tion proceedings by requesting the Federal Mediation and
Conciliation Service to appoint an arbitrator from the ros-
ter of arbitrators maintained by such Service. The proce-
dure and rules of such Service shall be applicable to the
selection of such arbitrator and to such arbitration pro-
ceedings. The Attorney General shall pay the fee and ex-
penses of the arbitrator.
‘‘(D)(i) The arbitrator shall make findings respecting
whether a failure or misrepresentation described in sub-
paragraph (B) occurred. If the arbitrator concludes that
failure or misrepresentation was willful, the arbitrator
shall make a finding to that effect. The arbitrator may
not find such a failure or misrepresentation (or that such
a failure or misrepresentation was willful) unless the com-
plainant demonstrates such a failure or misrepresentation
(or its willful character) by clear and convincing evidence.
The arbitrator shall transmit the findings in the form of
a written opinion to the parties to the arbitration and the
Attorney General. Such findings shall be final and conclu-
sive, and, except as provided in this subparagraph, no offi-
cial or court of the United States shall have power or ju-
risdiction to review any such findings.
‘‘(ii) The Attorney General may review and reverse
or modify the findings of an arbitrator only on the same
bases as an award of an arbitrator may be vacated or
modified under section 10 or 11 of title 9, United States
Code.
‘‘(iii) With respect to the findings of an arbitrator,
a court may review only the actions of the Attorney Gen-
eral under clause (ii) and may set aside such actions only
on the grounds described in subparagraph (A), (B), or (C)
of section 706(a)(2) of title 5, United States Code. Not-
withstanding any other provision of law, such judicial re-
view may only be brought in an appropriate United States
court of appeals.
‘‘(E) If the Attorney General receives a finding of an
arbitrator under this paragraph that an employer has
failed to meet the condition of paragraph (1)(G)(i)(II) or
has misrepresented a material fact with respect to such
condition, unless the Attorney General reverses or modi-
fies the finding under subparagraph (D)(ii)—
‘‘(i) the Attorney General may impose adminis-
trative remedies (including civil monetary penalties
in an amount not to exceed $1,000 per violation or
$5,000 per violation in the case of a willful failure
or misrepresentation) as the Attorney General deter-
mines to be appropriate; and
‘‘(ii) the Attorney General is authorized to not
approve petitions filed with respect to that employer
under section 204 or 214(c) during a period of not
more than 1 year for aliens to be employed by the
employer.
‘‘(F) The Attorney General shall not delegate, to any
other employee or official of the Department of Justice,
any function of the Attorney General under this para-
graph, until 60 days after the Attorney General has sub-
mitted a plan for such delegation to the Committees on
the Judiciary of the United States House of Representa-
tives and the Senate.’’.
(2) CONFORMING AMENDMENT.—The first sen-
tence 
of 
section 
212(n)(2)(A) 
(8 
U.S.C.
1182(n)(2)(A)) is amended by striking ‘‘The Sec-
retary’’ and inserting ‘‘Subject to paragraph (5)(A),
the Secretary’’.
(c) LIABILITY OF PETITIONING EMPLOYER IN CASE
OF PLACEMENT OF H–1B NONIMMIGRANT WITH AN-
OTHER
EMPLOYER.—Section 
212(n)(2) 
(8 
U.S.C.
1182(n)(2)) is amended by adding at the end the follow-
ing:
‘‘(E) If an H–1B-dependent employer places a non-
exempt H–1B nonimmigrant with another employer as
provided under paragraph (1)(F) and the other employer
has displaced or displaces a United States worker em-
ployed by such other employer during the period described
in such paragraph, such displacement shall be considered
for purposes of this paragraph a failure, by the placing
employer, to meet a condition specified in an application
submitted under paragraph (1); except that the Attorney
General may impose a sanction described in subclause (II)
of subparagraph (C)(i), (C)(ii), or (C)(iii) only if the Sec-
retary of Labor found that such placing employer—
‘‘(i) knew or had reason to know of such dis-
placement at the time of the placement of the non-
immigrant with the other employer; or
‘‘(ii) has been subject to a sanction under this
subparagraph based upon a previous placement of
an H–1B nonimmigrant with the same other em-
ployer.’’.
(d) SPOT INVESTIGATIONS DURING PROBATIONARY
PERIOD.—Section 212(n)(2) (8 U.S.C. 1182(n)(2)), as
amended by subsection (c), is further amended by adding
at the end the following:
‘‘(F) The Secretary may, on a case-by-case basis,
subject an employer to random investigations for a period
of up to 5 years, beginning on the date that the employer
is found by the Secretary to have committed a willful fail-
ure to meet a condition of paragraph (1) (or has been
found under paragraph (5) to have committed a willful
failure to meet the condition of paragraph (1)(G)(i)(II))
or to have made a willful misrepresentation of material
fact in an application. The preceding sentence shall apply
to an employer regardless of whether or not the employer
is an H–1B-dependent employer. The authority of the Sec-
retary under this subparagraph shall not be construed to
be subject to, or limited by, the requirements of subpara-
graph (A).’’.
