Source: https://www.federalregister.gov/documents/2009/09/22/E9-22822/exchange-visitor-program-general-provisions
Timestamp: 2018-07-20 15:33:45
Document Index: 11343809

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Federal Register :: Exchange Visitor Program-General Provisions
A Proposed Rule by the State Department on 09/22/2009
The Department will accept comments from the public up to November 23, 2009.
74 FR 48177
48177-48190 (14 pages)
Public Notice: 6767
E9-22822
https://www.federalregister.gov/d/E9-22822 https://www.federalregister.gov/d/E9-22822
The Department of State is proposing to amend the General Provisions (Subpart A) of the existing Exchange Visitor Program regulations. This section of the regulations establishes the procedures for designated Program sponsors and addresses overall Program administration. It provides the overall context in which to interpret all other provisions of the Exchange Visitor Program regulations. The General Provisions have not been revised in whole in over 15 years, despite modifications of many of the category-specific regulations and changes in technology.
The proposed regulations encompass technical changes to the General Provisions and address public diplomacy and foreign policy concerns, including the Department's ability to monitor Program sponsors and to ensure the safety and well-being of foreign nationals who come to the United States as Program participants. The amendment of this section incorporates changes made to the regulations since the last update in 1993. It ties all regulatory requirements together and consolidates the requirements set forth in the SEVIS reporting requirements regulations into the General Provisions.
Certain definitions have been added, made clearer or deleted. This rule also proposes new requirements regarding applications for designation and redesignation, a change in the required amount of health insurance coverage, the identification of an Employer Identification Number (EIN) and Dun & Bradstreet numbers by sponsors and third party entities, the collection of employment authorization information and validation of the SEVIS record on an exchange visitor's accompanying spouse and dependents, criminal background checks on all Responsible Officers and Alternate Responsible Officers, and the implementation of management audits across all categories under the Private Sector Programs Division of the Office of Designation. The Student and Exchange Visitor Information System (SEVIS) currently in place is being redesigned. The redesign, SEVIS II, has no immediate impact on this proposed rule. Prior to the implementation of SEVIS II the Department of Homeland Security will introduce any new requirements or procedures to the public through a proposed rule with a comment period.
Stanley S. Colvin, Deputy Assistant Secretary for Private Sector Exchanges, U.S. Department of State, SA-5, Floor 5, 2200 C Street, NW., Washington, DC 20522-0505; (202) 632-9288; or e-mail at jexchanges@state.gov.
The Department of State is proposing modifications to § 62.2 through § 62.16 of the Code of Federal Regulations, Title 22: Foreign Relations, Part 62—Exchange Visitor Program (Subpart A—General Provisions). Subpart A governs the designation of Program sponsors and addresses overall Program administration. It provides the overall context in which all remaining provisions of Part 62 are interpreted. Subpart A has remained largely unchanged since 1993, when the predecessor agency with oversight of the Exchange Visitor Program, the United States Information Agency (USIA), substantially rewrote all of the regulations governing the Program. (See 58 FR 15196, Mar. 19, 1993, as amended at 59 FR 34761, July 7, 1994, redesignated at 64 FR 54539, Oct. 7, 1999.) In the intervening 15 years, the Department of State modified regulations governing certain categories of exchange visitors and added new categories. New regulations governing the trainee category were published in 2007. Specialty and non-specialty training were eliminated and new trainee regulations implemented. A new category, Intern, was created. A subcategory of the College/University Student program, Student Intern, was also put in place for use by the academic community.
The amendment of this section incorporates changes to the regulations since the last update in 1993, including the change in the period of redesignation which, with the passage of the Enhanced Border Security and Visa Entry Reform Act of 2002, Part (b)(1) (Section 502), was changed from every five years to every two years. The updates are important because they tie all regulatory requirements together, ensuring that the regulations are clear and that all sponsors understand and follow the same requirements in the administration of their designated exchange visitor programs. SEVIS is being redesigned. The redesign, SEVIS II, has no immediate impact on this proposed rule. Prior to implementation of SEVIS II, the Department of Homeland Security will introduce any new requirements or procedures to the public through a proposed rule with a comment period.
