‘‘(5)(A) The numerical limitations in clauses (i) and
(ii) of paragraph (1)(A) shall not apply to an alien de-
scribed in subparagraph (B).
‘‘(B) An alien is described in this subparagraph if—
‘‘(i) the alien, disregarding clauses (i) and (ii)
of paragraph (1)(A), otherwise is eligible to be issued
a visa or provided nonimmigrant status under section
101(a)(15)(H)(i)(b); and
‘‘(ii) the employer petitioning under subsection
(c)(1) with respect to the alien demonstrates in the
petition that, with respect to the taxable year pre-
ceding the taxable year in which the petition is filed,
there was a net increase (as compared with the tax-
able year prior to such preceding taxable year) in the
median of the total wages (including cash bonuses
and similar compensation) paid to full-time equiva-
lent United States workers (as defined in section
212(n)(4)(E)) who are on the employer’s payroll on
the last day of the taxable year.
‘‘(C) In making the determination under subpara-
graph (B)(ii)—
‘‘(i) any group treated as a single employer
under subsection (b), (c), (m), or (o) of section 414 of
the Internal Revenue Code of 1986 shall be treated as
a single employer; and
‘‘(ii) the Attorney General shall disregard work-
ers who ceased employment with an employer by rea-
son of the employer’s having sold, or otherwise legally
transferred for consideration, the assets of a division
or other severable portion of the employer’s business
to another person before the end of the employer’s pre-
vious tax year.’’.
(c) EFFECTIVE DATES.—
(1) ELIMINATING
NUMERICAL
LIMITATION
FOR
FISCAL YEAR 2000.—The amendment made by sub-
section (a), to the extent that it eliminates the numer-
ical limitation under section 214(g)(1)(A)(iii) of the
Immigration and Nationality Act, as in effect on the
day before the date of the enactment of this Act, shall
take effect on the date of the enactment of this Act.
(2) CONDITIONING INCREASES FOR FISCAL YEARS
2001 AND 2002.—In all other respects, the amendments
made by this section shall take effect on October 1,
2000, without regard to whether or not proposed or
final regulations to carry out such amendments have
been promulgated.
SEC. 102. INCREASED PORTABILITY OF H–1B STATUS.
(a) IN GENERAL.—Section 214(c) of the Immigration
and Nationality Act (8 U.S.C. 1184(c)) is amended by add-
ing at the end the following:
‘‘(10)(A) A nonimmigrant alien described in subpara-
graph (B) who was issued a visa (or otherwise provided
nonimmigrant status) under section 101(a)(15)(H)(i)(b)
may change employers upon the filing by the prospective
employer of a petition under paragraph (1) on behalf of
the alien to obtain authorization for the change. Employ-
ment authorization shall continue for such alien until such
petition is adjudicated. If the petition is denied, such em-
ployment authorization shall cease.
‘‘(B) A nonimmigrant alien described in this subpara-
graph is a nonimmigrant alien—
‘‘(i) who has been lawfully admitted into the
United States;
‘‘(ii) on whose behalf an employer has filed a
nonfrivolous petition described in subparagraph (A)
before the date of the expiration of the period of stay
authorized by the Attorney General for the alien; and
‘‘(iii) who, subsequent to such lawful admission,
has not been employed without authorization in the
United States before the filing of such petition.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on the date of the enactment
of this Act and shall apply to petitions filed before, on, or
after such date.
TITLE II—NEW REQUIREMENTS
ON 
PETITIONING 
EMPLOY-
ERS; PETITION FILING FEE
REDUCTION FOR LOCAL EDU-
CATIONAL AGENCIES
SEC. 201. MINIMUM SALARY REQUIREMENT.
(a) IN GENERAL.—Section 212(n)(1)(A) of the Immi-
gration and Nationality Act (8 U.S.C. 1182(n)(1)(A)) is
amended—
(1) by striking ‘‘and’’ at the end of clause (i);
(2) by redesignating clause (ii) as clause (iii);
and
(3) by inserting after clause (i) the following:
‘‘(ii) is offering and will offer during the
period of authorized employment to H–1B non-
immigrants wages that are at least equal to an
annual salary of $40,000 (including cash bo-
nuses and similar compensation), except if the
employment in question is as a public or private
elementary or secondary school teacher or if the
employer is an institution of higher education
(as defined in section 101(a) of the Higher Edu-
cation Act of 1965) or a related or affiliated
nonprofit entity, a nonprofit research organiza-
tion, or a governmental research organization;
and’’.
