I 
108TH CONGRESS 
2D SESSION 
H. R. 4166 
To amend the Immigration and Nationality Act with respect to nonimmigrants 
described in subparagraphs (H)(i)(b) and (L) of section 101(a)(15) of 
such Act, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2004 
Mr. SMITH of Texas (for himself, Mr. CARTER, Mr. FLAKE, Mr. CHABOT, Mr. 
GOODLATTE, and Mr. MCKEON) introduced the following bill; which was 
referred to the Committee on the Judiciary 
A BILL 
To amend the Immigration and Nationality Act with respect 
to nonimmigrants described in subparagraphs (H)(i)(b) 
and (L) of section 101(a)(15) of such Act, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Workforce 
Improvement and Jobs Protection Act’’.
SEC. 2. EXEMPTING ALIENS EARNING MASTER’S OR HIGH-
ER DEGREE IN UNITED STATES FROM NU-
MERICAL 
LIMITATIONS 
ON 
H–1B 
NON-
IMMIGRANTS. 
Section 214(g) of the Immigration and Nationality 
Act (8 U.S.C. 1184(g)) is amended by adding at the end 
the following: 
‘‘(9) For any fiscal year, the applicable numerical 
limitation contained in paragraph (1)(A) shall not apply 
to any nonimmigrant alien issued a visa or otherwise pro-
vided status under section 101(a)(15)(H)(i)(b) who has 
earned a master’s or higher degree from an institution of 
higher education (as defined in section 101(a) of the High-
er Education Act of 1965 (20 U.S.C. 1001(a))), until the 
number of aliens who are exempted from such numerical 
limitation during such year exceeds 20,000.’’. 
SEC. 3. MAKING PERMANENT CERTAIN REQUIREMENTS 
AND AUTHORITIES WITH RESPECT TO H–1B 
NONIMMIGRANTS. 
(a) 
ATTESTATION
REQUIREMENTS.—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 ‘‘sub-
paragraph, and before October 1, 2003,’’ and inserting 
‘‘subparagraph’’.
(b) FEE.—Section 214(c)(9)(A) of the Immigration 
and Nationality Act (8 U.S.C. 1184(c)(9)(A)) is amended 
by striking ‘‘before October 1, 2003’’. 
(c) DEPARTMENT
OF LABOR INVESTIGATIVE AU-
THORITIES.—Section 413(e)(2) of the American Competi-
tiveness and Workforce Improvement Act of 1998 (8 
U.S.C. 1182 note) is repealed. 
(d) EFFECTIVE DATES.— 
(1) 
ATTESTATION
REQUIREMENTS.—The 
amendment made by subsection (a) shall apply to 
applications under section 212(n)(1) of the Immigra-
tion and Nationality Act filed on or after the date 
that is 30 days after the date of the enactment of 
this Act. 
(2) FEE.—The amendment made by subsection 
(b) shall apply to petitions under section 214(c) of 
the Immigration and Nationality Act filed on or 
after the date that is 30 days after the date of the 
enactment of this Act. 
(3) DEPARTMENT
OF
LABOR
INVESTIGATIVE 
AUTHORITY.—The amendment made by subsection 
(c) shall take effect on the date of the enactment of 
this Act.
SEC. 4. FRAUD PREVENTION AND DETECTION FEE. 
(a) IMPOSITION OF FEE.—Section 214(c) of the Im-
migration and Nationality Act (8 U.S.C. 1184(c)) is 
amended by adding at the end the following: 
‘‘(12)(A) In addition to any other fees authorized by 
law, the Secretary of Homeland Security shall impose a 
fraud prevention and detection fee on an employer filing 
a petition under paragraph (1)— 
‘‘(i) initially to grant an alien nonimmigrant 
status described in subparagraph (H)(i)(b) or (L) of 
section 101(a)(15); or 
‘‘(ii) to obtain authorization for an alien having 
such status to change employers. 
‘‘(B) In addition to any other fees authorized by law, 
the Secretary of State shall impose a fraud prevention and 
detection fee on an alien filing an application abroad for 
a visa authorizing admission to the United States as a 
nonimmigrant described in section 101(a)(15)(L), if the 
alien is covered under a blanket petition described in para-
graph (2)(A). 
‘‘(C) The amount of the fee imposed under subpara-
graph (A) or (B) shall be $500. 
‘‘(D) The fee imposed under subparagraph (A) or (B) 
shall only apply to principal aliens and not to the spouses 
or children who are accompanying or following to join such 
principal aliens.
‘‘(E) Fees collected under this paragraph shall be de-
posited in the Treasury in accordance with section 
286(v).’’. 
(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 fol-
lowing: 
‘‘(v) H–1B AND L FRAUD PREVENTION AND DETEC-
TION 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 and L Fraud 
Prevention and Detection Account’. Notwithstanding 
any other provision of law, there shall be deposited 
as offsetting receipts into the account all fees col-
lected under section 214(c)(12). 
‘‘(2) USE OF FEES TO COMBAT FRAUD.— 
‘‘(A) SECRETARY OF STATE.—One-third of 
the amounts deposited into the H–1B and L 
Fraud Prevention and Detection Account shall 
remain available to the Secretary of State until 
expended for programs and activities at United 
States embassies and consulates abroad— 
‘‘(i) to increase the number diplomatic 
security personnel assigned exclusively to
the function of preventing and detecting 
fraud by applicants for visas described in 
subparagraph (H)(i) or (L) of section 
101(a)(15); 
‘‘(ii) otherwise to prevent and detect 
such fraud pursuant to the terms of a 
memorandum of understanding or other 
cooperative agreement between the Sec-
retary of State and the Secretary of Home-
land Security; and 
‘‘(iii) upon request by the Secretary of 
Homeland Security, to assist such Sec-
retary in carrying out the fraud prevention 
and detection programs and activities de-
scribed in subparagraph (B). 
‘‘(B) SECRETARY
OF
HOMELAND
SECU-
RITY.—One-third of the amounts deposited into 
the H–1B and L Fraud Prevention and Detec-
tion Account shall remain available to the Sec-
retary of Homeland Security until expended for 
programs and activities to prevent and detect 
fraud with respect to petitions under paragraph 
(1) or (2)(A) of section 214(c) to grant an alien 
nonimmigrant status described in subparagraph 
(H)(i) or (L) of section 101(a)(15).
‘‘(C) SECRETARY OF LABOR.—One-third of 
the amounts deposited into the H–1B and L 
Fraud Prevention and Detection Account shall 
remain available to the Secretary of Labor until 
expended for enforcement programs and activi-
ties described in section 212(n). 
‘‘(D) CONSULTATION.—The Secretary of 
State, the Secretary of Homeland Security, and 
the Secretary of Labor shall consult one an-
other with respect to the use of the funds in the 
H–1B and L Fraud Prevention and Detection 
Account.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act, and the fees imposed under such amendments 
shall apply to petitions under section 214(c) of the Immi-
gration and Nationality Act, and applications for non-
immigrant visas under section 222 of such Act, filed on 
or after the date that is 90 days after the date of the 
enactment of this Act. 
SEC. 
5. 
ENSURING 
INTEGRITY 
OF 
VISAS 
FOR 
INTRACOMPANY TRANSFEREES. 
(a) NONIMMIGRANT L–1 VISA CATEGORY.—
(1) IN GENERAL.—Section 214(c)(2) of the Im-
migration and Nationality Act (8 U.S.C. 1184(c)(2)) 
is amended by adding at the end the following: 
‘‘(F) An alien who will serve in a capacity involving 
specialized knowledge with respect to an employer for pur-
poses of section 101(a)(15)(L) and will be stationed pri-
marily at the worksite of an employer other than the peti-
tioning employer or its affiliate, subsidiary, or parent shall 
not 
be 
eligible 
for 
classification 
under 
section 
101(a)(15)(L) if— 
‘‘(i) the alien will be controlled and supervised 
principally by such unaffiliated employer; or 
‘‘(ii) the placement of the alien at the worksite 
of the unaffiliated employer is part of an arrange-
ment merely to provide labor for the unaffiliated em-
ployer rather than in connection with the provision 
of a product or service for which specialized knowl-
edge specific to the petitioning employer is nec-
essary.’’. 
(2) APPLICABILITY.—The amendment made by 
paragraph (1) shall apply to petitions filed on or 
after the effective date of this section, whether for 
initial, extended, or amended classification.
(b) REQUIREMENT
FOR PRIOR CONTINUOUS EM-
PLOYMENT
FOR
CERTAIN
INTRACOMPANY
TRANS-
FEREES.— 
(1) IN GENERAL.—Section 214(c)(2)(A) of the 
Immigration 
and 
Nationality 
Act 
(8 
U.S.C. 
1184(c)(2)(A)) is amended by striking the last sen-
tence (relating to reduction of the 1-year period of 
continuous employment abroad to 6 months). 
(2) APPLICABILITY.—The amendment made by 
paragraph (1) shall apply only to petitions for initial 
classification filed on or after the effective date of 
this section. 
(c) MAINTENANCE OF STATISTICS.— 
(1) IN GENERAL.—The Secretary of Homeland 
Security shall maintain statistics regarding petitions 
filed, approved, extended, and amended with respect 
to nonimmigrants described in section 101(a)(15)(L) 
of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(L)), including the number of such non-
immigrants who are classified on the basis of spe-
cialized knowledge and the number of non-
immigrants who are classified on the basis of spe-
cialized knowledge in order to work primarily at off-
site locations.
(2) APPLICABILITY.—Paragraph (1) shall apply 
to petitions filed on or after the effective date of this 
section. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect 180 days after 
the date of the enactment of this Act. 
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