To strengthen program oversight, the implementation of management audits for all private sector program sponsors, as currently utilized in the Au Pair Start Printed Page 48178Program, are proposed. A management audit is a review of a sponsor's internal controls. The audit identifies weaknesses in operating procedures in the conduct of an organization's business and in meeting regulatory requirements in the administration of their exchange visitor program. The Department has employed an almost fully staffed Compliance Office to monitor the extent to which the nearly 1,500 designated sponsors comply with the Exchange Visitor Program regulations. Still it lacks all the tools necessary to perform timely, statistically valid, and repeatable assessments of the regulatory compliance of the sponsors of the “high risk” categories of exchange, much less the entire sponsor community. The high risk categories are the secondary school student, au pair, camp counselor, summer work travel, intern, trainee and teacher. They are of high risk because they involve placing young adults in homes of strangers, placing young children in the care of foreign nationals, or the category is at risk of being abused and used as ordinary work or employment programs rather than the educational and cultural exchange programs as intended.
Through these management audits, the Department will be able to identify those sponsors who are not complying with the regulations. Equally important, the results of these audits will provide a framework that will facilitate the application of measured sanctions. That is, with a better understanding of the range of non-compliance within a given category, the Department can impose appropriate sanctions while limiting the risk that it will be accused of being arbitrary or capricious. Sponsors would be required to engage independent auditors to perform these audits annually, reviewing internal operating procedures of the sponsor and the files of a statistically valid sampling of a sponsor's program participants. The estimated cost of this new requirement to program sponsors is between $6,000 and $10,000. The data collection required for management audit templates is within the scope of existing data collections (see OMB 1405-0147, Form DS-7000, Catalog of Information Collection Requirements under 22 CFR Part 62, the Exchange Visitor Program (SEVIS)).
This proposed rule also includes a new provision requiring that all new applicants for sponsor designation undergo a site visit prior to designation. Such site visits, to be conducted by the Department of State or a third party on its behalf, will ensure an entity has the facilities, staff and equipment necessary to conduct an exchange program. On-site reviews of existing sponsors may occur at the discretion of the Department. The applicants and/or sponsors will bear the cost of these reviews. The site visits and on-site reviews are a critical monitoring tool for ensuring data integrity and for ensuring the health, safety and welfare of Exchange Visitor Program participants. The cost will be determined by the required bi-annual user fee study. The Department of State anticipates a fee similar to that of the DHS site visit fee of $655, but will not commit to any amount until the results of the user fee study have been analyzed.
The Department of State also proposes to require potential Responsible Officers (“RO”) and Alternate Responsible Officers (“ARO”) to undergo a criminal background check. This requirement is reflective of the importance of the role of such individuals within sponsor organizations and their rights of access to and manipulation of data for a controlled federal government database. ROs and AROs are the only individuals authorized to issue and sign Forms DS-2019, the “Certificate of Eligibility for Exchange Visitor (J-1) Status.” Foreign nationals wishing to participate in the Exchange Visitor Program must obtain Forms DS-2019 in order to apply for a J-visa to gain entry into the United States. Thus, it is of vital importance that the individuals who have access to a secured federal government database (SEVIS) be properly vetted. The Department of State introduced a criminal background check requirement in 2005 for individuals hosting secondary school student participants. Conducting annual criminal background checks on ROs and AROs will help to strengthen and protect the integrity of the Exchange Visitor Program and SEVIS. The costs imposed by this requirement on sponsor organizations are estimated to be minimal; $15 per RO and ARO which amounts to a maximum annual burden of $165 if a sponsor has the maximum level of designated officials.
The Department of State will not require applicants or sponsors to submit the results of the criminal background checks. Rather, the Chief Executive Officer, President, or other similar official must submit a certification that the organization's RO and AROs have undergone a criminal background check as supporting documentation. The sponsor or applicant must maintain these records and provide them to the Department upon request. The proposed regulation does not set specific requirements for the sponsors to follow with respect to report format, screening company, or assessment of results. It does anticipate, however, that a thorough criminal background check would provide management decision makers with sufficient information to determine whether ROs and AROs are citizens of the United States or lawful permanent residents, whether any record of past criminal activity should disqualify them from the positions, and whether there is pertinent information regarding their suitability for the proposed position such as credit-worthiness or whether they have a criminal record that would prevent their appointment. These three areas of review are essential in order to determine suitability to hold positions that affect national security.
The Department of State requires that sponsors utilize the services of a bona fide background screener. While the Department does not sanction any particular screening organization, the only known membership organization of bona fide background screeners is the National Association of Professional Background Screeners (NAPBS). NAPBS has over 700 members (a list of which is located at http://www.NAPBS.com) all of whom are expected to adhere to the NAPBS code of conduct governing background investigations and confidentiality. The conduct of a criminal background check does not confirm an individual's suitability to act as an RO or an ARO and is in no way a substitution for the sponsor's judgment in making such decisions.