(b) INFLATION ADJUSTMENT.—Section 212(n) of the
Immigration and Nationality Act (8 U.S.C. 1182(n)) is
amended by adding at the end the following:
‘‘(6) For purposes of paragraph (1)(A)(ii), in the case
of any fiscal year beginning in a calendar year after 2000,
the dollar amount contained in such paragraph shall be in-
creased by an amount equal to—
‘‘(A) the dollar amount; multiplied by
‘‘(B) the cost-of-living adjustment determined
under section 1(f)(3) of the Internal Revenue Code of
1986 for the calendar year in which the fiscal year
begins by substituting ‘calendar year 1999’ for ‘cal-
endar year 1992’ in subparagraph (B) of such sec-
tion.’’.
SEC. 202. SUBMISSION OF DATA ON H–1B NONIMMIGRANTS
AFTER EMPLOYMENT COMMENCEMENT.
(a) IN GENERAL.—Section 212(n)(1) of the Immigra-
tion and Nationality Act (8 U.S.C. 1182(n)(1)) is amended
by inserting after subparagraph (G) the following:
‘‘(H) The employer will electronically submit to
the Secretary, not later than 30 days after the date
on which an H–1B nonimmigrant commences em-
ployment with the employer, data in an electronic
format containing information about the non-
immigrant, including the following:
‘‘(i) The foreign state of which the non-
immigrant is a citizen or national.
‘‘(ii) The academic degrees obtained by the
nonimmigrant.
‘‘(iii) The nonimmigrant’s job title.
‘‘(iv) The date on which employment com-
menced.
‘‘(v) The nonimmigrant’s salary or wage
level.’’.
(b) REQUIREMENT ON SECRETARY.—Not later than 30
days after the receipt of data from an employer that is pro-
vided in accordance with section 212(n)(1)(H) of the Immi-
gration and Nationality Act (8 U.S.C. 1182(n)(1)(H)), as
inserted by subsection (a), the Secretary of Labor shall
make such data available on the Internet.
SEC. 203. FEE TO ENABLE MORE EFFICIENT PAPERWORK
PROCESSING.
(a) IMPOSITION OF FEE.—Section 214(c) of the Immi-
gration and Nationality Act (8 U.S.C. 1184(c)), as amend-
ed by section 102, is further amended by adding at the end
the following:
‘‘(11)(A) In addition to any other fees authorized by
law, the Attorney General shall impose a processing fee on
an employer filing a petition under paragraph (1)—
‘‘(i) initially to grant an alien nonimmigrant
status described in section 101(a)(15)(H)(i)(b); or
‘‘(ii) to obtain authorization for an alien having
such status to change employers.
‘‘(B) The amount of the fee shall be $200 for each such
petition.
‘‘(C) Fees collected under this paragraph shall be de-
posited in the Treasury in accordance with section 286(t).’’.
(b) ESTABLISHMENT OF ACCOUNT; USE OF FEES.—
Section 286 of the Immigration and Nationality Act (8
U.S.C. 1356) is amended by adding at the end the following:
‘‘(t) H–1B PROCESSING FEE ACCOUNT.—
‘‘(1) IN GENERAL.—There is established in the
general fund of the Treasury a separate account,
which shall be known as the ‘H–1B Processing Fee
Account’. Notwithstanding any other provision of law,
there shall be deposited as offsetting receipts into the
account all fees collected under section 214(c)(11).
‘‘(2) USE OF FEES.—50 percent of the amounts
deposited into the H–1B Processing Fee Account shall
remain available to the Attorney General until ex-
pended to carry out duties under section 214(c)(1) re-
lated to petitions made for nonimmigrants described
in section 101(a)(15)(H)(i)(b) and to decrease the
processing time for such petitions. 50 percent of the
amounts deposited into the account shall remain
available to the Secretary of Labor until expended for
decreasing the processing time for applications under
section 212(n)(1) and for carrying out section
212(n)(2).’’.
