SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Testimony given at a February 4, 2004, 
hearing of the Committee on International Relations 
of the House of Representatives indicated that there 
is widespread abuse by companies subcontracting to 
other companies nonimmigrants who obtained status 
under the Immigration and Nationality Act by satis-
fying the requirements for intracompany transferees 
with ‘‘specialized knowledge’’. Such testimony in-
cluded that of two United States citizens displaced 
from their jobs by such nonimmigrants. 
(2) Further evidence of abuse was indicated by 
such citizens citing cases, including their own, where 
a citizen’s employment was terminated after the cit-
izen trained such intracompany transferees to per-
form the citizen’s job. 
(3) This testimony also indicated that signifi-
cant numbers of intracompany transferees admitted 
to the United States due to claimed possession of 
‘‘specialized knowledge’’ do not, in fact, possess that 
prerequisite ‘‘specialized knowledge’’ at the time of 
entry into the United States. 
(4) Employers have used the intracompany 
transferee visa program to fill thousands of positions 
in the United States. 57,245 such visas were issued
in fiscal year 2003, at the same time as United 
States unemployment in information technology spe-
cialities increased. The admission of intracompany 
transferees with ‘‘specialized knowledge’’ therefore 
flooded a job market which had already become 
highly competitive due to job losses. 
(5) Consular officers overseas continue to docu-
ment pervasive fraud in intracompany transferee 
nonimmigrant visa petitions filed in certain coun-
tries. In China, for example, recent statistics pro-
vided by the United States Embassy in Beijing to a 
visiting congressional staff delegation in February 
2004 reported an intracompany transferee non-
immigrant visa fraud rate of about 40 percent, in 
petitions received since fiscal year 2000, with similar 
fraud rates reported for other areas of China as 
well. 
SEC. 3. ELIMINATION OF NONIMMIGRANT VISAS FOR 
INTRACOMPANY TRANSFEREES WITH SPE-
CIALIZED KNOWLEDGE. 
(a) IN GENERAL.—Section 101(a)(15)(L) of the Im-
migration and Nationality Act (8 U.S.C. 1101(a)(15)(L)) 
is amended by striking ‘‘managerial, executive, or involves 
specialized knowledge,’’ and inserting ‘‘managerial or ex-
ecutive,’’.
(b) CONFORMING AMENDMENTS.—Section 214(c)(2) 
of the Immigration and Nationality Act (8 U.S.C. 
1184(c)(2)) is amended—
(1) by amending subparagraph (D) to read as 
follows: 
‘‘(D) The period of authorized admission for a non-
immigrant admitted under section 101(a)(15)(L) shall not 
exceed 7 years.’’; and 
(2) by striking subparagraph (B) and redesig-
nating subparagraphs (C) through (E) as subpara-
graphs (B) through (D), respectively. 
SEC. 4. IMPOSITION OF ANNUAL NUMERICAL LIMITATION. 
Section 214(c)(2) of the Immigration and Nationality 
Act (8 U.S.C. 1184(c)(2)), as amended by section 3 of 
this Act, is further amended by adding at the end the fol-
lowing: 
‘‘(E) The total number of aliens who may be issued 
visas or otherwise provided nonimmigrant status during 
any fiscal year (beginning with fiscal year 2005) under 
section 101(a)(15)(L) may not exceed 35,000. The numer-
ical limitation in the preceding sentence shall apply only 
to principal aliens and not to the spouses or children of 
such aliens. The provisions of subsection (g)(3) shall apply 
to visas subject to this subparagraph in the same manner
as such provisions apply to visas subject to subsection 
(g)(1).’’. 
SEC. 5. REMOVAL OF INTRACOMPANY TRANSFEREES FROM 
CLASSES OF ALIENS NOT PRESUMED TO BE 
IMMIGRANTS. 
Section 214(b) of the Immigration and Nationality 
Act (8 U.S.C. 1184(b)) is amended by striking ‘‘subpara-
graph (L) or (V) of section 101(a)(15),’’ and inserting 
‘‘section 101(a)(15)(V),’’. 
SEC. 6. SENSE OF CONGRESS REGARDING PAYMENT OF 
PREVAILING WAGE. 
It is the sense of the Congress that employers of non-
immigrants described in section 101(a)(15)(L) of the Im-
migration and Nationality Act (8 U.S.C. 1101(a)(15)(L)) 
should pay such nonimmigrants wages that are at least 
the greater of—
(1) the actual wage level paid by the employer 
to all other individuals with similar experience and 
qualifications for the specific employment in ques-
tion; or 
(2) the prevailing wage level for the occupa-
tional classification in the area of employment. 
SEC. 7. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
on the date of the enactment of this Act and shall apply
to nonimmigrant visas issued, or nonimmigrant status 
provided, under section 101(a)(15)(L) of the Immigration 
and Nationality Act (8 U.S.C. 1101(a)(15)(L)) on or after 
such date. Such amendment shall not be construed as—
(1) invalidating any visa issued under such sec-
tion before such date; or 
(2) otherwise affecting any alien provided non-
immigrant status under such section before such 
date.
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