The rule proposes, as a requirement of designation, that the minimum experience in international exchange for an organization or the proposed Responsible Officer be increased from one to three years. Many organizations/individuals with minimal experience have been applying for designation. These individuals/organizations have typically worked with designated sponsors in some capacity or have conducted short term exchanges, but lack the full realm of experience in all aspects of exchange activities, to include regulatory knowledge, critical to administering a successful exchange program. The administration of programs in some exchange visitor categories are more complex than others (i.e., au pairs and secondary school students which require locating and screening host families, schools, local and regional coordinators, close monitoring, etc.). It is believed that the requirement of three years experience is necessary to develop a strong and stable environment for the conduct of the Exchange Visitor Program. Applicants may demonstrate experience in international exchange by providing resumes, and information on previous Start Printed Page 48179exchange programs and visas used in the conduct of these activities. The collection of the Employer Identification Number (EIN) and Date of Issuance for each applicant is also being proposed. This requirement ensures that the entity is registered for tax purposes and recognized as a bona fide business.
In July 2007, the Department of State implemented an interim final rule on Trainees and Interns that required sponsors to screen, vet and enter into written agreements with third parties who assist them in recruiting, selecting, screening, orienting, placing, training or evaluating foreign nationals who participate in training and internship programs (FR 33673, June 19, 2007). This requirement is relevant to sponsors who rely upon “host organizations” to provide the actual training or intern programs, such as a business, law firm, or hotel. It also affects foreign agents who play a vital role in the selection of potential exchange visitors. The trainee and intern regulations require all third parties—foreign and domestic alike— to provide Dun & Bradstreet identification numbers. Similarly, this proposed rule requires all applicants for sponsor designation to submit current Dun & Bradstreet Business Information Reports on themselves. A current Dun and Bradstreet Business Information Report is also required of all sponsors with the submission of an application for redesignation. Sponsors seeking redesignation will be required to submit a list of all third parties with whom sponsors have executed written agreements to act on their behalf as well as separate certifications that the sponsors have obtained Dun & Bradstreet Business Information Reports on all third parties with whom they conduct business. These reports provide information on the business operations of an entity (e.g., financials, credit history, staffing, pending legal issues, etc.). The requirement for these reports will help to ensure that sponsors are working with and/or placing exchange visitors with viable third party entities. The Department has negotiated with Dun and Bradstreet for a reduced rate per report based on the number of designated sponsors and third parties. Currently, the cost per report to Department of State sponsor organizations is approximately $65.
This rule proposes to increase the current levels of health insurance coverage a sponsor must require that its exchange visitor (and spouse and dependents) maintain during the duration of their exchange visitor program participation. The current minimum coverage has been in place since 1993. The amounts of coverage required is considered below current inflation and healthcare costs and does not cover actual costs incurred today as reported by the sponsors. We are updating the coverage to be consistent with today's amounts. Many sponsors currently insure participants at a higher level of coverage than that identified in the current regulations. To ensure coverage levels remain consistent with recommended industry standards, the Department will periodically issue guidance reflecting the mandatory minimum levels of coverage. A sponsor must ensure that health insurance is in place for each exchange visitor and his/her accompanying spouse and dependents for the duration of their exchange visitor program as reflected on the Form DS-2019 (Program begin and Program end date.) Insurance regulations do not require “portal to portal” insurance coverage of participants. Such coverage is highly desirable and sponsors may, but are not required to, offer this coverage.
The Department of State proposes to collect information on the employment of the accompanying spouse and dependents while in the United States. As a security matter, information on the employment entity and work location of the spouse and dependents is not collected in SEVIS. Capturing this information in SEVIS will allow for better monitoring and assist in mitigating risks involving these non-immigrants.
Definitions used in the regulations have been added or modified to clarify terms or reflect changes. New definitions in this proposed rule clarify SEVIS functions or fields or reflect changes that have occurred since 1993.
The term “accredited educational institution” has been changed to “accredited academic institution”. In the proposed definition, the Department of State clarifies that educational institutions that offer primarily vocational or technical courses of study are not considered academic. The addition of the “technical” distinction parallels the Department of Education's replacement of regulations governing purely “vocational” studies with a new “vocational/technical” classification that acknowledges the new information technology curricula that are neither vocational nor academic. Vocational programs are not included under the Mutual Educational and Cultural Exchange Act of 1961.