SEC. 204. QUALIFICATIONS FOR PHYSICAL THERAPISTS.
(a) IN GENERAL.—Section 214(i)(2) of the Immigra-
tion and Nationality Act (8 U.S.C. 1184(i)(2)) is
amended—
(1) by striking ‘‘(A)’’ and inserting ‘‘(i)’’;
(2) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’;
(3) in subparagraph (C), by striking ‘‘(ii)’’ and
inserting ‘‘(II)’’
(4) by striking ‘‘(C)(i)’’ and inserting ‘‘(iii)(I)’’;
(5) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’;
and
(6) by adding at the end the following:
‘‘(B) In the case of a position in a specialty occupation
that requires an alien to perform services as a physical ther-
apist, the requirements of this paragraph also include a re-
quirement that the alien have completed a degree recognized
by body or bodies approved for the purpose by the Secretary
of Education as equivalent (or more than equivalent) to the
education and training received by a person completing a
master’s degree from an accredited program of physical
therapy in the United States.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a)(6) shall not apply to any alien who has full
State licensure to practice in the occupation of physical
therapist before the date of the enactment of this Act.
SEC. 205. REDUCTION OF PETITION FILING FEE FOR LOCAL
EDUCATIONAL AGENCIES.
Section 214(c)(9)(B) of the Immigration and Nation-
ality Act (8 U.S.C. 1184(c)(9)(B)) is amended by striking
‘‘petition.’’ and inserting ‘‘petition, except that the amount
of the fee shall be $100 for an employer that is a local edu-
cational agency (as defined in section 14101 of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
8801)).’’.
SEC. 206. EFFECTIVE DATE.
(a) IN GENERAL.—Subject to section 204(b) and sub-
section (b), the amendments made by this title shall take
effect on the date of the enactment of this Act and shall
apply to petitions filed under section 214(c), and applica-
tions filed under section 212(n)(1), of the Immigration and
Nationality Act on or after October 1, 2000.
(b) REQUIREMENTS FOR SPECIALTY OCCUPATION.—
The amendments made by paragraphs (1) through (5) of
section 204(a) shall take effect on the date of the enactment
of this Act and shall apply to petitions filed under section
214(c), and applications filed under section 212(n)(1), of
the Immigration and Nationality Act on or after the earlier
of—
(1) October 1, 2000; and
(2) the date on which final regulations are pro-
mulgated to carry out the amendments made by sec-
tion 303.
TITLE 
III—NONCOMPLIANCE
PROVISIONS FOR H–1B NON-
IMMIGRANTS
SEC. 301. REQUIRING SPECIALTY OCCUPATION WORKERS
AND FASHION MODELS TO OBTAIN STATUS AS
AN H–1B NONIMMIGRANT.
Section 214(g) of the Immigration and Nationality
Act (8 U.S.C. 1184(g)), as amended by section 101 of this
Act, is further amended by adding at the end the following:
‘‘(6) Notwithstanding any other provision of this Act,
any alien admitted or provided status as a nonimmigrant
in order to provide services in a specialty occupation de-
scribed in subsection (i)(1) (other than services described
in subparagraph (H)(ii)(a), (O), or (P) of section
101(a)(15)) or as a fashion model shall have been issued
a visa (or otherwise been provided nonimmigrant status)
under section 101(a)(15)(H)(i)(b).’’.
SEC. 302. REQUIRING FULL-TIME EMPLOYMENT.
(a) IN GENERAL.—Section 101(a)(15)(H)(i)(b) of the
Immigration 
and 
Nationality 
Act 
(8 
U.S.C.
1101(a)(15)(H)(i)(b)) is amended by striking ‘‘or (P))’’ and
inserting ‘‘or (P)), not less than 35 hours per week (except
if the employer is an institution of higher education (as
defined in section 101(a) of the Higher Education Act of
1965) or a related or affiliated nonprofit entity),’’.
