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F:\M5\MORAVA\MORAVA.070 H.L.C. 105TH CONGRESS 2D SESSION H.R. 3270 IN THE HOUSE OF REPRESENTATIVES Mr. MORAN of Virginia introduced the following bill; which was referred to the Committee on A BILL To authorize the Secretary of Commerce to provide grants to improve the job skills necessary for employment in specific industries. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the "Regional Skills Train- 5 ing Alliances Act of 1998". 6 SEC. 2. AUTHORIZATION. 7 PHOTOCOPY (a) IN GENERAL.-The Secretary of Commerce, act- PRESERVATION 8 ing through the Director of the National Institute of 9 Standards and Technology, and in consultation with the February 22, 1998 F:\M5\MORAVA\MORAVA.070 H.L.C. 2 1 Secretary of Labor, shall provide grants to eligible entities 2 described in subsection (b) to assist such entities to im- 3 prove the job skills necessary for employment in specific 4 industries. 5 (b) ELIGIBLE ENTITIES DESCRIBED.- 6 (1) IN GENERAL.-An eligible entity described 7 in this subsection is a consortium that- 8 (A) shall consist of representatives from 9 not less than 10 businesses (or a nonprofit or- 10 ganization that represents not less than 10 11 businesses); and 12 (B) may consist of representatives from 13 one or more of the following: 14 (i) Labor organizations. 15 (ii) State and local government. 16 (iii) Educational institutions. 17 (iv) Nonprofit organizations that rep- 18 resent businesses. 19 (2) ADDITIONAL REQUIREMENT.-To the maxi- 20 mum extent practicable, each business, organization, 21 or government that forms an eligible entity under 22 paragraph (1) shall be located in the same geo- PHOTOCOPY 23 graphic region of the United States. PRESERVATION 24 (c) PRIORITY FOR SMALL BUSINESSEs.In provid- 25 ing grants under subsection (a), the Secretary shall give February 22, 1998 F:\M5\MORAVA\MORAVA.070 H.L.C. 3 1 priority to eligible entities that consist of a majority of 2 representatives from small businesses. 3 (d) MAXIMUM AMOUNT OF GRANT.-The amount of 4 a grant provided to an eligible entity under subsection (a) 5 may not exceed $1,000,000 for any fiscal year. 6 SEC. 3. APPLICATION. 7 The Secretary may not provide a grant under section 8 2 to an eligible entity unless such entity submits to the 9 Secretary an application containing such information as 10 the Secretary may reasonably require. 11 SEC. 4. USE OF AMOUNTS. 12 (a) IN GENERAL.-The Secretary may not provide a 13 grant under section 2 to an eligible entity unless such en- 14 tity agrees to use amounts received from such grant to 15 improve the job skills necessary for employment by busi- 16 nesses in the industry with respect to which such entity 17 was established. 18 (b) CONDUCT OF PROGRAM.- 19 (1) IN GENERAL.-In carrying out the program 20 described in subsection (a), the eligible entity may 21 provide for- 22 (A) an assessment of training and job skill 23 needs for the industry; PHOTOCOPY PRESERVATION February 22, 1998 F:\M5\MORAVA\MORAVA.070 H.L.C. 4 1 (B) development of a sequence of skill 2 standards that are benchmarked to advanced 3 industry practices; 4 (C) development of curriculum and train- 5 ing methods; 6 (D) purchase, lease, or receipt of donations 7 of training equipment; 8 (E) identification and development of 9 training providers; 10 (F) development of apprenticeship pro- 11 grams; and 12 (G) development of training programs for 13 dislocated workers. 14 (2) ADDITIONAL REQUIREMENT.-In carrying 15 out the program described in subsection (a), the eli- 16 gible entity shall provide for development and track- 17 ing of performance outcome measures. 18 (c) ADMINISTRATIVE Costs.-The eligible entity 19 may use not more than 50 percent of the amount of a 20 grant to pay for administrative costs associated with the 21 program described in subsection (a). 22 SEC. 5. REQUIREMENT OF MATCHING FUNDS. 23 The Secretary may not provide a grant under section 24 2 to an eligible entity unless such entity agrees that- PHOTOCOPY PRESERVATION February 22, 1998 F:\M5\MORAVA\MORAVA.070 H.L.C. 5 1 (1) it will make available non-Federal contribu- 2 tions toward the costs of carrying out activities 3 under section 4 in an amount that is not less than 4 $2 for each $1 of Federal funds provided under a 5 grant under section 2; and 6 (2) of such non-Federal contributions, not less 7 than $1 of each such $2 shall be from businesses 8 participating in the eligible entity. 9 SEC. 6. DEFINITION. 10 For purposes of this Act, the term "Secretary" 11 means the Secretary of Commerce. 12 SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 13 There are authorized to be appropriated to carry out 14 this Act $50,000,000 for each of the fiscal years 1999, 15 2000, and 2001. PHOTOCOPY PRESERVATION ADMIN. H1B Draft From: Ingrid M. Schroeder on 04/27/98 06:22:20 PM (tottill) Record Type: Record To: See the distribution list at the bottom of this message CC: James J. Jukes/OMB/EOP, Darlene O. Gaymon/OMB/EOP Subject: LRM #IMS 309 - H1B Temporary Immigrant Visa Program Reforms You will not receive a paper copy of this LRM. Total Pages: LRM ID: IMS309 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET Washington, D.C. 20503-0001 Monday, April 27, 1998 LEGISLATIVE REFERRAL MEMORANDUM TO: Legislative Liaison Officer - See Distribution below FROM: James J. Jukes (for) Assistant Director for Legislative Reference OMB CONTACT: Ingrid M. Schroeder PHONE: (202)395-3883 FAX: (202)395-3109 SUBJECT: H1B Temporary Immigrant Visa Program Reforms DEADLINE: COB Tuesday, April 28, 1998 In accordance with OMB Circular A-19, OMB requests the views of your agency on the above subject before advising on its relationship to the program of the President. Please advise us if this item will affect direct spending or receipts for purposes of the "Pay-As-You-Go" provisions of Title XIII of the Omnibus Budget Reconciliation Act of 1990. COMMENTS: This document is intended to be characterized as an Administration offer during discussions with Members of Congress this week. DISTRIBUTION LIST AGENCIES: 61-JUSTICE - Ann Harkins - (202) 514-2141 62-LABOR - Robert A. Shapiro - (202) 219-8201 25-COMMERCE - Michael A. Levitt - (202) 482-3151 118-TREASURY Richard S. Carro - (202) 622-0650 128-US Trade Representative - Fred Montgomery - (202) 395-3475 52-HHS - Sondra S. Wallace - (202) 690-7760 29-DEFENSE - Samuel T. Brick Jr. - (703) 697-1305 84-National Science Foundation - Lawrence Rudolph - (703) 306-1060 95-Office of Science and Technology Policy - Jeff Smith - (202) 456-6047 114-STATE - Paul Rademacher - (202) 647-4463 30-EDUCATION Jack Kristy - (202) 401-8313 76-National Economic Council Sonyia Matthews - (202) 456-6630 Council of Economic Advisers - Liaison Officer - (202) 395-5084 EOP: Debra J. Bond Larry R. Matlack Barry White Barbara Chow Sandra Yamin Steven M. Mertens Daniel J. Chenok Evan T. Farley Joseph G. Pipan Ronald L. Silberman Louisa Koch Mary Jo Siclari Charles W. Fox Gregory G. Henry Sarah G. Horrigan Katherine M. Tyer S.A.Noe Jack A. Smalligan Julie A. Fernandes Elena Kagan Thomas A. Kalil Cecilia E. Rouse Sally Katzen Gene B. Sperling Peter G. Jacoby Janet Murguia Broderick Johnson Charles M. Brain Maria Echaveste Emil E. Parker Robert N. Weiner William P. Marshall Karen Tramontano Ricardo M. Gonzales Rebecca M. Blank Maria J. Hanratty James C. Murr LRM ID: IMS309 SUBJECT: H1B Temporary Immigrant Visa Program Reforms RESPONSE TO LEGISLATIVE REFERRAL MEMORANDUM If your response to this request for views is short (e.g., concur/no comment), we prefer that you respond by e-mail or by faxing us this response sheet. If the response is short and you prefer to call, please call the branch-wide line shown below (NOT the analyst's line) to leave a message with a legislative assistant. You may also respond by: (1) calling the analyst/attorney's direct line (you will be connected to voice mail if the analyst does not answer); or (2) sending us a memo or letter Please include the LRM number shown above, and the subject shown below. TO: Ingrid M. Schroeder Phone: 395-3883 Fax: 395-3109 Office of Management and Budget Branch-Wide Line (to reach legislative assistant): 395-3454 FROM: (Date) (Name) (Agency) (Telephone) The following is the response of our agency to your request for views on the above-captioned subject: Concur No Objection No Comment See proposed edits on pages Other: FAX RETURN of pages, attached to this response sheet April 27, 1998 Draft Proposals Regarding Reform to the H-1B Visa Program The Administration has committed to pursuing both reforms to the H-1B visa program and increased training opportunities for U.S. workers as part of any legislation that would temporarily raise the annual cap on H-1B visas. The following are some draft proposals for reform of the H-1B visa program. I. Recruitment and Non-displacement of United States Workers Prior to Seeking Nonimmigrant Workers (a) IN GENERAL -- Section 212(n)(1)of the Immigration and Nationality Act (8 U.S.C. 1182(n)(1)) is amended by inserting at the end the following new subparagraph: (E)(I) The employer, prior to filing the application, has taken good faith, timely and significant steps to recruit and retain sufficient U.S. workers in the specialty occupation in which the non-immigrant whose services are being sought will be employed. Good faith steps to recruit and retain shall be defined as: (a) the employer taking the following two actions in a manner reasonably designed to recruit and retain U.S. workers: (i) widespread advertising of the relevant job openings to both current and prospective employees (e.g., through America's Job Bank, participation in job fairs, the Internet, employer newsletters and electronic communications, general circulation publications, professional journals and magazines); and (ii) offering meaningful monetary incentives to applicants (such as paying above the prevailing wage, paying bonuses, or providing stock options) above those already included in the base compensation package; or offering training subsidies, or a training program, that provides the means for its current employees to enhance their skills to qualify for jobs in the specialty occupation in which the nonimmigrant will be (or is) employed; and (b) The employer did not receive applications from any U.S worker with at least substantially equivalent qualifications and experience to the temporary foreign worker offered employment; or (ii) offered employment to a U.S. worker with at least substantially equivalent qualifications and experience to the temporary foreign worker offered employment, but the offer of employment to the U.S. worker was refused; and (c) Offering compensation at least at the amount required by subparagraph (A). (E)(II) The recruitment requirements of this subparagraph shall not apply to aliens with extraordinary ability, aliens who are outstanding professors and researchers, and certain multinational executives and managers described in section 203(b)(1). The recruitment requirements of this subparagraph shall also not apply to a scientist, mathematician, or engineer who has attained at least a master's degree or its equivalent in a scientific or engineering discipline, and who is coming temporarily to the United States to participate in a cooperative joint scientific activity carried out under an Agreement between the Federal Government and the alien's Government. (F)(I) The employer -- (a) has not and will not -- within the 90-day period immediately preceding and the 90-day period immediately following the filing of the application, and within the 90-day period immediately preceding and the 90-day period immediately following the filing of any visa petition supported by the application -- lay off or otherwise displace any United States worker, including a worker obtained by contract, employee leasing, temporary help agreements, or otherwise displace any United States worker, including a worker obtained by contract, employee leasing, temporary help agreement, or other similar basis, who has substantially equivalent qualifications and experience in the specialty occupation in which the nonimmigrant will be (or is) employed; and (F)(II) For purposes of this subparagraph, the term "laid off," with respect to an employee, means the employee's loss of employment, other than a discharge for cause or a voluntary departure or voluntary retirement. The term "laid off" does not apply to any case in which employment is relocated to a different geographic area and the affected employee is offered a chance to move to the new location with the same wages and benefits, but elects not to move to the new location. (G) The employer offered compensation as required by subparagraph (A). (b) For purposes of this subsection, the term "United States worker" means -- (I) a citizen or national of the United States (II) an alien lawfully admitted to the United States for permanent residence; or (111) an alien authorized to be employed by this Act or by the Attorney General. II. Wage Comparability Section 212(n)(1)(A)(I) of such Act is amended by inserting "(including the value of benefits and additional compensation)" after "wages." Section 212(n)(1)(A)(I)(I) is amended by inserting " (including the value of benefits and additional compensation)" after "actual wage level." III. Job Contractors In the case of an employer that is a job contractor (within the meaning of regulations promulgated by the Secretary of Labor to carry out this subsection), the contractor will not place any H-1B employee with another employer unless such other employer has executed an attestation that the employer is complying and will continue to comply with the requirements of this paragraph in the same manner as they apply to the job contractor. IV. Enforcement (a) Independent Authority to Investigate Section 212(n) of the Immigration and Nationality Act (8 U.S.C. 1182(n)) is amended -- (1) in paragraph (2)(A), by striking the first sentence and inserting the following: "The Secretary may conduct investigations pursuant to a complaint or, absent a complaint, where the Secretary has reasonable cause to believe that: (a) there is a pattern or practice of: complaints by U.S. workers against the employer; unsuccessful recruitment by the employer; or violations by the employer; (b) the employer's U.S. workforce is comprised of more than 10% nonimmigrant workers or the employer is making application that would result in more than 10% nonimmigrant workers in its U.S. workforce; (c) an employer has laid off or otherwise displaced more than 10% of its U.S. workforce or 100 U.S. workers (whichever is fewer) in any one year period (or has announced the intent to make such a lay-off). The Secretary shall establish a process for the receipt, investigation, and disposition of complaints or other cases of noncompliance with this section." (II) in paragraph (2)(C), by inserting ", or that the employer failed to cooperate in the conduct of the Secretary's investigation or has intimidated, discharged, or otherwise discriminated against any person because that person has asserted a right or has cooperated in an investigation under this paragraph" after "a material fact in an application." (III) in paragraph (2), by adding at the end the following new subparagraph: "(E) The Secretary may issue subpoenas requiring the attendance and testimony of witnesses or the production of any records, books, papers, or documents in connection with any investigation or hearing, conducted under this paragraph. In conducting a hearing, the Secretary may administer oaths, examine witnesses, and receive evidence. For the purpose of any hearing or investigation provided for in this paragraph, the authority contained in sections 9 and 10 of the Federal Trade Commission Act (15 U.S.C. 49 and 50), relating to the attendance of witnesses and the production of books, papers, and documents, shall apply." V. Sanctions Section 212(n)(2)(C) is amended to read: "If the Secretary finds, after notice and opportunity for a hearing, a failure to meet a condition of paragraph (1)(B); a substantial failure to meet a condition of paragraphs (1)(C) or (1)(D); a willful failure to meet a condition of paragraph (1)(A); a violation(s) of paragraphs (1)(E) or (1)(F) that is willful, or reflects a pattern or practice of violations, or is a violation that affects a significant number of individuals; or a misrepresentation of a material fact in the application (but any misrepresentation of a material fact relating to paragraphs (1)(E) or (1)(F) must be willful, or reflects a pattern or practice of violations, or is a violation that affects a significant number of individuals) - (i) the Secretary shall notify the Attorney General of such finding and may, in addition, impose such other administrative remedies (including civil monetary penalties in an amount not to exceed $5,000 per violation) as the Secretary determines to be appropriate," VI. Application Fee Section 212(n) of the Immigration and Nationality Act (8 USC 1182(n)) is amended by adding the following new paragraph: "(3)(A) The Secretary of Labor shall establish, by regulation, a fee to be paid by an employer for each position for which an application is filed for certification of a nonimmigrant temporary worker under section 101(a)(15)(H)(i)(b) and (c). (B) The fee shall be set at a level that -- (i) will ensure recovery of the full costs of providing adjudication and application services; and, (ii) finances activities authorized under Section XXXXX (the Regional and Industry Special Skills Training Fund). (C) During the period ending September 30, 2001, such a fee shall not exceed $250 for each position. (D) (i) It shall be unlawful for an employer to require, as a condition of employment by such employer, that the fee prescribed under this paragraph or any part of the fee be paid directly or indirectly by the alien whose services are being sought. (ii) Any person or entity that is determined, after notice and opportunity for an administrative hearing, to have violated clause (I) shall be subject to a civil penalty of $5,000 for each violation, to an administrative order requiring the payment of any fee described in this paragraph, and the disqualification for one year from petitioning for temporary nonimmigrant workers under this subsection. (iii) Any amount determined to have been paid, directly or indirectly, toward the filing fee described in paragraph (3)(A) by the alien whose services were sought, shall be repaid by the employer to such alien. (E) Notwithstanding any other provision of law, all fees, as described in this paragraph as are designated by the Secretary of Labor in regulations shall be deposited as offsetting receipts into a separate account entitled "Temporary Worker Fee Account" in the Treasury of the United States. All deposits into the "Temporary Worker Fee Account" shall remain available until expended by the Secretary to reimburse any appropriation for expenses related to activities described in subparagraph (B)." VII. Training At the appropriate place, insert the following new section: SEC. REGIONAL AND INDUSTRY SPECIAL SKILLS TRAINING GRANTS. . (a) IN GENERAL. Amounts available for carrying out this section from the Temporary Worker Fee Account under paragraph (3)(A) of section212(n) of the Immigration and Nationality Act (8 U.S.C. 1182(n)) shall be used in accordance with the provisions of this section. From such amounts, the Secretary of Labor, in consultation with the Secretary of Commerce and the Secretary of Education, shall make competitive grants to eligible entities described in subsection(b), in order to enhance the capabilities of industries with significant skill needs to utilize the labor market in meeting their needs more effectively through-- (1) improving the job skills of American workers as necessary for employment in specific industries and occupations with significant skill needs; (2) assessing and developing strategies to address significant skills needs at the local, State, regional, and national levels; and (3) developing regional skills alliances to facilitate coordination of activities at the local, State, and regional levels in developing strategies to meet such needs. (b) ELIGIBLE ENTITIES. (1) IN GENERAL. For the purposes of this section, an eligible entity is a consortium that consists of, but is not limited to, two or more of the following: (A) employers; (B) labor organizations; (C) State or local governments; (D) private industry councils; (E) postsecondary educational institutions; (F) nonprofit organizations representing businesses or industries; or (G) nonprofit training organizations. (2) ADDITIONAL REQUIREMENT. To the maximum extent practicable, each business, organization, or governmental unit that joins in forming an eligible entity under paragraph (1) shall be located in the same geographic region of the United States. (c) GRANT LIMITATIONS. A grant may not be provided to any eligible entity under this section for more than two annual grant periods. Out of any grant made to an eligible entity, the portion to be used for creating, planning, and developing the alliance may not exceed $750,000 for any such annual grant period. (d) APPLICATION. The Secretary may provide a grant to an eligible entity under subsection (a) only pursuant to an application that is consistent with the provisions of this section and contains such information as the Secretary may deem reasonable. (e) USE OF AMOUNTS. In making grants under subsection (a), the eligible entity may, to the extent that such activities build upon and supplement on-going activities and will not duplicate or supplant current activities, provide for: (1) an identification of local, State, regional, and national skills needs; (2) an assessment of the extent to which workers in the United States are being educated and trained in needed skills; (3) the development of strategies to enhance the focus of training and education investments on industries with significant skill needs and rapidly expanding occupations; (4) the provision of training or retraining for upgrading the skills of workers, including retraining incumbent workers for continued employment with an employer; (5) the provision of improved occupational information and projections; (6) an assessment of training and job skill needs for specific industries; and (7) assistance in developing curriculum and training methods, and identification of and assistance in developing training providers. (f) ADDITIONAL CRITERIA FOR GRANTS. In making grants under subsection (a), the Secretary shall provide that-- (1) a peer review process shall be utilized to recommend awards of grants; (2) applications shall ensure that private industry councils and labor organizations in the areas to be served have collaborated in the development of such applications; (3) preference be given to applications that demonstrate significant collaboration with major stakeholders in the State and local workforce development systems; (4) with respect to any application, any amount of Federal funds to be used for training or retraining activities for incumbent workers as described in subsection (e)(4) shall be matched by an equal amount from non-Federal sources to be used for such purpose; and (5) preference be given to applications for grants, based on the extent to which non-Federal sources will provide amounts which match a portion of the Federal funds to be made available for the grant. (g) NATIONAL ALLIANCE FOR HIGH-TECHNOLOGY SKILLS.- (1) ESTABLISHMENT. In order to complement the program of grants under this section, including the activities of regional skills alliances, a National Alliance for High Technology Skills shall be established within six months after the enactment of this Act, consisting of individuals who are representative of private industry, organized labor, work-force development systems, education, and government at the local, State, and national levels. (2) RECOMMENDATIONS AND REPORT The National Alliance shall develop and recommend strategies for the training of American workers to meet future demands for high-technology skills. The National Alliance shall prepare and submit an interim report to the President and to the Congress, including its findings and recommendations, not later than February 1, 2001, and a final report not later than September 30, 2003. (3) MEMBERSHIP The Secretary of Labor, in consultation with the Secretary of Commerce and the Secretary of Education, shall establish procedures relating to the appointment of members, the conduct of meetings and public hearings, and the provision of staff assistance and support resources for the National Alliance. (4) LIMITATION. Out of the amounts available for use under this section, not more than $1,000,000 annually shall be available for carrying out the responsibilities of the Alliance under this subsection. (h) DEFINITION. For purposes of this section: (1) The term "Secretary" means the Secretary of Labor. (2) The term "private industry council" means the entity described under section 102 of the Job Training Partnership Act, or similar entity under any successor Federal statute. VIII. New Visa Category Proposal A new program (H-1C) that creates temporary visas for use only by non-immigrants with very high skill levels. In particular: The program would be authorized for four years beginning in FY1998. There would be a maximum of 25,000 visas for FY1998, FY1999, and FY2000, and a maximum of 15,000 visas for FY2001. Only employers whose number of H-1B and "H-1C" employees in the prior year constitutes no greater than one-half of their U.S. based workforce are eligible to apply. Only individuals with a minimum of a master's degree (or equivalent degree) in math, science, or engineering; or a bachelor's degree in math, science, or engineering and five years of experience in the specialty occupation; or who will earn at least $75,000 per year (exclusive of benefits) are eligible for an "H-1C" visa. Requires a $500 fee for each position for which an application is filed for training, enforcement, and administration of the program. The "H-1C" visas would be issued for a 3-year period, and renewable for an additional 3 years. All of the requirements of the "H-1C" visa program would be the same as would exist under the reformed H-1B program. Message Sent To: Debra J. Bond/OMB/EOP Larry R. Matlack/OMB/EOP Barry White/OMB/EOP Barbara Chow/OMB/EOP Sandra Yamin/OMB/EOP Steven M. Mertens/OMB/EOP Daniel J. Chenok/OMB/EOP Evan T. Farley/OMB/EOP Joseph G. Pipan/OMB/EOP Ronald L. Silberman/OMB/EOP Louisa Koch/OMB/EOP Mary Jo Siclari/OMB/EOP Charles W. Fox/OMB/EOP Gregory G. Henry/OMB/EOP Sarah G. Horrigan/OMB/EOP Katherine M. Tyer/OMB/EOP S. A. Noe/OMB/EOP Jack A. Smalligan/OMB/EOP Julie A. Fernandes/OPD/EOP Elena Kagan/OPD/EOP Thomas A. Kalil/OPD/EOP Cecilia E. Rouse/OPD/EOP Sally Katzen/OPD/EOP Gene B. Sperling/OPD/EOP Peter G. Jacoby/WHO/EOP Janet Murguia/WHO/EOP Broderick Johnson/WHO/EOP Charles M. Brain/WHO/EOP Maria Echaveste/WHO/EOP Emil E. Parker/OPD/EOP Robert N. Weiner/WHO/EOP William P. Marshall/WHO/EOP Karen Tramontano/WHO/EOP Ricardo M. Gonzales/OVP @ OVP Rebecca M. Blank/CEA/EOP Maria J. Hanratty/CEA/EOP James C. Murr/OMB/EOP 1 = US@2 = TELEMAIL@5 = JMD@7 = Deborah@6 = Clifton@mrx@Ingtwy dol-sol-leg @ dol.gov @ inet clrm @ doc.gov @ inet 1 = US@2 = TELEMAIL@3 = GOV + TREAS@5 = DO@4 = = LLR@6 = TREASURY@mrx @Ingtwy blue_gloria @ ustr.gov@INET@VAXGTWY collins_peter @ ustr.gov@INET@VAXGTWY Irm @ os.dhhs.gov @ inet dodlrs @ osdgc.osd.mil @ inet Irm @ nsf.gov @ inet ogc_legislation @ ed.gov @inet Draft amendment: April 28, 1998 At the appropriate place, insert the following new section: SEC. LABOR DEPARTMENT GRANTS PROGRAM TO CREATE REGIONAL . SKILLS ALLIANCES. (a) IN GENERAL. Amounts available for carrying out this section from the Temporary Worker Fee Account under paragraph (3)(A) of section 212(n) of the Immigration and Nationality Act (8 U.S.C. 1182(n)) shall be used in accordance with the provisions of this section. From such amounts, the Secretary of Labor, in consultation with the Secretary of Commerce and the Secretary of Education, shall make competitive grants to eligible entities described in subsection (b), in order to enhance the capabilities of industries with significant skill needs to utilize the labor market in meeting their needs more effectively through-- (1) improving the job skills of American workers as necessary for employment in specific industries and occupations with significant skill needs; (2) assessing and developing strategies to address significant skills needs at the local, State, regional, and national levels; and (3) developing regional skills alliances to facilitate coordination of activities at the local, State, and regional levels in developing strategies to meet such needs. (b) ELIGIBLE ENTITIES. (1) IN GENERAL. For the purposes of this section, an eligible entity is a consortium that consists of, but is not limited to, two or more of the following: (A) employers; (B) labor organizations; 1 (C) State or local governments; (D) private industry councils or local workforce development partnerships; (E) postsecondary educational institutions; (F) nonprofit organizations representing businesses or industries; or (G) nonprofit training organizations. (2) ADDITIONAL REQUIREMENT.- To the maximum extent practicable, each business, organization, or governmental unit that joins in forming an eligible entity under paragraph (1) shall be located in the same geographic region of the United States. (c) GRANT LIMITATIONS. A grant may not be provided to any eligible entity under this section for more than two annual grant periods. Out of any grant made to an eligible entity, the portion to be used for creating, planning, and developing the alliance may not exceed $750,000 for any such annual grant period. (d) APPLICATION.- The Secretary may provide a grant to an eligible entity under subsection (a) only pursuant to an application that is consistent with the provisions of this section and contains such information as the Secretary may deem reasonable. (e) USE OF AMOUNTS.- In making grants under subsection (a), the eligible entity may, to the extent that such activities build upon and supplement on-going activities and will not duplicate or supplant current activities, provide for: (1) an identification of local, State, regional, and national skills needs; (2) an assessment of the extent to which workers in the United States are being educated and trained in needed skills; 2 (3) the development of strategies to enhance the focus of training and education investments on industries with significant skill needs and rapidly expanding occupations; (4) the provision of training or retraining for upgrading skills, including retraining incumbent workers for continued employment with an employer; (5) the provision of improved occupational information and projections; (6) an assessment of training and job skill needs for specific industries; (7) development of a sequence of skill standards that are benchmarked to advanced industry practices for specific industries; (8) development of apprenticeship programs; and (9) assistance in developing curriculum and training methods, and identification of and assistance in developing training providers. (f) ADDITIONAL CRITERIA FOR GRANTS.-- In making grants under subsection (a), the Secretary shall provide that-- (1) a peer review process shall be utilized to recommend awards of grants; (2) preference be given to applications that demonstrate collaboration with major stakeholders in the State and local workforce development systems, including Private Industry Councils (or successor organization) and labor organizations; (3) with respect to any application, any amount of Federal funds to be used for training, including retraining activities for incumbent workers, as described in subsection (e)(4) shall be matched by an equal amount from non-Federal sources to be used for such purpose; and (4) preference be given to applications for grants, based on the extent to which non- Federal sources will provide amounts which match a portion of the Federal funds to be made 3 available for the grant. (g) NATIONAL ALLIANCE FOR HIGH-TECHNOLOGY SKILLS.-- (1) ESTABLISHMENT.- In order to complement the program of grants under this section, including the activities of regional skills alliances, a National Alliance for High Technology Skills shall be established within six months after the enactment of this Act, consisting of individuals who are representative of private industry, organized labor, work-force development systems, education, and government at the local, State, and national levels. (2) RECOMMENDATIONS AND REPORT. The National Alliance shall develop and recommend strategies for the training of American workers to meet future demands for high-technology skills. The National Alliance shall prepare and submit an interim report to the President and to the Congress, including its findings and recommendations, not later than February 1, 2001, and a final report not later than September 30, 2003. (3) MEMBERSHIP.- The Secretary of Labor, in consultation with the Secretary of Commerce and the Secretary of Education, shall establish procedures relating to the appointment of members, the conduct of meetings and public hearings, and the provision of staff assistance and support resources for the National Alliance. (4) LIMITATION. Out of the amounts available for use under this section, not more than $1,000,000 annually shall be available for carrying out the responsibilities of the Alliance under this subsection. (h) DEFINITION. For purposes of this section: (1) The term "Secretary" means the Secretary of Labor. 4 (2)The term "private industry council" means the entity described under section 102 of the Job Training Partnership Act, or similar entity under any successor Federal statute. 5 VI. Application Fee. Section 212(n) of the Immigration and Nationality Act (8 U.S.C. 1182(n)) is amended by adding the following new paragraph: "(3)(A) The Secretary of Labor shall establish, by regulation, a fee to be paid by an employer for each position for which an application is filed for a certification of nonimmigrant temporary worker under subclauses (b) and (c) of section 101(a)(15)(H)(i). "(B) The fee shall be set at a level that- "(i) will ensure recovery of the full costs of providing adjudication and application services; and, "(ii) finances activities authorized under Section XXXXX (the Regional and Industry Special Skills Training Grants Skills Alliance Grants):; and "(iii) finances activities authorized under Section XX of the YYY Act (Advanced (whichever is) Technology Education grants), except that not to exceed ten percent or $5 million per year of the amounts made available pursuant to sec. 212(n)(3)(A) shall be available until expended for such activities. "(C) During the period ending September 30, 2001, such a fee shall not exceed $250 for each position. "(D)(i) It shall be unlawful for an employer to require, as a condition of employment by such employer, that the fee prescribed under this paragraph or any part of the fee be paid directly or indirectly by the alien whose services are being sought. "(ii) Any person or entity that is determined, after notice and opportunity for an administrative hearing, to have violated clause (i) shall be subject to a civil penalty of $5,000 6 for each violation, to an administrative order requiring the payment of any fee described in this paragraph, and the disqualification for 1 year from petitioning for foreign skilled temporary alien workers under this subsection. "(iii) Any amount determined to have been paid, directly or indirectly, toward the filing fee described in this paragraph by the alien whose services were sought, shall be repaid by the employer to such alien. "(E) Notwithstanding any other provision of law, all fees as are designated by the Secretary of Labor in regulations under this paragraph shall be deposited as offsetting receipts into a separate account entitled "Temporary Worker Fee Account" in the Treasury of the United States. All deposits into the "Temporary Worker Fee Account" shall remain available until expended by the Secretary of Labor to reimburse any appropriation for expenses related to activities described in subparagraph (B).". SEC. ADDITIONAL FUNDING FOR NATIONAL SCIENCE FOUNDATION ADVANCED TECHNICAL EDUCATION (ATE) PROGRAM The administration also supports authorizing a small amount of the user fee for the NSF's ATE program. 7 risst428.wp Page 1 TRAINING- Draft Draft amendment: April 28, 1998 At the appropriate place, insert the following new section: SEC. LABOR DEPARTMENT GRANT PROGRAM TO CREATE REGIONAL . SKILLS ALLIANCES. (a) IN GENERAL.- Amounts available for carrying out this section from the Temporary Worker Fee Account under paragraph (3)(A) of section 212(n) of the Immigration and Nationality Act (8 U.S.C. 1182(n)) shall be used in accordance with the provisions of this section. From such amounts, the Secretary of Labor, in MOU consultation with the Secretary of Commerce and the Secretary of Education, shall make competitive grants to eligible entities described in subsection (b), in order to planning, in enhance the capabilities of industries with significant skill needs to utilize the labor design, market in meeting their needs more effectively through-- implement (1) improving the job skills of American workers as necessary for and evaluat employment in specific industries and occupations with significant skill needs; (2) assessing and developing strategies to address significant skills needs at the local, State, regional, and national levels; and (3) developing regional skills alliances to facilitate coordination of activities at the local, State, and regional levels in developing strategies to meet such needs. (b) ELIGIBLE ENTITIES. (1) IN GENERAL.-- For the purposes of this section, an eligible entity is a consortium that consists of, but is not limited to, two or more of the following: (A) employers; employers i (B) labor organizations; (C) State or local governments; (D) private industry councils or local workforce development partnerships; (E) postsecondary educational institutions; Dechnical technical OR institutes risst428.wp Page 2 (F) nonprofit organizations representing businesses or industries; or (G) nonprofit training organizations. (2) ADDITIONAL REQUIREMENT. To the maximum extent practicable, each business, organization, or governmental unit that joins in forming an eligible entity under paragraph (1) shall be located in the same geographic region of the United States. (c) GRANT LIMITATIONS. A grant may not be provided to any eligible entity under this section for more than two annual grant periods. Out of any grant made to an eligible entity, the portion to be used for creating, planning, and developing the alliance may not exceed $750,000 for any such annual grant period. (d) APPLICATION. The Secretary may provide a grant to an eligible entity under subsection (a) only pursuant to an application that is consistent with the provisions of this section and contains such information as the Secretary may deem reasonable. (e) USE OF AMOUNTS. In making grants under subsection (a), the eligible entity may, to the extent that such activities build upon and supplement on-going activities and will not duplicate or supplant current activities, provide for: (1) an identification of local, State, regional, and national skills needs; (2) an assessment of the extent to which workers in the United States are being educated and trained in needed skills; (3) the development of strategies to enhance the focus of training and education investments on industries with significant skill needs and rapidly expanding occupations; (4) the provision of training or retraining for upgrading skills, including retraining incumbent workers for continued employment with an employer; (5) the provision of improved occupational information and projections; risst428. wp Page 3 (6) an assessment of training and job skill needs for specific industries; (7) development of a sequence of skill standards that are benchmarked to advanced industry practices for specific industries; (8) development of apprenticeship programs; and (9) assistance in developing curriculum and training methods, and identification of and assistance in developing training providers. (f) ADDITIONAL CRITERIA FOR GRANTS. In making grants under subsection (a), the Secretary shall provide that-- (1) a peer review process shall be utilized to recommend awards of grants; (2) preference be given to applications that demonstrate collaboration with major stakeholders in the State and local workforce development systems, Employers or ther non-profit orgs representing employers) including, Private Industry Councils (or successor organization) and labor organizations; (Workfore Development Board) (3) with respect to any application, any amount of Federal funds be weed (stet) for training, including retraining activities for incumbent workers, as described in at least subsection (s)(4) shall be matched by an equal amount from non-Federal sources to be used for such purpose; and (4) d'eference be given to applications for grants, based on the extent to which non-Pederal sources will provide amounts which match a portion of the ] Federal funds to M made available for the grant. (g) NATIONAL ALLIANCE FOR HIGH-TECHNOLOGY SKILLS.-- (1) ESTABLISHMENT.- In order to complement the program of grants under this section, including the activities of regional skills alliances, a National Alliance for High Technology Skills shall be established within six months after the enactment of this Act, consisting of individuals who are representative of private industry, risst428.wp Page 4 organized labor, work-force development systems, education, and government at the local, State, and national levels. (2) RECOMMENDATIONS AND REPORT The National Alliance shall develop and recommend strategies for the training of American workers to meet future demands for high-technology skills. The National Alliance shall prepare and submit an interim report to the President and to the Congress, including its findings and recommendations, not later than February 1, 2001, and a final report not later than September 30, 2003. (3) MEMBERSHIP. The Secretary of Labor, in consultation with the Secretary of Commerce and the Secretary of Education, shall establish procedures relating to the appointment of members, the conduct of meetings and public hearings, and the provision of staff assistance and support resources for the National Alliance. (4) LIMITATION. Out of the amounts available for use under this section, not more than $1,000,000 annually shall be available for carrying out the responsibilities of the Alliance under this subsection. (h) DEFINITION. For purposes of this section: (1) The term "Secretary" means the Secretary of Labor. (2) The term "private industry council" means the entity described under section 102 of the Job Training Partnership Act, or similar entity under any successor Federal statute. risst428 wp Page 5 VI. Application Fee. Section 212(n) of the Immigration and Nationality Act (8 U.S.C. 1182(n)) is amended by adding the following new paragraph: "(3)(A) The Secretary of Labor shall establish, by regulation, a fee to be paid by an employer for each position for which an application is filed for a certification of nonimmigrant temporary worker under subclauses (b) and (c) of section 101(a)(15)(H)(i). "(B) The fee shall be set at a level that- "(i) will ensure recovery of the full costs of providing adjudication and application services; and, "(ii) finances activities authorized under Section XXXXX (the Regional and Industry Special Skills Training Grants). "(C) During the period ending September 30, 2001, such a fee shall not exceed $250 for each position. "(D)(i) It shall be unlawful for an employer to require, as a condition of employment by such employer, that the fee prescribed under this paragraph or any part of the fee be paid directly or indirectly by the alien whose services are being sought. "(ii) Any person or entity that is determined, after notice and opportunity for an administrative hearing, to have violated clause (i) shall be subject to a civil penalty of $5,000 for each violation, to an administrative order requiring the payment of any fee described in this paragraph, and the disqualification for 1 year from petitioning for foreign skilled temporary alien workers under this subsection. "(iii) Any amount determined to have been paid, directly or indirectly, risst428.wp Page 6 toward the filing fee described in this paragraph by the alien whose services were sought, shall be repaid by the employer to such alien. "(E) Notwithstanding any other provision of law, all fees as are designated by the Secretary of Labor in regulations under this paragraph shall be deposited as offsetting receipts into a separate account entitled "Temporary Worker Fee Account" in the Treasury of the United States. All deposits into the "Temporary Worker Fee Account" shall remain available until expended by the Secretary of Labor to reimburse any appropriation for expenses related to activities described in subparagraph (B).". SEC. ADDITIONAL FUNDING FOR NATIONAL SCIENCE FOUNDATION ADVANCED TECHNICAL EDUCATION (ATE) PROGRAM The administration also supports authorizing a small amount of the user fee for the NSF's ATE program. H1B Legislative Proposals Number of visas Abraham-Hatch: Increase to 95,000 (with 10,000 going to H-1C for nurses and use of 20,000 more from H2B). Sunset after 5 years Smith: Increase to 95,000 in FY98; 105K in FY99; 115K in FY2000 (limits the nurses to 7500) Sunset after 3 years Administration: No specific number. Said we liked Kennedy (90,000) and sunset after three years. Training Abraham-Hatch: $50 million authorized for SSIG program + $10 million authorized for displaced workers Smith: No training Administration: $250 application fee (per visa) Money to go to fund Regional Skills Alliances + NSF program Reforms Abraham-Hatch: Exempts from "lay-off" the expiration of a grant, contract, or other agreement. Defines "replace" in the lay-off context to mean at a specific place of employment and in the specific employment opportunity + with substantially equivalent qualifications and experience in the specific employment opportunity. No requirement that the employer attest to having recruited U.S. workers or to not having laid off a U.S. worker in order to replace them with a temporary foreign worker. Smith: A recruit & retain attestation (exempting the extraordinary) A no lay-off attestation (90 days before; 90 days after); exempts "voluntary departure." Both apply also to "job contractors." Administration: A recruit & retain attestation A no lay-off attestation (90 days before; 90 days after); exempts "voluntary departure." Both apply also to "job contractors." Enforcement Abraham-Hatch: Spot inspections for Secretary of Labor for employers who have previously committed willful violations. Cuts back on existing enforcement authority: changes "failure to meet" in 1B and "substantial failure to meet" in 1C and 1D to "willful failure to meet." Also, changes "misrepresentation of a material fact to "willful misrepresentation of a material fact." If a willful violation of an attestation (willful failure to meet a condition of paragraph (A)) or a willful misrepresentation of a material fact and a finding of willfully laying-off U.S. worker in order to hire an H-1B worker, get $25,000 fine + 2-year debarment. Smith: Secretary can investigate in response to a complaint. If there is no complaint, Secretary can only investigate an H-1B dependent employer and only if there appears to be a misrepresentation of a material fact in the attestation OR a violation of an attestation. Spot investigations during the probationary period (the 5 year period after the Secretary finds a willful violation of a misrepresentation of a material fact -- whether H-1B dependent or not). Extra harsh penalties if a lay-off. Administration: DOL can investigate in response to a complaint, and sanction if a violation is found. If no complaint, DOL can investigate if she has a reasonable cause to believe that: (1) there is a pattern or practice of complaints by U.S. workers against the employer; unsuccessful recruitment by the employer or violations by the employer; (2) employer's U.S. workforce is more than 10% H-1B; or (3) the employer has laid off or otherwise displaced more than 10% of its U.S. workforce or 100 U.S. workers (whichever is fewer) in any one year period. DOL can sanction pursuant to an investigation initiated by a trigger only if the violation is found to be willful or a pattern or practice of violations or a violation that affects a significant number of individuals. Secretary of Labor with subpoena authority in connection with any investigation. Prevailing Wage Abraham-Hatch: Repeals Hathaway decision, thus allowing universities to use their institution to determine prevailing wage. Allows the use of industry surveys and others to determine prevailing wage if employer has kept a copy but allows DOL to challenge the validity of such surveys. Other Abraham-Hatch: Modifies permanent program to remove per country limits w/in permanent employment-based immigration program. Kennedy amendments I No lay-off attestation ("in that same job") 2 recruitment attestation 3 whirtle-blower protect (alse protects H1B worker from beingsent back if Feinsten Complains - ) Increased enforment authity by Dol Induration) of Visa 3 yrs- up to 95,000/year Reid (RI) may offer all amendment to take SSIG outy Abraham. "rubber Robb - likes Reg. Skills Alliances. stamp process" under Commerce NTIA Bumper - Investr pregram amendment - stuke or amend A Chuck Cooper: Issue bulle tin Moynihan - Y2K delay