Three SEVIS-related definitions have been added to the proposed regulations: “actual and current U.S. address”, “site of activity”, and “validation.” The first two definitions are critical as they relate to the physical location of the exchange visitor while in the United States. Simply put, sponsors must maintain current and accurate data in these SEVIS fields so that foreign nationals may be located at the site of activity (location where the program will take place) or at the actual and current U.S. address (residence). Maintaining this information is a matter of national security. The SEVIS function of validating a record is similarly important. When an exchange visitor enters the United States and reports to his or her exchange program, the sponsor must note this occurrence in SEVIS through the validation process, thereby demonstrating that an exchange visitor and accompanying spouse and dependents, if any, are currently present in the United States and that the exchange visitor is participating in the exchange visitor program identified on the Form DS-2019. For the purpose of this rulemaking, the 30-day requirement for validation remains unchanged and is consistent with current Department of Homeland Security requirements. The Department is clarifying the regulations on updating the SEVIS records upon the failure of an exchange visitor to begin his/her exchange program.
This rule also reflects changes in technology, and it moves requirements previously in Subpart F to Subpart A. The change from paper numbered forms to the electronically generated Form DS-2019 requires two fundamental alterations to the regulations. First, any requirements relating to the physical storage of unused forms are obsolete. Second, matters of national security require that circulating Forms DS-2019 (i.e., those not kept internally in a sponsor's files) must be originals. All Forms DS-2019 must be generated through SEVIS. The proposed regulations prohibit the use of scanned, copied, or electronic versions of Forms DS-2019 except in response to a request from the Department of State or the Department of Homeland Security or for maintenance of complete exchange visitor records by sponsors. The proposed rule also requires sponsors to request that potential program participants return unused Forms DS-2019, and that such forms be destroyed.
The proposed rule also clarifies those actions a sponsor must undertake to update an exchange visitor's SEVIS record (or the record of any accompanying spouse and dependents, if any) when the exchange visitor's Start Printed Page 48180program participation is ended early (e.g., concluded successfully or terminated as a result of violation of program rules, regulations or U.S. law). The Department of State is reducing from 21 to ten (10) days the time a sponsor has following notification of an exchange visitor's change of circumstance to update the exchange visitor's SEVIS record (or the records of a spouse or dependents).
Finally, as a record-keeping and administrative oversight matter, sponsors will be required to maintain current information in SEVIS on its exchange visitor program, address, telephone numbers, facsimile numbers, or e-mail addresses. All Department communication to sponsors related to program oversight, policy, re-designation, etc., sent to ROs and AROs are generated from information contained in SEVIS. The Department will not recognize non-receipt of notification of a request or other communication from the Department of State or from SEVIS as grounds for appeal in cases where a sponsor does not respond to such request or communication. Sponsors are required to ensure that their spam filters do not block reception of SEVIS or Department of State notices. The term “in writing” is expanded to include the option for electronic signatures to support movement toward a paperless environment.
This regulation will not have substantial direct effect on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with § 6 of Executive Order 13132, it is determined that this rule does not have sufficient federalism implications to require consultations or warrant the preparation of a federalism summary impact statement. Executive Order 12372, regarding intergovernmental consultation on federal programs and activities, does not apply to this regulation.
The information collection requirements contained in this proposed rulemaking (criminal background screening of Responsible Officers (“ROs”) and Alternate Responsible Officers (“AROs”)) are pursuant to the Paperwork Reduction Act, 44 U.S.C. Chapter 35. Specifically OMB Control Number 1405-0147, expiration date: 09/30/2010, applies: Form DS-3037—Update of Information on Exchange Visitor Program Sponsor, Form DS-7000—Catalog of Information Collection Requirements Under 22 CFR Part 62, the Exchange Visitor Program (SEVIS), as well as OMB Control Number 1405-0119, expiration date 7/31/2011: DS-2019—Certificate of Eligibility for Exchange Visitor (J-1) Status. No PRA changes are required as a result of this regulation.
Authority: 8 U.S.C. 1101(a)(15)(J), 1182, 1184, 1258; 22 U.S.C. 1431-1442, § 2451 et seq.; Foreign Affairs Reform and Restructuring Act of 1998, Public Law 105-277, Div. G, 112 Stat. 2681 et seq.; Reorganization Plan No. 2 of 1977, 3 CFR, 1977 Comp. p. 200; E.O. 12048 of March 27, 1978; 3 CFR, 1978 Comp. p. 168; the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) of 1996, Public Law 104-208, Div. C, 110 Stat. 3009-546, as amended; Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT ACT), Public Law 107-56, Sec. 416, 115 Stat. 354; and the Enhanced Border Security and Visa Entry Reform Act of 2002, Public Law 107-173, 116 Stat. 543.