(b) 
CONFORMING
AMENDMENTS.—Section
212(n)(2)(C)(vii) of the Immigration and Nationality Act
(8 U.S.C. 1182(n)(2)(C)(vii))is amended—
(1) in subclause (I), by striking ‘‘a full-time’’
and inserting ‘‘an’’;
(2) by striking subclause (II);
(3) in subclause (III), by striking ‘‘subclauses (I)
and (II)’’ and inserting ‘‘subclause (I)’’; and
(4) by redesignating subclauses (III) through
(VI) as subclauses (II) through (V), respectively.
SEC. 303. REQUIREMENTS FOR SPECIALTY OCCUPATION.
Section 214(i) of the Immigration and Nationality Act
(8 U.S.C. 1184(i)), as amended by section 204 of this Act,
is further amended—
(1) by amending paragraph (1)(B) to read as
follows:
‘‘(B) attainment of a bachelor’s degree (or higher
degree) in the specific specialty as a minimum for
entry into the occupation in the United States.’’;
(2) by amending paragraph (2)(A)(iii) to read
as follows:
‘‘(iii)(I) completion of a bachelor’s degree (or
higher degree) that is not described in paragraph
(1)(B), (II) experience in the specialty equivalent to
the completion of the degree described in paragraph
(1)(B) for the occupation, and (III) recognition of ex-
pertise in the specialty through progressively respon-
sible positions relating to the specialty.’’; and
(3) by adding at the end the following:
‘‘(3) For purposes of this subsection, the term ‘bach-
elor’s degree (or higher degree)’ includes a foreign degree
that is a recognized foreign equivalent of a bachelor’s degree
(or higher degree).’’.
SEC. 304. NONCOMPLIANCE FEE.
(a) IMPOSITION OF FEE.—Section 214(c) of the Immi-
gration and Nationality Act (8 U.S.C. 1184(c)), as amend-
ed by sections 102 and 203, is further amended by adding
at the end the following:
‘‘(12)(A) In addition to any other fees authorized by
law, the Attorney General shall impose a noncompliance fee
on an employer filing a petition under paragraph (1)—
‘‘(i) initially to grant an alien nonimmigrant
status described in section 101(a)(15)(H)(i)(b); or
‘‘(ii) to obtain authorization for an alien having
such status to change employers.
‘‘(B) The amount of the fee shall be $100 for each such
petition.
‘‘(C) Fees collected under this paragraph shall be de-
posited in the Treasury in accordance with section
286(u).’’.
(b) ESTABLISHMENT OF ACCOUNT; USE OF FEES.—
Section 286 of the Immigration and Nationality Act (8
U.S.C. 1356), as amended by section 303 of this Act, is fur-
ther is amended by adding at the end the following:
‘‘(u) H–1B NONCOMPLIANCE ACCOUNT.—
‘‘(1) IN GENERAL.—There is established in the
general fund of the Treasury a separate account,
which shall be known as the ‘H–1B Noncompliance
Account’. Notwithstanding any other provision of law,
there shall be deposited as offsetting receipts into the
account all fees collected under section 214(c)(12).
‘‘(2) USE OF FEES TO COMBAT FRAUD.—
‘‘(A) ATTORNEY GENERAL.—
‘‘(i) 
PROGRAMS
TO
ELIMINATE
FRAUD.—20 percent of amounts deposited
into the H–1B Noncompliance Account
shall remain available to the Attorney Gen-
eral until expended for programs and ac-
tivities to eliminate fraud by employers fil-
ing petitions under section 214(c)(1) with
respect 
to 
status 
under 
section
101(a)(15)(H)(i)(b) and aliens who are the
beneficiaries of such petitions.
‘‘(ii) REMOVAL OF ALIENS.—20 percent
of amounts deposited into the H–1B Non-
compliance Account shall remain available
to the Attorney General until expended for
the removal of H–1B nonimmigrants (as
defined in section 212(n)(4)(C)) who are de-
portable under section 237(a)(1)(A) by rea-
son of having been found to be within the
class of aliens inadmissible under section
212(a)(6)(C).
