall specify, one or more H-1B nonimmigrants, 
        the application shall be accompanied by the Internal Revenue 
        Service Form W-2 Wage and Tax Statement filed by the employer 
        with respect to such nonimmigrants for such period.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to applications filed on or after the date of the enactment of 
this Act.

SEC. 3. GOOD FAITH RECRUITMENT REQUIREMENT.

    (a) Extending Time Period for No Displacement.--Section 212(n) of 
the Immigration and Nationality Act (8 U.S.C. 1182(n)) is amended--
            (1) in paragraph (1)(E)(i), by striking ``90 days'' and 
        inserting ``180 days'' each place it appears; and
            (2) in paragraph (2)(C)(iii), in the matter before 
        subclause (I), by striking ``90 days'' and inserting ``180 
        days'' each place it appears.
    (b) Requiring Active Recruitment.--Section 212(n)(1)(G)(i)(I) of 
such Act (8 U.S.C. 1182(n)(1)(G)(i)(I)) is amended by inserting 
``actively'' before ``recruit''.
    (c) Prohibition of Outplacement.--Section 212(n) of such Act (8 
U.S.C. 1182(n)) is amended--
            (1) by amending subparagraph (F) of paragraph (1) to read 
        as follows:
            ``(F) The employer shall not place, out-source, lease, or 
        otherwise contract for the placement of an alien admitted or 
        provided status as an H-1B nonimmigrant with another employer, 
        regardless of whether or not such other employer is an H-1B-
        dependent employer.''; and
            (2) by striking subparagraph (E) of paragraph (2).
    (d) Effective Date.--The amendments made by this section shall 
apply to applications filed on or after the date of the enactment of 
this Act, except that the amendments made by subsection (a) shall not 
apply to displacements for periods occurring more than 90 days before 
such date.

SEC. 4. NOTICE REQUIREMENT.

    (a) In General.--Section 212(n) of the Immigration and Nationality 
Act (8 U.S.C. 1182(n)) is further amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``and the employer certifies that the prior 
        notice requirement of paragraph (6) has been met with respect 
        to the application''; and
            (2) by adding at the end the following new paragraph:
    ``(6) For purposes of paragraph (1), the prior notice requirement 
of this paragraph, with respect to an application of an employer, is 
that employer has made copies of the application (or, a summary of 
essential information derived from such application, including the 
number of H-1B nonimmigrants being sought, their occupational 
classifications, the wages offered, the period of intended employment, 
the locations at which they will be employed, and a statement that a 
copy of the application is available for public inspection in 
conspicuous locations at the employer's principal place of business and 
at worksites where H-1B nonimmigrants will be employed) accessible for 
examination by affected United States and foreign workers at least 30 
days in advance of the filing of the application with the Secretary of 
Labor through--
            ``(A) posting of such application (or summary) in 
        conspicuous locations at worksites where H-1B nonimmigrants 
        will be employed;
            ``(B) electronic notification to employees in the 
        occupational classifications for which H-1B nnimmigrants are 
        being sought; and
            ``(C) provision of a copy of the application to each H-1B 
        nonimmigrant on whose behalf the application is being filed.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to applications filed more than 30 days after the date of the 
enactment of this Act.

SEC. 5. REDUCTION OF PERIOD OF AUTHORIZED ADMISSION AS H-1B 
              NONIMMIGRANT.

    (a) In General.--Section 214(g)(4) of the Immigration and 
Nationality Act (8 U.S.C. 1184(g)(4)) is amended by striking ``6 
years'' and inserting ``3 years''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to the period of authorized admission of an alien as 
an H-1B nonimmigrant under section 101(a)(15)(H)(i)(B) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(i)(B)) that 
begins on or after the date of the enactment of this Act.

SEC. 6. REMOVAL OF EXEMPTION FROM H-1B NUMERICAL LIMITATION FOR CERTAIN 
              ALIENS.

    (a) In General.--Section 214(g)(5) of the Immigration and 
Nationality Act (8 U.S.C. 1184(g)(5)) is amended--
            (1) in subparagraph (A), by adding ``or'' after the 
        semicolon;
            (2) in subparagraph (B), by striking ``; or'' and inserting 
        a period; and
            (3) by striking subparagraph (C).
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to the issuance of a visa (or other provision of status) under 
section 101(a)(15)(H)(i)(B) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(15)(H)(i)(B)) on or after the first day of the first 
fiscal year beginning after the date of the enactment of this Act.

SEC. 7. REQUIREMENT OF A DEGREE FROM CERTAIN INSTITUTIONS FOR H-1B 
              SPECIALTY OCCUPATION NONIMMIGRANTS.

    (a) In General.--Section 214(i)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1184(i)(2)) is amended--
            (1) in subparagraph (A), by adding ``or'' at the end;
            (2) in subparagraph (B), by inserting ``, from a bona fide 
        educational institution in the United States or from an 
        educational institution that is at least equivalent to such an 
        institution in the United States,'' after ``paragraph (1)(B)'';
            (3) in subparagraph (B), by striking ``, or'' and inserting 
        a period; and
            (4) by striking subparagraph (C).
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to applications filed on or after the date of the enactment of 
this Act.

SEC. 8. TRIPLING H-1B NONIMMIGRANT PETITIONER FEE.

    (a) In General.--Section 214(c)(9)(B) of the Immigration and 
Nationality Act (8 U.S.C. 1184(c)(9)(B)) is amended by striking 
``$1,500'' and inserting ``$4,500''.
    (b) Technical Amendment.--Section 214(c)(9)(A) of such Act (8 
U.S.C. 1184(c)(9)(A)) is amended, in the matter preceding clause (i), 
by striking ``before''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to petitions filed on or after the date of the enactment of this 
Act.

SEC. 9. LABOR ENFORCEMENT.

    (a) Centralization of Administrative and Enforcement Functions.--
Section 212(n)(2) of the Immigration and Nationality Act (8 U.S.C. 
1182(n)(2)) is amended by adding at the end the following new 
subparagraph:
    ``(J) The Secretary shall be responsible under this paragraph for 
investigations of wage complaints, as well as investigations of 
allegations of fraud in the filing of applications under this 
subsection.''.
    (b) Audits.--Section 212(n)(2)(A) of such Act (8 U.S.C. 
1182(n)(2)(A)) is amended by adding at the end the following: ``In 
addition, the Secretary may conduct surveys of the level of compliance 
by employers with the provisions and requirements of this subsection 
and may conduct annual compliance audits in the case of employers that 
employ H-1B nonimmigrants. In the case of an employer that employs H-1B 
nonimmigrants that represent 15 percent or more of the total number of 
individuals employed by the employer, the Secretary shall conduct 
annual compliance audits of such employer.''.

SEC. 10. PRIVATE RIGHT OF ACTION.

    (a) In General.--Section 212(n)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(2)), as amended by section 8(a), is 
further amended by adding at the end the following new subparagraph:
    ``(K) In addition to any other remedies available under this 
paragraph, a person who is harmed by a violation by an employer of a 
requirement of this subsection may bring a civil action against the 
employer in any court of competent jurisdiction for damages or other 
appropriate relief.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to violations occurring on or after the date of the enactment of 
this Act.

SEC. 11. APPLICATION OF NONDISPLACEMENT REQUIREMENT TO ALL H-1B 
              EMPLOYERS.

    (a) In General.--Section 212(n)(1)(E)(ii) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(1)(E)(ii)) is amended by striking 
``an H-1B dependent employer (as defined in paragraph (3))'' and 
inserting ``an employer that employs H-1B non-immigrants''.
    (b) Effective Date.--The amendments made by this section shall 
apply to applications filed on or after the date of the enactment of 
this Act.

Summary: Defend the American Dream Act of 2005 - Amends the Immigration and Nationality Act to require employers of H-1B nonimmigrants to use one of three specified methods to determine wages for purposes of required wage attestations. Requires such employers who previously employed one or more H-1B nonimmigrants to submit with their labor condition application (LCA) a copy of the W-2 Wage and Tax Statement filed with respect to those nonimmigrants. Extends to 180 days the period during which certain H-1B employers must show nondisplacement of US workers. Requires such employers to actively engage in recruitment efforts. Prohibits such employers from outsourcing or otherwise contracting for the placement of an H-1B nonimmigrant with another employer, regardless of whether the other employer is H-1B dependent employer. Sets forth prior notice requirements. Reduces the period of H-1B authorized admission to three years. Eliminates the exemption from H-1B numerical admission limitations for certain aliens with a US master's or higher degree. Revises the H-1B definition of specialty occupation. Triples the H-1B petitioner fee. Requires the Secretary of Labor to be responsible for investigations of wage complaints and allegations of fraud in the filing of LCAs. Creates a private right of action for persons harmed by an employer's violation of labor condition requirements. Applies the nondisplacement requirement to all H-1B employers.