2. Sections 62.2 through 62.16 are revised to read as follows:
Accompanying spouse and dependents. The alien spouse and minor unmarried children of an exchange visitor who are accompanying or following to join the exchange visitor and who seek to enter or have entered the United States temporarily on a non-immigrant J-2 visa or seeks to acquire or have acquired such status after admission. For the purpose of these regulations, a minor is a person under the age of 21.
Accredited academic institution. Any publicly or privately operated primary, secondary, or post-secondary institution in the United States that offers primarily academic programs and is duly Start Printed Page 48181accredited by the appropriate academic accrediting authority of the state in which such institution is located; provided, however, that in addition, all post-secondary institutions must also be accredited by a nationally recognized accrediting agency or association as recognized by the Secretary of Education. An institution that offers primarily vocational or technical programs does not fall within the purview of an academic institution for this purpose.
Alternate Responsible Officer (“ARO”). An employee or officer of a designated sponsor who has been nominated by the sponsor, and approved by the Department of State to assist the Responsible Officer in carrying out the responsibilities outlined in § 62.11. An ARO must be a citizen of the United States or a lawful permanent resident of the United States.
Citizen of the United States (entity).
(1) A general or limited partnership created or organized under the laws of the United States, or of any state, the District of Columbia, or any territory or outlying possessions of the United States, of which a majority of the partners are citizens of the United States:
(ii) In instances where the partnership is additionally governed by a Board, the majority of whose officers are citizens of the United States; or
(2) A for-profit corporation, association, or other legal entity created or organized under the laws of the United States, or of any state, the District of Columbia, or a territory or outlying possessions of the United States, whose principal place of business is located in the United States, and
(3) A non-profit corporation, association, or other legal entity created or organized under the laws of the United States, or any state, the District of Columbia, or any territory or outlying possessions of the United States; and
(i) Which is qualified with the Internal Revenue Service as a tax-exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code; and
(1) Is a citizen or national of the United States or any of its territories or outlying possessions; or
(2) Has been lawfully admitted for permanent residence, within the meaning of section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101).
Exchange visitor. A foreign national who is in the United States temporarily on a non-immigrant J-1 visa to participate in an exchange visitor program. The term does not include the accompanying spouse and dependents of the exchange visitor.
(2) Financed by an organization or institution with funds made available by either the United States or the exchange visitor's government for the purpose of furthering international educational and cultural exchange.Start Printed Page 48182
Foreign Medical Graduate. A foreign national that:
(1) Is a graduate of a school of medicine that is accredited by a body or bodies approved for the purpose by the Secretary of Education (regardless of whether such school of medicine is in the United States) and entering the United States for the purpose of seeking to pursue graduate medical education or training at accredited schools of medicine or scientific institutions; or, for the purposes of observation, consultation, teaching, or research; or,
Home-country physical presence requirement. The requirement that an exchange visitor (J visa) who is within the purview of section 212(e) of the Immigration and Nationality Act, as amended, and Public Law 94-484 (substantially quoted in 22 CFR 41.63) must reside and be physically present in the country of nationality or last legal permanent residence for an aggregate of at least two years following departure from the United States before the exchange visitor is eligible to apply for an immigrant visa or permanent residence, a non-immigrant H visa as a temporary worker or trainee, or a non-immigrant L visa, as an intracompany transferee, or a non-immigrant H or L visa as the spouse or minor child of a person who has been granted status in H or L non-immigrant classification as a temporary worker or trainee or an intracompany transferee. See section 101(a)(15)(H) or section 101(a)(15)(L) of the Immigration and Nationality Act, as amended.
J visa. A non-immigrant visa issued pursuant to 8 U.S.C. 1101(a)(15)(J). A J-1 visa is issued to an exchange visitor. A J-2 visa is issued to the exchange visitor's accompanying non-immigrant immediate family, spouse and minor dependent children.
Responsible Officer (“RO”). An employee or officer of a designated sponsor who has been nominated by the sponsor, and approved by the Department of State to carry out the duties outlined in § 62.11. An RO must be a citizen of the United States or a lawful permanent resident of the United States.
SEVIS (Student and Exchange Visitor Information System). The statutorily mandated system designed to collect information on non-immigrant students (F and M visa), exchange visitors (J visa), and their spouses and dependents (F-2, M-2, and J-2). SEVIS enables schools and program sponsors to electronically transmit information and event notifications, via the Internet, to the Department of Homeland Security and the Department of State throughout a student's or exchange visitor's stay in the United States.
Student internship program. A structured and guided work-based learning program as set forth in an individualized Form DS-7002 that fulfills a student's academic degree requirements, recognizes the need for Start Printed Page 48183work-based experience, provides on-the-job exposure to American techniques, methodologies, and technologies, and enhances a student intern's knowledge of American culture and society.
Validation. The process by which a Responsible Officer or Alternate Responsible Officer updates a SEVIS record of an exchange visitor (and accompanying spouse and dependents, if any) to show that the prospective exchange visitor (and accompanying spouse and dependents, if any) entered the United States, reported to his or her sponsor, and is participating in the exchange visitor program, at the site of activity identified on the Form DS-2019.
(1) U.S. local, state and federal government agencies to include the District of Columbia; and government agencies of any U.S. territories and outlying possessions;
(4) Has successfully completed a site visit conducted by the Department of State or its agent, the cost for which will be borne by the applicant.
(b) Short-term scholar. A foreign national who is a professor, research scholar, or person with similar education or accomplishments who enters the United States on a short-term visit for the purpose of lecturing, observing, consulting, training, or demonstrating special skills at research institutions, museums, libraries, post-secondary accredited academic institutions, or similar types of institutions.
(e) Professor. A foreign national whose primary purpose is teaching, lecturing, observing, or consulting at post-secondary accredited academic institutions, museums, libraries, or similar types of institutions. A professor may also conduct research, unless disallowed by the sponsor.
(f) Research scholar. A foreign national whose primary purpose is conducting research, observing, or consulting in connection with a research project at research institutions, corporate research facilities, museums, libraries, post-secondary accredited academic institutions, or similar types of institutions. A research scholar may also lecture, unless disallowed by the sponsor.
(2) International visitor. A foreign national who is a recognized or Start Printed Page 48184potential leader, selected by the Department of State for the purpose of consulting, observing, conducting research, training, or demonstrating special skills in the United States.
(i) Currently enrolled full-time in and actively pursuing studies at a degree- or certificate-granting post-secondary academic institution outside the United States; or
(5) Employer Identification Number (EIN) and Date of Issuance;
(6) A current Business Information Report on the applicant organization from Dun & Bradstreet;
(7) Evidence of current accreditation if the applicant is a secondary or post-secondary academic institution;
(8) Evidence of current licensure, if required by local, state, or federal law, to carry out the activity for which it is seeking designation;
(9) A statement signed by the Chief Executive Officer, President, or equivalent certifying that:
(i) The applicant is a citizen of the United States as defined in § 62.2;
(ii) The proposed RO and all proposed ARO(s) are United States citizens or lawful permanent residents of the United States;
(iii) The sponsor has completed a criminal background check on the potential RO and all ARO(s) and has determined their suitability for these positions; and
(iv) The RO will be provided sufficient staff and resources to fulfill his or her duties and obligations on behalf of the applicant.
(10) Evidence that the proposed RO and ARO(s) are citizens of the United States or lawful permanent residents of the United States (e.g., copy of passport, birth certificate);
(11) A completed SEVIS generated Citizenship Certification for the proposed RO and all proposed ARO(s); and
(12) Such additional information or documentation that the Department of State may deem necessary to evaluate the application.
(b) Designation will confer upon a sponsor the authority to engage in one or more activities specified in § 62.4. A sponsor may engage only in the activity or activities specifically authorized in its written letter of designation.
(1) A completed copy of Form DS-3036, signed by the sponsor's Chief Financial Officer, President or equivalent;Start Printed Page 48185
(1) A current Business Information Report from Dun & Bradstreet on the sponsor;
(2) A list of all third parties (foreign and domestic) with whom the sponsor has executed a written agreement for the person or entity to act on behalf of the sponsor in the conduct of the sponsor's exchange visitor program and, if requested by the Department of State, a separate certification that the sponsor has obtained a Dun & Bradstreet Business Information Report for each third party. The list should include the name of the third party organization, address of the third party organization, purpose for agreement, and contact information;
(3) A copy of the most recent year-end financial statements;
(4) A copy of the most recent letter of accreditation if the sponsor is a secondary or post-secondary academic institution;
(5) A list of the names, addresses and citizenship of the current members of its Board of Directors or the Board of Trustees or other like body, vested with the management of the organization or partnership, and/or the percentage of stocks/shares held, as applicable;
(6) For a non-profit organization, a signed copy of the sponsor's most recent Form 990 filed with the Internal Revenue Service;
(7) Such additional information or documentation that the Department of State may request;
(8) A statement signed by the Chief Executive Officer, President, or equivalent certifying that the sponsor has completed a criminal background check on the RO and all AROs and has determined their suitability for these positions; and
(9) Such additional information or documentation that the Department of State may deem necessary to evaluate the application.
(1) Offer or make available to exchange visitors and the accompanying spouse and dependents, if any, a variety of appropriate cross-cultural activities. The extent and type of the cross-cultural activities will be determined by the needs and interests of the particular category of exchange visitor. A sponsor will be responsible for determining the appropriate type and number of such cross-cultural programs. The Department of State encourages sponsors to give their exchange visitors the broadest exposure to American society, culture and institutions; and
(1) Provide accurate and complete information, to the extent lawfully permitted, to the Department of State and the Department of Homeland Security regarding its exchange visitor program, exchange visitors, and accompanying spouse and dependents (if any);
(3) The Department of State may require a non-government sponsor to secure a payment bond in favor of the Department guaranteeing all financial obligations arising from the sponsorship its exchange visitor program.Start Printed Page 48186
(g) Appointment of Responsible Officers and Alternate Responsible Officers. (1) A sponsor must appoint a RO and a minimum of one (1) or a maximum of ten (10) AROs to assist the RO in performing the duties set forth at § 62.11. A sponsor must ensure that the potential RO and AROs have undergone a criminal background check to determine their suitability for these positions. ROs and AROs must be citizens or lawful permanent residents of the United States.
(3) Travel and entry into the United States (e.g., procedures to be followed by exchange visitors and accompanying spouse and dependents, if any, in obtaining a visa for entry to the United States, paying the SEVIS fee, procedures for obtaining a visa including the information/documentation needed for the interview; travel arrangements to the United States, what to expect at the port of entry, including the necessity of having and presenting their travel documents at the port of entry);
(7) Health care and insurance requirements for exchange visitors and their accompanying spouse and dependents, as applicable;
(8) Arrival notification requirements; e.g., procedures that exchange visitors, spouses and dependents are to follow upon entry into the United States in reporting their arrival to the sponsor and reporting to the location of their program; and
(8) The requirement that an exchange visitor must promptly report to the sponsor or sponsor designee any changes in his or her telephone number, e-mail address, actual and current U.S. address, and site of activity (if permitted to change without sponsor authorization).
(d) Monitoring of exchange visitors. A sponsor must monitor, through its employees, officers, agents, or third parties, the exchange visitor's participation in its exchange visitor program(s). A sponsor must:
(4) Report in SEVIS within ten (10) calendar days of notification by an exchange visitor any change in the Start Printed Page 48187exchange visitor's actual and current U.S. address, telephone number, e-mail addresses, and/or primary site of activity (if the exchange visitor is permitted) to make such change without prior sponsor authorization;
(5) Report the actual and current U.S. address and e-mail address for each accompanying spouse and dependents.
(6) Report Employment Authorization Document (EAD) information in SEVIS for the accompanying spouse and each dependent, if applicable, by entering the EAD number, validation and expiration dates as issued by the Department of Homeland Security.
(g) Retention of records. A sponsor must retain all records related to its exchange visitor program and its participants (to include accompanying spouse and dependents, if any) for a minimum of three years following the completion of each participant's exchange visitor program.
(v) To facilitate the re-entry of an exchange visitor and accompanying spouse and dependents, if any, who travel outside the United States during the exchange visitor's program;
(c) Distribution of Forms DS-2019. The sponsor must ensure that completed Forms DS-2019 are distributed directly to the exchange visitor and accompanying spouse and dependents, if any, (or to an individual designated by the exchange visitor) only via the sponsor's employees, officers, agents, independent contractors, third parties, volunteers, or other individuals acting on behalf of the sponsor in the administration of its exchange visitor program.
(2) Expansion of Program. A request for program expansion must include information such as, but not limited to, the source of program growth, staff increases, confirmation of adequately trained employees, current financial information, additional overseas affiliates, and explanations of how the sponsor will accommodate the anticipated program growth. The Department of State will take into consideration the current size of a sponsor's program and the projected expansion of the program in the coming 12 months and may consult with the RO and/or ARO prior to determining the number of Forms DS-2019 to issue to a sponsor.
(e) Safeguards and controls. (1) ROs and AROs must secure their SEVIS logon Identification Numbers (IDs) and passwords at all times (i.e., not share IDs and passwords with any other person). Sponsors whose ROs or AROs have been found to have willfully or negligently violated the requirements of this section Start Printed Page 48188will be subject to sanctions as set forth in § 62.50(a).
(1) Validation of program participation. A sponsor must promptly validate an exchange visitor's participation in his or her program and accompanying spouse and dependents, if any. This will change the status of the exchange visitor's SEVIS record from “Initial” to “Active.” SEVIS records with program durations of 30 days or more (e.g., the period between the “Program Begin Date” to “Program End Date”) must be validated within 30 days following the “Program Begin Date” identified in SEVIS. SEVIS records with program durations that are less than 30 days must be validated prior to the “Program End Date” reflected in SEVIS. Prior to validation, a sponsor may amend the program start date and must update the SEVIS record to reflect the actual and current U.S. address and site of activity in SEVIS. The status of SEVIS records that are not validated according to this schedule will automatically change to “Invalid” or “No Show”.
(3) End of exchange visitor's program. A sponsor must report in SEVIS any withdrawal from or early completion of an exchange visitor's program that occurs prior to the “Program End Date” listed in SEVIS on the exchange visitor's Form DS-2019. The sponsor must not alter the “Program End Date” field, but should enter the date of program completion in the “Effective Date of Completion” field. This will change the status of the exchange visitor's SEVIS record from “Active” to “Inactive.” Such notification in SEVIS ends a sponsor's programmatic obligations to the exchange visitor and/or his or her accompanying spouse and dependents.
(4) Accompanying spouse and dependent records. A sponsor must report in SEVIS if an accompanying spouse and/or dependents depart from the United States prior to the exchange visitor's departure date.
(5) Termination of an exchange visitor's program. A sponsor must promptly report in SEVIS the involuntary termination of an exchange visitor's program. The sponsor must not alter the “Program End Date” field, but should enter the date of program termination in the “Effective Date of Termination” field. This will change the status of the SEVIS record from “Active” to “Terminated”. Such notification in SEVIS ends a sponsor's programmatic obligation to the exchange visitor and spouse and dependents, if any, and prevents the sponsor from thereafter extending the exchange visitor's duration of participation, transferring the exchange visitor to another program, or changing the exchange visitor's category. Sponsors must not terminate the program of an exchange visitor who voluntarily ends his or her program.
(2) Change in the composition of the sponsor organization that affects its U.S. citizenship status as defined in § 62.2 which includes a new Employment Identification Number (EIN);
(4) Major change of ownership or control of the sponsor's organization as defined in § 62.60(e);
(9) Any litigation related to a sponsor's exchange visitor program, in which the sponsor or an exchange visitor is a named party;Start Printed Page 48189
(a) A sponsor must require that all exchange visitors and their accompanying spouse and dependents have insurance in effect that covers the exchange visitors for sickness or accidents during the period of time that they participate in the sponsor's exchange visitor program. A sponsor may offer insurance, but is not required, to ensure that exchange visitors have “entry to exit” coverage. The period of required coverage is the actual duration of the exchange visitor's participation in the sponsor's exchange visitor program. Minimum coverage must provide:
(1) Underwritten by an insurance corporation having an A.M. Best rating of “A−” or above; an Insurance Solvency International, Ltd. (ISI) rating of “A−i” or above; a Standard & Poor's Claims-paying Ability rating of “A−” or above, a Weiss Research, Inc. rating of B+ or above, or such other rating as the Department of State may from time to time specify; or
(g) An accompanying spouse and/or dependent is required to be covered by insurance in the amounts set forth in paragraph (a) of this section. A sponsor must inform exchange visitors of this requirement, in writing, in advance of the exchange visitor's arrival in the United States.
(i) A sponsor must terminate an exchange visitor's participation in its program if the sponsor determines that the exchange visitor or any accompanying spouse or dependent willfully fails to remain in compliance with this section.
(j) To ensure coverage levels remain consistent with industry standards, the Secretary may, at any time it is determined that the minimum levels of coverage descried in § 62.14 are not sufficient, update minimum levels of coverage in guidance documents.
(d) Proof of insurance. Certification of compliance with insurance coverage requirements set forth in § 62.14.
(1) For exchange visitor programs classified as “Government Programs,” this certification will be signed by the RO.
(3) For exchange visitor programs classified as P-3 and P-4 “Private Sector Programs,” this certification will be signed by the organization's Chief Financial Officer. In addition to the Annual Report required above, all P-3 and P-4 “Private Sector” programs must file a program specific management audit (in a format approved by the Department of State).
(c) The acceptance of employment by an accompanying spouse or dependent of an exchange visitor is governed by Department of Homeland Security regulations. An exchange visitor must report to his or her sponsor the Employment Authorization Document (EAD) number and the validation and expiration dates of the authorized period of employment for any accompanying spouse and each dependant. As required by § 62.10(d)(6), sponsors must report accompanying spouse and dependant EAD information in SEVIS.
[FR Doc. E9-22822 Filed 9-21-09; 8:45 am]