‘‘(B) SECRETARY OF STATE.—40 percent of
amounts deposited into the H–1B Noncompli-
ance Account shall remain available to the Sec-
retary of State until expended for programs and
activities to eliminate fraud by employers and
aliens described in subparagraph (A).
‘‘(C) JOINT
PROGRAMS.—20 percent of
amounts deposited into the H–1B Noncompli-
ance Account shall remain available to the Attor-
ney General and the Secretary of State until ex-
pended for programs and activities conducted by
them jointly to eliminate fraud by employers
and aliens described in subparagraph (A).’’.
SEC. 305. ADDITIONAL REQUIREMENTS ON PETITIONING
EMPLOYERS.
Section 214(c) of the Immigration and Nationality Act
(8 U.S.C. 1184(c)), as amended by sections 102, 203, and
304 of this Act, is further amended by adding at the end
the following:
‘‘(13) The Attorney General may not approve any peti-
tion under paragraph (1) filed by an employer with respect
to an alien seeking to obtain or having the status of a non-
immigrant under section 101(a)(15)(H)(i)(b) unless the em-
ployer satisfies the following requirements:
‘‘(A) The employer—
‘‘(i) is an institution of higher education
(as defined in section 101(a) of the Higher Edu-
cation Act of 1965), or a governmental or non-
profit entity; or
‘‘(ii) maintains a place of business in the
United States that is licensed in accordance with
any applicable State or local business licensing
requirements and is used exclusively for business
purposes.
‘‘(B) The employer—
‘‘(i) is a governmental entity;
‘‘(ii) has aggregate gross assets with a value
of not less than $250,000—
‘‘(I) in the case of an employer that is
a publicly held corporation, as determined
using its most recent report filed with the
Securities and Exchange Commission; or
‘‘(II) in the case of any other employer,
as determined as of the date on which the
petition is filed pursuant to regulations
promulgated by the Attorney General; or
‘‘(iii) provides documentation of business
activity pursuant to regulations promulgated by
the Attorney General.’’.
SEC. 306. REQUIRING FILING OF W–2 FORMS.
(a) IN GENERAL.—Section 212(n)(1) of the Immigra-
tion and Nationality Act (8 U.S.C. 1182(n)(1)), as amend-
ed by section 202 of this Act, is further amended by insert-
ing after subparagraph (H) the following:
‘‘(I) The employer will, with respect to each em-
ployee who is an H–1B nonimmigrant, annually sub-
mit to the Secretary of Labor a copy of the most re-
cent statement under section 6051 of the Internal
Revenue Code of 1986. Such submission may be made
by electronic means.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on the date of the enactment
of this Act and shall apply to applications filed under sec-
tion 212(n)(1) of the Immigration and Nationality Act on
or after October 1, 2000, but only with respect to statements
made under section 6051 of the Internal Revenue Code of
1986 on or after January 1, 2001.
SEC. 307. EFFECTIVE DATE.
Except for the amendment made by section 306, the
amendments made by this title shall take effect on the date
of the enactment of this Act and shall apply to petitions
filed under section 214(c), and applications filed under sec-
tion 212(n)(1), of the Immigration and Nationality Act on
or after the date on which final regulations are promulgated
to carry out such amendments.
TITLE IV—EXTENSION OF PROVI-
SIONS FROM THE AMERICAN
COMPETITIVENESS 
AND
WORKFORCE 
IMPROVEMENT
ACT OF 1998
SEC. 401. PROTECTION OF UNITED STATES WORKERS IN
CASE OF H–1B DEPENDENT EMPLOYERS.
Section 212(n)(1)(E)(ii) of the Immigration and Na-
tionality Act (8 U.S.C. 1182(n)(1)(E)(ii)) is amended by
striking ‘‘2001,’’ and inserting ‘‘2002,’’.
SEC. 402. ADDITIONAL INVESTIGATIVE AUTHORITY.
Section 413(e)(2) of the American Competitiveness and
Workforce Improvement Act of 1998 (as contained in title
IV of division C of the Omnibus Consolidated and Emer-
gency Supplemental Appropriations Act, 1999; Public Law
105–277) is amended by striking ‘‘2001.’’ and inserting
‘‘2002.’’.