(e) ADDITIONAL INVESTIGATIVE AUTHORITY.—
(1) IN GENERAL.—Section 212(n)(2) (8 U.S.C.
1182(n)(2)), as amended by subsection (d), is fur-
ther amended by adding at the end the following:
‘‘(G)(i) If the Secretary receives specific credible in-
formation from a source, who is likely to have knowledge
of an employer’s practices or employment conditions, or
an employer’s compliance with the employer’s labor condi-
tion application under paragraph (1), and whose identity
is known to the Secretary, and such information provides
reasonable cause to believe that the employer has commit-
ted a willful failure to meet a condition of paragraph
(1)(A), (1)(B), (1)(E), (1)(F), or (1)(G)(i)(I), has en-
gaged in a pattern or practice of failures to meet such
a condition, or has committed a substantial failure to meet
such a condition that affects multiple employees, the Sec-
retary may conduct a 30-day investigation into the alleged
failure or failures. The Secretary (or the Acting Secretary
in the case of the Secretary’s absence or disability) shall
personally certify that the requirements for conducting
such an investigation have been met and shall approve
commencement of the investigation. At the request of the
source, the Secretary may withhold the identity of the
source from the employer, and the source’s identity shall
not be subject to disclosure under section 552 of title 5,
United States Code.
‘‘(ii) The Secretary shall establish a procedure under
which any person who desires to provide to the Secretary
information described in clause (i) that may be used, in
whole or in part, as the basis for commencement of an
investigation described in the clause is required to provide
the information in writing on a form developed and pro-
vided by the Secretary and completed by or on behalf of
the person.
‘‘(iii) The Secretary shall provide notice to an em-
ployer with respect to whom the Secretary has received
information described in clause (i), prior to the commence-
ment of an investigation under such clause, of the receipt
of the information and of the potential for an investiga-
tion. The notice shall be provided in such a manner, and
shall contain sufficient detail, to permit the employer to
respond to the allegations before an investigation is com-
menced. The Secretary is not required to comply with this
clause if the Secretary determines that to do so would
interfere with an effort by the Secretary to secure compli-
ance by the employer with the requirements of this sub-
section.
‘‘(iv) Nothing in this subparagraph shall be construed
as authorizing the Secretary to initiate, or approve the ini-
tiation of, an investigation under clause (i) without the
receipt, from a person or persons who are not employed
by the Department of Labor, of information described in
such clause that provides the reasonable cause described
in such clause. The receipt by the Secretary of information
submitted by an employer to the Attorney General or the
Secretary for purposes of securing the employment of an
H–1B nonimmigrant shall not be considered a receipt of
information for purposes of this subparagraph.’’.
(2) SUNSET.—The amendment made by para-
graph (1) shall cease to be effective on September
30, 2001.
SEC. 104. COLLECTION AND USE OF H–1B NONIMMIGRANT
FEES FOR SCHOLARSHIPS FOR LOW-INCOME
MATH, 
ENGINEERING, 
AND 
COMPUTER
SCIENCE STUDENTS AND JOB TRAINING OF
UNITED STATES WORKERS.
(a) IMPOSITION OF FEE.—Section 214(c) (8 U.S.C.
1184(c)) is amended by adding at the end the following:
‘‘(9)(A) The Attorney General shall impose a fee on
an employer (excluding an employer described in subpara-
graph (A) or (B) of section 212(p)(1) and an employer
filing for new concurrent employment) as a condition for
the approval of a petition filed on or after October 1,
1998, and before October 1, 2001, under paragraph (1)—
‘‘(i) initially to grant an alien nonimmigrant
status described in section 101(a)(15)(H)(i)(b); or
‘‘(ii) to extend for the first time the stay of an
alien having such status.
‘‘(B) The amount of the fee shall be $500 for each
such nonimmigrant.
‘‘(C) Fees collected under this paragraph shall be de-
posited in the Treasury in accordance with section 286(s).
‘‘(D)(i) An employer may not require an alien who
is the subject of the petition for which a fee is imposed
under this paragraph to reimburse, or otherwise com-
pensate, the employer for part or all of the cost of such
fee.
‘‘(ii) Section 274A(g)(2) shall apply to a violation of
clause (i) in the same manner as it applies to a violation
of section 274A(g)(1).’’.
(b) ESTABLISHMENT OF ACCOUNT; USE OF FEES.—
Section 286 (8 U.S.C. 1356) is amended by adding at the
end the following:
‘‘(s) 
H–1B 
NONIMMIGRANT
PETITIONER
AC-
COUNT.—
‘‘(1) IN GENERAL.—There is established in the
general fund of the Treasury a separate account,
which shall be known as the ‘H–1B Nonimmigrant
Petitioner Account’. Notwithstanding any other sec-
tion of this title, there shall be deposited as offset-
ting receipts into the account all fees collected under
section 214(c)(9).
‘‘(2) USE
OF
FEES
FOR
JOB
TRAINING.—63
percent of amounts deposited into the H–1B Non-
immigrant Petitioner Account shall remain available
to the Secretary of Labor until expended for dem-
onstration programs and projects described in sec-
tion 104(c) of the Temporary Access to Skilled
Workers and H–1B Nonimmigrant Program Im-
provement Act of 1998.
‘‘(3) USE OF FEES FOR LOW-INCOME SCHOLAR-
SHIP PROGRAM.—32 percent of the amounts depos-
ited into the H–1B Nonimmigrant Petitioner Ac-
count shall remain available to the Director of the
National Science Foundation until expended for
scholarships described in section 104(d) of the Tem-
porary Access to Skilled Workers and H–1B Non-
immigrant Program Improvement Act of 1998 for
low-income students enrolled in a program of study
leading to a degree in mathematics, engineering, or
computer science.
‘‘(4) USE OF FEES FOR APPLICATION PROCESS-
ING
AND
ENFORCEMENT.—2.5 percent of the
amounts deposited into the H–1B Nonimmigrant
Petitioner Account shall remain available to the Sec-
retary of Labor until expended for decreasing the
processing time for applications under section
212(n)(1), and 2.5 percent of such amounts shall re-
main available to such Secretary until expended for
carrying out section 212(n)(2). Notwithstanding the
preceding sentence, both of the amounts made avail-
able for any fiscal year pursuant to the preceding
sentence shall be available to such Secretary, and
shall remain available until expended, only for carry-
ing out section 212(n)(2) until the Secretary sub-
mits to the Congress a report containing a certifi-
cation that, during the most recently concluded cal-
endar year, the Secretary substantially complied
with the requirement in section 212(n)(1) relating to
the provision of the certification described in section
101(a)(15)(H)(i)(b) within a 7-day period.’’.
(c) DEMONSTRATION PROGRAMS AND PROJECTS TO
PROVIDE TECHNICAL SKILLS TRAINING
FOR WORK-
ERS.—
(1) IN GENERAL.—Subject to paragraph (3), in
establishing demonstration programs under section
452(c) of the Job Training Partnership Act (29
U.S.C. 1732(c)), as in effect on the date of the en-
actment of this Act, or demonstration programs or
projects under section 171(b) of the Workforce In-
vestment Act of 1998, the Secretary of Labor shall
establish demonstration programs or projects to pro-
vide technical skills training for workers, including
both employed and unemployed workers.
(2) GRANTS.—Subject to paragraph (3), the
Secretary of Labor shall award grants to carry out
the programs and projects described in paragraph
(1) to—
(A)(i) private industry councils established
under section 102 of the Job Training Partner-
ship Act (29 U.S.C. 1512), as in effect on the
date of the enactment of this Act; or
(ii) local boards that will carry out such
programs or projects through one-stop delivery
systems established under section 121 of the
Workforce Investment Act of 1998; or
(B) regional consortia of councils or local
boards described in subparagraph (A).
(3) LIMITATION.—The Secretary of Labor shall
establish programs and projects under paragraph
(1), including awarding grants to carry out such
programs and projects under paragraph (2), only
with funds made available under section 286(s)(2) of
the Immigration and Nationality Act, and not with
funds made available under the Job Training Part-
nership Act or the Workforce Investment Act of
1998.
(d) LOW-INCOME SCHOLARSHIP PROGRAM.—
(1) ESTABLISHMENT.—The Director of the Na-
tional Science Foundation (referred to in this sub-
section as the ‘‘Director’’) shall award scholarships
to low-income individuals to enable such individuals
to pursue associate, undergraduate, or graduate level
degrees in mathematics, engineering, or computer
science.
(2) ELIGIBILITY.—
(A) IN GENERAL.—To be eligible to receive
a scholarship under this subsection, an individ-
ual—
(i) must be a citizen or national of the
United States or an alien lawfully admitted
to the United States for permanent resi-
dence;
(ii) shall prepare and submit to the
Director an application at such time, in
such manner, and containing such infor-
mation as the Director may require; and
(iii) shall certify to the Director that
the individual intends to use amounts re-
ceived under the scholarship to enroll or
continue enrollment at an institution of
higher education (as defined in section
1201(a) of the Higher Education Act of
1965) in order to pursue an associate, un-
dergraduate, or graduate level degree in
mathematics, engineering, or computer
science.
(B) ABILITY.—Awards of scholarships
under this subsection shall be made by the Di-
rector solely on the basis of the ability of the
applicant, except that in any case in which 2 or
more applicants for scholarships are deemed by
the Director to be possessed of substantially
equal ability, and there are not sufficient schol-
arships available to grant one to each of such
applicants, the available scholarship or scholar-