SEC. 403. REQUIREMENT TO ISSUE REGULATIONS.
The Secretary of Labor shall promulgate final regula-
tions fully implementing all provisions of the American
Competitiveness and Workforce Improvement Act of 1998
(as contained in title IV of division C of the Omnibus Con-
solidated and Emergency Supplemental Appropriations
Act, 1999; Public Law 105–277). Such regulations shall
take effect on or before September 1, 2000.
TITLE V—STUDIES AND
REPORTS
SEC. 501. STUDIES AND REPORTS BY COMPTROLLER GEN-
ERAL.
(a) 
RECRUITMENT
OF
UNDERREPRESENTED
GROUPS.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study on the meas-
ures taken, by employers who have filed an applica-
tion under section 212(n)(1) of the Immigration and
Nationality Act (8 U.S.C. 1182(n)(1)), to recruit, for
the employment for which H–1B nonimmigrants are
sought by the application, qualified United States
workers who are a member of an underrepresented
group. The study shall include an examination of the
extent to which these employers—
(A) recruit at—
(i) institutions of higher education
with substantial numbers of students who
are a member of an underrepresented group;
(ii) historically black colleges and uni-
versities;
(iii) community colleges; and
(iv) vocational and technical colleges;
and
(B) advertise in publications reaching mem-
bers of an underrepresented group.
(2) RECOMMENDATIONS.—If the Comptroller
General of the United States determines, based on the
study under paragraph (1), that modifications to the
provisions of the Immigration and Nationality Act
relating to H–1B nonimmigrants are appropriate in
order to increase recruitment by employers described
in paragraph (1) of members of an underrepresented
group, the Comptroller General shall include such rec-
ommendations in the report submitted under para-
graph (3).
(3) REPORT.—Not later than December 31, 2000,
the Comptroller General of the United States shall
submit to the Committees on the Judiciary of the
United States House of Representatives and of the
Senate a report containing the results of the study
under paragraph (1).
(4) DEFINITIONS.—For purposes of this sub-
section:
(A) The term ‘‘member of an underrep-
resented group’’ includes United States workers
who are African American, Hispanic, female, or
an individual with a disability.
(B) The terms ‘‘H–1B nonimmigrant’’ and
‘‘United States worker’’ have the meaning given
such terms in section 212(n)(4) of the Immigra-
tion and Nationality Act (8 U.S.C. 1182(n)(4)).
(b) TRAINING INCUMBENT WORKERS.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study on the meas-
ures taken, by employers who have filed an applica-
tion under section 212(n)(1) of the Immigration and
Nationality Act (8 U.S.C. 1182(n)(1)), continually to
train and update the existing skills of incumbent em-
ployees, and to promote such employees where pos-
sible.
(2) REPORT.—Not later than December 31, 2000,
the Comptroller General of the United States shall
submit to the Committees on the Judiciary of the
United States House of Representatives and of the
Senate a report containing the results of the study
under paragraph (1).
(c) COMPLIANCE WITH PROVISIONS DESIGNED TO EN-
SURE ACCURATE COUNT OF H–1B NONIMMIGRANTS.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study to determine
the degree of compliance by the Attorney General with
the requirements of section 416 of the American Com-
petitiveness and Workforce Improvement Act of 1998
(as contained in title IV of division C of the Omnibus
Consolidated and Emergency Supplemental Appro-
priations Act, 1999; Public Law 105–277).
(2) REPORT.—Not later than December 31, 2000,
the Comptroller General of the United States shall
submit to the Committees on the Judiciary of the
United States House of Representatives and of the
Senate a report containing the results of the study
under paragraph (1).
Union Calendar No. 388
106TH CONGRESS
2D SESSION
H. R. 4227
[Report No. 106–692]
A BILL
To amend the Immigration and Nationality Act
with respect to the number of aliens granted non-
immigrant 
status 
described 
in 
section
101(a)(15)(H)(i)(b) of the Immigration and Na-
tionality Act, to implement measures to prevent
fraud and abuse in the granting of such status,
and for other purposes.
JUNE 23, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed