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113th Congress                                            Rept. 113-676
                    }   HOUSE OF REPRESENTATIVES  {
 2d Session         }                             {             Part 1

======================================================================
 
 SUPPLYING KNOWLEDGE-BASED IMMIGRANTS AND LIFTING LEVELS OF STEM VISAS 
                                  ACT

                                _______
                                

 December 15, 2014.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Goodlatte, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2131]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 2131) to amend the Immigration and Nationality Act 
to enhance American competitiveness through the encouragement 
of high-skilled immigration, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     2
Purpose and Summary..............................................    25
Background and Need for the Legislation..........................    26
Hearings.........................................................    52
Committee Consideration..........................................    52
Committee Votes..................................................    52
Committee Oversight Findings.....................................    57
New Budget Authority and Tax Expenditures........................    57
Congressional Budget Office Cost Estimate........................    57
Duplication of Federal Programs..................................    72
Disclosure of Directed Rule Makings..............................    72
Performance Goals and Objectives.................................    72
Advisory on Earmarks.............................................    72
Section-by-Section Analysis......................................    72
Changes in Existing Law Made by the Bill, as Reported............    82
Dissenting Views.................................................   128

                             The Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Supplying Knowledge-based Immigrants 
and Lifting Levels of STEM Visas Act'' or the ``SKILLS Visa Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Sense of Congress.

                    TITLE I--IMMIGRANT VISA REFORMS

Sec. 101. Immigrant visas for certain advanced STEM graduates.
Sec. 102. Immigrant visas for entrepreneurs.
Sec. 103. Additional employment-based immigrant visas.
Sec. 104. Employment creation immigrant visas.
Sec. 105. Family-sponsored immigrant visas.
Sec. 106. Elimination of diversity immigrant program.
Sec. 107. Numerical limitation to any single foreign state.
Sec. 108. Physicians.
Sec. 109. Permanent priority dates.
Sec. 110. Set-aside for health care workers.

                  TITLE II--NONIMMIGRANT VISA REFORMS

Sec. 201. H-1B visas.
Sec. 202. L visas.
Sec. 203. O visas.
Sec. 204. Mexican and Canadian professionals.
Sec. 205. H-1B1 and E-3 Visas.
Sec. 206. Students.
Sec. 207. Extension of employment eligibility while visa extension 
petition pending.
Sec. 208. Fraud detection and prevention fee.
Sec. 209. Technical correction.

   TITLE III--REFORMS AFFECTING BOTH IMMIGRANT AND NONIMMIGRANT VISAS

Sec. 301. Prevailing wages.
Sec. 302. Streamlining petitions for established employers.

SEC. 3. SENSE OF CONGRESS.

  It is the sense of the Congress that:
          (1) Our Nation's future economic prosperity in the global 
        economy is strongly linked to the ability of our schools to 
        educate students in the science, technology, engineering, and 
        mathematics (STEM) subjects.
          (2) A portion of application fees paid by employers seeking 
        to hire foreign workers should be devoted to supporting 
        improvements in STEM education in the United States, including 
        computer science education, at the elementary, secondary, and 
        university levels in order to reduce our dependence on foreign 
        workers over time.
          (3) Such funds should be used to support--
                  (A) building the capacity of every State to improve 
                student achievement in STEM subjects, especially in the 
                most high-need school districts;
                  (B) supporting innovation in STEM education through 
                partnerships between elementary and secondary schools, 
                universities, non-profits, businesses, and informal 
                education and community-based partners;
                  (C) broadening the diversity and capacity of the STEM 
                education pipeline in the United States through 
                scholarships and other forms of assistance to American 
                students who study in these subjects; and
                  (D) improving and promoting STEM education for 
                underrepresented populations, including economically 
                disadvantaged individuals in STEM fields.

                    TITLE I--IMMIGRANT VISA REFORMS

SEC. 101. IMMIGRANT VISAS FOR CERTAIN ADVANCED STEM GRADUATES.

  (a) Worldwide Level of Immigration.--Section 201(d)(1)(A) of the 
Immigration and Nationality Act (8 U.S.C. 1151(d)(1)(A)) is amended by 
striking ``140,000,'' and inserting ``140,000 in fiscal years through 
2013 and 195,000 beginning in fiscal year 2014, reduced for any fiscal 
year beginning in fiscal year 2014 by the number by which the number of 
visas under section 201(e) would have been reduced in that year 
pursuant to section 203(d) of the Nicaraguan Adjustment and Central 
American Relief Act (8 U.S.C. 1151 note) if section 201(e) had not been 
repealed by section 106 of the SKILLS Visa Act,''.
  (b) Preference Allocation for Employment-Based Immigrants.--Section 
203(b) of such Act (8 U.S.C. 1153(b)) is amended--
          (1) by redesignating paragraph (6) as paragraph (9); and
          (2) by inserting after paragraph (5) the following:
          ``(6) Aliens holding doctorate degrees from u.s. doctoral 
        institutions of higher education in science, technology, 
        engineering, or mathematics.--
                  ``(A) In general.--Visas shall be made available, in 
                a number not to exceed 55,000, reduced for any fiscal 
                year by the number by which the number of visas under 
                section 201(e) would have been reduced in that year 
                pursuant to section 203(d) of the Nicaraguan Adjustment 
                and Central American Relief Act (8 U.S.C. 1151 note) if 
                section 201(e) had not been repealed by section 106 of 
                the SKILLS Visa Act, plus any visas not required for 
                the classes specified in paragraph (1), to qualified 
                immigrants who--
                          ``(i) hold a doctorate degree in a field of 
                        science, technology, engineering, or 
                        mathematics from a United States doctoral 
                        institution of higher education, or have 
                        successfully completed a dental, medical, or 
                        veterinary residency program (within the 
                        summary group of residency programs in the 
                        Department of Education's Classification of 
                        Instructional Programs taxonomy), have received 
                        a medical degree (MD) in a program that 
                        prepares individuals for the independent 
                        professional practice of medicine (series 51.12 
                        in the Department of Education's Classification 
                        of Instructional Programs taxonomy), have 
                        received a dentistry degree (DDS, DMD) in a 
                        program that prepares individuals for the 
                        independent professional practice of dentistry/
                        dental medicine (series 51.04 in the Department 
                        of Education's Classification of Instructional 
                        Programs taxonomy), have received a veterinary 
                        degree (DVM) in a program that prepares 
                        individuals for the independent professional 
                        practice of veterinary medicine (series 51.24 
                        in the Department of Education's Classification 
                        of Instructional Programs taxonomy), or have 
                        received an osteopathic medicine/osteopathy 
                        degree (DO) in a program that prepares 
                        individuals for the independent professional 
                        practice of osteopathic medicine (series 51.19 
                        in the Department of Education's Classification 
                        of Instructional Programs taxonomy) from an 
                        institution that is described in subclauses 
                        (I), (III), and (IV) of subparagraph (B)(iii); 
                        and
                          ``(ii) have taken not less than 85 percent of 
                        the courses required for such degrees, 
                        including all courses taken by correspondence 
                        (including courses offered by 
                        telecommunications) or by distance education, 
                        while physically present in the United States.
                  ``(B) Definitions.--For purposes of this paragraph, 
                paragraph (7), and sections 101(a)(15)(F)(i)(I) and 
                212(a)(5)(A)(iii)(III):
                          ``(i) The term `distance education' has the 
                        meaning given such term in section 103 of the 
                        Higher Education Act of 1965 (20 U.S.C. 1003).
                          ``(ii) The term `field of science, 
                        technology, engineering, or mathematics' means 
                        a field included in the Department of 
                        Education's Classification of Instructional 
                        Programs taxonomy within the summary groups of 
                        computer and information sciences and support 
                        services, engineering, biological and 
                        biomedical sciences, mathematics and 
                        statistics, physical sciences, and the series 
                        geography and cartography (series 45.07), 
                        advanced/graduate dentistry and oral sciences 
                        (series 51.05) and nursing (series 51.38).
                          ``(iii) The term `United States doctoral 
                        institution of higher education' means an 
                        institution that--
                                  ``(I) is described in section 101(a) 
                                of the Higher Education Act of 1965 (20 
                                U.S.C. 1001(a)) or is a proprietary 
                                institution of higher education (as 
                                defined in section 102(b) of such Act 
                                (20 U.S.C. 1002(b)));
                                  ``(II) was classified by the Carnegie 
                                Foundation for the Advancement of 
                                Teaching on January 1, 2013, as a 
                                doctorate-granting university with a 
                                very high or high level of research 
                                activity or classified by the National 
                                Science Foundation after the date of 
                                enactment of this paragraph, pursuant 
                                to an application by the institution, 
                                as having equivalent research activity 
                                to those institutions that had been 
                                classified by the Carnegie Foundation 
                                as being doctorate-granting 
                                universities with a very high or high 
                                level of research activity;
                                  ``(III) has been in existence for at 
                                least 10 years; and
                                  ``(IV) is accredited by an 
                                accrediting body that is itself 
                                accredited either by the Department of 
                                Education or by the Council for Higher 
                                Education Accreditation.
                  ``(C) Labor certification required.--
                          ``(i) In general.--Subject to clause (ii), 
                        the Secretary of Homeland Security may not 
                        approve a petition filed for classification of 
                        an alien under subparagraph (A) unless the 
                        Secretary of Homeland Security is in receipt of 
                        a determination made by the Secretary of Labor 
                        pursuant to the provisions of section 
                        212(a)(5)(A), except that the Secretary of 
                        Homeland Security may, when the Secretary deems 
                        it to be in the national interest, waive this 
                        requirement.
                          ``(ii) Requirement deemed satisfied.--The 
                        requirement of clause (i) shall be deemed 
                        satisfied with respect to an employer and an 
                        alien in a case in which a certification made 
                        under section 212(a)(5)(A)(i) has already been 
                        obtained with respect to the alien by that 
                        employer.
          ``(7) Aliens holding master's degrees from u.s. doctoral 
        institutions of higher education in science, technology, 
        engineering, or mathematics.--
                  ``(A) In general.--Any visas not required for the 
                classes specified in paragraphs (1) and (6) shall be 
                made available to the classes of aliens who--
                          ``(i) hold a master's degree in a field of 
                        science, technology, engineering, or 
                        mathematics from a United States doctoral 
                        institution of higher education that was either 
                        part of a master's program that required at 
                        least 2 years of enrollment or part of a 5-year 
                        combined baccalaureate-master's degree program 
                        in such field;
                          ``(ii) have taken not less than 85 percent of 
                        the master's degree courses in a field of 
                        science, technology, engineering, or 
                        mathematics, including all courses taken by 
                        correspondence (including courses offered by 
                        telecommunications) or by distance education, 
                        while physically present in the United States; 
                        and
                          ``(iii) hold a baccalaureate degree in a 
                        field of science, technology, engineering, or 
                        mathematics.
                  ``(B) Labor certification required.--
                          ``(i) In general.--Subject to clause (ii), 
                        the Secretary of Homeland Security may not 
                        approve a petition filed for classification of 
                        an alien under subparagraph (A) unless the 
                        Secretary of Homeland Security is in receipt of 
                        a determination made by the Secretary of Labor 
                        pursuant to the provisions of section 
                        212(a)(5)(A), except that the Secretary of 
                        Homeland Security may, when the Secretary deems 
                        it to be in the national interest, waive this 
                        requirement.
                          ``(ii) Requirement deemed satisfied.--The 
                        requirement of clause (i) shall be deemed 
                        satisfied with respect to an employer and an 
                        alien in a case in which a certification made 
                        under section 212(a)(5)(A)(i) has already been 
                        obtained with respect to the alien by that 
                        employer.
                  ``(C) Definitions.--The definitions in paragraph 
                (6)(B) shall apply for purposes of this paragraph.''.
  (c) Aliens Who Are Members of the Professions Holding Advanced 
Degrees or Aliens of Exceptional Ability.--Section 203(b)(2)(A) of such 
Act (8 U.S.C. 1153(b)(2)(A)) is amended by striking ``paragraph (1),'' 
and inserting ``paragraphs (1), (6), (7), and (8),''.
  (d) Skilled Workers, Professionals, and Other Workers.--Section 
203(b)(3)(A) of such Act (8 U.S.C. 1153(b)(3)(A)) is amended by 
striking ``paragraphs (1) and (2),'' and inserting ``paragraphs (1), 
(2), (6), and (7),''.
  (e) Procedure for Granting Immigrant Status.--Section 204(a)(1)(F) of 
such Act (8 U.S.C. 1154(a)(1)(F)) is amended--
          (1) by striking ``(F)'' and inserting ``(F)(i)'';
          (2) by striking ``or 203(b)(3)'' and inserting ``203(b)(3), 
        203(b)(6), or 203(b)(7)'';
          (3) by striking ``Attorney General'' and inserting 
        ``Secretary of Homeland Security''; and
          (4) by adding at the end the following:
  ``(ii) The following processing standards shall apply with respect to 
petitions under clause (i) relating to alien beneficiaries qualifying 
under paragraph (6) or (7) of section 203(b):
          ``(I) The Secretary of Homeland Security shall adjudicate 
        such petitions not later than 60 days after the date on which 
        the petition is filed. In the event that additional information 
        or documentation is requested by the Secretary during such 60-
        day period, the Secretary shall adjudicate the petition not 
        later than 30 days after the date on which such information or 
        documentation is received.
          ``(II) The petitioner shall be notified in writing within 30 
        days of the date of filing if the petition does not meet the 
        standards for approval. If the petition does not meet such 
        standards, the notice shall include the reasons therefore and 
        the Secretary shall provide an opportunity for the prompt 
        resubmission of a modified petition.''.
  (f) Labor Certification and Qualification for Certain Immigrants.--
Section 212(a)(5) of such Act (8 U.S.C. 1182(a)(5)) is amended--
          (1) in subparagraph (A)--
                  (A) in clause (ii)--
                          (i) in subclause (I), by striking ``, or'' at 
                        the end and inserting a semicolon;
                          (ii) in subclause (II), by striking the 
                        period at the end and inserting ``; or''; and
                          (iii) by adding at the end the following:
                                  ``(III) holds a doctorate degree in a 
                                field of science, technology, 
                                engineering, or mathematics from a 
                                United States doctoral institution of 
                                higher education (as defined in section 
                                203(b)(6)(B)(iii)).'';
                  (B) by redesignating clauses (ii) through (iv) as 
                clauses (iii) through (v), respectively;
                  (C) by inserting after clause (i) the following:
                          ``(ii) Job order.--
                                  ``(I) In general.--An employer who 
                                files an application under clause (i) 
                                shall submit a job order for the labor 
                                the alien seeks to perform to the State 
                                workforce agency in the State in which 
                                the alien seeks to perform the labor. 
                                The State workforce agency shall post 
                                the job order on its official agency 
                                website for a minimum of 30 days and 
                                not later than 3 days after receipt 
                                using the employment statistics system 
                                authorized under section 15 of the 
                                Wagner-Peyser Act (29 U.S.C. 49 et 
                                seq.).
                                  ``(II) Links.--The Secretary of Labor 
                                shall include links to the official 
                                websites of all State workforce 
                                agencies on a single webpage of the 
                                official website of the Department of 
                                Labor.''; and
                  (D) by adding at the end the following:
                          ``(vi) Processing standards for alien 
                        beneficiaries qualifying under paragraphs (6) 
                        and (7) of section 203(b).--The following 
                        processing standards shall apply with respect 
                        to applications under clause (i) relating to 
                        alien beneficiaries qualifying under paragraph 
                        (6) or (7) of section 203(b):
                                  ``(I) The Secretary of Labor shall 
                                adjudicate such applications not later 
                                than 180 days after the date on which 
                                the application is filed. In the event 
                                that additional information or 
                                documentation is requested by the 
                                Secretary during such 180-day period, 
                                the Secretary shall adjudicate the 
                                application not later than 60 days 
                                after the date on which such 
                                information or documentation is 
                                received.
                                  ``(II) The applicant shall be 
                                notified in writing within 60 days of 
                                the date of filing if the application 
                                does not meet the standards for 
                                approval. If the application does not 
                                meet such standards, the notice shall 
                                include the reasons therefore and the 
                                Secretary shall provide an opportunity 
                                for the prompt resubmission of a 
                                modified application.''; and
          (2) in subparagraph (D), by striking ``(2) or (3)'' and 
        inserting ``(2), (3), (6), or (7)''.
  (g) GAO Study.--Not later than June 30, 2019, the Comptroller General 
of the United States shall provide to the Congress the results of a 
study on the use by the National Science Foundation of the 
classification authority provided under section 203(b)(6)(B)(iii)(II) 
of the Immigration and Nationality Act (8 U.S.C. 
1153(b)(6)(B)(iii)(II)), as added by this section.
  (h) Public Information.--The Secretary of Homeland Security shall 
make available to the public on the official website of the Department 
of Homeland Security, and shall update not less than monthly, the 
following information (which shall be organized according to month and 
fiscal year) with respect to aliens granted status under paragraph (6) 
or (7) of section 203(b) of the Immigration and Nationality Act (8 
U.S.C. 1153(b)), as added by this section:
          (1) The name, city, and State of each employer who petitioned 
        pursuant to either of such paragraphs on behalf of one or more 
        aliens who were granted status in the month and fiscal year to 
        date.
          (2) The number of aliens granted status under either of such 
        paragraphs in the month and fiscal year to date based upon a 
        petition filed by such employer.
          (3) The occupations for which such alien or aliens were 
        sought by such employer and the job titles listed by such 
        employer on the petition.
  (i) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2013, and shall apply with respect to fiscal years 
beginning on or after such date. Nothing in the preceding sentence 
shall be construed to prohibit the Secretary of Homeland Security from 
accepting before such date petitions under section 204(a)(1)(F) of the 
Immigration and Nationality Act (8 U.S.C. 1154(a)(1)(F)) relating to 
alien beneficiaries qualifying under paragraph (6) or (7) of section 
203(b) of such Act (8 U.S.C. 1153(b)) (as added by this section).

SEC. 102. IMMIGRANT VISAS FOR ENTREPRENEURS.

  (a) Preference Allocation for Employment-Based Immigrants.--Section 
203(b) of the Immigration and Nationality Act (8 U.S.C. 1153(b)) is 
amended by inserting after paragraph (7) (as added by section 101 of 
this Act) the following:
          ``(8) Alien entrepreneurs.--
                  ``(A) In general.--Visas shall be made available, in 
                a number not to exceed 10,000, plus any visas not 
                required for the classes specified in paragraphs (1), 
                (2), and (3), to the following classes of aliens:
                          ``(i) Venture capital-backed start-up 
                        entrepreneurs.--
                                  ``(I) In general.--An alien is 
                                described in this clause if the alien 
                                intends to engage in a new commercial 
                                enterprise (including a limited 
                                partnership) in the United States--
                                          ``(aa) with respect to which 
                                        the alien has completed an 
                                        investment agreement requiring 
                                        an investment in the enterprise 
                                        in an amount not less than 
                                        $500,000, subject to subclause 
                                        (III), on the part of--
                                                  ``(AA) a venture 
                                                capital fund whose 
                                                investment adviser is a 
                                                qualified venture 
                                                capital entity; or
                                                  ``(BB) 2 or more 
                                                qualified angel 
                                                investors; and
                                          ``(bb) which will benefit the 
                                        United States economy and, 
                                        during the 3-year period 
                                        beginning on the date on which 
                                        the visa is issued under this 
                                        paragraph, will--
                                                  ``(AA) create full-
                                                time employment for at 
                                                least 5 United States 
                                                workers within the 
                                                enterprise; and
                                                  ``(BB) raise not less 
                                                than an additional 
                                                $1,000,000 in capital 
                                                investment, subject to 
                                                subclause (III), or 
                                                generate not less than 
                                                $1,000,000 in revenue, 
                                                subject to subclause 
                                                (III).
                                  ``(II) Definitions.--For purposes of 
                                this clause:
                                          ``(aa) Investment.--The term 
                                        `investment' does not include 
                                        any assets acquired, directly 
                                        or indirectly, by unlawful 
                                        means.
                                          ``(bb) Investment adviser.--
                                        The term `investment adviser' 
                                        has the meaning given such term 
                                        under section 202(a)(11) of the 
                                        Investment Advisers Act of 1940 
                                        (15 U.S.C. 80b-2(a)(11)).
                                          ``(cc) Qualified angel 
                                        investor.--The term `qualified 
                                        angel investor' means an 
                                        individual who--
                                                  ``(AA) is an 
                                                accredited investor (as 
                                                defined in section 
                                                230.501(a) of title 17, 
                                                Code of Federal 
                                                Regulations (as in 
                                                effect on April 1, 
                                                2010));
                                                  ``(BB) is a United 
                                                States citizen or an 
                                                alien lawfully admitted 
                                                to the United States 
                                                for permanent 
                                                residence; and
                                                  ``(CC) has made at 
                                                least 2 investments 
                                                during the 3 year 
                                                period before the date 
                                                of a petition by the 
                                                qualified immigrant for 
                                                classification under 
                                                this paragraph.
                                          ``(dd) Qualified venture 
                                        capital entity.--The term 
                                        `qualified venture capital 
                                        entity' means, with respect to 
                                        a qualified immigrant, an 
                                        entity that--
                                                  ``(AA) serves as an 
                                                investment adviser to a 
                                                venture capital fund 
                                                that is making an 
                                                investment under this 
                                                paragraph;
                                                  ``(BB) has its 
                                                primary office location 
                                                or principal place of 
                                                business in the United 
                                                States;
                                                  ``(CC) is owned and 
                                                controlled, directly or 
                                                indirectly, by 
                                                individuals the 
                                                majority of whom are 
                                                United States citizens 
                                                or aliens lawfully 
                                                admitted to the United 
                                                States for permanent 
                                                residence;
                                                  ``(DD) has been 
                                                advising one or more 
                                                venture capital funds 
                                                for a period of at 
                                                least 2 years before 
                                                the date of the 
                                                petition for 
                                                classification under 
                                                this paragraph; and
                                                  ``(EE) advises one or 
                                                more venture capital 
                                                funds that have made at 
                                                least 2 investments of 
                                                not less than $500,000 
                                                in each of the 2 years 
                                                before the date of the 
                                                petition for 
                                                classification under 
                                                this paragraph.
                                          ``(ee) Venture capital 
                                        fund.--The term `venture 
                                        capital fund' means an entity--
                                                  ``(AA) that is 
                                                classified as a 
                                                `venture capital 
                                                operating company' 
                                                under section 2510.3-
                                                101(d) of title 29, 
                                                Code of Federal 
                                                Regulations (as in 
                                                effect on January 1, 
                                                2013) or has management 
                                                rights in its portfolio 
                                                companies to the extent 
                                                required by such 
                                                section if the venture 
                                                capital fund were 
                                                classified as a venture 
                                                capital operating 
                                                company;
                                                  ``(BB) has capital 
                                                commitments of not less 
                                                than $10,000,000; and
                                                  ``(CC) whose general 
                                                partner or managing 
                                                member is owned and 
                                                controlled, directly or 
                                                indirectly, by 
                                                individuals the 
                                                majority of whom are 
                                                United States citizens 
                                                or aliens lawfully 
                                                admitted to the United 
                                                States for permanent 
                                                residence.
                                  ``(III) Inflation adjustment.--
                                Effective for the first fiscal year 
                                that begins more than 6 months after 
                                the date of the enactment of this 
                                clause, and for each fiscal year 
                                thereafter, the amounts described in 
                                subclauses (I) and (II) shall be 
                                increased by the percentage (if any) by 
                                which the Consumer Price Index for the 
                                month of June preceding the date on 
                                which such increase takes effect 
                                exceeds the Consumer Price Index for 
                                the same month of the preceding 
                                calendar year. An increase described in 
                                the preceding sentence shall apply to 
                                aliens filing petitions under section 
                                204(a)(1)(H) on or after the date on 
                                which the increase takes effect. For 
                                purposes of this clause, the term 
                                `Consumer Price Index' means the 
                                Consumer Price Index for all urban 
                                consumers published by the Department 
                                of Labor.
                          ``(ii) Treaty investors.--Immigrants who have 
                        been issued a visa or otherwise provided 
                        nonimmigrant status under section 
                        101(a)(15)(E)(ii) (not including alien 
                        employees of the treaty investor) who have 
                        maintained that status for a minimum of 10 
                        years and have benefitted the United States 
                        economy and created full-time employment for 
                        not fewer than 5 United States workers for a 
                        minimum of 10 years.
                  ``(B) Definitions.--For purposes of this paragraph:
                          ``(i) The term `full-time employment' has the 
                        meaning given such term in paragraph (5).
                          ``(ii) The term `United States worker' means 
                        an employee (other than the immigrant or the 
                        immigrant's spouse, sons, or daughters) who--
                                  ``(I) is a citizen or national of the 
                                United States; or
                                  ``(II) is an alien who is lawfully 
                                admitted for permanent residence, is 
                                admitted as a refugee under section 
                                207, is granted asylum under section 
                                208, or is an immigrant otherwise 
                                authorized to be employed in the United 
                                States.''.
  (b) Procedures for Granting Immigrant Status.--Section 204(a)(1)(H) 
of the Immigration and Nationality Act (8 U.S.C. 1154(a)(1)(H)) is 
amended--
          (1) by striking ``section 203(b)(5)'' and inserting 
        ``paragraph (5) or (8) of section 203(b)''; and
          (2) by striking ``Attorney General'' and inserting 
        ``Secretary of Homeland Security''.
  (c) Conditional Permanent Resident Status.--
          (1) In general.--
                  (A) Conforming amendments.--Section 216A of the 
                Immigration and Nationality Act (8 U.S.C. 1186b) is 
                amended--
                          (i) in the section heading, by striking 
                        ``entrepreneurs,'' and inserting 
                        ``investors,''.
                          (ii) by striking ``Attorney General'' each 
                        place such term appears and inserting 
                        ``Secretary of Homeland Security'';
                          (iii) by striking ``entrepreneur'' each place 
                        such term appears and inserting ``investor''; 
                        and
                          (iv) In subsection (c)(3)(A), by striking 
                        ``the such filing'' and inserting ``such 
                        filing''.
                  (B) Table of contents.--The item relating to section 
                216A in the table of contents of the Immigration and 
                Nationality Act (8 U.S.C. 1101 et seq.) is amended to 
                read as follows:

``Sec. 216A. Conditional permanent resident status for certain alien 
investors, spouses, and children.''.

          (2) Conditional permanent resident status for certain alien 
        entrepreneurs, spouses, and children.--
                  (A) In general.--Chapter 2 of title II of the 
                Immigration and Nationality Act (8 U.S.C. 1181 et seq.) 
                is amended by inserting after section 216A the 
                following:

``SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS FOR CERTAIN ALIEN 
                    ENTREPRENEURS, SPOUSES, AND CHILDREN.

  ``(a) In General.--
          ``(1) Conditional basis for status.--Notwithstanding any 
        other provision of this Act, an alien entrepreneur (as defined 
        in subsection (f)(1) of this section), alien spouse, and alien 
        child (as defined in subsection (f)(2) of this section) shall 
        be considered, at the time of obtaining the status of an alien 
        lawfully admitted for permanent residence, to have obtained 
        such status on a conditional basis subject to the provisions of 
        this section.
          ``(2) Notice of requirements.--
                  ``(A) At time of obtaining permanent residence.--At 
                the time an alien entrepreneur, alien spouse, or alien 
                child obtains permanent resident status on a 
                conditional basis under paragraph (1), the Secretary of 
                Homeland Security shall provide for notice to such an 
                entrepreneur, spouse, or child respecting the 
                provisions of this section and the requirements of 
                subsection (c)(1) of this section to have the 
                conditional basis of such status removed.
                  ``(B) At time of required petition.--In addition, the 
                Secretary of Homeland Security shall attempt to provide 
                notice to such an entrepreneur, spouse, or child, at or 
                about the beginning of the 90-day period described in 
                subsection (d)(2)(A) of this section, of the 
                requirements of subsection (c)(1) of this section.
                  ``(C) Effect of failure to provide notice.--The 
                failure of the Secretary of Homeland Security to 
                provide a notice under this paragraph shall not affect 
                the enforcement of the provisions of this section with 
                respect to such an entrepreneur, spouse, or child.
  ``(b) Termination of Status if Finding That Qualifying 
Entrepreneurship Improper.--
          ``(1) In general.--In the case of an alien entrepreneur with 
        permanent resident status on a conditional basis under 
        subsection (a) of this section, if the Secretary of Homeland 
        Security determines, before the third anniversary of the 
        alien's obtaining the status of lawful admission for permanent 
        residence, that--
                  ``(A) the required investment in the commercial 
                enterprise under section 203(b)(8)(A)(i)(I) was 
                intended solely as a means of evading the immigration 
                laws of the United States;
                  ``(B)(i) any requisite capital to be invested under 
                section 203(b)(8)(A)(i)(I) had not been invested, or 
                was not actively in the process of being invested; or
                  ``(ii) the alien was not sustaining the actions 
                described in clause (i) throughout the period of the 
                alien's residence in the United States; or
                  ``(C) the alien was otherwise not conforming to the 
                requirements of section 203(b)(8)(A)(i);
        then the Secretary of Homeland Security shall so notify the 
        alien involved and, subject to paragraph (2), shall terminate 
        the permanent resident status of the alien (and the alien 
        spouse and alien child) involved as of the date of the 
        determination.
          ``(2) Hearing in removal proceeding.--Any alien whose 
        permanent resident status is terminated under paragraph (1) may 
        request a review of such determination in a proceeding to 
        remove the alien. In such proceeding, the burden of proof shall 
        be on the Secretary of Homeland Security to establish, by a 
        preponderance of the evidence, that a condition described in 
        paragraph (1) is met.
  ``(c) Requirements of Timely Petition and Interview for Removal of 
Condition.--
          ``(1) In general.--In order for the conditional basis 
        established under subsection (a) of this section for an alien 
        entrepreneur, alien spouse, or alien child to be removed--
                  ``(A) the alien entrepreneur must submit to the 
                Secretary of Homeland Security, during the period 
                described in subsection (d)(2), a petition which 
                requests the removal of such conditional basis and 
                which states, under penalty of perjury, the facts and 
                information described in subsection (d)(1); and
                  ``(B) in accordance with subsection (d)(3), the alien 
                entrepreneur must appear for a personal interview 
                before an officer or employee of the Department of 
                Homeland Security respecting the facts and information 
                described in subsection (d)(1).
          ``(2) Termination of permanent resident status for failure to 
        file petition or have personal interview.--
                  ``(A) In general.--In the case of an alien with 
                permanent resident status on a conditional basis under 
                subsection (a) of this section, if--
                          ``(i) no petition is filed with respect to 
                        the alien in accordance with the provisions of 
                        paragraph (1)(A); or
                          ``(ii) unless there is good cause shown, the 
                        alien entrepreneur fails to appear at the 
                        interview described in paragraph (1)(B) (if 
                        required under subsection (d)(3) of this 
                        section), the Secretary of Homeland Security 
                        shall terminate the permanent resident status 
                        of the alien (and the alien's spouse and 
                        children if it was obtained on a conditional 
                        basis under this section or section 216A) as of 
                        the third anniversary of the alien's lawful 
                        admission for permanent residence.
                  ``(B) Hearing in removal proceeding.--In any removal 
                proceeding with respect to an alien whose permanent 
                resident status is terminated under subparagraph (A), 
                the burden of proof shall be on the alien to establish 
                compliance with the conditions of subparagraphs (A) and 
                (B) of paragraph (1).
          ``(3) Determination after petition and interview.--
                  ``(A) In general.--If--
                          ``(i) a petition is filed in accordance with 
                        the provisions of paragraph (1)(A); and
                          ``(ii) the alien entrepreneur appears at any 
                        interview described in paragraph (1)(B);
                the Secretary of Homeland Security shall make a 
                determination, within 90 days of the date of such 
                filing or interview (whichever is later), as to whether 
                the facts and information described in subsection 
                (d)(1) and alleged in the petition are true with 
                respect to the qualifying commercial enterprise.
                  ``(B) Removal or extension of conditional basis.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), if the Secretary of Homeland 
                        Security determines that such facts and 
                        information are true, including demonstrating 
                        that the alien complied with subsection 
                        (d)(1)(B)(i), the Secretary shall so notify the 
                        alien involved and shall remove the conditional 
                        basis of the alien's status effective as of the 
                        third anniversary of the alien's lawful 
                        admission for permanent residence.
                          ``(ii) Exception.--If the petition 
                        demonstrates that the facts and information are 
                        true, including demonstrating that the alien is 
                        in compliance with section (d)(1)(B)(ii), then 
                        the Secretary of Homeland Security may, in the 
                        Secretary's discretion, extend the conditional 
                        status for an additional year at the end of 
                        which--
                                  ``(I) the alien must file a petition 
                                within 30 days after the fourth 
                                anniversary of the alien's lawful 
                                admission for permanent residence 
                                demonstrating that the alien complied 
                                with subsection (d)(1)(B)(i) and the 
                                Secretary shall remove the conditional 
                                basis of the alien's status effective 
                                as of such fourth anniversary; or
                                  ``(II) the conditional status shall 
                                terminate.
                  ``(C) Determination if adverse determination.--If the 
                Secretary of Homeland Security determines that such 
                facts and information are not true, the Secretary shall 
                so notify the alien involved and, subject to 
                subparagraph (D), shall terminate the permanent 
                resident status of an alien entrepreneur, alien spouse, 
                or alien child as of the date of the determination.
                  ``(D) Hearing in removal proceeding.--Any alien whose 
                permanent resident status is terminated under 
                subparagraph (C) may request a review of such 
                determination in a proceeding to remove the alien. In 
                such proceeding, the burden of proof shall be on the 
                Secretary of Homeland Security to establish, by a 
                preponderance of the evidence, that the facts and 
                information described in subsection (d)(1) of this 
                section and alleged in the petition are not true with 
                respect to the qualifying commercial enterprise.
  ``(d) Details of Petition and Interview.--
          ``(1) Contents of petition.--Each petition under subsection 
        (c)(1)(A) shall contain facts and information demonstrating 
        that--
                  ``(A)(i) any requisite capital to be invested under 
                section 203(b)(8)(A)(i)(I) had been invested, or was 
                actively in the process of being invested; and
                  ``(ii) the alien sustained the actions described in 
                clause (i) throughout the period of the alien's 
                residence in the United States;
                  ``(B)(i) the alien created the employment required 
                under section 203(b)(8)(A)(i)(I)(bb)(AA); or
                  ``(ii) the alien is actively in the process of 
                creating the employment required under section 
                203(b)(8)(A)(i)(I)(bb)(AA) and will create such 
                employment before the fourth anniversary of the alien's 
                lawful admission for permanent residence; and
                  ``(C) the alien is otherwise conforming to the 
                requirements of section 203(b)(8)(A)(i).
          ``(2) Period for filing petition.--
                  ``(A) 90-day period before second anniversary.--
                Except as provided in subparagraph (B), the petition 
                under subsection (c)(1)(A) of this section must be 
                filed during the 90-day period before the third 
                anniversary of the alien's lawful admission for 
                permanent residence.
                  ``(B) Date petitions for good cause.--Such a petition 
                may be considered if filed after such date, but only if 
                the alien establishes to the satisfaction of the 
                Secretary of Homeland Security good cause and 
                extenuating circumstances for failure to file the 
                petition during the period described in subparagraph 
                (A).
                  ``(C) Filing of petitions during removal.--In the 
                case of an alien who is the subject of removal hearings 
                as a result of failure to file a petition on a timely 
                basis in accordance with subparagraph (A), the 
                Secretary of Homeland Security may stay such removal 
                proceedings against an alien pending the filing of the 
                petition under subparagraph (B).
          ``(3) Personal interview.--The interview under subsection 
        (c)(1)(B) shall be conducted within 90 days after the date of 
        submitting a petition under subsection (c)(1)(A) and at a local 
        office of the Department of Homeland Security, designated by 
        the Secretary of Homeland Security, which is convenient to the 
        parties involved. The Secretary, in the Secretary's discretion, 
        may waive the deadline for such an interview or the requirement 
        for such an interview in such cases as may be appropriate.
  ``(e) Treatment of Period for Purposes of Naturalization.--For 
purposes of title III, in the case of an alien who is in the United 
States as a lawful permanent resident on a conditional basis under this 
section, the alien shall be considered to have been admitted as an 
alien lawfully admitted for permanent residence and to be in the United 
States as an alien lawfully admitted to the United States for permanent 
residence.
  ``(f) Definitions.--In this section:
          ``(1) The term `alien entrepreneur' means an alien who 
        obtains the status of an alien lawfully admitted for permanent 
        residence (whether on a conditional basis or otherwise) under 
        section 203(b)(8)(A)(i)(I) of this title.
          ``(2) The term `alien spouse' and the term `alien child' mean 
        an alien who obtains the status of an alien lawfully admitted 
        for permanent residence (whether on a conditional basis or 
        otherwise) by virtue of being the spouse or child, 
        respectively, of an alien entrepreneur.
          ``(3) The term `commercial enterprise' includes a limited 
        partnership.''.
                  (B) Clerical amendment.--The table of contents for 
                such Act is amended by inserting after the item 
                relating to section 216A the following:

``Sec. 216B. Conditional permanent resident status for certain alien 
entrepreneurs, spouses, and children.''.

  (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2013, and shall apply with respect to fiscal years 
beginning on or after such date.

SEC. 103. ADDITIONAL EMPLOYMENT-BASED IMMIGRANT VISAS.

  (a) Worldwide Level of Employment-Based Immigrants.--Section 
201(d)(1)(A) of the Immigration and Nationality Act (8 U.S.C. 
1151(d)(1)(A)), as amended by section 101, is further amended by 
striking ``195,000'' and inserting ``235,000''.
  (b) Priority Workers.--Section 203(b)(1) of such Act (8 U.S.C. 
1153(b)(1)) is amended by striking ``28.6 percent of such worldwide 
level,'' and inserting ``40,040,''.
  (c) Aliens Who Are Members of the Professions Holding Advanced 
Degrees or Aliens of Exceptional Ability.--Section 203(b)(2)(A) of such 
Act (8 U.S.C. 1153(b)(2)(A)) is amended by striking ``28.6 percent of 
such worldwide level,'' and inserting ``55,040,''.
  (d) Skilled Workers, Professionals, and Other Workers.--Section 
203(b)(3)(A) of such Act (8 U.S.C. 1153(b)(3)(A)) is amended by 
striking ``28.6 percent of such worldwide level,'' and inserting 
``55,040,''.
  (e) Certain Special Immigrants.--Section 203(b)(4) of such Act (8 
U.S.C. 1153(b)(4)) is amended by striking ``7.1 percent of such 
worldwide level,'' and inserting ``9,940,''.
  (f) Employment Creation.--Section 203(b)(5)(A) of such Act (8 U.S.C. 
1153(b)(5)(A)) is amended by striking ``7.1 percent of such worldwide 
level,'' and inserting ``9,940,''.
  (g) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2013, and shall apply with respect to fiscal years 
beginning on or after such date.
  (h) Adjustment of Status for Employment-based Immigrants.--Section 
245 of such Act (8 U.S.C. 1255) is amended by adding at the end the 
following:
  ``(n) Adjustment of Status for Employment-Based Immigrants.--
          ``(1) Petition.--An alien who has status under subparagraph 
        (H)(i)(b), (L), or (O)(i) of section 101(a)(15) or who has 
        status under subparagraph (F) or (M) of such section and who 
        has received optional practical training after completion of 
        the alien's course of study, and any eligible dependents of 
        such alien, who has filed a petition or on whose behalf a 
        petition has been filed for immigrant status pursuant to 
        subparagraph (E), (F), (G), or (H) of section 204(a)(1), may 
        concurrently, or at any time thereafter, file an application 
        with the Secretary of Homeland Security for adjustment of 
        status if such petition has been approved, regardless of 
        whether an immigrant visa is immediately available at the time 
        the application is filed.
          ``(2) Availability.--An application filed pursuant to 
        paragraph (1) may not be approved until the date on which an 
        immigrant visa becomes available.''.

SEC. 104. EMPLOYMENT CREATION IMMIGRANT VISAS.

  (a) Changes to the General Program.--
          (1) Capital.--Section 203(b)(5)(C) of the Immigration and 
        Nationality Act (8 U.S.C. 1153(b)(5)(C)) is amended by adding 
        at the end the following:
                          ``(iv) Capital defined.--For purposes of this 
                        paragraph, the term `capital' does not include 
                        any assets acquired, directly or indirectly, by 
                        unlawful means.''.
          (2) Inflation adjustment.--Such section, as amended by 
        paragraph (1), is further amended by adding at the end the 
        following:
                          ``(v) Inflation adjustment.--
                                  ``(I) Initial adjustment.--As of the 
                                date of enactment of the SKILLS Visa 
                                Act, the amount specified in the first 
                                sentence of clause (i) shall be 
                                increased by the percentage (if any) by 
                                which the Consumer Price Index for the 
                                month preceding such enactment date 
                                exceeds the Consumer Price Index for 
                                the same month of calendar year 1990. 
                                The increase described in the preceding 
                                sentence shall apply to aliens filing 
                                petitions under section 204(a)(1)(H) on 
                                or after such enactment date.
                                  ``(II) Subsequent adjustments.--
                                Effective for the first fiscal year 
                                that begins more than 6 months after 
                                the date of the enactment of this 
                                clause, and for each fiscal year 
                                thereafter, the amount described in 
                                subclause (I) (as of the last increase 
                                to such amount) shall be increased by 
                                the percentage (if any) by which the 
                                Consumer Price Index for the month of 
                                June preceding the date on which such 
                                increase takes effect exceeds the 
                                Consumer Price Index for the same month 
                                of the preceding calendar year. An 
                                increase described in the preceding 
                                sentence shall apply to aliens filing 
                                petitions under section 204(a)(1)(H) on 
                                or after the date on which the increase 
                                takes effect.
                                  ``(III) Definition.--For purposes of 
                                this clause, the term `Consumer Price 
                                Index' means the Consumer Price Index 
                                for all urban consumers published by 
                                the Department of Labor.''.
          (3) Flexibility for job creation time period.--
                  (A) Removal of conditional basis if favorable 
                determination.--Section 216A(c)(3)(B) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1186b(c)(3)(B)), is amended to read as follows:
                  ``(B) Removal or extension of conditional basis.--
                          ``(i) In general.--Except as provided under 
                        clause (ii), if the Secretary of Homeland 
                        Security determines that such facts and 
                        information are true, including demonstrating 
                        that the alien complied with section 
                        (d)(1)(B)(i), the Secretary shall so notify the 
                        alien involved and shall remove the conditional 
                        basis of the alien's status effective as of the 
                        second anniversary of the alien's lawful 
                        admission for permanent residence.
                          ``(ii) Exception.--If the petition 
                        demonstrates that the facts and information are 
                        true, including demonstrating that the alien is 
                        in compliance with section (d)(1)(B)(ii), then 
                        the Secretary of Homeland Security may in the 
                        Secretary's discretion extend the conditional 
                        status for an additional year at the end of 
                        which--
                                  ``(I) the alien must file a petition 
                                within 30 days after the third 
                                anniversary of the alien's lawful 
                                admission for permanent residence 
                                demonstrating that the alien complied 
                                with section (d)(1)(B)(i) and the 
                                Secretary shall remove the conditional 
                                basis of the alien's status effective 
                                as of such third anniversary; or
                                  ``(II) the conditional status shall 
                                terminate.''.
                  (B) Contents of petition.--Section 216A(d)(1) of such 
                Act (8 U.S.C. 1186b(d)(1)) is amended--
                          (i) by striking ``and'' at the end of 
                        subparagraph (A);
                          (ii) by redesignating subparagraph (B) as 
                        subparagraph (C); and
                          (iii) by inserting after subparagraph (A) the 
                        following:
                  ``(B)(i) created the employment required under 
                section 203(b)(5)(A)(ii); or
                  ``(ii) is actively in the process of creating the 
                employment required under section 203(b)(5)(A)(ii) and 
                will create such employment before the third 
                anniversary of the alien's lawful admission for 
                permanent residence; and''.
          (4) Targeted employment areas.--
                  (A) Targeted employment area defined.--Section 
                203(b)(5)(B)(ii) of the Immigration and Nationality Act 
                (8 U.S.C. 1153(b)(5)(B)(ii)) is amended by striking 
                ``(of at least 150 percent of the national average 
                rate)''.
                  (B) Set-aside for targeted employment area.--Section 
                203(b)(5)(B) of the Immigration and Nationality Act (8 
                U.S.C. 1153(b)(5)(B)) is amended by adding at the end 
                the following:
                          ``(iv) Definition.--In this paragraph, the 
                        term `an area which has experienced high 
                        unemployment' means an area which has an 
                        unemployment rate of at least 150 of the 
                        national average rate. Such an area must fit 
                        entirely within a geographical unit that the 
                        Secretary of Labor has determined has an 
                        unemployment rate of at least 150 percent of 
                        the national average rate (and which 
                        determination has not been superseded by a 
                        later determination in which the Secretary of 
                        Labor has found that the unit did not have an 
                        unemployment rate of at least 150 percent of 
                        the national average rate). The Secretary of 
                        Labor shall set forth a uniform methodology for 
                        determining whether an area an area qualifies 
                        as having experienced unemployment of at least 
                        150 percent of the national average rate. It 
                        shall be within the discretion of the Secretary 
                        of Homeland Security to determine whether any 
                        particular area has experienced high 
                        unemployment for purposes of this paragraph, 
                        and the Secretary shall not be bound by the 
                        determination of any other governmental or 
                        nongovernmental entity that a particular area 
                        has experienced high unemployment for purposes 
                        of this paragraph.''.
  (b) Regional Centers.--
          (1) Permanent reauthorization of the regional center pilot 
        program.--Section 610 of the Departments of Commerce, Justice, 
        and State, the Judiciary, and Related Agencies Appropriations 
        Act, 1993 (8 U.S.C. 1153 note) is amended--
                  (A) in the section heading, by striking ``Pilot''; 
                and
                  (B) in subsection (b), by striking ``until September 
                30, 2015''.
          (2) Persons barred from involvement in regional centers.--
                  (A) Prohibition.--Such section 610 is amended by 
                adding at the end the following:
  ``(e)(1) No person who--
          ``(A) has been convicted of an aggravated felony (as defined 
        in section 101(a)(43) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)(43)));
          ``(B) would be inadmissible under section 212(a)(3) of such 
        Act (8 U.S.C. 1182(a)(3)) if they were an alien seeking 
        admission; or
          ``(C) has been convicted of violating, or found to have 
        violated, a fraud provision of the Federal securities laws (as 
        such term is defined under section 3 of the Securities Exchange 
        Act of 1934 (15 U.S.C. 78c)),
shall knowingly be permitted by any regional center to be involved with 
the regional center as its principal, representative, administrator, 
owner, officer, board member, manager, executive, general partner, 
fiduciary, member, or in other similar position of substantive 
authority for the operations, management, or promotion of the regional 
center.
  ``(2) The Secretary of Homeland Security shall require such 
attestations and information (including biometric information), and 
shall perform such criminal record checks and other background checks 
with respect to a regional center, and persons involved in a regional 
center as described in paragraph (1), as the Secretary, in the 
Secretary's discretion, considers appropriate to determine whether the 
regional center is in compliance with paragraph (1).
  ``(3) The Secretary may terminate any regional center from the 
program under this section if the Secretary determines that--
          ``(A) the regional center is in violation of paragraph (1);
          ``(B) the regional center has provided any false attestation 
        or information under paragraph (2), or continues to allow any 
        person who was involved with the regional center as described 
        in paragraph (1) to continue to be involved with the regional 
        center if the regional center knows that the person has 
        provided any false attestation or information under paragraph 
        (2); or
          ``(C) the regional center fails to provide an attestation or 
        information requested by the Secretary under paragraph (2), or 
        continues to allow any person who was involved with the 
        regional center as described in paragraph (1) to continue to be 
        involved with the regional center if the regional center knows 
        that the person has failed to provide an attestation or 
        information requested by the Secretary under paragraph (2).
  ``(4) For the purpose of this subsection, the term `regional center' 
shall, in addition to the regional center itself, include any 
commercial enterprise or job creating enterprise in which a regional 
center has invested.''.
                  (B) Compliance with securities laws.--Such section 
                610, as amended by subparagraph (A), is further amended 
                by adding at the end the following:
  ``(f)(1) The Secretary of Homeland Security shall not approve an 
application for regional center designation or regional center 
amendment that does not certify that the regional center and all 
parties to the regional center are in and will maintain compliance with 
Federal securities laws (as such term is defined under section 3 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78c)).
  ``(2) The Secretary of Homeland Security shall immediately terminate 
the designation of any regional center that does not provide the 
certification described in paragraph (1) on an annual basis.
  ``(3) In addition to any other authority provided to the Secretary of 
Homeland Security regarding the program described in this section, the 
Secretary may suspend or terminate the designation of any regional 
center if the Secretary determines that the regional center, or any 
party to the regional center:
          ``(A) is permanently or temporarily enjoined by order, 
        judgment, or decree of any court of competent jurisdiction in 
        connection with the purchase or sale of a security;
          ``(B) is subject to any order of the Securities and Exchange 
        Commission that bars such person from association with an 
        entity regulated by the Securities and Exchange Commission, or 
        constitutes a final order based on violations in connection 
        with the purchase or sale of a security;
          ``(C) has been convicted of violating, or found to have 
        violated, a fraud provision of the Federal securities laws (as 
        such term is defined under section 3 of the Securities Exchange 
        Act of 1934 (15 U.S.C. 78c)); or
          ``(D) knowingly submitted or caused to be submitted a 
        certification described in paragraphs (1) or (2) of this 
        subsection that contained an untrue statement of material fact, 
        or omitted to state a material fact necessary, in order to make 
        the statements made, in light of the circumstances under which 
        they were made, not misleading.
  ``(4) Nothing in this subsection shall be construed to impair or 
limit the authority of the Securities and Exchange Commission under the 
Federal securities laws.
  ``(5) For the purpose of this subsection, the term `party to the 
regional center' shall include, in addition to the regional center 
itself, its agents, servants, employees, attorneys, or any persons in 
active concert or participation with the regional center.''.
  (c) Effective Dates.--
          (1) In general.--Except for the amendments made by paragraphs 
        (1) and (2) of subsection (a), the amendments made by 
        subsections (a) and (b) shall take effect on the date of the 
        enactment of this Act and shall apply--
                  (A) to aliens filing petitions under section 
                204(a)(1)(H) of the Immigration and Nationality Act (8 
                U.S.C. 1154(a)(1)(H)) on or after such date;
                  (B) to a regional center (and any person involved 
                with or a party to a regional center) designated 
                before, on, or after such date; and
                  (C) to any application to designate a regional 
                center, and any person involved with or a party to the 
                regional center, that is pending on such date.
          (2) Definition of ``capital''.--The amendment made by 
        subsection (a)(1) shall take effect on the date of the 
        enactment of this Act.
          (3) Inflation adjustment.--The amendment made by subsection 
        (a)(2) shall take effect as provided in section 203(b)(5)(C)(v) 
        of the Immigration and Nationality Act, as added by subsection 
        (a)(2) of this section.

SEC. 105. FAMILY-SPONSORED IMMIGRANT VISAS.

  (a) Worldwide Level of Family-Sponsored Immigrants.--Section 
201(c)(1) of the Immigration and Nationality Act (8 U.S.C. 1151(c)(1)) 
is amended--
          (1) in subparagraph (A)(i), by striking ``480,000,'' and 
        inserting ``480,000 in fiscal years through 2013, 505,000 
        beginning in fiscal year 2014 through fiscal year 2023, and 
        440,000 beginning in fiscal year 2024,''; and
          (2) in subparagraph (B)(ii), by striking ``226,000.'' and 
        inserting ``226,000 in fiscal years through 2013, 251,000 
        beginning in fiscal year 2014 through fiscal year 2023, and 
        186,000 beginning in fiscal year 2024.''.
  (b) Preference Allocation for Family-Sponsored Immigrants.--Section 
203(a)(2) of such Act (8 U.S.C. 1153(a)(2)) is amended--
          (1) by striking ``114,200,'' and inserting ``139,200,'';
          (2) by striking ``226,000,'' and inserting ``226,000 in 
        fiscal years through 2013, 251,000 beginning in fiscal year 
        2014 through fiscal year 2023, and 186,000 beginning in fiscal 
        year 2024,''; and
          (3) by striking ``77'' and inserting ``81.13''.
  (c) Brothers and Sisters of Citizens.--
          (1) In general.--Section 203(a) of such Act (8 U.S.C. 
        1153(a)) is amended--
                  (A) in paragraph (1), by striking ``23,400,'' and all 
                that follows through the period at the end and 
                inserting ``23,400.''; and
                  (B) by striking paragraph (4).
          (2) Classification petitions.--Section 204(a)(1)(A)(i) of 
        such Act (8 U.S.C. 1154(a)(1)(A)(i)) is amended by striking 
        ``(1), (3), or (4)'' and inserting ``(1) or (3)''.
  (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2013, and shall apply with respect to fiscal years 
beginning on or after such date, except that the amendments made by 
subsection (c)(1) shall take effect on October 1, 2023.

SEC. 106. ELIMINATION OF DIVERSITY IMMIGRANT PROGRAM.

  (a) Worldwide Level of Diversity Immigrants.--Section 201 of the 
Immigration and Nationality Act (8 U.S.C. 1151) is amended--
          (1) in subsection (a)--
                  (A) by inserting ``and'' at the end of paragraph (1);
                  (B) by striking ``; and'' at the end of paragraph (2) 
                and inserting a period; and
                  (C) by striking paragraph (3); and
          (2) by striking subsection (e).
  (b) Allocation of Diversity Immigrant Visas.--Section 203 of such Act 
(8 U.S.C. 1153) is amended--
          (1) by striking subsection (c);
          (2) in subsection (d), by striking ``(a), (b), or (c),'' and 
        inserting ``(a) or (b),'';
          (3) in subsection (e), by striking paragraph (2) and 
        redesignating paragraph (3) as paragraph (2);
          (4) in subsection (f), by striking ``(a), (b), or (c)'' and 
        inserting ``(a) or (b)''; and
          (5) in subsection (g), by striking ``(a), (b), and (c)'' and 
        inserting ``(a) and (b)''.
  (c) Procedure for Granting Immigrant Status.--Section 204 of such Act 
(8 U.S.C. 1154) is amended--
          (1) by striking subsection (a)(1)(I); and
          (2) in subsection (e), by striking ``(a), (b), or (c)'' and 
        inserting ``(a) or (b)''.
  (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2013, and shall apply with respect to fiscal years 
beginning on or after such date.

SEC. 107. NUMERICAL LIMITATION TO ANY SINGLE FOREIGN STATE.

  (a) In General.--Section 202(a)(2) of the Immigration and Nationality 
Act (8 U.S.C. 1152(a)(2)) is amended--
          (1) in the paragraph heading, by striking ``and employment-
        based'';
          (2) by striking ``(3), (4), and (5),'' and inserting ``(3) 
        and (4),'';
          (3) by striking ``subsections (a) and (b) of section 203'' 
        and inserting ``section 203(a)'';
          (4) by striking ``7'' and inserting ``15''; and
          (5) by striking ``such subsections'' and inserting ``such 
        section''.
  (b) Conforming Amendments.--Section 202 of the Immigration and 
Nationality Act (8 U.S.C. 1152) is amended--
          (1) in subsection (a)(3), by striking ``both subsections (a) 
        and (b) of section 203'' and inserting ``section 203(a)'';
          (2) by striking subsection (a)(5); and
          (3) by amending subsection (e) to read as follows:
  ``(e) Special Rules for Countries at Ceiling.--If it is determined 
that the total number of immigrant visas made available under section 
203(a) to natives of any single foreign state or dependent area will 
exceed the numerical limitation specified in subsection (a)(2) in any 
fiscal year, in determining the allotment of immigrant visa numbers to 
natives under section 203(a), visa numbers with respect to natives of 
that state or area shall be allocated (to the extent practicable and 
otherwise consistent with this section and section 203) in a manner so 
that, except as provided in subsection (a)(4), the proportion of the 
visa numbers made available under each of paragraphs (1) through (4) of 
section 203(a) is equal to the ratio of the total number of visas made 
available under the respective paragraph to the total number of visas 
made available under section 203(a).''.
  (c) Country-Specific Offset.--Section 2 of the Chinese Student 
Protection Act of 1992 (8 U.S.C. 1255 note) is amended--
          (1) in subsection (a), by striking ``subsection (e))'' and 
        inserting ``subsection (d))''; and
          (2) by striking subsection (d) and redesignating subsection 
        (e) as subsection (d).
  (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2013.

SEC. 108. PHYSICIANS.

  (a) Permanent Authorization of the Conrad State 30 Program.--Section 
220(c) of the Immigration and Nationality Technical Corrections Act of 
1994 (Public Law 103-416; 8 U.S.C. 1182 note) is amended by striking 
``and before September 30, 2015''.
  (b) Allotment of Conrad 30 Waivers.--
          (1) In general.--Section 214(l) of the Immigration and 
        Nationality Act (8 U.S.C. 1184(l)) is amended by adding at the 
        end the following:
  ``(4)(A)(i) A State shall be allotted a total of 35 waivers under 
paragraph (1)(B) for a fiscal year if 90 percent of the waivers 
available to the State were used in the previous fiscal year.
  ``(ii) When an allotment has occurred under clause (i), the State 
shall be allotted an additional 5 waivers under paragraph (1)(B) for 
each subsequent fiscal year if 90 percent of the waivers available to 
the State were used in the previous fiscal year, except that if the 
State is allotted 60 or more waivers for a fiscal year, the State shall 
be eligible for the additional 5 waivers under this clause only if 90 
percent of the waivers available to all States receiving at least 1 
waiver under paragraph (1)(B) were used in the previous fiscal year.
  ``(B) Any increase in allotments under subparagraph (A) shall be 
maintained indefinitely, unless in a fiscal year, the total number of 
such waivers granted is 5 percent lower than in the last year in which 
there was an increase in the number of waivers allotted pursuant to 
this paragraph, in which case--
          ``(i) the number of waivers allotted shall be decreased by 5 
        for all States beginning in the next fiscal year; and
          ``(ii) each additional 5 percent decrease in such waivers 
        granted from the last year in which there was an increase in 
        the allotment, shall result in an additional decrease of 5 
        waivers allotted for all States, provided that the number of 
        waivers allotted for all States shall not drop below 30.''.
          (2) Academic medical centers.--Section 214(l)(1)(D) of the 
        Immigration and Nationality Act (8 U.S.C. 1184(l)(1)(D)) is 
        amended--
                  (A) in clause (ii), by striking ``and'' at the end;
                  (B) in clause (iii), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(iv) in the case of a request by an interested 
                State agency--
                          ``(I) the head of such agency determines that 
                        the alien is to practice medicine in, or be on 
                        the faculty of a residency program at, an 
                        academic medical center (as that term is 
                        defined in section 411.355(e)(2) of title 42, 
                        Code of Federal Regulations, or similar 
                        successor regulation), without regard to 
                        whether such facility is located within an area 
                        designated by the Secretary of Health and Human 
                        Services as having a shortage of health care 
                        professionals; and
                          ``(II) the head of such agency determines 
                        that--
                                  ``(aa) the alien physician's work is 
                                in the public interest; and
                                  ``(bb) the grant of such waiver would 
                                not cause the number of the waivers 
                                granted on behalf of aliens for such 
                                State for a fiscal year (within the 
                                limitation in subparagraph (B) and 
                                subject to paragraph (4)) in accordance 
                                with the conditions of this clause to 
                                exceed 3.''.
  (c) Employment Protections for Physicians.--
          (1) In general.--Section 214(l)(1)(C) of the Immigration and 
        Nationality Act (8 U.S.C. 1184(l)(1)(C)) is amended by striking 
        clauses (i) and (ii) and inserting the following:
                  ``(i) the alien demonstrates a bona fide offer of 
                full-time employment, at a health care organization, 
                which employment has been determined by the Secretary 
                of Homeland Security to be in the public interest; and
                  ``(ii) the alien agrees to begin employment with the 
                health facility or health care organization in a 
                geographic area or areas which are designated by the 
                Secretary of Health and Human Services as having a 
                shortage of health care professionals by the later of 
                the date that is 90 days after receiving such waiver, 
                90 days after completing graduate medical education or 
                training under a program approved pursuant to section 
                212(j)(1), or 90 days after receiving nonimmigrant 
                status or employment authorization, and agrees to 
                continue to work for a total of not less than 3 years 
                in any status authorized for such employment under this 
                subsection unless--
                          ``(I) the Secretary determines that 
                        extenuating circumstances exist that justify a 
                        lesser period of employment at such facility or 
                        organization, in which case the alien shall 
                        demonstrate another bona fide offer of 
                        employment at a health facility or health care 
                        organization, for the remainder of such 3-year 
                        period;
                          ``(II) the interested State agency that 
                        requested the waiver attests that extenuating 
                        circumstances exist that justify a lesser 
                        period of employment at such facility or 
                        organization in which case the alien shall 
                        demonstrate another bona fide offer of 
                        employment at a health facility or health care 
                        organization so designated by the Secretary of 
                        Health and Human Services, for the remainder of 
                        such 3-year period; or
                          ``(III) if the alien elects not to pursue a 
                        determination of extenuating circumstances 
                        pursuant to subclause (I) or (II), the alien 
                        terminates the alien's employment relationship 
                        with such facility or organization, in which 
                        case the alien shall be employed for the 
                        remainder of such 3-year period, and 1 
                        additional year for each determination, at 
                        another health facility or health care 
                        organization in a geographic area or areas 
                        which are designated by the Secretary of Health 
                        and Human Services as having a shortage of 
                        health care professionals; and''.
          (2) Contract requirements.--Section 214(l) of the Immigration 
        and Nationality Act (8 U.S.C. 1184(l)), as amended by 
        subsection (b)(1), is further amended by adding at the end the 
        following:
  ``(5) An alien granted a waiver under paragraph (1)(C) shall enter 
into an employment agreement with the contracting health facility or 
health care organization that--
          ``(A) specifies the maximum number of on-call hours per week 
        (which may be a monthly average) that the alien will be 
        expected to be available and the compensation the alien will 
        receive for on-call time;
          ``(B) specifies whether the contracting facility or 
        organization will pay for the alien's malpractice insurance 
        premiums, including whether the employer will provide 
        malpractice insurance and, if so, the amount of such insurance 
        that will be provided;
          ``(C) describes all of the work locations that the alien will 
        work and a statement that the contracting facility or 
        organization will not add additional work locations without the 
        approval of the Federal agency or State agency that requested 
        the waiver; and
          ``(D) does not include a non-compete provision.
  ``(6) An alien granted a waiver under paragraph (1)(C) whose 
employment relationship with a health facility or health care 
organization terminates during the 3-year service period required by 
such paragraph--
          ``(A) shall have a period of 120 days beginning on the date 
        of such determination of employment to submit to the Secretary 
        of Homeland Security applications or petitions to commence 
        employment with another contracting health facility or health 
        care organization in a geographic area or areas which are 
        designated by the Secretary of Health and Human Services as 
        having a shortage of health care professionals; and
          ``(B) shall be considered to be maintaining lawful status in 
        an authorized stay during the 120-day period referred to in 
        subparagraph (A).''.
  (d) Amendments to the Procedures, Definitions, and Other Provisions 
Related to Physician Immigration.--
          (1) Dual intent for physicians seeking graduate medical 
        training.--Section 214(b) of the Immigration and Nationality 
        Act (8 U.S.C. 1184(b)) is amended by striking ``(other than a 
        nonimmigrant described in subparagraph (L) or (V) of section 
        101(a)(15), and other than a nonimmigrant described in any 
        provision of section 101(a)(15)(H)(i) except subclause (b1) of 
        such section)'' and inserting ``(other than a nonimmigrant 
        described in subparagraph (L) or (V) of section 101(a)(15), a 
        nonimmigrant described in any provision of section 
        101(a)(15)(H)(i), except subclause (b1) of such section, and an 
        alien coming to the United States to receive graduate medical 
        education or training as described in section 212(j) or to take 
        examinations required to receive graduate medical education or 
        training as described in section 212(j))''.
          (2) Allowable visa status for physicians fulfilling waiver 
        requirements in medically underserved areas.--Section 
        214(l)(2)(A) of the Immigration and Nationality Act (8 U.S.C. 
        1184(l)(2)(A)) is amended by striking ``an alien described in 
        section 101(a)(15)(H)(i)(b).'' and inserting ``any status 
        authorized for employment under this Act.''.
          (3) Physician national interest waiver clarifications.--
                  (A) Practice and geographic area.--Section 
                203(b)(2)(B)(ii)(I) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)(2)(B)(ii)(I)) is amended by 
                striking items (aa) and (bb) and inserting the 
                following:
                          ``(aa) the alien physician agrees to work on 
                        a full-time basis practicing primary care, 
                        specialty medicine, or a combination thereof, 
                        in an area or areas designated by the Secretary 
                        of Health and Human Services as having a 
                        shortage of health care professionals, or at a 
                        health care facility under the jurisdiction of 
                        the Secretary of Veterans Affairs; or
                          ``(bb) the alien physician is pursuing such 
                        waiver based upon service at a facility or 
                        facilities that serve patients who reside in a 
                        geographic area or areas designated by the 
                        Secretary of Health and Human Services as 
                        having a shortage of health care professionals 
                        (without regard to whether such facility or 
                        facilities are located within such an area) and 
                        a Federal agency, or a local, county, regional, 
                        or State department of public health determines 
                        the alien physician's work was or will be in 
                        the public interest.''.
                  (B) Five-year service requirement.--Section 
                203(b)(2)(B)(ii)(II) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(B)(ii)(II)) is amended--
                          (i) by inserting ``(aa)'' after ``(II)''; and
                          (ii) by adding at the end the following:
                  ``(bb) The 5-year service requirement of item (aa) 
                shall be counted from the date the alien physician 
                begins work in the shortage area in any legal status 
                and not the date an immigrant visa petition is filed or 
                approved. Such service shall be aggregated without 
                regard to when such service began and without regard to 
                whether such service began during or in conjunction 
                with a course of graduate medical education.
                  ``(cc) An alien physician shall not be required to 
                submit an employment contract with a term exceeding the 
                balance of the 5-year commitment yet to be served, nor 
                an employment contract dated within a minimum time 
                period prior to filing of a visa petition pursuant to 
                this subsection.
                  ``(dd) An alien physician shall not be required to 
                file additional immigrant visa petitions upon a change 
                of work location from the location approved in the 
                original national interest immigrant petition.''.
          (4) Technical clarification regarding advanced degree for 
        physicians.--Section 203(b)(2)(A) of the Immigration and 
        Nationality Act (8 U.S.C. 1153(b)(2)(A)) is amended by adding 
        at the end the following: ``An alien physician holding a 
        foreign medical degree that has been deemed sufficient for 
        acceptance by an accredited United States medical residency or 
        fellowship program is a member of the professions holding an 
        advanced degree or its equivalent.''.
          (5) Short-term work authorization for physicians completing 
        their residencies.--A physician completing graduate medical 
        education or training as described in section 212(j) of the 
        Immigration and Nationality Act (8 U.S.C. 1182(j)) as a 
        nonimmigrant described section 101(a)(15)(H)(i) of such Act (8 
        U.S.C. 1101(a)(15)(H)(i)) shall have such nonimmigrant status 
        automatically extended until October 1 of the fiscal year for 
        which a petition for a continuation of such nonimmigrant status 
        has been submitted in a timely manner and where the employment 
        start date for the beneficiary of such petition is October 1 of 
        that fiscal year. Such physician shall be authorized to be 
        employed incident to status during the period between the 
        filing of such petition and October 1 of such fiscal year. 
        However, the physician's status and employment authorization 
        shall terminate 30 days from the date such petition is 
        rejected, denied or revoked. A physician's status and 
        employment authorization will automatically extend to October 1 
        of the next fiscal year if all visas as described in such 
        section 101(a)(15)(H)(i) authorized to be issued for the fiscal 
        year have been issued.
          (6) Applicability of section 212(e) to spouses and children 
        of j-1 exchange visitors.--A spouse or child of an exchange 
        visitor described in section 101(a)(15)(J) of the Immigration 
        and Nationality Act (8 U.S.C. 1101(a)(15)(J)) shall not be 
        subject to the requirements of section 212(e) of the 
        Immigration and Nationality Act (8 U.S.C. 1182(e)).
  (e) Effective Date.--The amendments made by subsections (a) and (c) 
shall take effect on the date of the enactment of this Act and shall 
apply to aliens granted waivers before, on, or after the date of the 
enactment of this Act. Subsection (d), and the amendments made by 
subsections (b) and (d), shall take effect on October 1, 2013.

SEC. 109. PERMANENT PRIORITY DATES.

  (a) In General.--Section 203 of the Immigration and Nationality Act 
(8 U.S.C. 1153) is amended by adding at the end the following:
  ``(i) Permanent Priority Dates.--
          ``(1) In general.--Subject to subsection (h)(3) and paragraph 
        (2), the priority date for any employment-based petition shall 
        be the date of filing of the petition with the Secretary of 
        Homeland Security (or the Secretary of State, if applicable), 
        unless the filing of the petition was preceded by the filing of 
        a labor certification with the Secretary of Labor, in which 
        case that date shall constitute the priority date.
          ``(2) Subsequent employment-based petitions.--Subject to 
        subsection (h)(3), an alien who is the beneficiary of any 
        employment-based petition that was approvable when filed 
        (including self-petitioners) shall retain the priority date 
        assigned with respect to that petition in the consideration of 
        any subsequently filed employment-based petition (including 
        self-petitions).''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on October 1, 2013, and shall apply to aliens who are a 
beneficiary of a classification petition pending on or after such date.

SEC. 110. SET-ASIDE FOR HEALTH CARE WORKERS.

  Section 203(b)(3) of the Immigration and Nationality Act (8 U.S.C. 
1153(b)(3)), as amended by this Act, is further amended--
          (1) in subparagraph (A), by inserting after clause (iii) the 
        following:
                          ``(iv) Health care workers.--Qualified 
                        immigrants who are required to submit health 
                        care worker certificates pursuant to section 
                        212(a)(5)(C) or certified statements pursuant 
                        to section 212(r) and will be working in a 
                        rural area or a health professional shortage 
                        area (as defined in section 332 of the Public 
                        Health Service Act (42 U.S.C. 254e)).''; and
          (2) by adding at the end the following:
                  ``(D) Set aside for health care workers.--
                          ``(i) In general.--Not less than 4,000 of the 
                        visas made available under this paragraph in 
                        each fiscal year shall be reserved for 
                        qualified immigrants described in subparagraph 
                        (A)(iv).
                          ``(ii) Unused visas.--If the number of visas 
                        reserved under clause (i) has not been 
                        exhausted at the end of a given fiscal year, 
                        the Secretary of Homeland Security shall adjust 
                        upwards the numerical limitation in 
                        subparagraph (A) for that fiscal year by the 
                        amount remaining. Visas may be issued pursuant 
                        to such adjustment within the first 45 days of 
                        the next fiscal year to aliens who had applied 
                        for such visas during the fiscal year for which 
                        the adjustment was made.''.

                  TITLE II--NONIMMIGRANT VISA REFORMS

SEC. 201. H-1B VISAS.

  (a) Increase in H-1B Visa Numerical Limit.--Section 214(g) of the 
Immigration and Nationality Act (8 U.S.C. 1184(g)) is amended--
          (1) in paragraph (1)(A)--
                  (A) in clause (vi), by striking ``and'' at the end;
                  (B) by amending clause (vii) to read as follows:
                  ``(vii) 65,000 in fiscal years 2004 through 2013; 
                and''; and
                  (C) by adding at the end the following:
                  ``(viii) 155,000 in each succeeding fiscal year; 
                or''; and
          (2) by amending paragraph (5)(C) to read as follows:
          ``(C) meets the requirements of paragraph (6)(A) or (7)(A) of 
        section 203(b), until the number of aliens who are exempted 
        from such numerical limitation during such year exceeds 
        40,000.''.
  (b) Wage Level.--Section 212(n)(1)(A)(i) of the Immigration and 
Nationality Act (8 U.S.C. 1182(n)(1)(A)(i)) is amended--
          (1) by striking ``, and'' at the end and inserting ``; or'';
          (2) by redesignating subclauses (I) and (II) as items (aa) 
        and (bb), respectively;
          (3) by striking ``(i)'' and inserting ``(i)(I)'';
          (4) by inserting ``except as provided in subclause (II),'' 
        before ``is offering''; and
          (5) by adding at the end the following:
                  ``(II) if 80 percent or more of the employer's 
                workers in the same occupational classification as the 
                alien admitted or provided status as an H-1B 
                nonimmigrant and in the same area of employment as the 
                alien admitted or provided status as an H-1B 
                nonimmigrant are United States workers (as defined in 
                paragraph (4)), is offering and will offer during the 
                period of authorized employment to aliens admitted or 
                provided status as an H-1B nonimmigrant wages that are 
                at least the actual wage level paid by the employer to 
                all other individuals with similar experience and 
                qualifications for the specific employment in question 
                (but, in the case of an employer with more than 25 
                employees, in no event shall such wages be lower than 
                the mean of the lowest one-half of wages surveyed 
                pursuant to subsection (p)(5)); and''.
  (c) Spousal Employment.--Section 214(c)(2)(E) of the Immigration and 
Nationality Act (8 U.S.C. 1184(c)(2)(E)) is amended by striking 
``101(a)(15)(L),'' and inserting ``subparagraph (H)(i)(b), (H)(i)(b1), 
(E)(iii), or (L) of section 101(a)(15)''.
  (d) Anti-Fraud Measures.--
          (1) Foreign degrees.--
                  (A) Specialty occupation.--Section 214(i) of the 
                Immigration and Nationality Act (8 U.S.C. 1184(i)) is 
                amended by adding at the end the following:
  ``(4)(A) For purposes of paragraphs (1)(B) and (3)(B), the term 
`bachelor's or higher degree' includes a foreign degree that is a 
recognized foreign equivalent of a bachelor's or higher degree.
  ``(B)(i) In the case of an alien with a foreign degree, any 
determination with respect to the equivalence of that degree to a 
degree obtained in the United States shall be made by the Secretary of 
State.
  ``(ii) In carrying out the preceding clause, the Secretary of State 
shall verify the authenticity of any foreign degree proffered by an 
alien. The Secretary of State may enter into contracts with public or 
private entities in conducting such verifications.
  ``(iii) In addition to any other fees authorized by law, the 
Secretary of State may impose a fee on an employer filing a petition 
under subsection (c)(1) initially to grant an alien nonimmigrant status 
described in section 101(a)(15)(H)(i)(b), if a determination or 
verification described in clause (i) or (ii) is required with respect 
to the petition. Fees collected under this clause shall be deposited in 
the Treasury in accordance with section 286(t).''.
                  (B) H-1B educational credential verification 
                account.--Section 286 of the Immigration and 
                Nationality Act (8 U.S.C. 1356) is amended by adding at 
                the end the following:
  ``(w) H-1B Educational Credential Verification Account.--There is 
established in the general fund of the Treasury a separate account, 
which shall be known as the `H-1B Educational Credential Verification 
Account'. Notwithstanding any other provision of law, there shall be 
deposited as offsetting receipts into the account all fees collected 
under section 214(i)(4)(B)(iii). Amounts deposited into the account 
shall remain available to the Secretary of State until expended to 
carry out section 214(i)(4)(B).''.
          (2) Investigations.--The first sentence of subsection 
        (n)(2)(F), and the first sentence of subsection (t)(3)(E) (as 
        added by section 402(b)(2) of Public Law 108-77 (117 Stat. 
        941)), of section 212 of the Immigration and Nationality Act (8 
        U.S.C. 1182) are each amended by striking ``investigations'' 
        and all that follows through the period at the end and 
        inserting the following: ``investigations. An employer who has 
        been subject to 2 random investigations may not be subject to 
        another random investigation within 4 years of the second 
        investigation unless the employer was found in the previous 
        investigations or otherwise to have committed a willful failure 
        to meet a condition of paragraph (1) (or has been found under 
        paragraph (5) to have committed willful failure to meet the 
        condition of paragraph (1)(G)(i)(II)) or to have made a willful 
        misrepresentation of material fact in an application.''.
          (3) Bona fide businesses.--Section 214(c) of the Immigration 
        and Nationality Act (8 U.S.C. 1184(c)) is amended by adding at 
        the end the following:
  ``(15) The Secretary of Homeland Security may not approve any 
petition under paragraph (1) filed by an employer with respect to an 
alien seeking to obtain the status of a nonimmigrant under subclause 
(b) or (b1) of section 101(a)(15)(H)(i) and the Secretary of State may 
not approve a visa with respect to an alien seeking to obtain the 
status of a nonimmigrant under subparagraph (E)(iii) or (H)(i)(b1) of 
section 101(a)(15) unless--
          ``(A) the employer--
                  ``(i) is an institution of higher education (as 
                defined in section 101(a) of the Higher Education Act 
                of 1965 (20 U.S.C. 1001(a))), or a governmental or 
                nonprofit entity; or
                  ``(ii) maintains a place of business in the United 
                States that is licensed in accordance with any 
                applicable State or local business licensing 
                requirements and is used exclusively for business 
                purposes; and
          ``(B) the employer--
                  ``(i) is a governmental entity;
                  ``(ii) has aggregate gross assets with a value of not 
                less than $50,000--
                          ``(I) in the case of an employer that is a 
                        publicly held corporation, as determined using 
                        its most recent report filed with the 
                        Securities and Exchange Commission; or
                          ``(II) in the case of any other employer, as 
                        determined as of the date on which the petition 
                        is filed under regulations promulgated by the 
                        Secretary of Homeland Security; or
                  ``(iii) provides appropriate documentation of 
                business activity under regulations promulgated by the 
                Secretary of Homeland Security.''.
          (4) Subpoena authority.--
                  (A) H-1B application.--Section 212(n)(2) of the 
                Immigration and Nationality Act (8 U.S.C. 1182(n)(2)) 
                is amended by adding at the end the following:
  ``(J) The Secretary of Labor is authorized to issue subpoenas as may 
be necessary to assure employer compliance with the terms and 
conditions of this subsection.''.
                  (B) Attestation with respect to other nonimmigrant 
                employees.--Section 212(t)(3) of such Act (8 U.S.C. 
                1182(t)(3)) (as added by section 402(b)(2) of Public 
                Law 108-77 (117 Stat. 941)) is amended by adding at the 
                end the following:
  ``(G) The Secretary of Labor is authorized to issue subpoenas as may 
be necessary to assure employer compliance with the terms and 
conditions of this subsection.''.
  (e) B Visas in Lieu of H-1B Visas.--Section 214(g) of the Immigration 
and Nationality Act (8 U.S.C. 1184(g)) is amended by adding at the end 
the following:
  ``(12) Notwithstanding any other provision of this Act, any alien 
admitted or provided status as a nonimmigrant in order to provide 
services in a specialty occupation described in paragraph (1) or (3) of 
subsection (i) (other than services described in subparagraph 
(H)(ii)(a), (O), or (P) of section 101(a)(15)) or as a fashion model 
shall have been issued a visa (or otherwise been provided nonimmigrant 
status) under subclause (b) or (b1) of section 101(a)(15)(H)(i) or 
section 101(a)(15)(E)(iii).''.
  (f) Effective Dates.--
          (1) The amendments made by subsection (a) shall take effect 
        on the date of the enactment of this Act and shall apply to 
        aliens issued visas or otherwise provided with nonimmigrant 
        status under section 101(a)(15)(H)(i)(b) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(15)(H)(i)(b)) beginning in 
        fiscal year 2014.
          (2) The amendments made by subsection (b) shall take effect 
        on the date of the enactment of this Act and shall apply to the 
        spouses of aliens issued visas or otherwise provided with 
        nonimmigrant status under subparagraph (H)(i)(b), (H)(i)(b1), 
        or (E)(iii) of section 101(a)(15) of the Immigration and 
        Nationality Act before, on, or after such date.
          (3) The amendments made by paragraphs (1) and (3) of 
        subsection (c) shall take effect on the date of the enactment 
        of this Act and shall apply to petitions filed under section 
        214(c) of the Immigration and Nationality Act (8 U.S.C. 
        1184(c)) on or after such date and to visa applications filed 
        on or after such date where no petition was filed because none 
        was required under subparagraph (H)(i)(b1) or (E)(iii) of 
        section 101(a)(15) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)(15)).
          (4) The amendments made by paragraphs (2) and (4) of 
        subsection (c) shall take effect on the date of the enactment 
        of this Act and shall apply to employers of aliens issued visas 
        or otherwise provided with nonimmigrant status under 
        subparagraph (H)(i)(b), (H)(i)(b1), or (E)(iii) section 
        101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(15)) before, on, or after such date.
          (5) The amendment made by subsection (d) shall take effect on 
        the date of the enactment of this Act and shall apply to aliens 
        admitted or provided status as nonimmigrants on or after such 
        date.

SEC. 202. L VISAS.

  (a) In General.--Section 214(c)(2) of the Immigration and Nationality 
Act (8 U.S.C. 1184(c)(2)) is amended by adding at the end the 
following:
  ``(G)(i) An employer of an alien who will serve in a capacity for the 
employer involving specialized knowledge under section 101(a)(15)(L) 
for a cumulative period of time in excess of 6 months over a 2-year 
period--
          ``(I)(aa) except as provided in item (bb), will offer to the 
        alien during the period of authorized employment wages that are 
        at least--
                  ``(AA) the actual wage level paid by the employer to 
                all other individuals with similar experience and 
                qualifications for the specific employment in question; 
                or
                  ``(BB) the prevailing wage level for the occupational 
                classification in the area of employment, whichever is 
                greater, based on the best information available; or
          ``(bb) if 80 percent or more of the employer's workers in the 
        same occupational classification as the alien and in the same 
        area of employment as the alien are United States workers (as 
        defined in section 212(n)(4)), will offer to the alien during 
        the period of authorized employment wages that are at least the 
        actual wage level paid by the employer to all other individuals 
        with similar experience and qualifications for the specific 
        employment in question; and
          ``(II) will provide working conditions for such alien that 
        will not adversely affect the working conditions of workers 
        similarly employed.
  ``(ii) In complying with the requirements of clause (i), an employer 
may keep the alien on their home country payroll, and may take into 
account the value of wages paid by the employer to the alien in the 
currency of the alien's home country, the value of benefits paid by the 
employer to the alien in the alien's home country, employer-provided 
housing or housing allowances, employer-provided vehicles or 
transportation allowances, and other benefits provided to the alien as 
an incident of the assignment in the United States.
  ``(iii) The Secretary of Labor shall have the same investigatory and 
enforcement powers to ensure compliance with this subparagraph as are 
set forth in section 212(n)(2).''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on the date of the enactment of this Act and shall apply to 
employers with respect to aliens issued visas or otherwise provided 
nonimmigrant status under section 101(a)(15)(L) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(15)(L)) on or after such date.

SEC. 203. O VISAS.

  (a) Portability of O Visas.--The first sentence of section 214(n)(1) 
of the Immigration and Nationality Act (8 U.S.C. 1184(n)(1)) is 
amended--
          (1) by striking ``section 101(a)(15)(H)(i)(b)'' and inserting 
        ``subparagraphs (H)(i)(b) and (O)(i) of section 101(a)(15)''; 
        and
          (2) by inserting ``under such sections'' after ``new 
        employment''.
  (b) 3-Year Waiver of New O-1 Consultations for Arts and Motion 
Pictures and Television and Transparency for O-1 Visas for Motion 
Pictures and Television.--
          (1) In general.--Section 214(c)(3) of the Immigration and 
        Nationality Act (8 U.S.C. 1184(c)(3)) is amended--
                  (A) by striking ``Attorney General'' each place such 
                term appears and inserting ``Secretary of Homeland 
                Security''; and
                  (B) by striking the first two sentences of the matter 
                that follows subparagraph (B) and inserting the 
                following: ``In the case of an alien seeking entry for 
                a motion picture or television production, (i) any 
                opinion under the previous sentence shall only be 
                advisory, (ii) any such opinion that recommends denial 
                must be in writing, (iii) in making the decision the 
                Secretary of Homeland Security shall consider the 
                exigencies and scheduling of the production, (iv) the 
                Secretary of Homeland Security shall append to the 
                decision any such opinion, and (v) upon making the 
                decision, the Secretary of Homeland Security shall 
                immediately provide a copy of the decision to the 
                consulting labor and management organizations. The 
                Secretary of Homeland Security shall provide by 
                regulation for the waiver of the consultation 
                requirement under subparagraph (A) in the case of 
                aliens who have been admitted as nonimmigrants under 
                section 101(a)(15)(O)(i) because of extraordinary 
                ability in the arts or extraordinary achievement in 
                motion picture or television production and who seek 
                readmission to perform similar services within 3 years 
                after the date of a consultation under such 
                subparagraph provided that, in the case of aliens 
                admitted because of extraordinary achievement in motion 
                picture or television production, such waiver shall 
                apply only if the prior consultations by the 
                appropriate union and management organization were 
                favorable or raised no objection to the approval of the 
                petition.''.
          (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act and 
        shall apply to petitions filed under section 214(c) of the 
        Immigration and Nationality Act (8 U.S.C. 1184(c)) on or after 
        such date and to consultation decisions made before, on, or 
        after such date.

SEC. 204. MEXICAN AND CANADIAN PROFESSIONALS.

  Section 214(e) of the Immigration and Nationality Act (8 U.S.C. 
1184(e)) is amended by adding at the end the following:
  ``(7)(A) An employer of a Mexican or Canadian professional under this 
subsection--
          ``(i)(I) except as provided in subclause (II), will offer to 
        the alien during the period of authorized employment wages that 
        are at least--
                  ``(aa) the actual wage level paid by the employer to 
                all other individuals with similar experience and 
                qualifications for the specific employment in question; 
                or
                  ``(bb) the prevailing wage level for the occupational 
                classification in the area of employment, whichever is 
                greater, based on the best information available; or
          ``(II) if 80 percent or more of the employer's workers in the 
        same occupational classification as the alien and in the same 
        area of employment as the alien are United States workers (as 
        defined in section 212(n)(4)), will offer to the alien during 
        the period of authorized employment wages that are at least the 
        actual wage level paid by the employer to all other individuals 
        with similar experience and qualifications for the specific 
        employment in question (but, in the case of an employer with 
        more than 25 employees, in no event shall such wages be lower 
        than the mean of the lowest one-half of wages surveyed pursuant 
        to section 212(p)(5)); and
          ``(ii) will provide working conditions for such alien that 
        will not adversely affect the working conditions of workers 
        similarly employed.
  ``(B) The Secretary of Labor shall have the same investigatory and 
enforcement powers to ensure compliance with this paragraph as are set 
forth in section 212(n)(2).''.

SEC. 205. H-1B1 AND E-3 VISAS.

  Section 212(t)(1)(A)(i) of the Immigration and Nationality Act (8 
U.S.C. 1182(t)(1)(A)(i)) (as added by section 402(b)(2) of Public Law 
108-77 (117 Stat. 941)) is amended--
          (1) by striking ``; and'' at the end and inserting ``; or'';
          (2) by redesignating subclauses (I) and (II) as items (aa) 
        and (bb), respectively;
          (3) by striking ``(i)'' and inserting ``(i)(I)'';
          (4) by inserting ``except as provided in subclause (II),'' 
        before ``is offering''; and
          (5) by adding at the end the following:
                  ``(II) if 80 percent or more of the employer's 
                workers in the same occupational classification as the 
                alien admitted or provided status under section 
                101(a)(15)(H)(i)(b1) or 101(a)(15)(E)(iii) and in the 
                same area of employment as the alien admitted or 
                provided status under section 101(a)(15)(H)(i)(b1) or 
                101(a)(15)(E)(iii) are United States workers (as 
                defined in subsection (n)(4)), is offering and will 
                offer during the period of authorized employment to 
                aliens admitted or provided status under section 
                101(a)(15)(H)(i)(b1) or section 101(a)(15)(E)(iii) 
                wages that are at least the actual wage level paid by 
                the employer to all other individuals with similar 
                experience and qualifications for the specific 
                employment in question (but, in the case of an employer 
                with more than 25 employees, in no event shall such 
                wages be lower than the mean of the lowest one-half of 
                wages surveyed pursuant to subsection (p)(5)); and''.

SEC. 206. STUDENTS.

  (a) Dual Intent.--
          (1) In general.--Section 101(a)(15)(F) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(15)(F)) is amended to read as 
        follows:
          ``(F) an alien--
                  ``(i) who--
                          ``(I) is a bona fide student qualified to 
                        pursue a full course of study in a field of 
                        science, technology, engineering, or 
                        mathematics (as defined in section 
                        203(b)(6)(B)(ii)) leading to a bachelors or 
                        graduate degree and who seeks to enter the 
                        United States for the purpose of pursuing such 
                        a course of study consistent with section 
                        214(m) at an institution of higher education 
                        (as described in section 101(a) of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001(a))) or a 
                        proprietary institution of higher education (as 
                        defined in section 102(b) of such Act (20 
                        U.S.C. 1002(b))) in the United States, 
                        particularly designated by the alien and 
                        approved by the Secretary of Homeland Security, 
                        after consultation with the Secretary of 
                        Education, which institution shall have agreed 
                        to report to the Secretary of Homeland Security 
                        the determination of attendance of each 
                        nonimmigrant student, and if any such 
                        institution fails to make reports promptly the 
                        approval shall be withdrawn; or
                          ``(II) is engaged in temporary employment for 
                        optional practical training related to such 
                        alien's area of study following completion of 
                        the course of study described in subclause (I);
                  ``(ii) who--
                          ``(I) has a residence in a foreign country 
                        which the alien has no intention of abandoning, 
                        who is a bona fide student qualified to pursue 
                        a full course of study, and who seeks to enter 
                        the United States temporarily and solely for 
                        the purpose of pursuing such a course of study 
                        consistent with section 214(m) at an 
                        established college, university, seminary, 
                        conservatory, academic high school, elementary 
                        school, or other academic institution or in a 
                        language training program in the United States, 
                        particularly designated by the alien and 
                        approved by the Secretary of Homeland Security, 
                        after consultation with the Secretary of 
                        Education, which institution of learning or 
                        place of study shall have agreed to report to 
                        the Secretary of Homeland Security the 
                        determination of attendance of each 
                        nonimmigrant student, and if any such 
                        institution of learning or place of study fails 
                        to make reports promptly the approval shall be 
                        withdrawn; or
                          ``(II) is engaged in temporary employment for 
                        optional practical training related to such 
                        alien's area of study following completion of 
                        the course of study described in subclause (I);
                  ``(iii) who is the spouse or minor child of an alien 
                described in clause (i) or (ii) if accompanying or 
                following to join such an alien; or
                  ``(iv) who is a national of Canada or Mexico, who 
                maintains actual residence and place of abode in the 
                country of nationality, who is described in clause (i) 
                or (ii) except that the alien's qualifications for and 
                actual course of study may be full or part-time, and 
                who commutes to the United States institution or place 
                of study from Canada or Mexico;''.
          (2) Admission.--Section 214(b) of the Immigration and 
        Nationality Act (8 U.S.C. 1184(b)), as amended by section 
        108(d)(1) of this Act, is further amended by striking ``(L) or 
        (V)'' inserting ``(F)(i), (L), or (V)''.
          (3) Conforming amendment.--Section 214(m)(1) of the 
        Immigration and Nationality Act (8 U.S.C. 1184(m)(1)) is 
        amended, in the matter preceding subparagraph (A), by striking 
        ``(i) or (iii)'' and inserting ``(i), (ii), or (iv)''.
  (b) Optional Practical Training for Foreign Students.--Section 214 of 
the Immigration and Nationality Act (8 U.S.C. 1184) is amended by 
adding at the end the following:
  ``(s)(1) An employer providing optional practical training to an 
alien who has been issued a visa or otherwise provided nonimmigrant 
status under subparagraph (F) or (M) of section 101(a)(15) after 
completion of the alien's course of study--
          ``(A)(i) except as provided in clause (ii), shall offer to 
        the alien during the period of optional practical training 
        wages that are at least--
                    ``(I) the actual wage level paid by the employer to 
                all other individuals with similar experience and 
                qualifications for the specific employment in question; 
                or
                    ``(II) the prevailing wage level for the 
                occupational classification in the area of employment, 
                whichever is greater, based on the best information 
                available; or
          ``(ii) if 80 percent or more of the employer's workers in the 
        same occupational classification as the alien and in the same 
        area of employment as the alien are United States workers (as 
        defined in section 212(n)(4)), shall offer to the alien during 
        the period of authorized employment wages that are at least the 
        actual wage level paid by the employer to all other individuals 
        with similar experience and qualifications for the specific 
        employment in question (but, in the case of an employer with 
        more than 25 employees, in no event shall such wages be lower 
        than the mean of the lowest one-half of wages surveyed pursuant 
        to section 212(p)(5)); and
          ``(B) shall provide working conditions for such alien that 
        will not adversely affect the working conditions of workers 
        similarly employed.
  ``(2) The Secretary of Labor has the same investigatory and 
enforcement powers to ensure compliance with paragraph (1) as are set 
forth in section 212(n)(2).''.
  (c) Effective Dates.--
          (1) The amendments made by subsection (a) shall take effect 
        on the date of the enactment of this Act, and shall apply to 
        nonimmigrants who possess or are granted status under section 
        101(a)(15)(F) of the Immigration and Nationality Act (8 U.S.C. 
        1101(a))(15)(F)) on or after such date.
          (2) The amendment made by subsection (b) shall apply to 
        employers with respect to aliens who begin post-course of study 
        optional practical training with them on or after the date of 
        the enactment of this Act.

SEC. 207. EXTENSION OF EMPLOYMENT ELIGIBILITY WHILE VISA EXTENSION 
                    PETITION PENDING.

  (a) In General.--Section 214 of the Immigration and Nationality Act 
(8 U.S.C. 1184, as amended by section 205(b), is further amended by 
adding at the end the following:
  ``(t) A nonimmigrant issued a visa or otherwise provided nonimmigrant 
status under subparagraph (A), (E), (G), (H), (I), (J), (L), (O), (P), 
(Q), or (R) of section 101(a)(15), or section 214(e), and otherwise as 
the Secretary of Homeland Security may by regulations prescribe, whose 
status has expired but who has, or whose sponsoring employer or 
authorized agent has, filed a timely application or petition for an 
extension of authorized status as provided under this section, is 
authorized to continue employment with the same employer for a period 
not to exceed 240 days beginning on the date of the expiration of the 
authorized period of stay until and unless the application or petition 
is denied. Such authorization shall be subject to the same conditions 
and limitations noted on the original authorization.''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on the date of the enactment of this Act and shall apply to 
aliens issued visas or otherwise provided nonimmigrant status before, 
on, or after such date.

SEC. 208. FRAUD DETECTION AND PREVENTION FEE.

  Section 214(c)(12)(A) of the Immigration and Nationality Act (8 
U.S.C. 1184(c)(12)(A)) is amended by adding at the end the following:
  ``The Secretary of Homeland Security shall also impose the fee 
described in the preceding sentence on an employer filing an 
attestation under section 212(t)(1) or employing an alien pursuant to 
subsection (e).''.

SEC. 209. TECHNICAL CORRECTION.

  The second subsection designated as subsection (t) of section 212 of 
the Immigration and Nationality Act (8 U.S.C. 1182) (as added by 
section 1(b)(2)(B) of Public Law 108-449 (118 Stat. 3470)) is 
redesignated as subsection (u) of such section.

   TITLE III--REFORMS AFFECTING BOTH IMMIGRANT AND NONIMMIGRANT VISAS

SEC. 301. PREVAILING WAGES.

  (a) In General.--Section 212(p) of the Immigration and Nationality 
Act (8 U.S.C. 1182(p)) is amended--
          (1) in paragraph (1), by striking ``subsections (a)(5)(A), 
        (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II)'' and inserting 
        ``subsections (a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II) 
        of this section, and subsections (c)(2)(G), (e), and (s) of 
        section 214,'';
          (2) by redesignating paragraphs (2) through (4) as paragraphs 
        (3) through (5), respectively;
          (3) by inserting after paragraph (1) the following:
  ``(2) In computing the prevailing wage level for an occupational 
classification in an area of employment for purposes of subsections 
(a)(5)(A), (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II) of this section, and 
subsections (c)(2)(G), (e), and (s) of section 214, the wage level 
shall be the wage level specified in subparagraph (A), (B), or (C) of 
paragraph (5) depending on the experience, education, and level of 
supervision required for the position.'';
          (4) in paragraph (4) (as redesignated), by striking 
        ``subsections (a)(5)(A), (n)(1)(A)(i)(II), and 
        (t)(1)(A)(i)(II)'' and inserting ``subsections (a)(5)(A), 
        (n)(1)(A)(i)(II), and (t)(1)(A)(i)(II) of this section, and 
        subsections (c)(2)(G), (e), and (s) of section 214,'';
          (5) by amending paragraph (5) (as redesignated) to read as 
        follows:
  ``(5) Subject to paragraph (2), the Secretary of Labor shall make 
available to employers a governmental survey to determine the 
prevailing wage for each occupational classification by metropolitan 
statistical area in the United States. Such survey, or other survey 
approved by the Secretary of Labor, shall provide 3 levels of wages 
commensurate with experience, education, and level of supervision. Such 
wage levels shall be determined as follows:
          ``(A) The first level shall be the mean of the lowest two-
        thirds of wages surveyed, but in no case less than 80 percent 
        of the mean of the wages surveyed.
          ``(B) The second level shall be the mean of wages surveyed.
          ``(C) The third level shall be the mean of the highest two-
        thirds of wages surveyed.''; and
          (6) by adding at the end the following:
  ``(6) An employer may use an independent authoritative survey 
approved by the Secretary of Labor for purposes of paragraph (5), if--
          ``(A) the survey data was collected within 24 months;
          ``(B) the survey was published within the prior 24 months;
          ``(C) the survey reflects the area of intended employment;
          ``(D) the employer's job description adequately matches the 
        job description in the survey;
          ``(E) the survey is across industries that employ workers in 
        the occupation;
          ``(F) the wage determination is based on the arithmetic mean 
        (weighted average); and
          ``(G) the survey identifies a statistically valid methodology 
        that was used to collect the data.''.
  (b) Effective Date.--The amendments made by subsection (a) shall take 
effect on the date of the enactment of this Act, and shall apply to 
employers with regard to labor certifications under sections 
212(a)(5)(A) of the Immigration and Nationality Act (8 U.S.C. 
1182(a)(5)(A)), labor condition applications under section 212(n)(1) of 
such Act (8 U.S.C. 1182(n)(1)), and attestations under section 
212(t)(1) of such Act (8 U.S.C. 1182(t)(1)), filed on or after such 
date, to employers with regard to aliens issued visas or otherwise 
provided nonimmigrant status under section 101(a)(15)(L) of such Act (8 
U.S.C. 1101(a)(15)(L)) on or after such date, and to employers with 
regard to aliens they provide post-course of study optional practical 
training that begins on or after such date.

SEC. 302. STREAMLINING PETITIONS FOR ESTABLISHED EMPLOYERS.

  (a) In General.--Section 214(c) of the Immigration and Nationality 
Act (8 U.S.C. 1184(c)), as amended by this Act, is further amended by 
adding at the end the following:
  ``(16) The Secretary of Homeland Security shall establish a pre-
certification procedure for employers who file multiple petitions 
described in this subsection or section 204(a)(1)(F). Such 
precertification procedure shall enable an employer to avoid repeatedly 
submitting documentation that is common to multiple petitions and 
establish, through a single filing, criteria relating to the employer 
and the offered employment opportunity.''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on the date of the enactment of this Act, and shall apply to 
petitions filed under section 204(a)(1)(F) or 214(c) of the Immigration 
and Nationality Act (8 U.S.C. 1154(a)(1)(F) or 1184(c)) beginning 180 
days after such date.

                          Purpose and Summary

    H.R. 2131 increases the economic competitiveness of the 
U.S. and the rationality of our immigration system by 
increasing the priority given to highly skilled immigrants and 
to nuclear family members in the issuance of immigrant visas, 
by creating an immigrant pathway for entrepreneurs, and by 
reforming our temporary work visa programs to increase the 
availability of the most talented foreign workers to American 
employers while strengthening protections for American workers 
and students.

                Background and Need for the Legislation

               I. OVERVIEW OF THE CURRENT U.S. SYSTEM OF 
                          SELECTING IMMIGRANTS

    In fiscal year 2011, a total of 1,062,040 immigrants were 
granted legal permanent residence (``green cards'').\1\ Of 
these, two thirds were based on a family relationship with a 
relative in the United States. Specifically, 419,496 (40%) of 
the green cards issued went to nuclear family members (spouses 
and minor children) of U.S. citizens and permanent residents, 
and 268,593 (25%) were based on other family relationships with 
citizens and permanent residents.\2\ Only 130,337 (12%) of 
green cards issued went to skilled workers and their nuclear 
family members (with about half going towards family 
members).\3\ Another 50,103 (5%) of green cards issued went to 
aliens who won the diversity visa lottery and were admitted 
based on chance, without consideration of either family ties or 
skills.\4\ Most of the remaining green cards--171,088 (16%)--
included refugees, asylees and other aliens who demonstrated 
that they were eligible for relief from removal for 
humanitarian reasons.\5\
---------------------------------------------------------------------------
    \1\See DHS, Office of Immigration Statistics, 2011 Yearbook of 
Immigration Statistics at table 7 (2012).
    \2\See Immigration and Nationality Act (INA) secs. 201(b)(2)(A)(i) 
and 203(a).
    \3\See INA sec. 203(b).
    \4\See INA sec. 203(c).
    \5\See INA secs. 207, 208 and 240A.
---------------------------------------------------------------------------
    Presently, employment visas for permanent residence are 
issued in five employment-based preference categories, commonly 
referred to as E1, E2, E3, E4, and E5.\6\
---------------------------------------------------------------------------
    \6\See INA sec. 203(b)(1)-(5).
    
    

    The Immigration and Nationality Act generally provides that 
the total number of family-sponsored and employment-based 
immigrant visas made available to natives of any single foreign 
country in a year cannot exceed 7% of the total number of such 
visas made available in that year.\7\ Because of annual caps on 
employment-based immigrant visas, the population size of 
certain countries and the large number of natives of those 
countries seeking immigrant visas to the U.S., the time it 
takes for visas to be available to natives of those countries 
may be much longer than it takes for natives of other 
countries.
---------------------------------------------------------------------------
    \7\See INA sec. 202(a)(2), (c).
---------------------------------------------------------------------------
    For the employment-based first preference category 
(priority workers), immigrant visas are now available for all 
prospective immigrants with approved petitions. For the 
employment-based second preference category (members of the 
professions with advanced degrees and persons of exceptional 
ability), immigrant visas are generally now available for all 
prospective immigrants with approved petitions, but for 
nationals of China, the backlog is such that only those with 
application dates of September 2008 are being processed and for 
nationals of India, the date is June 2008. For the employment-
based third preference category (skilled workers, professionals 
with bachelor's degrees and other workers), immigrant visas are 
now available for prospective immigrants whose petitions were 
first filed in July 2010, but for nationals of India, the date 
is September 2003 and for nationals of the Philippines, the 
date is December 2006 (and for other workers from China, the 
date is September 2004, from India the date is September 2003 
and from the Philippines the date is December 2006). For the 
employment-based fourth preference category (special 
immigrants) and fifth preference category (investors), 
immigrant visas are now available for all prospective 
immigrants with approved petitions.\8\
---------------------------------------------------------------------------
    \8\U.S. State Department, Visa Bulletin for October 2013 (2013).
---------------------------------------------------------------------------
    There are about 300,000 prospective immigrants (not 
including spouses and minor children) with approved employment-
based immigrant petitions.\9\
---------------------------------------------------------------------------
    \9\Information provided by U.S. Citizenship and Immigration 
Services.
---------------------------------------------------------------------------

            II. PRIORITY FOR HIGHLY-SKILLED FOREIGN WORKERS

    The United States has the most generous legal immigration 
system in the world--providing permanent residence to over a 
million immigrants a year. Yet, we select only 12%--and that 
figure includes the immigrants' spouses and minor children--on 
the basis of the education and skills they bring to America. 
The three other main immigrant-receiving countries--Australia, 
Canada and the United Kingdom--select between 62 and 72% of 
their immigrants based on education and skills.\10\ We select 
only a handful (less than 1%) on the basis of their 
entrepreneurial talents. And that is only if they already have 
the hundreds of thousands of dollars in personal assets needed 
to participate in the investor visa program.
---------------------------------------------------------------------------
    \10\See Department of Immigration and Citizenship, Australian 
Government, Trends in Migration: Australia 2010-11 at table 2.1; 
Department of Immigration and Citizenship, Australian Government, 
Country Profile: United Kingdom; Citizenship; and Immigration Canada, 
Government of Canada, Backgrounder--2013 Immigration Levels Planning: 
Public and Stakeholder Consultations at annex D.
---------------------------------------------------------------------------
    Much of America's scientific workforce is composed of 
immigrants. The foreign-born constitute 19% of all persons with 
a bachelor's degree working in computer science and mathematics 
occupations in the U.S., 41% of those with master's degrees 
working in those occupations and 48% of those with doctorates 
working in those occupations; for the physical sciences, the 
figures are 17%/29%/37%; for engineering, the figures are 22%/
38%/51%.\11\
---------------------------------------------------------------------------
    \11\See National Science Foundation, Science and Engineering 
Indicators 2010 table 3-24 (figures are for 2003).
---------------------------------------------------------------------------
    The contributions of highly-skilled and educated immigrants 
to the United States are well-documented. For example:

         LSeventy-six percent of the patents awarded to 
        our top patent-producing universities had at least one 
        foreign-born inventor.\12\ These foreign-born inventors 
        ``played especially large roles in cutting edge 
        fields'' such as semiconductor device manufacturing, 
        information technology, pulse or digital 
        communications, pharmaceutical drugs or drug compounds 
        and optics.\13\
---------------------------------------------------------------------------
    \12\See the Partnership for a New American Economy, Patent Pending: 
How Immigrants are Reinventing the American Economy 1 (2012).
    \13\Id.

         LAt over one-quarter of engineering and 
        technology startups, at least one key founder is 
        foreign-born (in Silicon Valley, over half of such 
        companies have at least one key foreign-born 
        founder).\14\
---------------------------------------------------------------------------
    \14\See Vivek Wadhwa, AnnaLee Saxenian, Ben Rissing & Gary Gereffi, 
America's New Immigrant Entrepreneurs, 2007 Duke School of Engineering 
and the University of California at Berkeley School of Information at 
4, 31 (companies started in the years 1995-2005).

         LAn additional 100 immigrants with advanced 
        STEM (science, technology, engineering and mathematics) 
        degrees from U.S. universities are associated with an 
        additional 262 jobs for natives. Immigrants with 
        advanced degrees pay over $22,000 a year in federal, 
        state and Social Security taxes yet their families 
        receive less than $2,300 in benefits from major 
        government programs.\15\
---------------------------------------------------------------------------
    \15\See Madeline Zavodny, Immigration and American Jobs, 2011 
American Enterprise Institute for Public Policy Research and the 
Partnership for a New American Economy at 8, 12.

    Given the outstanding track record of immigrants in 
founding some of our most successful companies and in providing 
much of the crucial scientific talent needed for our economy to 
prosper, our current immigration system does not make sense. 
This is especially true, given the intense international 
economic competition that America faces. Attracting the world's 
best and brightest is decidedly in the best interest of all 
Americans. Today, talented individuals have many options 
worldwide as to where to relocate. America needs to regain its 
place as the number one destination for the world's top talent.
    Of course, at the same time, we need to ensure that 
whatever we do brightens rather than darkens the career 
prospects of American students and American workers. We need to 
ensure that we don't discourage young Americans from entering 
STEM fields in the first place and that we do not undercut the 
wages of American workers.
    In furtherance of these goals, H.R. 2131 allocates up to 
55,000 immigrant visas a year for employers to petition for 
foreign graduates of U.S. universities with advanced degrees in 
STEM fields, allocates up to 10,000 green cards a year for 
alien entrepreneurs who can attract investment from venture-
capital firms or angel investors to establish businesses that 
will create at least five jobs or have already created five 
jobs over 10 years through the E-2 treaty investor program and 
allocates an additional 15,000 green cards a year to the 
employment-based second preference category for members of the 
professions with advanced degrees and persons of exceptional 
ability and an additional 15,000 green cards a year for the 
third preference category for skilled workers and professionals 
with bachelor's degrees. In addition, the bill increases the H-
1B visa cap for high-skilled workers to 155,000 a year and 
increases the special pool of visas for foreign graduates of 
U.S. universities to 40,000.

                       III. STEM IMMIGRANT VISAS

    Of all the immigrant scientists and engineers in the U.S., 
38.7% earned all their college degrees in the U.S., 42.6% 
earned them all overseas, and 18.7% earned them in the U.S. and 
abroad; 51.1% have bachelor's degrees, 30.2% have master's 
degrees, 9.4% have doctorates and 9.3% have professional 
degrees.\16\ Many of the world's top students come to the U.S. 
to obtain advanced STEM degrees. Talented students from around 
the world receive nearly four out of every 10 STEM master's 
degrees and doctorates granted by U.S. universities. In 2011, 
aliens on temporary visas received 32,972 STEM master's degrees 
from U.S. universities (37% of a total of 89,628) and 10,604 
STEM doctorates (38% of a total of 28,149).\17\
---------------------------------------------------------------------------
    \16\See National Science Foundation, Why Did They Come to the 
United States? A Profile of Immigrant Scientists and Engineers at table 
3 (for the year 2003)(2007).
    \17\Information provided by the National Science Foundation.
---------------------------------------------------------------------------
    But what happens to these foreign students after they 
graduate? Commentators have argued that:

        [T]he United States has benefitted immensely from, and 
        is highly dependent upon, foreign-born individuals 
        talented in science and engineering who elect to study 
        in the United States and decide to remain here after 
        completing their education. It probably would not be an 
        overstatement to assert that America's science and 
        engineering enterprise would barely function without 
        these talented contributors. . . . Yet, United States 
        immigration policy in many cases discourages qualified 
        individuals from studying in the United States or 
        remaining here after graduation.\18\
---------------------------------------------------------------------------
    \18\Members of the 2005 ``Rising Above the Gathering Storm'' 
Committee, Rising Above the Gathering Storm Revisited: Rapidly 
Approaching Category 5, 53-54 (2010).

    Scholar Vivek Wadhwa has recently testified before the 
---------------------------------------------------------------------------
Judiciary Committee that:

        Foreign students graduating from American colleges have 
        difficulty in finding jobs because employers have 
        difficulty in getting H1-B visas. Those graduates who 
        are lucky enough to get a job and a visa and who decide 
        to make the U.S. their permanent home find that it can 
        take years--sometimes more than a decade--to get a 
        green card. If they have ideas for building world-
        changing technologies and want to start a company, they 
        are usually out of luck, because it is not usually 
        possible for people on H1-B visas to work for the 
        companies they might start. The families of would-be 
        immigrants are also held hostage to the visa-holder's 
        immigration status. The spouses of H1-B workers are not 
        allowed to work, and, depending on the state in which 
        they live, they may not even be able to get a driver's 
        license or open a bank account. They are forced to live 
        as second-class citizens. Not surprisingly, many are 
        getting frustrated and returning home. We must stop 
        this brain drain and do all we can to bring more 
        engineers and scientists here.\19\
---------------------------------------------------------------------------
    \19\America's Immigration System: Opportunities for Legal 
Immigration and Enforcement of Laws against Illegal Immigration: 
Hearing Before the House Comm. on the Judiciary, 113th Congress (2013).

    How many foreign graduates of U.S. STEM programs remain in 
the U.S.? Sixty-seven percent of aliens on temporary visas who 
received science and engineering doctorates in 2005 were still 
in the U.S. in 2007 (with a high of 76% for those with computer 
and electrical and electronics engineering doctorates).\20\ 
Sixty-two percent of aliens on temporary visas who received 
science and engineering doctorates in 2002 were still in the 
U.S. in 2007 (with a high of 75% for those with computer 
science doctorates).\21\ For 1997 doctorates, the ``stay rate'' 
was 60%.\22\ A survey of foreign students measuring the desire 
to stay in the U.S. after graduation found that:\23\
---------------------------------------------------------------------------
    \20\See Michael Finn, Stay Rates of Foreign Doctorate Recipients 
from U.S. Universities, 2007, 2010 Oak Ridge Institute for Science and 
Education at 5.
    \21\See id.
    \22\See id. at 8.
    \23\See Vivek Wadhwa, AnnaLee Saxenian, Richard Freeman, and Alex 
Salkever, Losing the World's Best and Brightest: America's New 
Immigrant Entrepreneurs, Part V (2009).

         LAsked if they would like to stay in the U.S. 
        after graduation if given a chance, 58% of Indian 
        students indicated they would, as did 54% of Chinese 
        students and 40% of European students.\24\
---------------------------------------------------------------------------
    \24\See id. at 9.

         LAsked how long they would like to stay in the 
        U.S. after graduation, 55% of Indians, 40% of Chinese 
        and 30% of Europeans said 1 to 5 years; 16% of Indians, 
        13% of Chinese and 12% of Europeans said 6 to 10 years; 
        3% of Indians, 5% of Chinese, and 3% of Europeans said 
        11 or more years; and 6% of Indians, 10% of Chinese and 
        15% of Europeans said permanently.\25\
---------------------------------------------------------------------------
    \25\See id.

         LWhen asked whether they thought it would be 
        difficult to find a job in the U.S., 84% of Indians 
        thought it would be from somewhat to extremely 
        difficult, as did 76% of Chinese and 69% of 
        Europeans.\26\
---------------------------------------------------------------------------
    \26\See id.

         LWhen asked about whether they had concerns 
        about obtaining work visas, 85% of Indians were from 
        somewhat to extremely concerned, as were 85% of Chinese 
        and 72% of Europeans.\27\
---------------------------------------------------------------------------
    \27\See id. at 10.

         LWhen asked if they were concerned about 
        obtaining permanent residency in the U.S., 37% of 
        Indians were from somewhat to extremely concerned, as 
        were 65% of Chinese and 53% of Europeans.\28\
---------------------------------------------------------------------------
    \28\See id.

         LWhen asked whether the U.S., their home 
        country or another country had the best job 
        opportunities, 47% of Indians said the U.S. (32% said 
        India), as did 27% of Chinese (52% said China) and 47% 
        of Europeans (26% said their home country).\29\
---------------------------------------------------------------------------
    \29\See id. at 11.

         LOf those interested in starting a business, 
        55% of Indians said the likely location was in India 
        while 18% said it was in the U.S.; 53% of Chinese said 
        the likely location was in China while 19% said it was 
        in the U.S; and 35% of Europeans said the likely 
        location was in their home country while 18% said it 
        was in the U.S.\30\
---------------------------------------------------------------------------
    \30\See id. at 15.

    Under the current system, we educate scientists and 
engineers only to all too often send them home to work for our 
competitors abroad. We could boost economic growth and spur job 
creation by allowing American employers to more easily hire 
some of the best and brightest foreign graduates of U.S. 
universities. Therefore, H.R. 2131 allocates up to 55,000 
immigrant visas a year for employers to petition for foreign 
graduates of U.S. universities with advanced degrees in STEM 
fields.
    However, we must ensure that a STEM immigrant visa program 
does not encourage diploma mills. The State Department has 
testified before the Judiciary Committee that foreign students 
have been used by universities to bolster marginal programs:

        [A] school in the United States can be found for even 
        the poorest academic achiever. . . . Unfortunately, 
        schools that actively recruit foreign students for 
        primarily economic reasons, and without regard to their 
        qualifications or intentions, may encourage such high-
        risk underachievers to seek student visa status as a 
        ticket into the United States.\31\
---------------------------------------------------------------------------
    \31\Nonimmigrant Visa Fraud: Hearing Before the Subcomm. on 
Immigration and Claims of the House Comm. on the Judiciary, 106th Cong. 
29 (1999)(statement of Nancy Sambaiew, Deputy Assistant Secretary for 
Visa Services, Bureau of Consular Affairs, U.S. State Department).

    And the Center for Technology Innovation at Brookings warns 
against ``inducing the enrollment of poor-quality foreign 
students in U.S. higher education institutions simply to obtain 
green cards.''\32\
---------------------------------------------------------------------------
    \32\Zoltan Acs and David Hart, Immigration and High-Impact, High-
Tech Entrepreneurship, 2011 Center for Technology Innovation at 
Brookings at 7.

---------------------------------------------------------------------------
    The Australian experience provides a cautionary tale:

        By 2008, there was overwhelming evidence that 
        Australia's permanent entry migration program was in 
        disarray. The core of the problem lay with the very 
        large number of applicants who had come in on student 
        visas, completed Australian qualifications and were 
        succeeding in gaining permanent residence status on 
        completion of their studies. Paradoxically, these 
        outcomes were a product of reforms in 1999 and 2001 
        which were intended to deliver migrants with high-level 
        skills, especially in areas where shortages were 
        evident. . . . There are many lessons to be learned 
        from this story about how migration selection mistakes 
        can morph into major crises. . . . [T]he second key 
        reform was the establishment, beginning in mid-2001, of 
        skilled visa subclasses for overseas students who had 
        completed trade or higher-education qualifications in 
        Australia. . . . The reformers did not anticipate the 
        alacrity with which Australia's universities . . . 
        would set up courses designed to attract international 
        students looking for the cheapest and easiest ways to 
        obtain qualifications in occupations that could lead to 
        permanent residence. . . . By 2005, there were so many 
        applications for permanent residence from former 
        overseas students that the Department of Immigration 
        and Citizenship had to increase the selection system 
        pass mark. . . . After this, the possession of a 
        Migrant Occupations in Demand List occupation, and the 
        extra points it delivered, become a crucial determinant 
        of permanent residence outcomes. IT and accounting were 
        to become the study areas of choice for overseas 
        students taking higher education courses who were 
        interested in a permanent residence outcome. All they 
        had to do was complete a 2-year Masters course in IT or 
        accounting (with no prerequisite study or experience in 
        these fields needed) at any Australian university and 
        permanent residence was assured. . . . The year 2008 
        was a bad one for the international student industry. 
        Concerns about the quality of instruction in 
        universities . . . and about the extent to which 
        students were basing their choice of educational 
        provider on the likely permanent residence outcomes, 
        spread into the mainstream media. The result was a 
        popular image that the industry was about selling 
        education for visas. This perception was shredding its 
        credibility.\33\
---------------------------------------------------------------------------
    \33\Bob Birrell and Ernest Healy, The February 2010 Reforms and the 
International Student Industry, 18 People and Place 65-66, 70 (2010).

    H.R. 2131 includes a number of requirements for foreign 
STEM graduates from U.S. universities (including requirements 
regarding the universities they graduate from) in order for 
them to be eligible for the STEM immigrant visa programs. These 
requirements are designed to discourage diploma mills and to 
ensure that visas go to the most talented foreign students. 
Foremost among them is the requirement that their schools be 
designated by the Carnegie Institute for the Advancement of 
Teaching as schools with a high or very high level of research 
activity (or later selected by the National Science 
Foundation). The Carnegie Institute has put together a list of 
universities that meet the threshold requirement of awarding at 
least 20 research doctorates in 2008-09. These ``[d]octorate-
granting institutions were assigned to one of three categories 
[basic, high research and very high research] based on a 
measure of research activity. . . . The analysis examined . . . 
research & development (R&D;) expenditures in science and 
engineering; R&D; expenditures in non-S&E; fields; S&E; research 
staff . . . doctoral conferrals in humanities fields, in social 
science fields, in STEM . . . fields, and in other fields. . . 
.''\34\ University of Oklahoma President David Boren has stated 
that ``[t]he Carnegie Classification is one of the most 
important measures that distinguish among institutions of 
higher education.''\35\
---------------------------------------------------------------------------
    \34\See Carnegie Foundation for the Advancement of Teaching website 
(Methodology, Basic Classification).
    \35\University of Oklahoma, OU Makes State History in Receiving 
Carnegie Foundation's Very High Research Classification, Jan. 26, 2011.
---------------------------------------------------------------------------
    Additionally, H.R. 2131 does not simply provide for 
immigrant visas to be ``stapled'' to diplomas. Instead, 
employers must petition for visas for graduates. The immediate 
provision of an immigrant visa to a graduate eliminates an 
advantage of the current ``pathway'' system--in which graduates 
typically receive H-1B visas and their employers then decide 
whether to petition for immigrant visas for them. The benefit 
of the current pathway is that aliens only receive immigrant 
visas after they prove themselves strong assets to their 
employers--graduates who turn out to be mediocre or poor 
performers simply don't get sponsored.\36\
---------------------------------------------------------------------------
    \36\The Government Accountability Office has found that:

      [D]ata on a cohort of approved H-1B workers whose petitions 
      were submitted between January 1, 2004, and September 30, 
      2007, . . . indicate that a substantial proportion 
      subsequently applied for permanent residence in the United 
      States. Specifically, from a cohort of 311,847 approved H-
      1B petitions, we were able to obtain unique matches for 
      169,349 petitions from Homeland Security's US-VISIT data. 
      Of these, GAO found that 56,454 of the individuals listed 
      on these H-1B petitions had submitted a petition for 
      permanent residence by 2010. Thus, at least 18 percent of 
      the total cohort had applied for permanent residence by 
---------------------------------------------------------------------------
      2010 [which are actually submitted by the employer].

See U.S. Government Accountability Office, H-1B Visa Program: Reforms 
Are Needed to Minimize the Risks and Costs of Current Program at 35-36 
(footnote omitted)(2011).
    H.R. 2131 is also designed to protect the career prospects 
of American STEM students and STEM workers. Harvard economist 
George Borjas has found that ``an immigration-induced 10% 
increase in the supply of doctorates in a particular field at a 
particular time reduces the earnings of that cohort of 
doctorates by about 3 to 4%.''\37\ Therefore, employers seeking 
to petition for STEM graduates for immigrant visas must first 
successfully complete labor certification (unless this 
requirement is waived in the national interest by DHS).
---------------------------------------------------------------------------
    \37\George Borjas, Immigration in High-Skill Labor Markets: The 
Impact of Foreign Students on the Earnings of Doctorates, 2006 National 
Bureau of Economic Research at 31.
---------------------------------------------------------------------------
    It is not enough that an employer simply make a job offer 
to a STEM graduate. Labor certification is a process designed 
to ensure that there are not sufficient American workers who 
are able, willing, qualified and available for the job for 
which an employer seeks the alien worker.\38\ It includes 
required recruitments efforts for American workers, including 
advertising for American job applicants\39\ and only rejecting 
them for lawful job-related reasons.\40\ Labor certification 
discourages fraud through job offers by bogus companies or 
companies who have no plans to actually hire the alien, such as 
by requiring that an employer demonstrate the financial means 
to pay the alien.\41\ Importantly, it also requires that an 
employer employ an alien in a job justifying their STEM 
education.\42\
---------------------------------------------------------------------------
    \38\See INA sec. 212(a)(5)(A).
    \39\See 20 C.F.R. sec. 656.17(e)
    \40\See 20 C.F.R. sec. 656.10(c)(9).
    \41\See 20 C.F.R. sec. 656.10(c)(3).
    \42\Currently, an employer must show that the job for which they 
want to hire an alien must require the bachelor's or advanced degree 
that makes the alien eligible for a second or third preference 
employment-based green card. See 8 C.F.R. sec. 204.5(k)(4)(i), 
(l)(3)(i)(For second preference petitions, ``[t]he job offer portion of 
the individual labor certification . . . must demonstrate that the job 
requires a professional holding an advanced degree or the equivalent or 
an alien of exception ability.'' For third preference petitions, 
``[t]he job offer portion of the individual labor certification . . . 
for a professional must demonstrate that the job requires the minimum 
of a baccalaureate degree.'').
---------------------------------------------------------------------------

                IV. PRIORITY FOR NUCLEAR FAMILY MEMBERS

    The following chart describes our legal immigration system 
for family members of U.S. citizens and permanent residents:



    For the family-sponsored first preference category 
(unmarried adult sons and daughters of U.S. citizens), 
immigrant visas are now available for prospective immigrants 
whose petitions were first filed in October 2006, but for 
nationals of Mexico the date is September 1993 and for 
nationals of the Philippines the date is June 2001. For the 
family-sponsored second ``A'' preference category (spouses and 
unmarried minor children of permanent residents), immigrant 
visas are available with filing dates of September 2013. For 
the family-sponsored second ``B'' preference category 
(unmarried adult sons and daughters of permanent residents), 
immigrant visas are available with filing dates of March 2006, 
but for nationals of Mexico the date is March 1994 and for 
nationals of the Philippines the date is February 2003. For the 
family-sponsored third preference category (married sons and 
daughters of U.S. citizens), immigrant visas are available with 
filing dates of January 2003, but for nationals of Mexico the 
date is May 1993 and for nationals of the Philippines the date 
is January 1993. For the family-sponsored fourth preference 
category (brothers and sisters of U.S. citizens), immigrant 
visas are available with filing dates of August 2001, but for 
nationals of Mexico the date is October 1996 and for nationals 
of the Philippines the date is March 1990.\43\
---------------------------------------------------------------------------
    \43\See U.S. State Department, Visa Bulletin for October 2013 
(2013).
---------------------------------------------------------------------------
    We must set priorities in determining how to allocate 
immigrant visas. After all, Gallup surveys suggest that more 
than 165 million adults worldwide would like to move 
permanently to the U.S. if they had the chance.\44\ When we set 
priorities, retaining a category for the siblings of U.S. 
citizens simply does not make sense. Former Florida Governor 
Jeb Bush recently argued that:
---------------------------------------------------------------------------
    \44\See Neli Esipova and Julie Ray, 7700 Million Worldwide Desire 
to Migrate Permanently, 2009 Gallup.

        The driver of immigration policy is ``chain 
        migration.'' Since the 1960's, the vast majority of 
        legal immigrants have come pursuant to a very broad 
        definition of ``family reunification''--which includes 
        not only spouses and minor children but . . . siblings. 
        Family preferences account for two-thirds of all legal 
        immigrants, crowding out work-based immigration and 
        placing increased pressure on social services. When 
        extended family members obtain legal status, they too 
        are entitled to family preferences. This chain 
        migration does not promote the nation's economic 
        interests.\45\
---------------------------------------------------------------------------
    \45\Jeb Bush and Clint Bolick, Solving the Immigration Puzzle, Wall 
Street Journal, Jan. 24, 2013.

---------------------------------------------------------------------------
    The U.S. Commission on Immigration Reform found that:

        Immigration supports a national interest in promoting 
        strong and intact nuclear families--that is, the basic 
        social unit consisting of parents and their dependent 
        children living in one household. Immigration 
        contributes to this national interest by permitting the 
        unification of close family members of U.S. citizens 
        and permanent residents. . . . Current immigration 
        policy fails to prioritize family relationships, 
        permitting lengthy separations of some of the closest 
        family members--spouses and minor children--while less 
        close relatives continue to enter. . . . Unless there 
        is a compelling national interest to do otherwise, 
        immigrants should be chosen on the basis of the skills 
        they contribute to the U.S. economy. While the 
        admission of nuclear family members . . . provide such 
        a compelling national interest, reunification of . . . 
        siblings of adult citizens do not reach that level.\46\
---------------------------------------------------------------------------
    \46\U.S. Commission on Immigration Reform, Legal Immigration: 
Setting Priorities 45, 47, 72 (1995).

    Even the concept of family-reunification is meaningless in 
the context of immigrant visas for siblings. As the Commission 
found, ``the extraordinarily large waiting list for siblings of 
U.S. citizens . . . undermines the integrity of the legal 
immigration system. . . . [E]xtended waiting periods [of a 
decade or more] mean that most siblings enter well into their 
working lives, limiting the time during which they can make a 
contribution to the U.S. economy.''\47\
---------------------------------------------------------------------------
    \47\U.S. Commission on Immigration Reform, Becoming an American: 
Immigration and Immigration Policy 66 (1997).
---------------------------------------------------------------------------
    Therefore, H.R. 2131 allocates an additional 25,000 
immigrant visas a year to the spouses and minor children of 
permanent residents and repeals the siblings of U.S. citizens 
immigrant visa category. However, there are many individuals 
who have already been approved for sibling green cards who have 
been patiently and legally waiting in line for many years for 
immigrant visas to become available. Therefore, the bill 
provides that aliens with approved sibling petitions can 
continue to receive immigrant visas under the program for the 
next decade. This will ensure that those persons who have been 
waiting the longest will be able to receive their immigrant 
visas.

                     V. THE DIVERSITY VISA LOTTERY

    American immigration policy should be based on selecting 
immigrants who will benefit the U.S. economy and on reunifying 
families and providing refuge to the persecuted. However, the 
diversity visa program allocates up to 55,000 immigrant visas a 
year simply by a computer-generated random drawing. Admitting 
immigrants based solely on luck does nothing to serve the 
national interest and is not fair to those intending immigrants 
who must wait years, and sometimes decades, in order to 
immigrate through other legal channels. The diversity visa 
program is also subject to widespread fraud and raises 
significant national security concerns. The Judiciary 
Committee's report from the 112th Congress on H.R. 704, the 
``Safe for America Act,'' describes in detail the Committee's 
concerns with the diversity program.\48\
---------------------------------------------------------------------------
    \48\See H.R. Rep. No. 112-275 (2011).
---------------------------------------------------------------------------
    H.R. 2131 repeals the diversity visa program.

                           VI. INVESTOR VISAS

    Under the investor visa program, almost 10,000 immigrant 
visas are available each year to aliens who 1) establish a new 
business\49\ in the United States, 2) invest $1,000,000 in the 
business ($500,000 if the business is located in a rural area 
or an area of high unemployment), and 3) see that business 
create 10 full-time jobs for American workers.\50\ Approved 
investors receive conditional immigrant visas, and DHS 
determines after 2 years whether the investors have fulfilled 
their obligations under the program, in which case they receive 
unencumbered immigrant visas.\51\
---------------------------------------------------------------------------
    \49\Establishment of a new business can include the creation of a 
new business, the purchase and restructuring or reorganizing of an 
existing business, or the expansion of an existing business so that a 
substantial change in the net worth or number of employees results. See 
8 C.F.R. sec. 204.6. An investor can also invest in a ``troubled 
business.'' See id.
    \50\See INA sec. 203(a)(5)(A), (C). An investor in a troubled 
business does not need to create 10 new jobs but rather show that the 
number of employees is maintained at the pre-investment level for 2 
years. See 8 C.F.R. sec. 204.6(j)(4)(ii).
    \51\See INA sec. 216A.
---------------------------------------------------------------------------
    Spending associated with the investor visa program 
contributes an estimated $1.3 billion to our gross domestic 
product and supports over 16,000 U.S. jobs each year.\52\ 
Especially in times of economic hardship and recovery, this has 
been a tremendous boon to our economy.
---------------------------------------------------------------------------
    \52\See David Kay, Jenny Thorvaldson, Scott Lindall, Economic 
Impacts of the EB-5 Immigration Program: 2010-2011, 2013 MIG, Inc. at 
25 (table 11).
---------------------------------------------------------------------------
    In 1993, Congress created a pilot project that sets aside 
3,000 of the investor visas each year for aliens who invest in 
``designated regional centers.''\53\ A regional center ``shall 
have jurisdiction over a limited geographic area . . . 
consistent with the purpose of concentrating pooled investment 
in defined economic zones'' with the goals of ``the promotion 
of economic growth, including increased export sales, improved 
regional productivity, job creation, or increased domestic 
capital investment.''\54\
---------------------------------------------------------------------------
    \53\See Pub. L. No. 102-395, Title VI, sec. 610 (INA sec. 203 
note).
    \54\Id.
---------------------------------------------------------------------------
    A regional center investor does not have to start their own 
business, but can invest in a pre-existing large-scale project 
along with many other foreign investors seeking immigrant 
visas. In addition, the regional center can ``establish 
reasonable methodologies for determining the number of jobs 
created . . . including such jobs which are estimated to have 
been created indirectly through revenues generated from 
increased exports, improved regional productivity, job 
creation, or increased domestic capital investment. . . .''\55\ 
U.S. Citizenship and Immigration Services (``USCIS'') states 
that ``[f]or Regional Center petitions and for purposes of 
indirect job creation, USCIS officers may consider economic 
models that rely on certain variables to show job creation and 
the amount of investment to determine whether the required 
infusion of capital or creation of direct jobs will result in a 
certain number of indirect jobs.''\56\
---------------------------------------------------------------------------
    \55\Id.
    \56\EB-5 Alien Entrepreneurs--Job Creation and Full-Time Positions 
(AFM Update AD 09-04), Memorandum from Donald Neufeld, Acting Associate 
Director, Domestic Operations, USCIS, to Service Sector Directors, 
Regional Directors, District Directors, Field Office Directors, and 
National Benefit Center Director 2 (June 17, 2009).
---------------------------------------------------------------------------
    H.R. 2131 permanently authorizes the regional center pilot 
program. It also makes a number of important reforms to the 
investor visa program, three of which are discussed here.
    First, the bill indexes the minimum investment requirements 
for inflation. The minimum investment amounts under the 
investor visa program have not been increased in the more than 
two decades that the program has been in operation. DHS has 
authority to adjust the amounts for inflation.\57\ However, it 
has never done so, even though the USCIS director has stated 
that ``[w]e agree that upward adjustment of the EB-5 capital 
requirements may be warranted.''\58\ Thus, the value of 
investments under the program to the U.S. economy has fallen by 
almost half since Congress created the program in 1990. In 
Canada, the minimum investment amount for the investor visa 
program is about $776,000 in U.S. dollars, and in Australia, it 
is about $1,450,000 in U.S. dollars.\59\
---------------------------------------------------------------------------
    \57\See INA sec. 203(a)(5)(C)(i).
    \58\Letter from Alejandro Mayorkas, Director, USCIS, to Senators 
Patrick Leahy and Charles Grassley 1 (July 26, 2012).
    \59\Information provided by the Global Legal Research Center of the 
Law Library of Congress.
---------------------------------------------------------------------------
    H.R. 2131 increases the minimum investment amounts to 
reflect the change in value of the dollar from the program's 
creation in 1990 to the present day and prospectively indexes 
the amounts for future inflation. Indexing will both maximize 
the positive impact of the investor visa program on the U.S. 
economy and it will ensure that the precious commodities of 
permanent residence in the U.S. and future citizenship are 
properly valued.
    Second, the bill discourages the practice of 
``gerrymandering.'' In order to encourage investments in rural 
areas and areas with high unemployment, Congress provided that 
an investor can qualify for the investor visa program by 
investing a lower amount of $500,000 in a ``targeted employment 
area''--a rural area or an area that has an unemployment rate 
of at least 150% of the national rate.\60\
---------------------------------------------------------------------------
    \60\See INA sec. 203(a)(5)(B).
---------------------------------------------------------------------------
    Unfortunately, the desire to procure investor visas for the 
cheapest price possible has led to abuse:

        [D]evelopers are often relying on gerrymandering 
        techniques to create development zones that are 
        supposedly in areas of high unemployment . . . but 
        actually are in prosperous ones. . . . One of the more 
        prominent projects is a 34-story glass tower in 
        Manhattan that is to cost $750 million, one-fifth of 
        which is to come from foreign investors seeking green 
        cards. Called the International Gem Tower, it is rising 
        near Fifth Avenue in the diamond district of Manhattan, 
        one of the wealthiest areas in the country. Yet through 
        the selective use of census statistics, state officials 
        have classified the area as one plagued by high 
        unemployment. . . . [Our] review of the program in New 
        York indicates that several other major projects are 
        also based on questionable maps.\61\
---------------------------------------------------------------------------
    \61\Patrick McGeehan and Kirk Semple, Rules Stretched as Green 
Cards Go to Investors, New York Times, Dec. 18, 2011.

    DHS's interpretation of its current regulations require it 
to accept as binding a state's determination of a high 
unemployment area, even if DHS believes that there is clear 
evidence of abuse.\62\ USCIS's Administrative Appeals Office 
has found in a case that:
---------------------------------------------------------------------------
    \62\See 8 C.F.R. sec. 204.6(i) and e-mail from USCIS to House 
Judiciary Committee staff, June 10, 2013 (``Under the regulations, the 
relevant question is the rate of unemployment in the area designated by 
a State. As long as the area designated by the State meets the 
regulatory criteria of being a particular geographic or political 
subdivision within a metropolitan statistical area or town having a 
population of 20,000 or more, the regulations do not permit USCIS to 
further examine a State's subjective intentions in designating an area 
as a TEA, the shape of the area, the reason for designating this area 
as opposed to others, the pattern of unemployment rates within various 
parts of the area, or other considerations that might be viewed as 
coming under the term `gerrymandering.' USCIS instead examines only 
whether the area meets the minimum unemployment rate that the statute 
expressly sets as a qualifier for TEA designation.'').

        [I]t is clear that the petitioner's investment of only 
        $500,000 wholly within a ward that is not itself 
        suffering high unemployment completely undermines . . . 
        congressional intent . . . that the reduced investment 
        amount would encourage investment in areas that are 
        truly suffering high unemployment. While we are bound 
        by [the regulation], it would appear that this 
        regulation has produced unintended consequences that 
        are clearly contrary to congressional intent.\63\
---------------------------------------------------------------------------
    \63\Decision of Sept. 21, 2010, name withheld, at n.1.

    USCIS Director Mayorkas admitted that he is ``disturbed by 
reports that some states are deliberately drawing [targeted 
employment areas] to include prosperous areas that should not 
be subject to the reduced capital requirements that Congress 
intended only for the benefit of rural areas or areas suffering 
high unemployment.''\64\
---------------------------------------------------------------------------
    \64\Letter from Alejandro Mayorkas, Director, USCIS, to Senators 
Patrick Leahy and Charles Grassley 1 (July 26, 2012).
---------------------------------------------------------------------------
    In order to prevent the evasion of the congressional goal 
of encouraging investments in rural areas and areas with high 
unemployment through the lowered investment amount, H.R. 2131 
takes a number of steps including providing that DHS is not 
bound by the decision of any other entity if it believes that 
abuse has occurred, and can reject an abusive determination.
    Third, the bill provides that investors can only receive 
unencumbered immigrant visas if their investments have met the 
primary goal of the investor visa program--the actual creation 
of jobs for American workers. Currently, in order to have the 
conditional status of their permanent residence removed, alien 
investors must provide evidence that they ``created or can be 
expected to create within a reasonable time ten full-time 
jobs.''\65\ USICS policy is that:
---------------------------------------------------------------------------
    \65\8 C.F.R. sec. 216.6(a)(4)(iv).

        The regulations require that the business plan 
        submitted with [the investor's petition] establish a 
        likelihood of job creation ``within the next 2 years,'' 
        8 C.F.R. sec. 204.6(j)(4)(i)(B), demonstrating an 
        expectation that EB-5 projects will generally create 
        jobs within such a timeframe. Whether a lengthier 
        timeframe for job creation presented in [the petition 
        to remove the conditional status] is ``reasonable'' is 
        to be decided based on the totality of the 
        circumstances presented, and USCIS has latitude under 
        the law to request additional evidence concerning those 
        circumstances. Because the law contemplates 2 years as 
        the baseline expected period in which job creation will 
        take place, jobs that will be created within a year of 
        the 2-year anniversary of the alien's admission as a 
        conditional permanent resident or adjustment to 
        conditional permanent resident may generally be 
        considered to be created within a reasonable period of 
        time. Jobs projected to be created beyond that time 
        horizon usually will not be considered to be created 
        within a reasonable time, unless extreme circumstances, 
        such as force majeure, are presented.\66\
---------------------------------------------------------------------------
    \66\EB-5 Adjudications Policy, USCIS Memorandum 22 (May 30, 2013).

    However, USCIS believes that to establish that jobs 
reasonably can be expected to be created, it only has to be 
determined that the jobs ``are more likely than not going to be 
created.''\67\ Immigrant visa status is not revoked should the 
jobs never be created. H.R. 2131 requires that the jobs 
actually be created in order for conditional status to be 
removed.
---------------------------------------------------------------------------
    \67\EB-5 Alien Entrepreneurs--Job Creation and Full-Time Positions 
(AFM Update AD 09-04) at 7.
---------------------------------------------------------------------------

                        VII. ENTREPRENEUR VISAS

    Over half of Silicon Valley startups have an immigrant as a 
key founder. Yet current immigration law provides no dedicated 
mechanism to allow such entrepreneurs to stay in the country 
other than through the investor visa program. H-1B and L visas 
provide potential avenues for some entrepreneurs, but the visas 
are so restricted that many entrepreneurs would rather start 
companies in their own countries than navigate complex H-1B and 
L visa requirements.
    Commentators have therefore called for the creation of an 
immigrant visa for entrepreneurs--a ``start-up'' visa:

        Immigrants who come here to create companies create 
        jobs. We need the jobs. . . . One good idea to make 
        this process easier is to create a new visa for 
        entrepreneurs, something that is increasingly being 
        called by venture capitalists, entrepreneurs, and angel 
        investors a ``start-up visa.'' It might work like this: 
        If immigrant entrepreneurs want to start a company in 
        the U.S. and are able to raise a moderate amount of 
        money . . . from an accredited U.S.-based venture 
        capital firm or qualified U.S.-based angel investors, 
        we should let them start a company here. It could be a 
        couple of founders with an idea--that's it. We would 
        give visas to the founders and welcome them in to our 
        country.\68\
---------------------------------------------------------------------------
    \68\Paul Kedrosky and Brad Feld, Start-up Visas Can Jump Start the 
Economy, Wall Street Journal, Dec. 2, 2009.

    Just as the investor visa program attracts immigrant 
investors who make significant financial investments in 
projects that will create jobs for U.S. workers, a ``start-up'' 
visa will create U.S. jobs. Rather than attracting immigrant 
investors with financial capital, the program attracts 
immigrant entrepreneurs with intellectual capital whose ideas 
attract significant financing in the United States. The concept 
is predicated on the idea that innovation can create large 
numbers of jobs for U.S. workers. The visa would be limited to 
persons who have the necessary entrepreneurial skills to secure 
a significant amount of money from U.S. based venture capital 
firms or U.S. based angel investors.
    H.R. 2131 therefore allocates up to 10,000 green cards a 
year for alien entrepreneurs who can attract investment to 
establish businesses that will create at least five jobs.

        VIII. PHYSICIANS WORKING IN MEDICALLY-UNDERSERVED AREAS

    Foreign medical graduates often come to the U.S. to enter 
residency programs under J foreign exchange visas, after which 
they must return home for 2 years before being able to return 
to the U.S. to work.\69\ J visa holders can receive waivers of 
the 2 year foreign residency requirement under the ``Conrad 
State 30 program'' that are requested by Federal or state 
agencies if they promise to serve for 3 years in medical 
practice in geographic areas designated by the Secretary of the 
Department of Health and Human Services as having a shortage of 
health care professionals--each state can receive up to 30 
waivers a year requested by state agencies.\70\
---------------------------------------------------------------------------
    \69\See INA sec. 212(e).
    \70\See INA sec 214(l).
---------------------------------------------------------------------------
    The Virginia Rural Health Association states that:

        The Conrad State 30 Program has been of tremendous 
        assistance to VRHA members. But Virginia exhausts its 
        quota of 30 J-1 waivers very early in the year--
        severely limiting its utility as a recruitment tool. . 
        . . This year, the quota was reached in February. This 
        means that, for the majority of the year, we cannot use 
        the Conrad J-1 waiver program and members of our 
        organization go without critically needed physicians. . 
        . . An arbitrary quota is preventing Virginians from 
        receiving the medical care they need.''\71\
---------------------------------------------------------------------------
    \71\Letter from Beth O'Connor, Executive Director, Virginia Rural 
Health Association, to Representative Bob Goodlatte 1 (March 21, 2013).

    The Medical Society of Virginia also believes that the 
program will ``improve access to care in rural and underserved 
areas'' of Virginia.\72\
---------------------------------------------------------------------------
    \72\Letter from Russell Libby, President, Medical Society of 
Virginia, to Representative Bob Goodlatte 1 (May 9, 2013).
---------------------------------------------------------------------------
    H.R. 2131 permanently authorizes the program allowing 
foreign doctors to work in medically underserved areas without 
first having to return home for 2 years after their 
residencies, increases the number of slots available to each 
state, and makes other improvements to the program.

                 IX. THE PER-COUNTRY IMMIGRANT VISA CAP

    As stated, the Immigration and Nationality Act generally 
provides that the total number of employment-based immigrant 
visas made available to natives of any single foreign country 
in a year cannot exceed 7% of the total number of such visas 
made available in a year. It takes much longer for visas to 
become available to natives of certain countries.
    For instance, in the employment-based second preference 
category for professionals with advanced degrees and aliens of 
exceptional ability, immigrant visas are now immediately 
available to approved applicants from most countries. However, 
because employers seek so many workers from India and China, 
the per-country caps result in green cards only being available 
to these natives who first applied on or before 2008.
    Not only is the per-country cap unfair to immigrants from 
certain countries (who have to wait longer for immigrant visas 
than do similarly situated immigrants from other countries), 
but it punishes American employers. Why should employers have 
to wait longer for immigrant visas for crucial employees simply 
because the workers are from India or China? Employers have 
already proven to the U.S. government that they need these 
workers, that qualified Americans are not available and that 
American workers will not be harmed. The employment-based per-
country cap does not make sense. The Judiciary Committee's 
report from the 112th Congress on H.R. 3012, the ``Fairness for 
High-Skilled Immigrants Act of 2011,'' describes in detail the 
Committee's belief as to why the employment-based per-country 
cap should be eliminated.\73\
---------------------------------------------------------------------------
    \73\See H.R. Rep. No. 112-292 (2011).
---------------------------------------------------------------------------
    H.R. 2131 eliminates the employment-based per-country cap 
and raises the family-sponsored per-country cap from 7% to 15%.

                        X. THE H-1B VISA PROGRAM

    ``H-1B'' visas are visas available for workers coming 
temporarily to the United States to perform services in a 
specialty occupation.\74\ Such an occupation is one that 
requires ``(A) theoretical and practical application of a body 
of highly specialized knowledge, and (B) attainment of a 
bachelor's or higher degree in the specific specialty (or its 
equivalent) as a minimum for entry into the occupation in the 
United States.''\75\ The period of authorized admission is up 
to 6 years.\76\
---------------------------------------------------------------------------
    \74\See INA sec. 101(a)(15)(H)(i)(b).
    \75\INA sec 214(i)(1).
    \76\Aliens can stay longer than 6 years as long as they have an 
employment-based immigrant visas petition pending. See section 11030A 
of title 1 of division C of Pub. L. No. 107-273 (8 U.S.C. sec. 1184 
note).
---------------------------------------------------------------------------
    From 2000 to 2009, the largest occupations of approved H-1B 
workers were: systems analysis and programming (42%), college/
university education (7%), accountants and auditors (4%), 
electrical/electronics engineers (4%), other computer-related 
(4%), physicians/surgeons (3%), and biological sciences 
(2%).\77\ USCIS data shows that in 2012, 61% of all initial H-
1B approvals went to computer-related workers.\78\ The 
percentage of H-1B workers with graduate degrees increased from 
40% in 2000 to 53% in 2012.\79\ The percentage with graduate 
degrees from U.S. universities rose to 36% of all approved 
workers in 2009.\80\ Only 1% of H-1B workers do not have at 
least a bachelor's degree.\81\
---------------------------------------------------------------------------
    \77\See H-1B Visa Program: Reforms Are Needed to Minimize the Risks 
and Costs of Current Program at 34 (including both initial petitions 
and requests for visa extensions).
    \78\See USCIS, Characteristics of H-1B Specialty Occupation 
Workers: Fiscal Year 2012 Annual Report at 13 (2013).
    \79\See id. at 10 and H-1B Visa Program: Reforms Are Needed to 
Minimize the Risks and Costs of Current Program at 35 (including both 
initial petitions and requests for visa extensions).
    \80\See H-1B Visa Program: Reforms Are Needed to Minimize the Risks 
and Costs of Current Program at 35 (including both initial petitions 
and requests for visa extensions).
    \81\See Characteristics of H-1B Specialty Occupation Workers: 
Fiscal Year 2012 Annual Report at 10.
---------------------------------------------------------------------------
    Historically, the total number of aliens who could be 
issued visas or otherwise provided nonimmigrant status as H-1B 
workers during any fiscal year could not exceed 65,000. In 
fiscal year 1997, the 65,000 cap was reached for the first 
time. In response, Congress passed the ``American 
Competitiveness and Workforce Improvement Act of 1998,'' which 
raised the cap to 115,000 for fiscal years 1999 and 2000.\82\ 
This higher cap was itself reached in fiscal year 1999.
---------------------------------------------------------------------------
    \82\See title IV of division C of Pub. L. No. 105-277.
---------------------------------------------------------------------------
    In response, Congress passed the ``American Competitiveness 
in the Twenty-First Century Act of 2000'', which increased the 
cap to 195,000 for fiscal years 2001 through 2003 (after which 
it would fall back to 65,000).\83\ The Act also provided that 
the cap would not apply to H-1B petitions approved for 
institutions of higher education (or related or affiliated 
nonprofit entities), nonprofit research organizations and 
governmental research organizations, and such petitions would 
not count against the cap.\84\ The 195,000 cap was not reached 
in fiscal years 2001-2003. In fiscal year 2004, the 65,000 cap 
was reached on February 17, 2004.\85\
---------------------------------------------------------------------------
    \83\See Pub. L. No. 106-313.
    \84\See id. at section 103, INA sec. 214(g)(5).
    \85\Employers can petition for H-1B workers for a fiscal year 
(beginning on October 1st of the previous calendar year) starting on 
April 1st of the previous calendar year.
---------------------------------------------------------------------------
    In response, Congress passed the ``L-1 Visa and H-1B Visa 
Reform Act'', which provided that the 65,000 cap would not 
apply to the first 20,000 H-1B visas granted to aliens who have 
earned master's or higher degrees from U.S. institutions of 
higher education, and such petitions would not count against 
the cap.\86\
---------------------------------------------------------------------------
    \86\See section 425(a) of subtitle B of title IV of division J of 
Pub. L. No. 108-447, INA sec. 214(g)(5).
---------------------------------------------------------------------------
    In fiscal year 2005, the cap was reached on October 1, 
2004;\87\ in fiscal year 2006, the cap was reached on August 
10, 2005 (Jan. 17, 2006, for the additional visas for graduates 
of U.S. universities); in fiscal year 2007, the cap was reached 
on May 26, 2006 (July 26, 2006, for the additional visas for 
graduates of U.S. universities); in fiscal year 2008, the cap 
was reached April 2, 2007 (April 30, 2007, for the additional 
visas for graduates of U.S. universities); in fiscal year 2009, 
both caps were reached on April 5, 2008; and in 2010 the cap 
was reached on December 21, 2009 (July 9, 2009, for the 
additional visas for graduates of U.S. universities).\88\ In 
fiscal year 2011, the cap was reached on January 26, 2011 
(December 22, 2010, for the additional visas for graduates of 
U.S. universities); in fiscal year 2012, the cap was reached on 
November 23, 2011 (October 19, 2011, for the additional visas 
for graduates of U.S. universities; in fiscal year 2013, the 
cap was reached on June 12, 2012 (June 7, 2012, for the 
additional visas for graduates of U.S. universities); in fiscal 
year 2014, the cap was reached within the first week of the 
filing period (which ended on April 5, 2013)(it was also 
reached within this period for the additional visas for 
graduates of U.S. universities).\89\
---------------------------------------------------------------------------
    \87\The Department of Homeland Security's Office of the Inspector 
General found that in 2005, USCIS mistakenly exceeded the 65,000 cap by 
about 7,000 approved petitions. See Department of Homeland Security, 
Office of the Inspector General, USCIS Approval of H-1B Petitions 
Exceeded 65,000 Cap in Fiscal Year 2005 (2005).
    \88\See H-1B Visa Program: Reforms Are Needed to Minimize the Risks 
and Costs of Current Program at 16.
    \89\Information provided by U.S. Citizenship and Immigration 
Services.
---------------------------------------------------------------------------
    From 2000 to 2009, over 14% of all initial petitions were 
submitted by employers not subject to the cap.\90\ In addition, 
in 2009, 87,519 workers (initial and extensions) were approved 
for visas to work for 6,034 cap-exempt employers.\91\
---------------------------------------------------------------------------
    \90\See H-1B Visa Program: Reforms Are Needed to Minimize the Risks 
and Costs of Current Program at 11.
    \91\See id. at 59.
---------------------------------------------------------------------------
    Because of employers' needs to bring H-1B workers on board 
in the shortest possible time, the H-1B program's mechanism for 
protecting American workers is not based on a ``labor 
certification''-like pre-arrival review of the need for foreign 
workers and the unavailability of suitable U.S. candidates. 
Instead, the employer has to file a ``labor condition 
application'' making certain basic attestations and the 
Secretary of Labor investigates complaints alleging 
noncompliance.\92\
---------------------------------------------------------------------------
    \92\See INA sec. 212(n).
---------------------------------------------------------------------------
    There are a number of attestations a petitioning employer 
must make, including that the employer will pay H-1B aliens 
wages that are the higher of the actual wage level paid by the 
employer to all other individuals with similar experience and 
qualifications for the specific employment in question or, if 
higher, the prevailing wage level (when the Secretary of Labor 
uses a governmental survey to determine the prevailing wage, 
such survey shall provide at least four levels of wages 
commensurate with experience, education, and the level of 
supervision)\93\ for the occupational classification in the 
area of employment. Universities and certain other employers 
only have to pay the prevailing wage level of employees at 
similar institutions.\94\ The employer will provide working 
conditions for H-1B aliens that will not adversely affect those 
of workers similarly employed.\95\
---------------------------------------------------------------------------
    \93\See INA sec. 212 (p)(4).
    \94\See INA sec. 212(p)(1).
    \95\See INA sec. 212(n)(1)(A)(ii).
---------------------------------------------------------------------------
    The Labor Department enforces the program. Departmental 
investigations as to whether an employer has failed to fulfill 
its attestations or has misrepresented material facts in its 
application are triggered by complaints filed by aggrieved 
persons or organizations (including bargaining 
representatives)--investigations can be conducted where there 
is reasonable cause to believe that a violation has 
occurred.\96\ The Labor Department can investigate an employer 
using the H-1B program without having received a complaint from 
an aggrieved party in certain circumstances--where the 
Secretary personally certifies that reasonable cause exists 
that an employer is not in compliance with the program or where 
the Department receives specific credible information that 
provides reasonable cause to believe that the employer has 
committed a willful failure to meet conditions of the H-1B 
program, has shown a pattern or practice of failing to meet the 
conditions, or has substantially failed to meet the conditions 
in a way that affects multiple employees.\97\ In addition, the 
Labor Department can subject employers to random investigations 
for up to 5 years after an employer is found to have committed 
a willful failure to meet the conditions of the H-1B 
program.\98\
---------------------------------------------------------------------------
    \96\See INA sec. 212(n)(2)(A).
    \97\See INA sec. 212(2)(G).
    \98\See INA sec. 212(n)(2)(F).

A. H-1B Wage Protections
    The prevailing wage requirement under the H-1B program is 
designed to protect competing American workers from wage 
depression and a lessening of job opportunities.
    Two years ago, the Government Accountability Office found 
that:

        [W]e examined data on salaries for the three 
        occupations that absorbed the largest proportion of H-
        1B workers relative to the stock of U.S. workers in 
        2008, and compared this to data on the reported 
        salaries listed by the employer on H-1B petitions. A 
        comparison of median annual salaries reveals that for 
        systems analysts, programmers, and other computer-
        related workers--the largest of the three occupational 
        categories we examined--H-1B workers tended to earn 
        less than U.S. workers; however, some of the salary gap 
        appears to be explained by differences in ages, which 
        may reflect differences in the extent of their work 
        experience. . . . [D]ifferences in median reported 
        earnings between H-1B workers aged 20 to 29 and U.S. 
        workers of the same age were not statistically 
        significantly different, and the same was true for 
        workers aged 30 to 39; however, H-1B workers aged 40 to 
        50 had median reported earnings that were significantly 
        lower than the median earnings of U.S. workers in this 
        occupation. Among electronics and electrical engineers, 
        we did not find significant differences in median 
        earnings of approved H-1B workers and U.S. workers, 
        overall and within the age groups we examined. Among 
        college and university educators, differences in 
        reported earnings between H-1B workers and U.S. workers 
        were not statistically significant except among younger 
        age groups in which the H-1B workers had higher 
        reported earnings than U.S. workers in the same age 
        category; however, we could not account for all factors 
        that might affect salary levels. . . . For all groups, 
        differences in other factors, such as skill level, 
        might explain some of the remaining salary differences; 
        however, a lack of data on these factors precludes our 
        analysis of them. In addition, differences in factors 
        such as geographic location, size of firm, and 
        industry, as well as level of education, which may also 
        affect salary differences, are not controlled for here 
        due to data limitations. For example, if certain groups 
        of workers are more heavily concentrated in high-cost 
        parts of the country, this will be reflected in the 
        median wage.
        .    .    .    .

        Because H-1B workers tend to be younger (with less 
        potential work experience) than their U.S. counterparts 
        who tend to be older (with more potential work 
        experience), some labor advocates we spoke with argued 
        that the H-1B program detrimentally impacts older IT 
        professionals. Several researchers and labor advocates 
        have stated that technology companies seek to replace 
        older, American IT workers with cheaper, younger 
        workers that are freshly supplied through the H-1B 
        program in order to lower costs, and that IT companies 
        have no incentive to retain and retrain older workers 
        with the latest skills, since the H-1B program provides 
        ready access to young workers with cutting-edge 
        training. While companies could use any young, skilled 
        workers to lower their labor costs in this manner, 
        advocates argue that the H-1B program facilitates the 
        practice of displacing older IT workers because it 
        provides an inflow of new workers in IT fields that is 
        much larger than would otherwise be available to U.S. 
        employers. The analysis presented here does not provide 
        a test of this theory because it does not identify what 
        the wages of older U.S. IT professionals would have 
        been in the absence of the H-1B program, nor does it 
        account for the myriad factors affecting wage, for 
        which we lack data.\99\
---------------------------------------------------------------------------
    \99\H-1B Visa Program: Reforms Are Needed to Minimize the Risks and 
Costs of Current Program at 40-42 (footnotes omitted). GAO found that 
50% of U.S. citizen electrical/electronics engineers were aged 40-50 
while only 9% of such H-1B workers were; for systems analysts, 
programmers and other computer-related workers, 40% of U.S. citizens 
were aged 40-50, while only 3% of such H-1B workers were. See id. at 89 
(figure 16).

    In determining the prevailing wage for H-1B workers, 
---------------------------------------------------------------------------
Department of Labor surveys use a four-tier wage scale:

        Level I (entry) wage rates are assigned to job offers 
        for beginning level employees who have only a basic 
        understanding of the occupation. These employees 
        perform routine tasks that require limited, if any, 
        exercise of judgment. The tasks provide experience and 
        familiarization with the employer's methods, practices, 
        and programs. . . . These employees work under close 
        supervision and receive specific instructions on 
        required tasks and results expected. Their work is 
        closely monitored and reviewed for accuracy.

        Level II (qualified) wage rates are assigned to job 
        offers for qualified employees who have attained, 
        either through education or experience, a good 
        understanding of the occupation. They perform 
        moderately complex tasks that require limited judgment.

        Level III (experienced) wage rates are assigned to job 
        offers for experienced employees who have a sound 
        understanding of the occupation and have attained, 
        either through education or experience, special skills 
        or knowledge. They perform tasks that require 
        exercising judgment and may coordinate the activities 
        of other staff. They may have supervisory authority 
        over those staff.

        Level IV (fully competent) wage rates are assigned to 
        job offers for competent employees who have sufficient 
        experience in the occupation to plan and conduct work 
        requiring judgment and the independent evaluation, 
        selection, modification, and application of standard 
        procedures and techniques. Such employees use advanced 
        skills and diversified knowledge to solve unusual and 
        complex problems. These employees receive only 
        technical guidance and their work is reviewed only for 
        application of sound judgment and effectiveness in 
        meeting the establishment's procedures and 
        expectations. They generally have management and/or 
        supervisory responsibilities.\100\
---------------------------------------------------------------------------
    \100\Employment and Training Administration, U.S. Department of 
Labor, Employment and Training Administration Prevailing Wage 
Determination Policy Guidance Nonagricultural Immigration Programs 
(2009) (at appendix A).

    GAO found that 54% of aliens with approved LCAs from June 
2009 through July 2010 were categorized by their employers on 
their LCAs as level one (entry level), 29% were categorized as 
level two (qualified), 11% were qualified as level three 
(experienced) and only 6% were qualified as level four (fully 
competent).\101\
---------------------------------------------------------------------------
    \101\See H-1B Visa Program: Reforms Are Needed to Minimize the 
Risks and Costs of Current Program at 58 (table 5).
---------------------------------------------------------------------------
    The H-1B program should facilitate the availability to 
American employers of the ``best and brightest'' workers from 
around the world. As the immigration advocacy organization 
FWD.us states, Congress should increase the numbers of H-1Bs to 
``attract the world's best and the brightest workers.''\102\ 
The Society for Human Resource Management argues that the H-1B 
cap should be raised so that employers will have the 
``reliability that the best and brightest talent will be able 
to join the employer.''\103\ However, given that GAO found that 
the majority of H-1B aliens with approved LCAs are classified 
at the lowest level, questions can be raised as to whether the 
use of H-1B program is always focused on the ``the best and the 
brightest.''
---------------------------------------------------------------------------
    \102\See FWD.us website.
    \103\See Society for Human Resource Management website.
---------------------------------------------------------------------------
    In order to ensure that the prevailing wage system protects 
U.S. workers from potential wage depression and that employers 
focus on bringing in the best and brightest foreign workers, 
H.R. 2131 provides that employers shall use prevailing wage 
surveys--either governmental or private--that provide three 
levels of wages with a lowest prevailing wage level not lower 
than 80% of the average wage level for the occupation. This 
ensures that if employers pay the majority of their H-1Bs at 
the lowest wage level, a wage floor will prevent the program 
from potentially harming the wages of competing American 
workers and will encourage employers to use the H-1B program 
for higher-value and higher-skilled workers. As the bill more 
than doubles the H-1B program's yearly cap, these wage 
provisions will help protect American workers.\104\
---------------------------------------------------------------------------
    \104\The bill exempts employers from the prevailing wage 
requirement if 80% or more of the employer's workers in the same 
occupation in the same city or town are Americans workers. If most of 
an employer's workers in an occupation are in fact American workers, it 
can reasonably be assumed that the wages of these American workers are 
not being negatively impacted by foreign workers. In this situation, 
the employer would simply have to pay its foreign workers the same 
wages it pays to its comparable American workers (with a wage floor for 
larger employers of the mean of the lowest one-half of wages surveyed).

B. H-1B Enforcement Issues
    GAO has evaluated the effectiveness of enforcement of the 
H-1B program and found that:

        Labor's Wage and Hour investigates H-1B complaints 
        primarily related to improper wage payments and 
        failures to notify workers that a company intends to 
        hire an H-1B worker. However, its ability to enforce 
        worker protections with regard to the H-1B program is 
        limited. Although the Secretary of Labor has authority 
        to initiate investigations, Wage and Hour reported that 
        it had never initiated an investigation under this 
        authority. Officials explained that they rarely 
        proactively investigate companies for H-1B violations, 
        and that they may generally only act on formal 
        complaints. Moreover, by law, investigations can only 
        be initiated from information obtained from an 
        aggrieved or credible party outside of Labor. . . .

        While the majority of complaints received by Labor have 
        been reported by H-1B workers, very few complaints are 
        filed. In 2009, only 664 out of 51,980 companies 
        approved to hire new or extending H-1B workers had 
        complaints against them. According to agency officials, 
        H-1B workers are likely to be reluctant to file 
        complaints against employers for fear that the company 
        might be disbarred, which in turn could result in the 
        complainant and fellow H-1B workers at the company 
        losing their jobs and potentially having to leave the 
        United States. Further, investigators told us that even 
        after an H-1B worker files a complaint, the H-1B worker 
        may not cooperate in the investigation for fear of 
        similar repercussions. In these instances, 
        investigators are sometimes unable to complete the 
        investigation. The relatively small number of H-1B-
        related complaints in 2009 nevertheless resulted in 
        Labor requiring companies to pay over $10 million in 
        unpaid wages to 1,202 workers and $739,929 in civil 
        monetary penalties. . . .
        .    .    .    .

        [W]age and Hour has limited ability to persuade 
        employers to cooperate with investigations. The fine it 
        can levy against employers for not cooperating is far 
        less than the potential penalty for a finding of 
        noncompliance with the terms of the program. 
        Investigators noted that when employers do not 
        cooperate, it can take them months to obtain the 
        requested paperwork, which essentially stalls the time-
        sensitive investigation.

        [W]age and Hour lacks subpoena authority to obtain such 
        records directly from the employer. In contrast, Wage 
        and Hour, as well as Employment and Training, have 
        subpoena power for other labor protection programs they 
        administer, such as under the Fair Labor Standards Act 
        and the Migrant and Seasonal Agricultural Worker 
        Protection Act. According to Wage and Hour officials, 
        subpoena power increases cooperation from companies and 
        is the most effective way to speed up investigations, 
        since companies could face harsh penalties, such as 
        debarment, for not cooperating.
        .    .    .    .

        Restrictions on agencies' abilities to enforce program 
        requirements and coordinate with one another widen the 
        risk of fraud and abuse, and undermine efforts to 
        enforce worker protections.\105\
---------------------------------------------------------------------------
    \105\H-1B Visa Program: Reforms Are Needed to Minimize the Risks 
and Costs of Current Program at 47-49, 60.

    In order to ensure that American workers are not being hurt 
by the H-1B program and the ineffectiveness of the complaint-
driven enforcement process, H.R. 2131 provides the Department 
of Labor with general random audit authority and subpoena 
authority. However, in order to prevent potential abuse of the 
audit authority, the bill prohibits repetitive, abusive audits. 
It provides that an employer cannot be subject to a random 
audit within 4 years of the time that it has been subject to 
two previous random audits (unless willful violations had been 
---------------------------------------------------------------------------
found).

C. H-1B Program Fraud
    The Judiciary Committee has long been concerned about fraud 
in the H-1B program.\106\ USCIS's Office of Fraud Detection and 
National Security (``FDNS'') issued a Benefit Fraud and 
Compliance Assessment of fraud in the H-1B program in 
2008.\107\ FDNS looked at 246 cases drawn from a total 
population of 96,827 approved, denied or pending H-1B petitions 
filed between October 1, 2005 and March 31, 2006 (most were 
petitions to extend the existing H-1B status of workers). The 
report found that 51 of the 246 cases contained fraud and/or 
technical violations--a rate of 20.7%--33 cases of fraud (or 
fraud plus technical violations) and 18 cases of technical 
violations. Of the cases that USCIS had already approved, the 
violation rate was 19%, of the pending cases the rate was 29%, 
and of the denied cases, the rate was 40%. 80% of the fraud was 
discovered during site visits.
---------------------------------------------------------------------------
    \106\H.R. Rept. No. 106-692 at 23-25 (2000).
    \107\See USCIS, H-1B Benefit Fraud & Compliance Assessment (2008).
---------------------------------------------------------------------------
    What type of fraud did FDNS find? The alien did not work at 
the actual job location listed on the LCA in 28 cases, 15 
because of fraud and 13 because of technical violations. The 
alien workers had not received the required prevailing wage or 
were improperly ``benched'' (placed without pay in non-working 
status because of a lack of work) in 14 cases--nine because of 
fraud and five because of technical violations. Fraud involving 
fraudulent or forged documents was found in 10 cases. The 
petitioning businesses were found to be ``shells'' (business 
locations nonexistent, no evidence of daily business activity, 
etc.) in seven cases, six because of fraud and one because of a 
technical violation. The actual job duties were significantly 
different from those described in the petition in six cases, 
five because of fraud and one because of a technical violation. 
Fraud involving misrepresentation of H-1B status was found in 
three cases (such as aliens entering the U.S. after they had 
been fired or quit their jobs). The beneficiary unlawfully paid 
the fees associated with an H-1B petition in three cases, two 
because of fraud and one because of a technical violation. Six 
cases were characterized as fraudulent because they were 
already under ICE investigation and ICE had requested that FDNS 
not contact the petitioner or the beneficiary due to the 
ongoing investigation.
    The report found that there was fraud/technical violations 
in 31% of the cases where the beneficiary had a bachelor's 
degree and in only 13% of the cases where the beneficiary had a 
graduate degree. The violation rate ranged from 42% for cases 
involving accounting, human resources, sales, advertising and 
business analysts and 27% for computer professionals to only 8% 
for architecture, engineering and surveying professionals. 
Cases involving businesses founded from 1995 to 2005 had a 40% 
violation rate, while firms established prior to 1995 had a 10% 
violation rate. Employers employing 26 or more workers had an 
11% violation rate while those with less than 26 workers had a 
54% violation rate. Companies with annual gross income of 
greater than $10 million had a 7% violation rate while smaller 
firms had a 41% rate and non-profits had a 6% rate.
    Because of this legacy, H.R. 2131 incorporates powerful 
anti-fraud measures into the H-1B program. This will help 
ensure that all available H-1B visas go to deserving employers. 
The bill provides that the State Department shall determine the 
equivalence of foreign college degrees to U.S. degrees and will 
verify the authenticity of foreign degrees. It requires that 
commercial employers show that they maintain places of business 
in the United States that are licensed in accordance with 
applicable licensing requirements and have sufficient assets to 
display real business activity. And, as discussed, it provides 
the Department of Labor with subpoena power.

                              XI. L VISAS

    L visas are temporary visas available for ``intracompany 
transferees''--and allow employees working for a company 
overseas to be shifted to a worksite in the United States. A 
visa is available to an alien who ``within 3 years preceding 
the time of his application for admission into the United 
States, has been employed continuously for 1 year by a firm . . 
. or an affiliate or subsidiary thereof and who seeks to enter 
the United States temporarily in order to continue to render 
his services to the same employer or a subsidiary or affiliate 
thereof in a capacity that is managerial, executive, or 
involves specialized knowledge. . . .''\108\ ``Specialized 
knowledge'' with respect to a company is ``special knowledge of 
the company product and its application in international 
markets or an advanced level of knowledge of processes and 
procedures of the company.''\109\
---------------------------------------------------------------------------
    \108\See INA sec. 101(a)(15)(L).
    \109\See INA sec. 214(c)(2)(B).
---------------------------------------------------------------------------
    There is no numerical cap or prevailing wage requirements 
associated with the L visa program. There is much overlap 
between H-1B ``specialty occupation'' workers and L visa 
``specialized knowledge'' workers. And the two principle 
protections for American workers in the H-1B program--the 
numerical cap and the prevailing wage requirement--are absent 
from the L visa program. This has caused a great temptation to 
employers to use the L visa program when they should instead be 
using the H-1B program. The Department of Homeland Security's 
Office of the Inspector General has reported that:

        [Department of State] foreign service officers [have] 
        expressed concern about substitution [of L visas for H-
        1B visas]. One southeast Asian post we surveyed 
        reported: ``Host country software companies appear to 
        be using the L visa to get around H quotas. . . .'' To 
        manage the displacement of American workers, Congress 
        has imposed a statutory limit on the number of H-1B[s]. 
        . . . There is some concern that the L-1B visa for 
        workers with specialized knowledge, which has no such 
        numerical limit, might serve as a way to avoid the H-1B 
        cap for some employers. The L-1 visa has other 
        advantages over the H-1B. . . . One is that unlike the 
        H-1B, the L-1 has no labor certification requirement to 
        ensure that recipients are paid the prevailing wage and 
        that American workers are not displaced.\110\
---------------------------------------------------------------------------
    \110\Office of the Inspector General, DHS, Review of 
Vulnerabilities and Potential Abuses of the L-1 Visa Program 9-10 
(2006) (citations omitted).

    The Inspector General recently concluded that the data they 
reviewed did not find ``conclusive evidence that the L-1 visa 
program is being used to avoid H-1B restrictions[,]'' but it 
reported that the State Department consular bureau in India 
(which processes 37% of all L visas) believes that ``India is 
the only country in the world where companies have built a 
business model dependent on using blanket L-1s to send large 
numbers of personnel to the United States who would otherwise 
require H-1Bs.''\111\
---------------------------------------------------------------------------
    \111\Office of the Inspector General, DHS, Implementation of L-1 
Visa Regulations 5, 13 (2013).
---------------------------------------------------------------------------
    In order to best protect American workers and to discourage 
the use of the L visa program as a way to evade the program 
requirements of the H-1B program, H.R. 2131 provides that 
employers of L visa workers with ``specialized knowledge'' have 
to generally pay them according to the H-1B program's wage 
standards, but only if they are in the U.S. for a cumulative 
period of more than 6 months in a 2-year period. The 
requirement does not apply to workers on short-term assignments 
and it does not apply to managers and executives.

           XII. OTHER VISAS FOR SPECIALTY OCCUPATION WORKERS 
                           AND PROFESSIONALS

    There are other temporary visa programs similar to the H-1B 
program. There is a temporary visa program for professionals 
from North American Free Trade Agreement countries (Mexico and 
Canada) that contains no numerical limit by statute and that 
currently contains no wage requirements. There is a temporary 
visa program for aliens from Chile and Singapore who engage in 
specialty occupations pursuant to the United States-Chile Free 
Trade Agreement and the United States-Singapore Free Trade 
Agreement with a numerical limit of 1,400 approvals of initial 
applications by Chileans each year and a limit of 5,400 
approvals of initial applications by Singaporeans and wage 
standards similar to the H-1B program. There is a temporary 
visa program for aliens from Australia who engage in specialty 
occupations with a numerical limit of 10,500 approvals of 
initial applications by Australians each year and wage 
standards similar to the H-1B program. Finally, ``optional 
practical training (``OPT'') allows foreign students to engage 
in ``temporary employment for practical training directly 
related to the student's major area of study'' after completion 
of all course requirements for a degree (and in certain 
instances during study). Generally, OPT must be completed 
within 14 months of completion of study, but graduates in STEM 
fields can participate in OPT for an additional 17 months--or 
29 months altogether. There is no numerical cap or wage 
requirements associated with OPT.
    In order to best protect American workers, H.R. 2131 
provides that employers of aliens under all these programs have 
to comply with the H-1B program's wage standards.

                                Hearings

    The Subcommittee on Immigration and Border Security held a 
hearing entitled ``Advancing American Competitiveness through 
Skilled Immigration'' on March 5, 2013.

                        Committee Consideration

    On June 27, 2013, the Committee met in open session and 
ordered the bill H.R. 2131 favorably reported with an 
amendment, by a rollcall vote of 20 to 14, a quorum being 
present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following rollcall votes occurred during the Committee's 
consideration of H.R. 2131.
    1. The amendment offered by Ms. Chu to the manager's 
amendment provides that all alien beneficiaries of approved 
fourth preference family-sponsored immigrant visa petitions 
(siblings of U.S. citizens) filed prior to October 1, 2013, 
would be eligible to receive visas at a rate of 65,000 a year, 
and that once they all received visas, the 65,000 visas a year 
would be made available to aliens beneficiaries in the family-
sponsored and employment-based immigrant visa categories. This 
amendment was defeated by a rollcall vote of 11-22.

                             ROLLCALL NO. 1
------------------------------------------------------------------------
                                                  Ayes    Nays   Present
------------------------------------------------------------------------
Mr. Goodlatte (VA), Chairman...................              X
Mr. Sensenbrenner, Jr. (WI)....................              X
Mr. Coble (NC).................................              X
Mr. Smith (TX).................................              X
Mr. Chabot (OH)................................              X
Mr. Bachus (AL)................................              X
Mr. Issa (CA)..................................              X
Mr. Forbes (VA)................................              X
Mr. King (IA)..................................              X
Mr. Franks (AZ)................................              X
Mr. Gohmert (TX)...............................
Mr. Jordan (OH)................................              X
Mr. Poe (TX)...................................              X
Mr. Chaffetz (UT)..............................              X
Mr. Marino (PA)................................              X
Mr. Gowdy (SC).................................              X
Mr. Amodei (NV)................................              X
Mr. Labrador (ID)..............................              X
Ms. Farenthold (TX)............................              X
Mr. Holding (NC)...............................              X
Mr. Collins (GA)...............................              X
Mr. DeSantis (FL)..............................              X
Mr. Smith (MO).................................              X
 
Mr. Conyers, Jr. (MI), Ranking Member..........      X
Mr. Nadler (NY)................................      X
Mr. Scott (VA).................................
Mr. Watt (NC)..................................
Ms. Lofgren (CA)...............................      X
Ms. Jackson Lee (TX)...........................
Mr. Cohen (TN).................................      X
Mr. Johnson (GA)...............................      X
Mr. Pierluisi (PR).............................      X
Ms. Chu (CA)...................................      X
Mr. Deutch (FL)................................      X
Mr. Gutierrez (IL).............................
Ms. Bass (CA)..................................
Mr. Richmond (LA)..............................      X
Ms. DelBene (WA)...............................      X
Mr. Garcia (FL)................................      X
Mr. Jeffries (NY)..............................
                                                ------------------------
    Total......................................     11      22
------------------------------------------------------------------------

    2. The amendment offered by Mr. Conyers strikes the bill's 
provision eliminating the diversity immigrant visa program. 
This amendment was defeated by a rollcall vote of 16-19.

                             ROLLCALL NO. 2
------------------------------------------------------------------------
                                                  Ayes    Nays   Present
------------------------------------------------------------------------
Mr. Goodlatte (VA), Chairman...................              X
Mr. Sensenbrenner, Jr. (WI)....................              X
Mr. Coble (NC).................................
Mr. Smith (TX).................................              X
Mr. Chabot (OH)................................
Mr. Bachus (AL)................................              X
Mr. Issa (CA)..................................              X
Mr. Forbes (VA)................................              X
Mr. King (IA)..................................              X
Mr. Franks (AZ)................................
Mr. Gohmert (TX)...............................              X
Mr. Jordan (OH)................................              X
Mr. Poe (TX)...................................
Mr. Chaffetz (UT)..............................              X
Mr. Marino (PA)................................              X
Mr. Gowdy (SC).................................              X
Mr. Amodei (NV)................................              X
Mr. Labrador (ID)..............................              X
Ms. Farenthold (TX)............................              X
Mr. Holding (NC)...............................              X
Mr. Collins (GA)...............................              X
Mr. DeSantis (FL)..............................              X
Mr. Smith (MO).................................              X
 
Mr. Conyers, Jr. (MI), Ranking Member..........      X
Mr. Nadler (NY)................................      X
Mr. Scott (VA).................................      X
Mr. Watt (NC)..................................
Ms. Lofgren (CA)...............................      X
Ms. Jackson Lee (TX)...........................      X
Mr. Cohen (TN).................................      X
Mr. Johnson (GA)...............................      X
Mr. Pierluisi (PR).............................      X
Ms. Chu (CA)...................................      X
Mr. Deutch (FL)................................      X
Mr. Gutierrez (IL).............................      X
Ms. Bass (CA)..................................      X
Mr. Richmond (LA)..............................      X
Ms. DelBene (WA)...............................      X
Mr. Garcia (FL)................................      X
Mr. Jeffries (NY)..............................      X
                                                ------------------------
    Total......................................     16      19
------------------------------------------------------------------------

    3. The amendment offered by Ms. Chu strikes the bill's 
provisions eliminating the siblings of U.S. citizens immigrant 
visa program and increasing the allotment of immigrant visas 
for the spouses and minor children of permanent residents. This 
amendment was defeated by a rollcall vote of 15-20.

                             ROLLCALL NO. 3
------------------------------------------------------------------------
                                                  Ayes    Nays   Present
------------------------------------------------------------------------
Mr. Goodlatte (VA), Chairman...................              X
Mr. Sensenbrenner, Jr. (WI)....................
Mr. Coble (NC).................................              X
Mr. Smith (TX).................................              X
Mr. Chabot (OH)................................              X
Mr. Bachus (AL)................................              X
Mr. Issa (CA)..................................              X
Mr. Forbes (VA)................................              X
Mr. King (IA)..................................              X
Mr. Franks (AZ)................................
Mr. Gohmert (TX)...............................
Mr. Jordan (OH)................................              X
Mr. Poe (TX)...................................              X
Mr. Chaffetz (UT)..............................              X
Mr. Marino (PA)................................              X
Mr. Gowdy (SC).................................              X
Mr. Amodei (NV)................................              X
Mr. Labrador (ID)..............................              X
Ms. Farenthold (TX)............................              X
Mr. Holding (NC)...............................              X
Mr. Collins (GA)...............................              X
Mr. DeSantis (FL)..............................              X
Mr. Smith (MO).................................              X
 
Mr. Conyers, Jr. (MI), Ranking Member..........      X
Mr. Nadler (NY)................................      X
Mr. Scott (VA).................................      X
Mr. Watt (NC)..................................
Ms. Lofgren (CA)...............................      X
Ms. Jackson Lee (TX)...........................      X
Mr. Cohen (TN).................................      X
Mr. Johnson (GA)...............................      X
Mr. Pierluisi (PR).............................      X
Ms. Chu (CA)...................................      X
Mr. Deutch (FL)................................      X
Mr. Gutierrez (IL).............................      X
Ms. Bass (CA)..................................      X
Mr. Richmond (LA)..............................      X
Ms. DelBene (WA)...............................      X
Mr. Garcia (FL)................................
Mr. Jeffries (NY)..............................      X
                                                ------------------------
    Total......................................     15      20
------------------------------------------------------------------------

    4. The amendment offered by Ms. Jackson Lee strikes the 
bill's provision eliminating the diversity immigrant visa 
program and instead doubles the allotment of diversity visas to 
110,000 a year. This amendment was defeated by a rollcall vote 
of 15-20.

                             ROLLCALL NO. 4
------------------------------------------------------------------------
                                                  Ayes    Nays   Present
------------------------------------------------------------------------
Mr. Goodlatte (VA), Chairman...................              X
Mr. Sensenbrenner, Jr. (WI)....................
Mr. Coble (NC).................................              X
Mr. Smith (TX).................................              X
Mr. Chabot (OH)................................              X
Mr. Bachus (AL)................................              X
Mr. Issa (CA)..................................              X
Mr. Forbes (VA)................................              X
Mr. King (IA)..................................              X
Mr. Franks (AZ)................................
Mr. Gohmert (TX)...............................
Mr. Jordan (OH)................................              X
Mr. Poe (TX)...................................              X
Mr. Chaffetz (UT)..............................              X
Mr. Marino (PA)................................              X
Mr. Gowdy (SC).................................              X
Mr. Amodei (NV)................................              X
Mr. Labrador (ID)..............................              X
Ms. Farenthold (TX)............................              X
Mr. Holding (NC)...............................              X
Mr. Collins (GA)...............................              X
Mr. DeSantis (FL)..............................              X
Mr. Smith (MO).................................              X
 
Mr. Conyers, Jr. (MI), Ranking Member..........      X
Mr. Nadler (NY)................................      X
Mr. Scott (VA).................................      X
Mr. Watt (NC)..................................      X
Ms. Lofgren (CA)...............................      X
Ms. Jackson Lee (TX)...........................      X
Mr. Cohen (TN).................................
Mr. Johnson (GA)...............................      X
Mr. Pierluisi (PR).............................      X
Ms. Chu (CA)...................................      X
Mr. Deutch (FL)................................      X
Mr. Gutierrez (IL).............................      X
Ms. Bass (CA)..................................      X
Mr. Richmond (LA)..............................      X
Ms. DelBene (WA)...............................      X
Mr. Garcia (FL)................................
Mr. Jeffries (NY)..............................      X
                                                ------------------------
    Total......................................     15      20
------------------------------------------------------------------------

    5. The bill was reported favorably, as amended, by a 
rollcall vote of 20-14.

                             ROLLCALL NO. 5
------------------------------------------------------------------------
                                                  Ayes    Nays   Present
------------------------------------------------------------------------
Mr. Goodlatte (VA), Chairman...................      X
Mr. Sensenbrenner, Jr. (WI)....................
Mr. Coble (NC).................................      X
Mr. Smith (TX).................................      X
Mr. Chabot (OH)................................      X
Mr. Bachus (AL)................................      X
Mr. Issa (CA)..................................      X
Mr. Forbes (VA)................................      X
Mr. King (IA)..................................              X
Mr. Franks (AZ)................................      X
Mr. Gohmert (TX)...............................
Mr. Jordan (OH)................................      X
Mr. Poe (TX)...................................      X
Mr. Chaffetz (UT)..............................      X
Mr. Marino (PA)................................      X
Mr. Gowdy (SC).................................      X
Mr. Amodei (NV)................................      X
Mr. Labrador (ID)..............................      X
Ms. Farenthold (TX)............................      X
Mr. Holding (NC)...............................      X
Mr. Collins (GA)...............................      X
Mr. DeSantis (FL)..............................      X
Mr. Smith (MO).................................      X
 
Mr. Conyers, Jr. (MI), Ranking Member..........              X
Mr. Nadler (NY)................................              X
Mr. Scott (VA).................................              X
Mr. Watt (NC)..................................              X
Ms. Lofgren (CA)...............................              X
Ms. Jackson Lee (TX)...........................              X
Mr. Cohen (TN).................................
Mr. Johnson (GA)...............................              X
Mr. Pierluisi (PR).............................
Ms. Chu (CA)...................................              X
Mr. Deutch (FL)................................              X
Mr. Gutierrez (IL).............................              X
Ms. Bass (CA)..................................
Mr. Richmond (LA)..............................
Ms. DelBene (WA)...............................              X
Mr. Garcia (FL)................................              X
Mr. Jeffries (NY)..............................              X
                                                ------------------------
    Total......................................     20      14
------------------------------------------------------------------------

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 2131, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 12, 2014.
Hon. Bob Goodlatte, Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2131, the 
``Supplying Knowledge-based Immigrants and Lifting Levels of 
STEM Visas Act'' (SKILLS Visa Act).
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David 
Rafferty, who can be reached at 226-2820.
            Sincerely,
                                      Douglas W. Elmendorf,
                                                  Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member




 H.R. 2131--Supplying Knowledge-based Immigrants and Lifting Levels of 
                   STEM Visas Act (SKILLS Visa Act).

      As ordered reported by the House Committee on the Judiciary 
                           on June 27, 2013.




                                SUMMARY

    H.R. 2131 would amend immigration laws to increase the 
number of highly skilled noncitizens who could receive 
employment-based immigrant (permanent) and nonimmigrant 
(temporary) visas to live and work in the United States. In 
addition, H.R. 2131 would change the numbers of family-based 
immigrant visas available to certain categories of noncitizens. 
The bill also would eliminate the immigrant visas made 
available through the Diversity Visa program. On net, CBO 
estimates that enacting H.R. 2131 would increase the U.S. 
population by nearly 1 million in 2024 and in 2034.
Budgetary Effects, 2014-2024
    CBO and the staff of the Joint Committee on Taxation (JCT) 
estimate that enacting
    H.R. 2131 would increase revenues by $118 billion over the 
2014-2024 period. That increase, largely reflecting additional 
collections of income and payroll taxes, would result primarily 
from an expansion in the size of the U.S. labor force.
    CBO and JCT estimate that enacting H.R. 2131 also would 
increase direct spending by $8 billion over the 2014-2024 
period. Most of those outlays would be for increases in 
refundable tax credits stemming from the larger U.S. population 
under the bill.
    On balance, CBO and JCT estimate that enacting H.R. 2131 
would reduce budget deficits through the changes in revenues 
and direct spending by about $110 billion over the 2014-2024 
period. Pay-as-you-go procedures apply to the bill because it 
would affect direct spending and revenues.
    CBO estimates that implementing the bill also would affect 
spending subject to appropriation. CBO expects that the 
Department of Homeland Security (DHS) and the Department of 
State would require about $50 million over the 2015-2019 period 
to begin processing the increased number of applications for 
visas resulting from the bill. Additionally, the bill would 
increase discretionary costs for the Pell Grant program by $68 
million over the 2014-2024 period, as the increase in the 
population would lead to more people attending college.
    Following the long-standing convention of not incorporating 
macroeconomic effects in cost estimates--a practice that has 
been followed in the Congressional budget process since it was 
established in 1974--cost estimates produced by CBO and JCT 
typically reflect the assumption that macroeconomic variables 
such as gross domestic product (GDP) and employment remain 
fixed at the values they are projected to reach under current 
law. However, because H.R. 2131 would materially increase the 
size of the U.S. labor force, CBO and JCT relaxed that 
assumption by incorporating in this cost estimate their 
projections of the direct effects of the bill on the U.S. 
population, employment, and taxable compensation.
Budgetary Effects, 2025-2034
    CBO and JCT generally do not provide cost estimates beyond 
the standard 10-year projection period. However, H.R. 2131 
would continue to reshape the composition and size of the U.S. 
population and labor force in the decade following 2024, so CBO 
and JCT have extended their estimate of the effects of this 
legislation for another decade. CBO and JCT estimate that 
enacting H.R. 2131 would reduce Federal deficits through 
changes in revenues and direct spending by about $400 billion 
over the 2025-2034 period. That effect would be almost entirely 
the result of higher income and payroll taxes stemming from a 
larger workforce; direct spending would be little changed from 
what it would be under current law.
Mandates
    H.R. 2131 would impose intergovernmental and private-sector 
mandates, as defined in the Unfunded Mandates Reform Act 
(UMRA), by requiring some employers of temporary foreign 
workers to pay additional fees and other employers of temporary 
foreign workers to pay higher wages than required under current 
law.
    Based on information from industry experts, DHS, and the 
Department of State, CBO estimates that the aggregate costs for 
both public and private employers to comply with the mandates 
would fall below the annual thresholds established in UMRA for 
intergovernmental and private-sector mandates ($76 million and 
$152 million in 2014, respectively, adjusted annually for 
inflation).

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 2131 is summarized 
in Table 1. The costs of this legislation would fall within 
budget functions 150 (international affairs), 250 (general 
science, space, technology), 500 (education, training, 
employment, and social services), 550 (health), 570 (Medicare), 
600 (income security), 650 (Social Security), and 750 
(administration of justice).


                           BASIS OF ESTIMATE

    For this estimate, CBO assumes that the bill will be 
enacted during fiscal year 2014, that the necessary amounts 
will be appropriated near the beginning of each fiscal year, 
and that spending will follow historical patterns for existing 
or similar activities. CBO also assumes that, under the bill, 
DHS and the Department of State would begin providing the 
additional visas and work authorizations at the start of fiscal 
year 2015.
Effects on the U.S. Population
    H.R. 2131 would increase the number of noncitizens who 
could lawfully enter the United States on a permanent basis and 
the number who could lawfully enter on a temporary basis, and 
it would amend the criteria for determining noncitizens' 
eligibility for permanent or temporary admission.
    CBO's estimates of the increase in population under the 
bill takes into account several factors, including the expected 
mortality of noncitizens and the likelihood that some 
noncitizens would later return to their native countries. The 
estimates of the increase in population also include estimates 
of the number of children who would be born in the United 
States to foreign-born individuals who would not otherwise have 
been present here; as under current law, those children would 
automatically be U.S. citizens from the time of their birth. 
Finally, the estimates include estimates of the number of 
additional immigrants who would enter the country as a result 
of their family relationships to the additional lawful 
permanent residents under the bill (that is, by being a spouse, 
child, or parent of someone who becomes a citizen after 
becoming a lawful permanent resident).
    Taking all of those factors together, CBO estimates that 
enacting H.R. 2131 would increase the U.S. population by nearly 
1 million in 2024 and in 2034.

    Lawful Permanent Residents. Noncitizens who receive 
permission to live permanently in the United States are called 
lawful permanent residents (LPRs). Those individuals are often 
referred to as ``green-card holders'' or ``immigrants.'' Under 
current law, most LPRs are admitted based on a family 
relationship with a U.S. citizen or other LPR, or based on a 
job with an employer who has petitioned for a green card on 
their behalf. The number of immigrant visas available each year 
is less than the number of approved petitions for family-
sponsored and employment-based immigrants, creating a 
significant and growing backlog of people awaiting green cards.
    On net, CBO estimates that the provisions in H.R. 2131 
affecting LPRs would increase the U.S. population by nearly 
800,000 in 2024 and in 2034.
    Family-Sponsored Immigration. Under current law, certain 
relatives of U.S. citizens and LPRs can immigrate through 
family-sponsored preferences, which are effectively capped at 
226,000 per year.
    H.R. 2131 would make several major changes to family-
sponsored preferences. It would:

         LIncrease the effective cap from 226,000 to 
        251,000 for 2014 through 2023, and then decrease the 
        effective cap to 186,000 beginning in 2024;

         LIncrease the number of visas available in the 
        preference categories for spouses and unmarried 
        children of LPRs by 25,000 beginning in 2014;

         LEliminate the preference category for 
        siblings of U.S. citizens beginning in 2024 (the annual 
        cap on immigrants through this category is currently 
        65,000); and

         LIncrease the share of family-sponsored 
        preferences that can be from any one country from 7 
        percent to 15 percent.

    On net, CBO estimates that those changes in family-based 
immigration would increase the U.S. population by about 300,000 
in 2024 but reduce it by nearly 100,000 in 2034.
    Employment-Based Immigration. Under current law, 140,000 
immigrant visas are granted each year through employment-based 
preferences. Qualified workers and investors--and their 
dependents--are eligible for those visas.
    H.R. 2131 would make several changes to employment-based 
preferences. It would:

         LIncrease the effective cap from 140,000 to 
        230,000 beginning in 2014;

         LIncrease the number of visas available in the 
        preference categories for professionals with advanced 
        degrees from 40,000 to 55,000 beginning in 2014;

         LIncrease the number of visas available in the 
        preference categories for skilled workers, 
        professionals without advanced degrees, and unskilled 
        workers from 40,000 to 55,000 beginning in 2014;

         LCreate new preference categories for 
        individuals with advanced degrees from U.S. 
        universities in science, technology, engineering, and 
        mathematics (STEM) fields and effectively allocate 
        50,000 visas to those categories beginning in 2014;

         LCreate a new preference category for 
        entrepreneurs and allocate 10,000 visas to that 
        category beginning in 2014; and

         LEliminate the limit (currently 7 percent) on 
        the share of employment-based preferences that can be 
        from any one country.

    CBO estimates that those changes in employment-based 
immigration would increase the U.S. population by about 900,000 
in 2024 and about 1.9 million in 2034.
    Diversity Visas. Under current law, the diversity visa 
program allocates visas through a lottery to people from 
countries that have had little immigration to the United 
States. Effectively, 50,000 such visas are available each year.
    H.R. 2131 would eliminate the diversity visa program 
beginning in 2014. However, by the time H.R. 2131 would be 
enacted, most or all of the diversity visas for 2014 will 
already have been issued. Furthermore, the individuals selected 
in the lottery to apply for 2015 visas will already have been 
notified and will have begun preparing to apply for their visas 
at the start of 2015. Therefore, CBO assumes the diversity visa 
program would be eliminated beginning in 2016. The lottery for 
2016 visas, scheduled to be held in October and November 2014, 
would be the first to be cancelled.
    CBO estimates that eliminating the diversity visa program 
would reduce the U.S. population by over 400,000 in 2024 and 
nearly 1 million in 2033.

    Nonimmigrants. Under current law, certain highly skilled 
noncitizens can reside and work in the United States through H-
1B visas, which are capped at 65,000 per year. Another 20,000 
visas are available to noncitizens with graduate degrees; 
additional visas, not subject to a cap, are available to 
noncitizens hired by certain categories of employers. 
Dependents of workers with H-1B visas receive H-4 visas, which 
are not subject to a cap; H-4 visas do not grant work 
authorization.
    H.R. 2131 would make several major changes to nonimmigrant 
visas. It would:

         LIncrease the cap on H-1B visas from 65,000 to 
        155,000 beginning in 2014;

         LIncrease the number of visas for noncitizens 
        with graduate degrees from 20,000 to 40,000 in 2014, 
        and limit those visas to individuals with degrees in 
        STEM fields;

         LImpose new wage requirements on employers 
        using nonimmigrant labor; and

         LGrant work authorization to spouses of 
        nonimmigrants with H-1B visas.

    CBO expects that the number of H-1B visas that are issued 
and subject to the cap would reach the new cap by 2023. In 
2001, when the H-1B cap was significantly higher than it is 
today, more than 200,000 petitions for such H-1Bs were 
approved. Additionally, employers' demand for skilled workers 
has substantially exceeded the cap on H-1B visas over the past 
few years. CBO anticipates that strong demand by employers will 
continue.
    CBO expects that the number of people with H-1B visas (and 
their dependents) in the United States would increase less than 
the inflow of people with H-1B visas. Specifically, CBO expects 
that many workers who are already in the country or would enter 
the country with H-1B visas would shift to employment-based 
immigrant visas over time, and H.R. 2131 would (as noted above) 
significantly increase the number of such visas. Therefore, 
relative to current law, enacting H.R. 2131 would reduce the 
number of people in H-1B status awaiting green cards and would 
reduce the amount of time required for future people in H-1B 
status to adjust their status.
    CBO estimates that increasing the number of H-1B visas for 
highly skilled workers would increase the U.S. population by 
roughly 200,000 in 2024 and in 2034.
Immigration and Eligibility for Federal Benefits
    The eligibility of noncitizens for many Federal benefit 
programs is determined by the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (PRWORA) and a host of 
program-specific laws. In brief, the eligibility of noncitizens 
who also meet the programs' requirements not related to 
immigration, such as income and asset thresholds, is generally 
determined in these ways:*
---------------------------------------------------------------------------
    *For a more-detailed explanation of noncitizens' eligibility for 
those programs, see pages 25-32 of CBO's cost estimate (dated June 18, 
2013) for S. 744 as reported by the Senate Committee on the Judiciary 
on May 28, 2013.

    Earned Income Tax Credit and Child Tax Credit. Noncitizens 
with Social Security Numbers (SSNs) that are valid for 
employment are eligible to receive the nonrefundable and 
refundable portions of the Earned Income Tax Credit (EITC). 
Resident aliens, including LPRs, are eligible to receive the 
nonrefundable and refundable portions of the child tax credit 
---------------------------------------------------------------------------
for qualifying children.

    Health Insurance Subsidies. Noncitizens who are lawfully 
present in the United States--including LPRs and H-1B 
nonimmigrants and their dependents, and regardless of the 
number of years they have been in the country--are eligible to 
receive premium assistance tax credits and exchange subsidies.

    Medicaid and the Children's Health Insurance Program 
(CHIP). Under current law, states have the option to provide 
full Medicaid and CHIP benefits to certain groups of LPRs and 
other legal residents. To start, states can cover LPRs who have 
been in that status for more than 5 years and who meet 
Medicaid's other eligibility requirements; all states have 
chosen to do so. In addition, the Children's Health Insurance 
Program Reauthorization Act of 2009 (CHIPRA) gave states the 
option to extend Medicaid and CHIP to children and pregnant 
women who are lawfully residing in the United States and who 
would not otherwise be eligible under PRWORA; 22 states and the 
District of Columbia currently provide such coverage. For other 
noncitizens, Medicaid pays for a limited benefit that covers 
the cost of services necessary for the treatment of emergency 
medical conditions.

    Other Programs. In addition, to the extent that they meet 
the programs' other eligibility requirements, noncitizens are 
eligible for other Federal benefits as follows:

         LNoncitizens who are lawfully present in the 
        United States are eligible for Social Security and 
        Medicare benefits.

         LLPRs who are under 18 or who have spent 5 
        years as LPRs are eligible for Supplemental Nutrition 
        Assistance Program (SNAP) benefits.

         LNoncitizens are eligible for child nutrition 
        benefits.

         LLPRs and nonimmigrants are eligible for 
        unemployment insurance (UI) benefits.

         LLPRs who have become citizens or have 
        obtained 40 quarters of work credit and spent 5 years 
        as LPRs are eligible for Supplemental Security Income 
        (SSI) benefits.

         LLPRs are eligible for Federal student aid, 
        including Federal student loans and Pell grants.

Direct Spending
    Overall, CBO and JCT estimate that enacting the legislation 
would increase direct spending by about $8 billion over the 
2014-2024 period (see Table 2). All of the budgetary effects 
are on-budget with the exception of effects related to Social 
Security, which is classified as off-budget.
    H.R. 2131 would increase the size of the population in the 
United States, which would tend to increase the number of 
people eligible for the Federal tax credits and benefits from 
Federal programs described here; however, the legislation would 
also shift the composition of immigrants and people entering 
the country on nonimmigrant visas toward those with higher 
skills and generally higher income, which would tend to 
decrease the number of people eligible for such tax credits and 
benefits. According to CBO and JCT's estimates, the former 
effect would dominate the latter effect over the 2014-2024 
period.



    Earned Income Tax Credit and Child Tax Credit. JCT and CBO 
estimate that H.R. 2131 would increase outlays for the earned 
income tax credit and child tax credit by $6.1 billion over the 
2014-2024 period. Those credits are both refundable tax 
credits, which means that if the credits exceed the rest of a 
taxpayer's liability, the excess may be paid to the taxpayer; 
those payments are classified as outlays in the Federal budget. 
H.R. 2131 would increase the amount of those payments by 
increasing the net number of legally resident aliens.

    Health Insurance Subsidies. CBO and JCT estimate that 
subsidies provided through health insurance exchanges would 
increase, on net, by $1.8 billion over the 2014-2024 period. 
The increase in subsidies consists of an increase in both 
premium assistance tax credits and cost sharing subsidies; the 
former are refundable tax credits, for which roughly three-
quarters of the net increase would be classified as outlays, 
and the latter would all be classified as outlays. Thus, the 
net increase in subsidies of $1.8 billion consists of an almost 
$1.4 billion net increase in outlays (shown here) and a $0.4 
billion net reduction in revenues (discussed below).
    The provisions of H.R. 2131 that would increase the number 
of people entering the country as family-sponsored immigrants, 
employment-based immigrants, and H-1B nonimmigrants would lead 
to higher exchange subsidies. Many of the employment-based 
immigrants and H-1B nonimmigrants would have access to 
employment-based health insurance, would have income exceeding 
400 percent of the Federal poverty level, or both--which would 
generally make them ineligible for exchange subsidies. However, 
some of those people would be eligible for such subsidies. In 
addition, exchange subsidies would increase for family-
sponsored immigrants because they tend to have lower wages and 
incomes, and are therefore less likely to have access to 
employment-based health insurance and more likely to have 
incomes that would allow them to qualify for exchange 
subsidies. CBO and JCT estimate that exchange subsidies would 
increase by $5.9 billion over the 2014-2024 period for 
individuals newly obtaining employment-based, family-sponsored, 
or H-1B visas (and their dependents).
    Partly offsetting the effect of those provisions would be 
the effect of eliminating the diversity visa program. Similar 
to family-sponsored immigrants, the individuals obtaining visas 
through the diversity visa program under current law tend to 
have lower wages and incomes, and are therefore less likely to 
have access to employment-based health insurance. As a result, 
eliminating the diversity visa program would reduce exchange 
subsidies by an estimated $4.1 billion over the 2014-2024 
period.

    Other Benefit Programs. The changes in the U.S. population 
under the bill would lead to increased direct spending over the 
2014-2024 period in several other programs, but those effects 
would be smaller than the effects on the earned income tax 
credit, child tax credit, and health insurance subsidies. For 
those programs, the estimated budgetary effects represent the 
net effects of the increased costs from additional people 
entering the country under the family-sponsored, employment-
based, and highly skilled temporary visa programs and the 
decreased costs from fewer people entering the country because 
of the elimination of the diversity visa program. (Beginning in 
2024, the elimination of the preference for siblings of U.S. 
citizens also reduces the costs of those programs.)
    On balance, CBO estimates that increased spending for those 
other programs would total about $1.4 billion over the 2014-
2024 period--mostly for unemployment insurance ($800 million) 
and Social Security ($240 million).

    Immigration Fees. The government charges a variety of fees 
to those who petition to bring a noncitizen to the United 
States, apply for a visa to enter the country, or adjust status 
from one visa category to another (such as changing from an H-
1B nonimmigrant visa to an employment-based immigrant visa). 
Many of those fees represent offsets to direct spending when 
they are collected and are available to Federal agencies for 
spending--primarily DHS and the Department of State for their 
immigration-related activities, but also the Department of 
Labor and National Science Foundation. (Other fees are 
classified as revenues; they are discussed below.) H.R. 2131 
would change immigration fees that represent offsets to direct 
spending in three ways:

         LChange the number of immigrants and 
        nonimmigrants for whom fees are paid.

         LExpand the scope of an existing anti-fraud 
        fee to new categories of nonimmigrants.

         LCreate a new fee related to verifying 
        noncitizens' education credentials.

    DHS and the Department of State set the level of many 
immigration fees on a cost-recovery basis--that is, based on 
their costs to undertake their immigration-related activities. 
CBO expects the Department of State would set the new 
education-related fee on a cost-recovery basis as well. 
Although H.R. 2131 would increase the amount of fees collected, 
it would also increase Federal agencies' spending of those fees 
by a similar amount--albeit with a short lag between the fee 
collection and the spending. On net, CBO estimates that 
enacting H.R. 2131 would reduce direct spending related to the 
collection and spending of immigration fees by around $400 
million over the 2014-2024 period.
Revenues
    Enacting H.R. 2131 would have a wide range of effects on 
Federal revenues, including changes in collections of income 
taxes, payroll taxes, certain immigration fees that are 
classified as revenues, and some penalties. Taken together, 
those effects would increase revenues by $118 billion over the 
2014-2024 period, according to estimates by JCT and CBO (see 
Table 3). For that period, off-budget receipts (of Social 
Security payroll taxes) would rise by $32 billion, and on-
budget receipts would rise by $86 billion. The increase in 
revenues would primarily reflect additional collections of 
income and payroll taxes arising from an expansion of the U.S. 
labor force.

    Income, Payroll, and Miscellaneous Taxes. JCT estimates 
that H.R. 2131 would increase receipts from income taxes, 
social insurance (payroll) taxes, and certain other taxes by 
$117 billion over the 2014-2024 period. (That increase includes 
the effect on revenues of the increase in premium assistance 
credits that is described above in the section on direct 
spending for benefit programs.)
    Much of the increase in receipts would come from taxes paid 
on the income of additional workers who entered the country as 
a result of the bill. As discussed at the beginning of this 
cost estimate, conventional estimating methodology holds 
overall economic activity--including output and employment--
constant. However, enacting H.R. 2131 would result in a 
material increase in immigration, leading to a material 
increase in the supply of labor to the economy. Consequently, 
JCT and CBO relaxed the conventional assumption of fixed 
employment for this estimate and included the effects of an 
expected net increase in employment and total wages.


    Many additional adults entering or remaining in the country 
as a result of H.R. 2131 would have to be employed. Hence, CBO 
and JCT expect the additional adults to participate in the 
labor force at a higher rate, on average, than do adults 
currently in the United States. Spouses of H-1B visa holders 
allowed to work under the legislation are expected to 
participate in the labor force at a lower rate, on average, 
than do adults currently in the United States.
    Relative to CBO's projections under current law, enacting 
H.R. 2131 would increase the size of the labor force by about 
850,000 in 2024 and by about 1 million in 2034, CBO and JCT 
estimate. (The increase in the labor force in 2034 reflects 
both the increase in the population and the granting of work 
authorization to spouses of nonimmigrants with H-1B visas that 
was described above.) Employment would increase as the labor 
force expanded, because the larger population would boost 
demand for goods and services and, in turn, the demand for 
labor.

    Unemployment Insurance Taxes. CBO estimates that the 
expansion of employment under the bill would boost receipts 
from unemployment insurance taxes--most of which are imposed by 
states but which yield amounts that are considered to be 
Federal revenues. CBO estimates that those revenues would 
increase by about $1 billion from 2014 through 2024. (Spending 
on unemployment benefits would be about $800 million higher 
over the 10-year period, as discussed above in the section on 
direct spending for benefit programs; as a result, the amounts 
in state trust funds for unemployment insurance would not 
change much because of the bill.)

    Immigration Fees. The government charges a variety of fees 
related to immigration. Some of those fees are classified as 
revenues. CBO estimates that the increase in visa applications 
would boost those revenues by about $70 million over the 2014-
2024 period.

Spending Subject to Appropriation
    CBO estimates that implementing H.R. 2131 would increase 
spending subject to appropriation by about $100 million over 
the 2014-2024 period. All of that spending would be on-budget.

    Start-Up Costs. Enacting H.R. 2131 would significantly 
increase the immigration-related workload for DHS and the 
Department of State. Those departments would need to rapidly 
expand their trained workforces and office space to meet the 
increased demands placed on them by H.R. 2131. Those agencies 
pay for many of their immigration-related activities through 
immigration fees they collect. However, relying solely on those 
fees to pay for the expansion would delay the agencies' ability 
to expand, increasing processing times and backlogs, and making 
it difficult to comply with the bill's provisions. Therefore, 
CBO estimates that lawmakers would have to appropriate up to 
$50 million to enable the agencies to begin providing the 
additional visas and work authorizations in fiscal year 2015. 
We expect that those funds would be spent over the 2015-2019 
period.

    Pell Grants. Although it includes a mandatory component 
(discussed above under the heading ``Direct Spending''), 
spending for Pell grants is mostly subject to the appropriation 
of the necessary amounts. Under the bill, CBO estimates, about 
$70 million more than the amount under current law would be 
needed to provide the same maximum award level to students that 
was provided in 2014 throughout the 2014-2024 period. That 
amount is in addition to the estimated increase in direct 
spending for Pell grants.

                      PAY-AS-YOU-GO CONSIDERATIONS

    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
direct spending or revenues. The net changes in outlays and 
revenues that are subject to those pay-as-you-go procedures are 
shown in the following table. (Only on-budget changes to 
outlays or revenues are subject to pay-as-you-go procedures.)


          ESTIMATED BUDGETARY EFFECTS BEYOND THE FIRST DECADE

    After 2024, the increase in the U.S. population under H.R. 
2131 would remain close to 1 million, CBO anticipates, but the 
composition of that increase would change. Starting in 2024, 
the bill would eliminate the 65,000 immigrant visas available 
annually under current law to siblings of U.S. citizens (and 
their dependents); in addition, the cumulative number of 
immigrants who would have entered the country with diversity 
visas under current law but would be unable to do so under the 
bill would continue to rise. However, the cumulative number of 
immigrants who would enter the country as employment-based 
immigrants under the bill but could not do so under current law 
would also continue to rise. Taken together, those factors 
would keep the total increase in the U.S. population relative 
to current law close to 1 million in the decade following 2024, 
but they would shift the composition of those additional people 
toward people who would be more likely to be employed and would 
be more likely to earn higher income when employed. In 
particular, relative to current law, CBO anticipates that H.R. 
3121 would reduce the number of foreign-born people with low 
income and increase the number of foreign-born people with 
higher income who would be in the United States over the 2025-
2034 period.
    The change in the composition of the increase in the U.S. 
population during the 2025-2034 period would alter the 
budgetary effects. For the 2025-2034 period, CBO and JCT 
estimate that enacting H.R. 2131 would continue to boost 
revenues--by over $400 billion--and would reduce deficits by a 
similar amount. That effect would be almost entirely the result 
of higher income and payroll taxes stemming from the larger 
workforce. The impact on direct spending would reverse from the 
small estimated increase over the first decade to a small 
estimated decrease over the second decade. That reduction in 
direct spending would occur primarily because fewer foreign-
born individuals who would be eligible for refundable tax 
credits and Federal health care programs focused on low-income 
people would be in the United States than would be the case 
under current law. The reduction in spending for those programs 
would more than offset the increase in spending for other 
programs--notably Social Security and Medicare--that would 
result from the larger number of people who would be in the 
United States.
    Because the estimates of population changes and budgetary 
effects that would result from enacting the legislation are 
very uncertain--even in the first 10 years following 
enactment--CBO's estimate for the second decade following 
enactment should be viewed as falling in the middle of a wide 
range of possible outcomes.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    H.R. 2131 would impose intergovernmental and private-sector 
mandates, as defined in the Unfunded Mandates Reform Act, on 
employers of temporary foreign workers. CBO estimates that the 
aggregate costs for both public and private employers to comply 
with the mandates would fall below the annual thresholds 
established in UMRA for intergovernmental and private-sector 
mandates ($76 million and $152 million in 2014, respectively, 
adjusted annually for inflation).
    Employers of some workers from Australia, Canada, Chile, 
Mexico, and Singapore (those with H-1B1, TN, or E-3 
nonimmigrant visas, which are visas related to skilled 
employment by individuals from certain countries with whom the 
U.S. has treaties) would be required to pay a fraud detection 
and prevention fee of $500 per worker they hire. Based on data 
from DHS and the Department of State, CBO estimates that around 
30,000 workers are hired each year in the visa categories to 
which the fee would apply. Therefore, CBO estimates that the 
costs to all employers to comply with the mandate would be 
about $15 million annually.
    The bill also would require employers of workers with L-1B 
or TN visas (about 55,000 workers) and employers of students 
with certain nonimmigrant student visas receiving postgraduate 
training (about 60,000 workers) to offer those workers the 
actual or prevailing wage paid to other workers with similar 
qualifications and experience. According to information from 
industry experts and DHS, some employers currently meet that 
requirement and the expected increase in wages paid by other 
employers would be small. Therefore, CBO expects that the total 
costs for both public and private employers to comply with that 
mandate also would be small.

                         ESTIMATE PREPARED BY:

Population Estimates
Sam Papenfuss and David Rafferty

Federal Spending
Christi Hawley Anthony, Kirstin Blom, Tom Bradley, Sunita 
    D'Monte, Elizabeth Cove Delisle, Kathleen FitzGerald, Mark 
    Grabowicz, Justin Humphrey, Sarah Masi, David Rafferty, and 
    Martin von Gnechten
Federal Revenues
Mark Booth, Barbara Edwards, and the staff of the Joint 
    Committee on Taxation

Intergovernmental and Private-Sector Impact
Melissa Merrell and Paige Piper/Bach

                         ESTIMATE APPROVED BY:

Peter H. Fontaine
Assistant Director for Budget Analysis

                    Duplication of Federal Programs

    No provision of H.R. 2131 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 2131 specifically directs 
to be completed no specific rule makings within the meaning of 
5 U.S.C. 551.

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, H.R. 
2131 increases the economic competitiveness of the U.S. and the 
rationality of our immigration system by increasing the 
priority given to highly skilled immigrants and to nuclear 
family members in the issuance of immigrant visas, by creating 
an immigrant pathway for entrepreneurs, and by reforming our 
temporary work visa programs to increase the availability of 
the most talented foreign workers to American employers while 
strengthening protections for American workers and students.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 2131 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of Rule XXI.

                      Section-by-Section Analysis

    The following discussion describes the bill as reported by 
the Committee:

Sec. 1. Short title.
    This section sets forth the short title of the bill as the 
``Supplying Knowledge-based Immigrants and Lifting Levels of 
STEM Visas Act'' or the ``SKILLS Visa Act.''

Sec. 2. Table of Contents.
    This section provides a table of contents.

Sec. 3. Sense of Congress.
    This section states that it is the sense of Congress that 
educating American students in STEM fields is crucially 
important and that fees paid by employers seeking foreign 
workers should go towards improving STEM education in the U.S.

                    TITLE 1--IMMIGRANT VISA REFORMS

Sec. 101. Immigrant Visas for Certain Advanced STEM Graduates.
    Section 101 provides up to 55,000 immigrant visas a year 
for foreign graduates of U.S. universities with advanced STEM 
degrees. Subsection (b) creates an immigrant visa category for 
aliens who have received STEM doctorates from U.S. 
universities:

         LTo be eligible, an alien must 1) have 
        received a doctorate from an eligible U.S. doctoral 
        university in a STEM field or have received a medical, 
        dental or veterinary degree or have completed a 
        medical, dental or veterinary residency at a U.S. 
        university, 2) have taken not less than 85% of their 
        course work (including all Internet courses) while 
        physically present in the United States, and 3) be 
        petitioned for by an employer who has gone through 
        labor certification to show that there are not 
        sufficient American workers able, willing, equally 
        qualified and available for the job (unless this 
        requirement is waived by DHS as in the national 
        interest).

         LTo be eligible, a doctoral university must: 
        1) be eligible for Federal student financial aid 
        programs, 2) be accredited, 3) be classified by the 
        Carnegie Foundation for the Advancement of Teaching as 
        a doctorate-granting university with very high or high 
        level of research activity or classified by the 
        National Science Foundation after the date of 
        enactment, pursuant to an application by the 
        university, as having equivalent research activity to 
        such schools, and 4) be at least 10 years old.

    Subsection (b) also creates an immigrant visa category for 
aliens who have received STEM master's degrees from U.S. 
universities. Any of the immigrant visas not used by aliens 
with doctorates are available for aliens with master's degrees.

         LTo be eligible, an alien must: 1) have 
        received a 2-year master's degree from an eligible U.S. 
        doctoral university in a STEM field (or a 5-year 
        combined bachelor's-master's degree program in a STEM 
        field), 2) have majored in college in a STEM field, 3) 
        have not taken less than 85% of their course work 
        (including all Internet courses) while physically 
        present in the United States, and 4) be petitioned for 
        by an employer who has gone through labor certification 
        (unless waived by DHS as in the national interest).

         LTo be eligible, a university must meet the 
        standards set forth for the doctoral STEM immigrant 
        visa program.

    Subsections (c) and (d) provide that unused STEM immigrant 
visas will flow down first to the second preference employment-
based immigrant visa category and next to the third preference 
employment-based immigrant visa category.
    Subsection (e) provides processing standards for petitions 
for the STEM immigrant visa programs.
    Subsection (f) provides, in accord with current 
regulations, that an employer must as part of the labor 
certification process submit a job order to the appropriate 
state workforce agency. In addition, it requires that the state 
workforce agency post the job order on its official agency 
website to make it more accessible to American workers seeking 
employment. These requirements are not limited to only the STEM 
immigrant visa programs, but apply in all instances in which 
labor certifications are required. The subsection also provides 
processing standards for labor certification applications for 
the STEM immigrant visa programs.
    Subsection (g) requires the Government Accountability 
Office to conduct a study on the use of the National Science 
Foundation to determine qualifying doctoral institutions under 
the STEM immigrant visa programs.
    Subsection (h) requires that DHS post on its official 
website information about the employers who sponsor STEM 
graduates for green cards, the number of STEM graduates they 
sponsor and the occupations of the STEM graduates they sponsor.
    Subsection (i) provides an effective date of October 1, 
2013.

Sec. 102. Immigrant Visas for Entrepreneurs.
    Subsection (a) creates two new immigrant visa programs for 
alien entrepreneurs, with a total of 10,000 immigrant visas 
available a year. The first program is for venture capital or 
angel investor-backed entrepreneurs who attract investment of 
at least $500,000 from a qualified venture capital fund or from 
two or more qualified angel investors. Such entrepreneurs would 
be given conditional immigrant visas and up to 3 years to 
create jobs for at least five American workers and raise an 
additional $1,000,000 in capital or generate not less than 
$1,000,000 in revenue. The relevant dollar amounts will be 
subject to inflation adjustments in the future.
    The second program is for entrepreneurs who have been 
operating businesses in the U.S. under the E-2 treaty investor 
visa program. The E-2 program allows aliens to come to the U.S. 
temporarily pursuant to a treaty of commerce and navigation 
with a foreign state of which they are a national (and their 
spouse and minor children and certain employees) to develop and 
direct the operations of an enterprise in which they have 
invested a substantial amount of capital. The E-2 program 
allows investors to remain in the U.S. indefinitely. Section 
102 makes immigrant visas available to E-2 treaty investors who 
have maintained their status for a minimum of 10 years and have 
created jobs for at least five America workers for a minimum of 
10 years.
    Subsection (c) provides that venture capital or angel 
investor-backed entrepreneurs initially receive conditional 
permanent residence and sets forth both the procedure and 
conditions (including the creation of jobs for at least five 
American workers and the raising of $1,000,000 in additional 
capital or the generation of not less than $1,000,000 in 
revenue) for the removal of such conditional status.
    Subsection (d) provides an effective date of October 1, 
2013.

Sec. 103. Additional Employment-Based Immigrant Visas.
    Subsection (c) increases the number of visas available per 
year for the employment-based second preference immigrant visa 
category (for members of the professions with advanced degrees 
and persons of exceptional ability) from 40,040 to 55,040.
    Subsection (d) increases the number of visas available per 
year for the employment-based third preference immigrant visa 
category (for skilled workers, professionals with bachelor's 
degrees and other workers) from 40,040 to 55,040.
    Subsection (g) provides an effective date of October 1, 
2013.
    Subsection (h) provides that alien workers in the United 
States with status under the H-1B, L, or O-1 nonimmigrant visa 
programs, or foreign students under the F and M nonimmigrant 
visa programs, who have received optional practical training 
following completion of their courses of study, and eligible 
dependents, may file applications for adjustment of status to 
permanent residence at any time after their petitions for 
employment-based immigrant visas have been approved, regardless 
of whether immigrant visas are immediately available. While 
their applications cannot be approved until immigrant visas 
become available for them, upon filing they become eligible for 
immigration benefits such as work authorization.

Sec. 104. Employment Creation Immigrant Visas.
    Section 104 makes a number of reforms to the investor 
immigrant visa program and to the regional center pilot 
project.
    Subsection (a) makes modifications to the program in 
general:

         LThe subsection provides that assets acquired 
        directly or indirectly through unlawful means cannot be 
        used to meet the minimum investment requirements of the 
        program.

         LThe subsection provides that the minimum 
        investment amounts will be increased to reflect the 
        change in value of the dollar from the program's 
        creation in 1990 to the present day and will be 
        prospectively indexed for future inflation.

         LThe subsection provides that the required 
        jobs must actually exist at the time that the 
        conditional status is removed and allows DHS to extend 
        the conditional status for an additional year in order 
        to give an investor additional time to create the 
        required jobs.\112\
---------------------------------------------------------------------------
    \112\Since many of the economic models that are used to demonstrate 
job creation for regional centers do not consider the temporal aspects 
of job creation, in such cases:

      USCIS may presume that the jobs will be created within the 
      required period of time provided that the alien can 
---------------------------------------------------------------------------
      demonstrate compliance with paragraph (ii) below.

      (ii) Many economic models used to demonstrate indirect job 
      creation rely on certain assumptions or variables to show 
      the requisite job creation. For example, a model might 
      demonstrate that the requisite jobs will be created if a 
      Regional Center infuses $10 million into a particular 
      industry. Similarly, a model might demonstrate that, using 
      accepted multipliers, the creation of 100 direct jobs will 
      result in a certain number of indirect jobs. Under such 
      circumstances, the I-526 petition should demonstrate that 
      the required infusion of capital or the creation of the 
      direct jobs will occur within 2 years.

      EB-5 Alien Entrepreneurs--Job Creation and Full-Time 
      Positions (AFM Update AD 09-04) at 4-5.

      U.S.C.I.S.'s policy is appropriate for determining that 
      jobs actually exist for purposes of subsection (a).

         LThe subsection provides that 1) a ``targeted 
        employment area'' must fit entirely within a 
        geographical unit that the Labor Department has 
        determined has an unemployment rate of at least 150 
        percent of the national rate, 2) the Secretary of Labor 
        shall set forth a uniform methodology for determining 
        whether an area qualifies as having unemployment of at 
        least 150 percent of the national rate, and 3) DHS is 
        not bound by the decision of any other entity that a 
        particular area has experienced high unemployment.

    Subsection (b) makes modifications to the regional center 
pilot project:

         LThe subsection makes permanent the regional 
        center pilot program, which currently sunsets in 2015.
         LThe subsection bars persons from involvement 
        in regional centers who 1) have committed crimes that 
        are considered aggravated felonies under the 
        Immigration and Nationality Act, 2) would be 
        inadmissible pursuant to the security and terrorism-
        related grounds of inadmissibility (if they were aliens 
        seeking admission), or 3) have been convicted of 
        criminal securities fraud or have been found to have 
        engaged in civil securities fraud.

         LThe subsection clarifies and expands DHS's 
        authority to perform criminal records and background 
        checks on regional center managers, members, owners, 
        administrators, and others who have significant 
        responsibility in the regional center. DHS may 
        terminate regional centers from participation in the 
        investor visa program if prohibited persons are (to the 
        knowledge of the regional centers) involved in the 
        centers, if the centers fail to provide attestation or 
        information, or provide false attestation or 
        information, in the context of the criminal records or 
        background checks, or if they continue to allow persons 
        to be involved with the centers who have (to the 
        knowledge of the centers) failed to provide such 
        material or have provided false material.

         LThe subsection requires regional centers to 
        certify compliance with Federal securities laws. DHS 
        shall terminate regional centers for failure to make 
        the necessary certifications and may terminate regional 
        centers for certain securities law violations.

    Subsection (c) provides an effective date.

Sec. 105. Family-Sponsored Immigrant Visas.
    Section 105 makes a number of changes to the family-
sponsored immigrant visa categories.
    Subsection (b) increases the number of immigrant visas 
available per year for the spouses and minor children of 
permanent residents from 87,934 to 112,934.
    Subsection (c) repeals the 65,000 immigrant visas a year 
category for the siblings of U.S. citizens, and does not allow 
for the acceptance of new petitions for such status, but does 
allow beneficiaries with approved petitions to continue to 
receive visas through fiscal year 2023.
    Subsection (d) provides an effective date of October 1, 
2013.

Sec. 106. Elimination of the Diversity Immigrant Program.
    Section 106 eliminates the up to 55,000 immigrant visas a 
year diversity immigrant visas category as of the beginning of 
fiscal year 2014.

Sec. 107. Numerical Limitations to any Single Foreign State.
    Section 107 eliminates the employment-based immigrant visa 
per-country cap entirely and raises the family-sponsored 
immigrant visa per-country cap from 7% to 15% as of October 1, 
2013.

Sec. 108. Physicians.
    Section 108 contains a number of modifications to the 
``Conrad 30'' program:
    Subsection (a) makes the program permanent.
    Subsection (b) allocates a state 35 waivers requested by 
interested state agencies for a fiscal year if 90% of the 
waivers available to the state were used in the previous year. 
When this occurs, the state is allotted an additional five such 
waivers for each subsequent year where 90% of the waivers 
available to the state were used in the previous year, except 
that if a state is allotted 60 or more waivers in a year, the 
state is eligible for the additional five waivers only if 90% 
of the waivers available to all states receiving at least one 
such waiver were used in the previous year. These allotment 
increases shall be maintained indefinitely, unless if in a 
year, the total number of such waivers granted is 5% lower than 
in the last year in which there was an increase in the number 
of waivers allotted. In such a case, the number of waivers 
allotted shall be decreased by five for all states beginning in 
the next year and each additional 5% decrease in waivers 
granted from the last year in which there was in increase shall 
result in an additional decrease of five waivers allotted for 
all states (with a floor for each state of 30 waivers). 
Subsection (b) also provides an additional three waivers per 
state that can only be used at academic medical centers (not 
necessarily in areas with a shortage of health care 
professionals) if the work performed by the physicians will be 
in the public interest.
    Subsection (c) adds a number of employment protections for 
physicians in the program:

         LUnder current law, physicians may change 
        employers (for the remainder of their 3 year service 
        obligation) under ``extenuating circumstances'' as 
        designated by DHS. The subsection also allows the state 
        agency requesting the waiver to attest to extenuating 
        circumstances. In addition, the subsection allows 
        physicians to change employers without such a 
        determination if they agree to perform an additional 
        year of service in underserved areas.

         LThe physicians' employment contracts shall 
        specify the number of on-call hours they must work and 
        the compensation they will receive for on-call time, 
        whether the employer will provide malpractice insurance 
        and pay for the premiums, and the specific facilities 
        at which the doctors will work (which can only be added 
        to with the approval of the Federal or state agency 
        that requested the waiver). A contract cannot include 
        non-compete provisions.

         LPhysicians whose employment is terminated 
        will have 120 days to submit applications or petitions 
        to begin new employment in underserved areas before 
        being considered out of status.

    Subsection (d) makes additional changes:

         LThe subsection provides that aliens entering 
        the country on a J visa to receive graduate medical 
        education or training or to take an examination needed 
        to receive such education or training need not show 
        that they have no intent to immigrate permanently.

         LThe subsection provides that physicians can 
        perform their J waiver service in any authorized 
        status, rather than just under the H-1B visa program as 
        under current law.

         LCurrently, physicians who have worked in 
        underserved areas for 5 years and who agree to continue 
        to work in such areas are eligible for the national 
        interest waiver of the requirements of employer 
        sponsorship for green cards and the labor certification 
        process if their work in these areas have been found to 
        be in the public interest. The subsection clarifies 
        that specialists are eligible. It also provides that 
        physicians can serve in facilities that serve patients 
        who reside in underserved areas that are not themselves 
        located in such areas if their work is in the public 
        interest (and that the public interest requirement does 
        not have to be met if the physicians work at facilities 
        that are located in such areas). The subsection 
        provides that the 5 years of required service begins 
        when the doctor begins employment in any legal status 
        (including while pursuing graduate medical education), 
        not when the immigrant visa application is filed or 
        approved. Physicians can change work locations without 
        having to file additional immigrant visa petitions.

         LAppropriate foreign medical degrees qualify 
        as advanced degrees for purposes of the employment-
        based second preference green card program for members 
        of the professions with advanced degrees.

         LPhysicians who would lose their visa status 
        due to the timing gap between when they finish their 
        training and when they are able to obtain a work visa, 
        would maintain their status until the beginning of the 
        next fiscal year (i.e. from the spring to the fall).

         LSpouses and children of physicians on J visas 
        would not be subject to the 2-year home country return 
        requirement.

Sec. 109. Permanent Priority Dates.
    Section 109 codifies the practice that the priority date 
(for determining an alien's place in line) for an employer's 
immigrant visa petition is the date that the employer files the 
labor certification application. It also ensures that an alien 
who switches from one employment-based category to another 
retains their original priority date.

Sec. 110. Set-Aside for Health Care Workers
    Section 110 provides that not less than 4,000 of the 
employment-based third preference immigrant visas available 
each year will be reserved for nurses and other non-physician 
health-care workers required to provide a certification 
(pursuant to section 212(a)(5)(C) or (r) of the INA) who will 
be working in a rural area or a health professional shortage 
area. If not all of these reserved visas are so utilized in a 
fiscal year, they will be issued within the first 45 days of 
the next fiscal year to aliens eligible for third preference 
visas who had applied for such visas during the fiscal year.

                  TITLE II--NON-IMMIGRANT VISA REFORMS

Sec. 201. H-1B Visas.
    Subsection (a) raises the annual H-1B cap to 155,000 and 
increases the 20,000 special allotment for graduates of U.S. 
universities with advanced degrees to 40,000 (and limits 
eligibility for the special allotment to STEM graduates who 
meet the standards set forth in section 101 for the STEM 
immigrant visa programs).
    Subsection (b) provides that in certain instances, 
employers of H-1B workers do not have to pay the H-1B workers 
the prevailing wage (if higher than the actual wage the 
employers pay workers with similar experience and 
qualifications for the employment in question). If 80 percent 
or more of the employer's workers in the same occupational 
classification as the H-1B worker and in the same area of 
employment as the H-1B worker are United States workers, an 
employer must pay the H-1B worker wages that are at least the 
actual wage level paid by the employer to all other individuals 
with similar experience and qualifications for the specific 
employment in question (but, in the case of an employer with 
more than 25 employees, in no event shall such wages be lower 
than the mean of the lowest one-half of wages surveyed pursuant 
to the prevailing wage calculation (found at section 212(p)(5) 
of the INA).
    Subsection (c) allows spouses of H-1B workers to work in 
the U.S.
    Subsection (d) adds anti-fraud provisions:

         LThe subsection provides that the college 
        degree requirement for H-1B, E-3 and H-1B1 visas can be 
        met only with a foreign degree that is a recognized 
        foreign equivalent of that degree. In the case of 
        prospective workers with foreign degrees, the State 
        Department shall determine the equivalence of the 
        degree to a U.S. degree and verify the authenticity of 
        the foreign degree (and may utilize public or private 
        entities to conduct such verification and impose a fee 
        on petitioning employers to cover investigative costs).

         LThe subsection allows the Department of Labor 
        to conduct random audits of H-1B, E-3 and H-1B1 
        employers to ensure compliance with the terms of the 
        program. However, an employer who has been subject to 
        two random investigations may not be subject to another 
        random investigation within 4 years of the second 
        investigation unless the employer was found in the 
        previous investigations or otherwise to have committed 
        certain violations.

         LThe subsection requires that employers of H-
        1B, E-3 and H-1B1 workers (unless they are institutions 
        of higher education or governmental or nonprofit 
        entities) show that they maintain places of business in 
        the United States that are licensed in accordance with 
        any applicable state or local business licensing 
        requirements and that are used exclusively for business 
        purposes. Businesses must also show that they have 
        assets of not less than $50,000 or (to allow start-ups 
        to participate in the H-1B program) provide 
        documentation of business activity.

         LThe subsection provides the Department of 
        Labor with authority to issue subpoenas to employers to 
        ensure they are meeting the requirements of the H-1B, 
        E-3 and H-1B1 programs.

    Subsection (e) requires that aliens coming to the United 
States to perform work in specialty occupations must utilize H-
1B visas.

Sec. 202. L Visas.
    Section 202 applies the H-1B program's wage and working 
condition requirement to L visa aliens who will serve in a 
capacity involving specialized knowledge for a cumulative 
period of time in excess of 6 months over a 2-year period. 
However, in instances where the employer is exempted from the 
prevailing wage requirement, employers with more than 25 
employees are not required to pay wages equal or higher than 
the mean of the lowest one-half of wages surveyed pursuant to 
the prevailing wage calculation (as they are in the H-1B 
program).
    In complying with the prevailing wage requirement, an 
employer may keep the alien on their home country payroll, take 
into account the value of wages and benefits paid by the 
employer to the alien in the currency of the alien's home 
country, employer-provided housing or housing allowances, 
employer-provided vehicles or transportation allowances, and 
other benefits provided to the alien as an incident of the 
assignment in the United States.
    The Labor Department has the same investigatory and 
enforcement powers to ensure compliance as it has in the H-1B 
program.

Sec. 203. O Visas.
    O visas are temporary visas for aliens who have 
extraordinary ability in the sciences, arts, education, 
business, or athletics or in motion picture and television or 
who seek to come to the U.S. to accompany and assist in the 
artistic or athletic performance of such aliens and have 
critical skills needed for the performance. Section 203 makes a 
number of modifications to the O visa program:

         LThe section allows O visa recipients with 
        extraordinary abilities to begin working for a new 
        employer upon the new employer's filing of a non-
        frivolous petition.

         LAn O petition for an alien with extraordinary 
        ability must be filed with a written advisory opinion 
        or ``consultation'' issued by a union or peer group 
        with expertise in the alien's area of specialty. 
        Currently, a petition for an alien with extraordinary 
        ability in the ``live arts'' may be filed without a 
        consultation, if the alien had previously received an O 
        visa, has received a consultation within the last 2 
        years, and seeks to perform similar services. The 
        section extends this waiver authority to aliens with 
        extraordinary ability in motion pictures or television, 
        and extends the validity period for a prior 
        consultation from two to 3 years.

         LOrganizations providing consultations are not 
        currently notified of the outcome of the O visa 
        applications for the aliens subject to the 
        consultations. The section requires the provision of 
        notice.

Sec. 204. Mexican and Canadian Professionals
    Section 204 applies the H-1B program's wage and working 
condition requirements to Mexican and Canadian professionals 
under the North American Free Trade Agreement. The Labor 
Department has the same investigatory and enforcement powers to 
ensure compliance as it has in the H-1B program.

Section 205. (H)(i)(b1) and E-3 Visas
    Section 205 applies the H-1B program's wage and working 
condition requirements to the H-1B1 (Chile and Singapore) and 
E-3 (Australia) visa program.

Sec. 206. Students
    Subsection (a) allows foreign students to receive student 
visas to attend college in STEM fields without having to 
demonstrate to consular officers that they have no desire to 
stay permanently in the U.S.
    Subsection (b) applies the H-1B program's wage and working 
condition requirement to foreign students working in post-
graduation optional practical training programs. The Labor 
Department has the same investigatory and enforcement powers to 
ensure compliance as it has in the H-1B program.

Sec. 207. Extension of Employment Eligibility While Visa Extension 
        Petition Pending
    Currently, by regulation, individuals who are employed in 
certain nonimmigrant visa classifications but whose work 
authorization has expired receive an automatic 240-day 
extension to continue working for the same employer provided 
the employer has filed a timely extension petition. Section 207 
codifies this practice, extending its applicability to two new 
visa categories, and retains DHS's authority to add additional 
visa categories.

Sec. 208. Fraud Detection and Prevention Fee
    Section 208 provides that the H-1B fraud prevention fee 
shall also apply to the E-3, H-1B1 and NAFTA professional visa 
programs.

Sec. 209. Technical Corrections
    This section makes a technical correction to current law.

   TITLE III--REFORMS AFFECTING BOTH IMMIGRANT AND NONIMMIGRANT VISAS

Sec. 301. Prevailing Wages
    Section modifies the calculation of the prevailing wage for 
the labor certification process for employment-based immigrant 
visas, the E-3, H-1B, H-1B1, L, and NAFTA nonimmigrant visa 
programs and for optional practical training. The Labor 
Department shall make available to employers a governmental 
survey to determine the prevailing wage for each occupational 
classification by metropolitan statistical area. That survey, 
or other survey approved by the Department, shall provide three 
levels of wages commensurate with experience, education, and 
level of supervision. The first level shall be the mean of the 
lowest two-thirds of wages surveyed, but in no case less than 
80 percent of the mean of the wages surveyed. The second level 
shall be the mean of wages surveyed. The third level shall be 
the mean of the highest two-thirds of wages surveyed. The 
appropriate level for a particular position will depend on the 
experience, education and level of supervision required for the 
position.
    In order to determine the prevailing wage, an employer may 
use a survey provided by the Labor Department or an independent 
authoritative survey approved by the Department for use in 
determining the prevailing wage if the survey meets certain 
conditions.

Sec. 302. Streamlining Petitions for Established Employers
    Section 302 requires DHS to establish a pre-certification 
procedure for employers who file multiple petitions for 
temporary visas for alien workers or for immigrant visas that 
would enable an employer to avoid repeatedly submitting 
documentation that is common to multiple petitions and 
establish, through a single filing, criteria relating to the 
employer and the offered employment opportunity.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                    IMMIGRATION AND NATIONALITY ACT

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act, divided into titles, chapters, and sections according to 
the following table of contents, may be cited as the 
``Immigration and Nationality Act''.

                            TABLE OF CONTENTS

     * * * * * * *

                          Title II--Immigration

     * * * * * * *

  chapter 2--qualifications for admission of aliens; travel control of 
                           citizens and aliens

     * * * * * * *
[Sec. 216A. Conditional permanent resident status for certain alien 
          entrepreneurs, spouses, and children.]
Sec. 216A. Conditional permanent resident status for certain alien 
          investors, spouses, and children.
Sec. 216B. Conditional permanent resident status for certain alien 
          entrepreneurs, spouses, and children.

           *       *       *       *       *       *       *


                            TITLE I--GENERAL

                              definitions

    Section 101. (a) As used in this Act--
    (1) * * *

           *       *       *       *       *       *       *

    (15) The term ``immigrant'' means every alien except an 
alien who is within one of the following classes of 
nonimmigrant aliens--
            (A) * * *

           *       *       *       *       *       *       *

            [(F)(i) an alien having a residence in a foreign 
        country which he has no intention of abandoning, who is 
        a bona fide student qualified to pursue a full course 
        of study and who seeks to enter the United States 
        temporarily and solely for the purpose of pursuing such 
        a course of study consistent with section 214(l) at an 
        established college, university, seminary, 
        conservatory, academic high school, elementary school, 
        or other academic institution or in an accredited 
        language training program in the United States, 
        particularly designated by him and approved by the 
        Attorney General after consultation with the Secretary 
        of Education, which institution or place of study shall 
        have agreed to report to the Attorney General the 
        termination of attendance of each nonimmigrant student, 
        and if any such institution of learning or place of 
        study fails to make reports promptly the approval shall 
        be withdrawn, (ii) the alien spouse and minor children 
        of any alien described in clause (i) if accompanying or 
        following to join such an alien, and (iii) an alien who 
        is a national of Canada or Mexico, who maintains actual 
        residence and place of abode in the country of 
        nationality, who is described in clause (i) except that 
        the alien's qualifications for and actual course of 
        study may be full or part-time, and who commutes to the 
        United States institution or place of study from Canada 
        or Mexico;]
            (F) an alien--
                    (i) who--
                            (I) is a bona fide student 
                        qualified to pursue a full course of 
                        study in a field of science, 
                        technology, engineering, or mathematics 
                        (as defined in section 
                        203(b)(6)(B)(ii)) leading to a 
                        bachelors or graduate degree and who 
                        seeks to enter the United States for 
                        the purpose of pursuing such a course 
                        of study consistent with section 214(m) 
                        at an institution of higher education 
                        (as described in section 101(a) of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1001(a))) or a proprietary institution 
                        of higher education (as defined in 
                        section 102(b) of such Act (20 U.S.C. 
                        1002(b))) in the United States, 
                        particularly designated by the alien 
                        and approved by the Secretary of 
                        Homeland Security, after consultation 
                        with the Secretary of Education, which 
                        institution shall have agreed to report 
                        to the Secretary of Homeland Security 
                        the determination of attendance of each 
                        nonimmigrant student, and if any such 
                        institution fails to make reports 
                        promptly the approval shall be 
                        withdrawn; or
                            (II) is engaged in temporary 
                        employment for optional practical 
                        training related to such alien's area 
                        of study following completion of the 
                        course of study described in subclause 
                        (I);
                    (ii) who--
                            (I) has a residence in a foreign 
                        country which the alien has no 
                        intention of abandoning, who is a bona 
                        fide student qualified to pursue a full 
                        course of study, and who seeks to enter 
                        the United States temporarily and 
                        solely for the purpose of pursuing such 
                        a course of study consistent with 
                        section 214(m) at an established 
                        college, university, seminary, 
                        conservatory, academic high school, 
                        elementary school, or other academic 
                        institution or in a language training 
                        program in the United States, 
                        particularly designated by the alien 
                        and approved by the Secretary of 
                        Homeland Security, after consultation 
                        with the Secretary of Education, which 
                        institution of learning or place of 
                        study shall have agreed to report to 
                        the Secretary of Homeland Security the 
                        determination of attendance of each 
                        nonimmigrant student, and if any such 
                        institution of learning or place of 
                        study fails to make reports promptly 
                        the approval shall be withdrawn; or
                            (II) is engaged in temporary 
                        employment for optional practical 
                        training related to such alien's area 
                        of study following completion of the 
                        course of study described in subclause 
                        (I);
                    (iii) who is the spouse or minor child of 
                an alien described in clause (i) or (ii) if 
                accompanying or following to join such an 
                alien; or
                    (iv) who is a national of Canada or Mexico, 
                who maintains actual residence and place of 
                abode in the country of nationality, who is 
                described in clause (i) or (ii) except that the 
                alien's qualifications for and actual course of 
                study may be full or part-time, and who 
                commutes to the United States institution or 
                place of study from Canada or Mexico;

           *       *       *       *       *       *       *


                         TITLE II--IMMIGRATION

Chapter 1--Selection System

           *       *       *       *       *       *       *


    Sec. 201. (a) In General.--Exclusive of aliens described in 
subsection (b), aliens born in a foreign state or dependent 
area who may be issued immigrant visas or who may otherwise 
acquire the status of an alien lawfully admitted to the United 
States for permanent residence are limited to--
            (1) family-sponsored immigrants described in 
        section 203(a) (or who are admitted under section 
        211(a) on the basis of a prior issuance of a visa to 
        their accompanying parent under section 203(a)) in a 
        number not to exceed in any fiscal year the number 
        specified in subsection (c) for that year, and not to 
        exceed in any of the first 3 quarters of any fiscal 
        year 27 percent of the worldwide level under such 
        subsection for all of such fiscal year; and
            (2) employment-based immigrants described in 
        section 203(b) (or who are admitted under section 
        211(a) on the basis of a prior issuance of a visa to 
        their accompanying parent under section 203(b)), in a 
        number not to exceed in any fiscal year the number 
        specified in subsection (d) for that year, and not to 
        exceed in any of the first 3 quarters of any fiscal 
        year 27 percent of the worldwide level under such 
        subsection for all of such fiscal year[; and].
            [(3) for fiscal years beginning with fiscal year 
        1995, diversity immigrants described in section 203(c) 
        (or who are admitted under section 211(a) on the basis 
        of a prior issuance of a visa to their accompanying 
        parent under section 203(c)) in a number not to exceed 
        in any fiscal year the number specified in subsection 
        (e) for that year, and not to exceed in any of the 
        first 3 quarters of any fiscal year 27 percent of the 
        worldwide level under such subsection for all of such 
        fiscal year.]

           *       *       *       *       *       *       *

    (c) Worldwide Level of Family-Sponsored Immigrants.--(1)(A) 
The worldwide level of family-sponsored immigrants under this 
subsection for a fiscal year is, subject to subparagraph (B), 
equal to--
            (i) [480,000,] 480,000 in fiscal years through 
        2013, 505,000 beginning in fiscal year 2014 through 
        fiscal year 2023, and 440,000 beginning in fiscal year 
        2024, minus

           *       *       *       *       *       *       *

    (B)(i) * * *
    (ii) In no case shall the number computed under 
subparagraph (A) be less than [226,000.] 226,000 in fiscal 
years through 2013, 251,000 beginning in fiscal year 2014 
through fiscal year 2023, and 186,000 beginning in fiscal year 
2024.

           *       *       *       *       *       *       *

    (d) Worldwide Level of Employment-Based Immigrants.--(1) 
The worldwide level of employment-based immigrants under this 
subsection for a fiscal year is equal to--
            (A) [140,000,] 140,000 in fiscal years through 2013 
        and 235,000 beginning in fiscal year 2014, reduced for 
        any fiscal year beginning in fiscal year 2014 by the 
        number by which the number of visas under section 
        201(e) would have been reduced in that year pursuant to 
        section 203(d) of the Nicaraguan Adjustment and Central 
        American Relief Act (8 U.S.C. 1151 note) if section 
        201(e) had not been repealed by section 106 of the 
        SKILLS Visa Act, plus

           *       *       *       *       *       *       *

    [(e) Worldwide Level of Diversity Immigrants.--The 
worldwide level of diversity immigrants is equal to 55,000 for 
each fiscal year.]

           *       *       *       *       *       *       *


            numerical limitation to any single foreign state

    Sec. 202. (a) Per Country Level.--
            (1) * * *
            (2) Per country levels for family-sponsored [and 
        employment-based] immigrants.--Subject to paragraphs 
        [(3), (4), and (5),] (3) and (4), the total number of 
        immigrant visas made available to natives of any single 
        foreign state or dependent area under [subsections (a) 
        and (b) of section 203] section 203(a) in any fiscal 
        year may not exceed [7] 15 percent (in the case of a 
        single foreign state) or 2 percent (in the case of a 
        dependent area) of the total number of such visas made 
        available under [such subsections] such section in that 
        fiscal year.
            (3) Exception if additional visas available.--If 
        because of the application of paragraph (2) with 
        respect to one or more foreign states or dependent 
        areas, the total number of visas available under [both 
        subsections (a) and (b) of section 203] section 203(a) 
        for a calendar quarter exceeds the number of qualified 
        immigrants who otherwise may be issued such a visa, 
        paragraph (2) shall not apply to visas made available 
        to such states or areas during the remainder of such 
        calendar quarter.

           *       *       *       *       *       *       *

            [(5) Rules for employment-based immigrants.--
                    [(A) Employment-based immigrants not 
                subject to per country limitation if additional 
                visas available.--If the total number of visas 
                available under paragraph (1), (2), (3), (4), 
                or (5) of section 203(b) for a calendar quarter 
                exceeds the number of qualified immigrants who 
                may otherwise be issued such visas, the visas 
                made available under that paragraph shall be 
                issued without regard to the numerical 
                limitation under paragraph (2) of this 
                subsection during the remainder of the calendar 
                quarter.
                    [(B) Limiting fall across for certain 
                countries subject to subsection (e).--In the 
                case of a foreign state or dependent area to 
                which subsection (e) applies, if the total 
                number of visas issued under section 203(b) 
                exceeds the maximum number of visas that may be 
                made available to immigrants of the state or 
                area under section 203(b) consistent with 
                subsection (e) (determined without regard to 
                this paragraph), in applying subsection (e) all 
                visas shall be deemed to have been required for 
                the classes of aliens specified in section 
                203(b).]

           *       *       *       *       *       *       *

    [(e) Special Rules for Countries at Ceiling.--If it is 
determined that the total number of immigrant visas made 
available under subsections (a) and (b) of section 203 to 
natives of any single foreign state or dependent area will 
exceed the numerical limitation specified in subsection (a)(2) 
in any fiscal year, in determining the allotment of immigrant 
visa numbers to natives under subsections (a) and (b) of 
section 203, visa numbers with respect to natives of that state 
or area shall be allocated (to the extent practicable and 
otherwise consistent with this section and section 203) in a 
manner so that--
            [(1) the ratio of the visa numbers made available 
        under section 203(a) to the visa numbers made available 
        under section 203(b) is equal to the ratio of the 
        worldwide level of immigration under section 201(c) to 
        such level under section 201(d);
            [(2) except as provided in subsection (a)(4), the 
        proportion of the visa numbers made available under 
        each of paragraphs (1) through (4) of section 203(a) is 
        equal to the ratio of the total number of visas made 
        available under the respective paragraph to the total 
        number of visas made available under section 203(a), 
        and
            [(3) except as provided in subsection (a)(5), the 
        proportion of the visa numbers made available under 
        each of paragraphs (1) through (5) of section 203(b) is 
        equal to the ratio of the total number of visas made 
        available under the respective paragraph to the total 
        number of visas made available under section 203(b).
Nothing in this subsection shall be construed as limiting the 
number of visas that may be issued to natives of a foreign 
state or dependent area under section 203(a) or 203(b) if there 
is insufficient demand for visas for such natives under section 
203(b) or 203(a), respectively, or as limiting the number of 
visas that may be issued under section 203(a)(2)(A) pursuant to 
subsection (a)(4)(A).]
    (e) Special Rules for Countries at Ceiling.--If it is 
determined that the total number of immigrant visas made 
available under section 203(a) to natives of any single foreign 
state or dependent area will exceed the numerical limitation 
specified in subsection (a)(2) in any fiscal year, in 
determining the allotment of immigrant visa numbers to natives 
under section 203(a), visa numbers with respect to natives of 
that state or area shall be allocated (to the extent 
practicable and otherwise consistent with this section and 
section 203) in a manner so that, except as provided in 
subsection (a)(4), the proportion of the visa numbers made 
available under each of paragraphs (1) through (4) of section 
203(a) is equal to the ratio of the total number of visas made 
available under the respective paragraph to the total number of 
visas made available under section 203(a).

                     allocation of immigrant visas

    Sec. 203. (a) Preference Allocation for Family-Sponsored 
Immigrants.--Aliens subject to the worldwide level specified in 
section 201(c) for family-sponsored immigrants shall be 
allotted visas as follows:
            (1) Unmarried sons and daughters of citizens.--
        Qualified immigrants who are the unmarried sons or 
        daughters of citizens of the United States shall be 
        allocated visas in a number not to exceed [23,400, plus 
        any visas not required for the class specified in 
        paragraph (4).] 23,400.
            (2) Spouses and unmarried sons and unmarried 
        daughters of permanent resident aliens.--Qualified 
        immigrants--
                    (A) * * *

           *       *       *       *       *       *       *

        shall be allocated visas in a number not to exceed 
        [114,200,] 139,200, plus the number (if any) by which 
        such worldwide level exceeds [226,000,] 226,000 in 
        fiscal years through 2013, 251,000 beginning in fiscal 
        year 2014 through fiscal year 2023, and 186,000 
        beginning in fiscal year 2024, plus any visas not 
        required for the class specified in paragraph (1); 
        except that not less than [77] 81.13 percent of such 
        visa numbers shall be allocated to aliens described in 
        subparagraph (A).

           *       *       *       *       *       *       *

            [(4) Brothers and sisters of citizens.--Qualified 
        immigrants who are the brothers or sisters of citizens 
        of the United States, if such citizens are at least 21 
        years of age, shall be allocated visas in a number not 
        to exceed 65,000, plus any visas not required for the 
        classes specified in paragraphs (1) through (3).]
    (b) Preference Allocation for Employment-Based 
Immigrants.--Aliens subject to the worldwide level specified in 
section 201(d) for employment-based immigrants in a fiscal year 
shall be allotted visas as follows:
            (1) Priority workers.--Visas shall first be made 
        available in a number not to exceed [28.6 percent of 
        such worldwide level,] 40,040, plus any visas not 
        required for the classes specified in paragraphs (4) 
        and (5), to qualified immigrants who are aliens 
        described in any of the following subparagraphs (A) 
        through (C):
                    (A) * * *

           *       *       *       *       *       *       *

            (2) Aliens who are members of the professions 
        holding advanced degrees or aliens of exceptional 
        ability.--
                    (A) In general.--Visas shall be made 
                available, in a number not to exceed [28.6 
                percent of such worldwide level,] 55,040, plus 
                any visas not required for the classes 
                specified in [paragraph (1),] paragraphs (1), 
                (6), (7), and (8), to qualified immigrants who 
                are members of the professions holding advanced 
                degrees or their equivalent or who because of 
                their exceptional ability in the sciences, 
                arts, or business, will substantially benefit 
                prospectively the national economy, cultural or 
                educational interests, or welfare of the United 
                States, and whose services in the sciences, 
                arts, professions, or business are sought by an 
                employer in the United States. An alien 
                physician holding a foreign medical degree that 
                has been deemed sufficient for acceptance by an 
                accredited United States medical residency or 
                fellowship program is a member of the 
                professions holding an advanced degree or its 
                equivalent.
                    (B)(i) * * *
                    (ii)(I) The Attorney General shall grant a 
                national interest waiver pursuant to clause (i) 
                on behalf of any alien physician with respect 
                to whom a petition for preference 
                classification has been filed under 
                subparagraph (A) if--
                            [(aa) the alien physician agrees to 
                        work full time as a physician in an 
                        area or areas designated by the 
                        Secretary of Health and Human Services 
                        as having a shortage of health care 
                        professionals or at a health care 
                        facility under the jurisdiction of the 
                        Secretary of Veterans Affairs; and
                            [(bb) a Federal agency or a 
                        department of public health in any 
                        State has previously determined that 
                        the alien physician's work in such an 
                        area or at such facility was in the 
                        public interest.]
                            (aa) the alien physician agrees to 
                        work on a full-time basis practicing 
                        primary care, specialty medicine, or a 
                        combination thereof, in an area or 
                        areas designated by the Secretary of 
                        Health and Human Services as having a 
                        shortage of health care professionals, 
                        or at a health care facility under the 
                        jurisdiction of the Secretary of 
                        Veterans Affairs; or
                            (bb) the alien physician is 
                        pursuing such waiver based upon service 
                        at a facility or facilities that serve 
                        patients who reside in a geographic 
                        area or areas designated by the 
                        Secretary of Health and Human Services 
                        as having a shortage of health care 
                        professionals (without regard to 
                        whether such facility or facilities are 
                        located within such an area) and a 
                        Federal agency, or a local, county, 
                        regional, or State department of public 
                        health determines the alien physician's 
                        work was or will be in the public 
                        interest.
                            (II)(aa) No permanent resident visa 
                        may be issued to an alien physician 
                        described in subclause (I) by the 
                        Secretary of State under section 
                        204(b), and the Attorney General may 
                        not adjust the status of such an alien 
                        physician from that of a nonimmigrant 
                        alien to that of a permanent resident 
                        alien under section 245, until such 
                        time as the alien has worked full time 
                        as a physician for an aggregate of 5 
                        years (not including the time served in 
                        the status of an alien described in 
                        section 101(a)(15)(J)), in an area or 
                        areas designated by the Secretary of 
                        Health and Human Services as having a 
                        shortage of health care professionals 
                        or at a health care facility under the 
                        jurisdiction of the Secretary of 
                        Veterans Affairs.
                            (bb) The 5-year service requirement 
                        of item (aa) shall be counted from the 
                        date the alien physician begins work in 
                        the shortage area in any legal status 
                        and not the date an immigrant visa 
                        petition is filed or approved. Such 
                        service shall be aggregated without 
                        regard to when such service began and 
                        without regard to whether such service 
                        began during or in conjunction with a 
                        course of graduate medical education.
                            (cc) An alien physician shall not 
                        be required to submit an employment 
                        contract with a term exceeding the 
                        balance of the 5-year commitment yet to 
                        be served, nor an employment contract 
                        dated within a minimum time period 
                        prior to filing of a visa petition 
                        pursuant to this subsection.
                            (dd) An alien physician shall not 
                        be required to file additional 
                        immigrant visa petitions upon a change 
                        of work location from the location 
                        approved in the original national 
                        interest immigrant petition.

           *       *       *       *       *       *       *

            (3) Skilled workers, professionals, and other 
        workers.--
                    (A) In general.--Visas shall be made 
                available, in a number not to exceed [28.6 
                percent of such worldwide level,] 55,040, plus 
                any visas not required for the classes 
                specified in [paragraphs (1) and (2),] 
                paragraphs (1), (2), (6), and (7), to the 
                following classes of aliens who are not 
                described in paragraph (2):
                            (i) * * *

           *       *       *       *       *       *       *

                            (iv) Health care workers.--
                        Qualified immigrants who are required 
                        to submit health care worker 
                        certificates pursuant to section 
                        212(a)(5)(C) or certified statements 
                        pursuant to section 212(r) and will be 
                        working in a rural area or a health 
                        professional shortage area (as defined 
                        in section 332 of the Public Health 
                        Service Act (42 U.S.C. 254e)).

           *       *       *       *       *       *       *

                    (D) Set aside for health care workers.--
                            (i) In general.--Not less than 
                        4,000 of the visas made available under 
                        this paragraph in each fiscal year 
                        shall be reserved for qualified 
                        immigrants described in subparagraph 
                        (A)(iv).
                            (ii) Unused visas.--If the number 
                        of visas reserved under clause (i) has 
                        not been exhausted at the end of a 
                        given fiscal year, the Secretary of 
                        Homeland Security shall adjust upwards 
                        the numerical limitation in 
                        subparagraph (A) for that fiscal year 
                        by the amount remaining. Visas may be 
                        issued pursuant to such adjustment 
                        within the first 45 days of the next 
                        fiscal year to aliens who had applied 
                        for such visas during the fiscal year 
                        for which the adjustment was made.
            (4) Certain special immigrants.--Visas shall be 
        made available, in a number not to exceed [7.1 percent 
        of such worldwide level,] 9,940, to qualified special 
        immigrants described in section 101(a)(27) (other than 
        those described in subparagraph (A) or (B) thereof), of 
        which not more than 5,000 may be made available in any 
        fiscal year to special immigrants described in 
        subclause (II) or (III) of section 101(a)(27)(C)(ii), 
        and not more than 100 may be made available in any 
        fiscal year to special immigrants, excluding spouses 
        and children, who are described in section 
        101(a)(27)(M).
            (5) Employment creation.--
                    (A) In general.--Visas shall be made 
                available, in a number not to exceed [7.1 
                percent of such worldwide level,] 9,940, to 
                qualified immigrants seeking to enter the 
                United States for the purpose of engaging in a 
                new commercial enterprise (including a limited 
                partnership)--
                            (i) * * *

           *       *       *       *       *       *       *

                    (B) Set-aside for targeted employment 
                areas.--
                            (i) * * *
                            (ii) Targeted employment area 
                        defined.--In this paragraph, the term 
                        ``targeted employment area'' means, at 
                        the time of the investment, a rural 
                        area or an area which has experienced 
                        high unemployment [(of at least 150 
                        percent of the national average rate)].

           *       *       *       *       *       *       *

                            (iv) Definition.--In this 
                        paragraph, the term ``an area which has 
                        experienced high unemployment'' means 
                        an area which has an unemployment rate 
                        of at least 150 of the national average 
                        rate. Such an area must fit entirely 
                        within a geographical unit that the 
                        Secretary of Labor has determined has 
                        an unemployment rate of at least 150 
                        percent of the national average rate 
                        (and which determination has not been 
                        superseded by a later determination in 
                        which the Secretary of Labor has found 
                        that the unit did not have an 
                        unemployment rate of at least 150 
                        percent of the national average rate). 
                        The Secretary of Labor shall set forth 
                        a uniform methodology for determining 
                        whether an area an area qualifies as 
                        having experienced unemployment of at 
                        least 150 percent of the national 
                        average rate. It shall be within the 
                        discretion of the Secretary of Homeland 
                        Security to determine whether any 
                        particular area has experienced high 
                        unemployment for purposes of this 
                        paragraph, and the Secretary shall not 
                        be bound by the determination of any 
                        other governmental or nongovernmental 
                        entity that a particular area has 
                        experienced high unemployment for 
                        purposes of this paragraph.
                    (C) Amount of capital required.--
                            (i) * * *

           *       *       *       *       *       *       *

                            (iv) Capital defined.--For purposes 
                        of this paragraph, the term ``capital'' 
                        does not include any assets acquired, 
                        directly or indirectly, by unlawful 
                        means.
                            (v) Inflation adjustment.--
                                    (I) Initial adjustment.--As 
                                of the date of enactment of the 
                                SKILLS Visa Act, the amount 
                                specified in the first sentence 
                                of clause (i) shall be 
                                increased by the percentage (if 
                                any) by which the Consumer 
                                Price Index for the month 
                                preceding such enactment date 
                                exceeds the Consumer Price 
                                Index for the same month of 
                                calendar year 1990. The 
                                increase described in the 
                                preceding sentence shall apply 
                                to aliens filing petitions 
                                under section 204(a)(1)(H) on 
                                or after such enactment date.
                                    (II) Subsequent 
                                adjustments.--Effective for the 
                                first fiscal year that begins 
                                more than 6 months after the 
                                date of the enactment of this 
                                clause, and for each fiscal 
                                year thereafter, the amount 
                                described in subclause (I) (as 
                                of the last increase to such 
                                amount) shall be increased by 
                                the percentage (if any) by 
                                which the Consumer Price Index 
                                for the month of June preceding 
                                the date on which such increase 
                                takes effect exceeds the 
                                Consumer Price Index for the 
                                same month of the preceding 
                                calendar year. An increase 
                                described in the preceding 
                                sentence shall apply to aliens 
                                filing petitions under section 
                                204(a)(1)(H) on or after the 
                                date on which the increase 
                                takes effect.
                                    (III) Definition.--For 
                                purposes of this clause, the 
                                term ``Consumer Price Index'' 
                                means the Consumer Price Index 
                                for all urban consumers 
                                published by the Department of 
                                Labor.

           *       *       *       *       *       *       *

            (6) Aliens holding doctorate degrees from u.s. 
        doctoral institutions of higher education in science, 
        technology, engineering, or mathematics.--
                    (A) In general.--Visas shall be made 
                available, in a number not to exceed 55,000, 
                reduced for any fiscal year by the number by 
                which the number of visas under section 201(e) 
                would have been reduced in that year pursuant 
                to section 203(d) of the Nicaraguan Adjustment 
                and Central American Relief Act (8 U.S.C. 1151 
                note) if section 201(e) had not been repealed 
                by section 106 of the SKILLS Visa Act, plus any 
                visas not required for the classes specified in 
                paragraph (1), to qualified immigrants who--
                            (i) hold a doctorate degree in a 
                        field of science, technology, 
                        engineering, or mathematics from a 
                        United States doctoral institution of 
                        higher education, or have successfully 
                        completed a dental, medical, or 
                        veterinary residency program (within 
                        the summary group of residency programs 
                        in the Department of Education's 
                        Classification of Instructional 
                        Programs taxonomy), have received a 
                        medical degree (MD) in a program that 
                        prepares individuals for the 
                        independent professional practice of 
                        medicine (series 51.12 in the 
                        Department of Education's 
                        Classification of Instructional 
                        Programs taxonomy), have received a 
                        dentistry degree (DDS, DMD) in a 
                        program that prepares individuals for 
                        the independent professional practice 
                        of dentistry/dental medicine (series 
                        51.04 in the Department of Education's 
                        Classification of Instructional 
                        Programs taxonomy), have received a 
                        veterinary degree (DVM) in a program 
                        that prepares individuals for the 
                        independent professional practice of 
                        veterinary medicine (series 51.24 in 
                        the Department of Education's 
                        Classification of Instructional 
                        Programs taxonomy), or have received an 
                        osteopathic medicine/osteopathy degree 
                        (DO) in a program that prepares 
                        individuals for the independent 
                        professional practice of osteopathic 
                        medicine (series 51.19 in the 
                        Department of Education's 
                        Classification of Instructional 
                        Programs taxonomy) from an institution 
                        that is described in subclauses (I), 
                        (III), and (IV) of subparagraph 
                        (B)(iii); and
                            (ii) have taken not less than 85 
                        percent of the courses required for 
                        such degrees, including all courses 
                        taken by correspondence (including 
                        courses offered by telecommunications) 
                        or by distance education, while 
                        physically present in the United 
                        States.
                    (B) Definitions.--For purposes of this 
                paragraph, paragraph (7), and sections 
                101(a)(15)(F)(i)(I) and 212(a)(5)(A)(iii)(III):
                            (i) The term ``distance education'' 
                        has the meaning given such term in 
                        section 103 of the Higher Education Act 
                        of 1965 (20 U.S.C. 1003).
                            (ii) The term ``field of science, 
                        technology, engineering, or 
                        mathematics'' means a field included in 
                        the Department of Education's 
                        Classification of Instructional 
                        Programs taxonomy within the summary 
                        groups of computer and information 
                        sciences and support services, 
                        engineering, biological and biomedical 
                        sciences, mathematics and statistics, 
                        physical sciences, and the series 
                        geography and cartography (series 
                        45.07), advanced/graduate dentistry and 
                        oral sciences (series 51.05) and 
                        nursing (series 51.38).
                            (iii) The term ``United States 
                        doctoral institution of higher 
                        education'' means an institution that--
                                    (I) is described in section 
                                101(a) of the Higher Education 
                                Act of 1965 (20 U.S.C. 1001(a)) 
                                or is a proprietary institution 
                                of higher education (as defined 
                                in section 102(b) of such Act 
                                (20 U.S.C. 1002(b)));
                                    (II) was classified by the 
                                Carnegie Foundation for the 
                                Advancement of Teaching on 
                                January 1, 2013, as a 
                                doctorate-granting university 
                                with a very high or high level 
                                of research activity or 
                                classified by the National 
                                Science Foundation after the 
                                date of enactment of this 
                                paragraph, pursuant to an 
                                application by the institution, 
                                as having equivalent research 
                                activity to those institutions 
                                that had been classified by the 
                                Carnegie Foundation as being 
                                doctorate-granting universities 
                                with a very high or high level 
                                of research activity;
                                    (III) has been in existence 
                                for at least 10 years; and
                                    (IV) is accredited by an 
                                accrediting body that is itself 
                                accredited either by the 
                                Department of Education or by 
                                the Council for Higher 
                                Education Accreditation.
                    (C) Labor certification required.--
                            (i) In general.--Subject to clause 
                        (ii), the Secretary of Homeland 
                        Security may not approve a petition 
                        filed for classification of an alien 
                        under subparagraph (A) unless the 
                        Secretary of Homeland Security is in 
                        receipt of a determination made by the 
                        Secretary of Labor pursuant to the 
                        provisions of section 212(a)(5)(A), 
                        except that the Secretary of Homeland 
                        Security may, when the Secretary deems 
                        it to be in the national interest, 
                        waive this requirement.
                            (ii) Requirement deemed 
                        satisfied.--The requirement of clause 
                        (i) shall be deemed satisfied with 
                        respect to an employer and an alien in 
                        a case in which a certification made 
                        under section 212(a)(5)(A)(i) has 
                        already been obtained with respect to 
                        the alien by that employer.
            (7) Aliens holding master's degrees from u.s. 
        doctoral institutions of higher education in science, 
        technology, engineering, or mathematics.--
                    (A) In general.--Any visas not required for 
                the classes specified in paragraphs (1) and (6) 
                shall be made available to the classes of 
                aliens who--
                            (i) hold a master's degree in a 
                        field of science, technology, 
                        engineering, or mathematics from a 
                        United States doctoral institution of 
                        higher education that was either part 
                        of a master's program that required at 
                        least 2 years of enrollment or part of 
                        a 5-year combined baccalaureate-
                        master's degree program in such field;
                            (ii) have taken not less than 85 
                        percent of the master's degree courses 
                        in a field of science, technology, 
                        engineering, or mathematics, including 
                        all courses taken by correspondence 
                        (including courses offered by 
                        telecommunications) or by distance 
                        education, while physically present in 
                        the United States; and
                            (iii) hold a baccalaureate degree 
                        in a field of science, technology, 
                        engineering, or mathematics.
                    (B) Labor certification required.--
                            (i) In general.--Subject to clause 
                        (ii), the Secretary of Homeland 
                        Security may not approve a petition 
                        filed for classification of an alien 
                        under subparagraph (A) unless the 
                        Secretary of Homeland Security is in 
                        receipt of a determination made by the 
                        Secretary of Labor pursuant to the 
                        provisions of section 212(a)(5)(A), 
                        except that the Secretary of Homeland 
                        Security may, when the Secretary deems 
                        it to be in the national interest, 
                        waive this requirement.
                            (ii) Requirement deemed 
                        satisfied.--The requirement of clause 
                        (i) shall be deemed satisfied with 
                        respect to an employer and an alien in 
                        a case in which a certification made 
                        under section 212(a)(5)(A)(i) has 
                        already been obtained with respect to 
                        the alien by that employer.
                    (C) Definitions.--The definitions in 
                paragraph (6)(B) shall apply for purposes of 
                this paragraph.
            (8) Alien entrepreneurs.--
                    (A) In general.--Visas shall be made 
                available, in a number not to exceed 10,000, 
                plus any visas not required for the classes 
                specified in paragraphs (1), (2), and (3), to 
                the following classes of aliens:
                            (i) Venture capital-backed start-up 
                        entrepreneurs.--
                                    (I) In general.--An alien 
                                is described in this clause if 
                                the alien intends to engage in 
                                a new commercial enterprise 
                                (including a limited 
                                partnership) in the United 
                                States--
                                            (aa) with respect 
                                        to which the alien has 
                                        completed an investment 
                                        agreement requiring an 
                                        investment in the 
                                        enterprise in an amount 
                                        not less than $500,000, 
                                        subject to subclause 
                                        (III), on the part of--
                                                    (AA) a 
                                                venture capital 
                                                fund whose 
                                                investment 
                                                adviser is a 
                                                qualified 
                                                venture capital 
                                                entity; or
                                                    (BB) 2 or 
                                                more qualified 
                                                angel 
                                                investors; and
                                            (bb) which will 
                                        benefit the United 
                                        States economy and, 
                                        during the 3-year 
                                        period beginning on the 
                                        date on which the visa 
                                        is issued under this 
                                        paragraph, will--
                                                    (AA) create 
                                                full-time 
                                                employment for 
                                                at least 5 
                                                United States 
                                                workers within 
                                                the enterprise; 
                                                and
                                                    (BB) raise 
                                                not less than 
                                                an additional 
                                                $1,000,000 in 
                                                capital 
                                                investment, 
                                                subject to 
                                                subclause 
                                                (III), or 
                                                generate not 
                                                less than 
                                                $1,000,000 in 
                                                revenue, 
                                                subject to 
                                                subclause 
                                                (III).
                                    (II) Definitions.--For 
                                purposes of this clause:
                                            (aa) Investment.--
                                        The term ``investment'' 
                                        does not include any 
                                        assets acquired, 
                                        directly or indirectly, 
                                        by unlawful means.
                                            (bb) Investment 
                                        adviser.--The term 
                                        ``investment adviser'' 
                                        has the meaning given 
                                        such term under section 
                                        202(a)(11) of the 
                                        Investment Advisers Act 
                                        of 1940 (15 U.S.C. 80b-
                                        2(a)(11)).
                                            (cc) Qualified 
                                        Angel Investor.--The 
                                        term ``qualified angel 
                                        investor'' means an 
                                        individual who--
                                                    (AA) is an 
                                                accredited 
                                                investor (as 
                                                defined in 
                                                section 
                                                230.501(a) of 
                                                title 17, Code 
                                                of Federal 
                                                Regulations (as 
                                                in effect on 
                                                April 1, 
                                                2010));
                                                    (BB) is a 
                                                United States 
                                                citizen or an 
                                                alien lawfully 
                                                admitted to the 
                                                United States 
                                                for permanent 
                                                residence; and
                                                    (CC) has 
                                                made at least 2 
                                                investments 
                                                during the 3 
                                                year period 
                                                before the date 
                                                of a petition 
                                                by the 
                                                qualified 
                                                immigrant for 
                                                classification 
                                                under this 
                                                paragraph.
                                            (dd) Qualified 
                                        venture capital 
                                        entity.--The term 
                                        ``qualified venture 
                                        capital entity'' means, 
                                        with respect to a 
                                        qualified immigrant, an 
                                        entity that--
                                                    (AA) serves 
                                                as an 
                                                investment 
                                                adviser to a 
                                                venture capital 
                                                fund that is 
                                                making an 
                                                investment 
                                                under this 
                                                paragraph;
                                                    (BB) has 
                                                its primary 
                                                office location 
                                                or principal 
                                                place of 
                                                business in the 
                                                United States;
                                                    (CC) is 
                                                owned and 
                                                controlled, 
                                                directly or 
                                                indirectly, by 
                                                individuals the 
                                                majority of 
                                                whom are United 
                                                States citizens 
                                                or aliens 
                                                lawfully 
                                                admitted to the 
                                                United States 
                                                for permanent 
                                                residence;
                                                    (DD) has 
                                                been advising 
                                                one or more 
                                                venture capital 
                                                funds for a 
                                                period of at 
                                                least 2 years 
                                                before the date 
                                                of the petition 
                                                for 
                                                classification 
                                                under this 
                                                paragraph; and
                                                    (EE) 
                                                advises one or 
                                                more venture 
                                                capital funds 
                                                that have made 
                                                at least 2 
                                                investments of 
                                                not less than 
                                                $500,000 in 
                                                each of the 2 
                                                years before 
                                                the date of the 
                                                petition for 
                                                classification 
                                                under this 
                                                paragraph.
                                            (ee) Venture 
                                        capital fund.--The term 
                                        ``venture capital 
                                        fund'' means an 
                                        entity--
                                                    (AA) that 
                                                is classified 
                                                as a ``venture 
                                                capital 
                                                operating 
                                                company'' under 
                                                section 2510.3-
                                                101(d) of title 
                                                29, Code of 
                                                Federal 
                                                Regulations (as 
                                                in effect on 
                                                January 1, 
                                                2013) or has 
                                                management 
                                                rights in its 
                                                portfolio 
                                                companies to 
                                                the extent 
                                                required by 
                                                such section if 
                                                the venture 
                                                capital fund 
                                                were classified 
                                                as a venture 
                                                capital 
                                                operating 
                                                company;
                                                    (BB) has 
                                                capital 
                                                commitments of 
                                                not less than 
                                                $10,000,000; 
                                                and
                                                    (CC) whose 
                                                general partner 
                                                or managing 
                                                member is owned 
                                                and controlled, 
                                                directly or 
                                                indirectly, by 
                                                individuals the 
                                                majority of 
                                                whom are United 
                                                States citizens 
                                                or aliens 
                                                lawfully 
                                                admitted to the 
                                                United States 
                                                for permanent 
                                                residence.
                                    (III) Inflation 
                                adjustment.--Effective for the 
                                first fiscal year that begins 
                                more than 6 months after the 
                                date of the enactment of this 
                                clause, and for each fiscal 
                                year thereafter, the amounts 
                                described in subclauses (I) and 
                                (II) shall be increased by the 
                                percentage (if any) by which 
                                the Consumer Price Index for 
                                the month of June preceding the 
                                date on which such increase 
                                takes effect exceeds the 
                                Consumer Price Index for the 
                                same month of the preceding 
                                calendar year. An increase 
                                described in the preceding 
                                sentence shall apply to aliens 
                                filing petitions under section 
                                204(a)(1)(H) on or after the 
                                date on which the increase 
                                takes effect. For purposes of 
                                this clause, the term 
                                ``Consumer Price Index'' means 
                                the Consumer Price Index for 
                                all urban consumers published 
                                by the Department of Labor.
                            (ii) Treaty investors.--Immigrants 
                        who have been issued a visa or 
                        otherwise provided nonimmigrant status 
                        under section 101(a)(15)(E)(ii) (not 
                        including alien employees of the treaty 
                        investor) who have maintained that 
                        status for a minimum of 10 years and 
                        have benefitted the United States 
                        economy and created full-time 
                        employment for not fewer than 5 United 
                        States workers for a minimum of 10 
                        years.
                    (B) Definitions.--For purposes of this 
                paragraph:
                            (i) The term ``full-time 
                        employment'' has the meaning given such 
                        term in paragraph (5).
                            (ii) The term ``United States 
                        worker'' means an employee (other than 
                        the immigrant or the immigrant's 
                        spouse, sons, or daughters) who--
                                    (I) is a citizen or 
                                national of the United States; 
                                or
                                    (II) is an alien who is 
                                lawfully admitted for permanent 
                                residence, is admitted as a 
                                refugee under section 207, is 
                                granted asylum under section 
                                208, or is an immigrant 
                                otherwise authorized to be 
                                employed in the United States.
            [(6)] (9) Special rules for ``k'' special 
        immigrants.--
                    (A) * * *

           *       *       *       *       *       *       *

    [(c) Diversity Immigrants.--
            [(1) In general.--Except as provided in paragraph 
        (2), aliens subject to the worldwide level specified in 
        section 201(e) for diversity immigrants shall be 
        allotted visas each fiscal year as follows:
                    [(A) Determination of preference 
                immigration.--The Attorney General shall 
                determine for the most recent previous 5-
                fiscal-year period for which data are 
                available, the total number of aliens who are 
                natives of each foreign state and who (i) were 
                admitted or otherwise provided lawful permanent 
                resident status (other than under this 
                subsection) and (ii) were subject to the 
                numerical limitations of section 201(a) (other 
                than paragraph (3) thereof) or who were 
                admitted or otherwise provided lawful permanent 
                resident status as an immediate relative or 
                other alien described in section 201(b)(2).
                    [(B) Identification of high-admission and 
                low-admission regions and high-admission and 
                low-admission states.--The Attorney General--
                            [(i) shall identify--
                                    [(I) each region (each in 
                                this paragraph referred to as a 
                                ``high-admission region'') for 
                                which the total of the numbers 
                                determined under subparagraph 
                                (A) for states in the region is 
                                greater than \1/6\ of the total 
                                of all such numbers, and
                                    [(II) each other region 
                                (each in this paragraph 
                                referred to as a ``low-
                                admission region''); and
                            [(ii) shall identify--
                                    [(I) each foreign state for 
                                which the number determined 
                                under subparagraph (A) is 
                                greater than 50,000 (each such 
                                state in this paragraph 
                                referred to as a ``high-
                                admission state''), and
                                    [(II) each other foreign 
                                state (each such state in this 
                                paragraph referred to as a 
                                ``low-admission state'').
                    [(C) Determination of percentage of 
                worldwide immigration attributable to high-
                admission regions.--The Attorney General shall 
                determine the percentage of the total of the 
                numbers determined under subparagraph (A) that 
                are numbers for foreign states in high-
                admission regions.
                    [(D) Determination of regional populations 
                excluding high-admission states and ratios of 
                populations of regions within low-admission 
                regions and high-admission regions.--The 
                Attorney General shall determine--
                            [(i) based on available estimates 
                        for each region, the total population 
                        of each region not including the 
                        population of any high-admission state;
                            [(ii) for each low-admission 
                        region, the ratio of the population of 
                        the region determined under clause (i) 
                        to the total of the populations 
                        determined under such clause for all 
                        the low-admission regions; and
                            [(iii) for each high-admission 
                        region, the ratio of the population of 
                        the region determined under clause (i) 
                        to the total of the populations 
                        determined under such clause for all 
                        the high-admission regions.
                    [(E) Distribution of visas.--
                            [(i) No visas for natives of high-
                        admission states.--The percentage of 
                        visas made available under this 
                        paragraph to natives of a high-
                        admission state is 0.
                            [(ii) For low-admission states in 
                        low-admission regions.--Subject to 
                        clauses (iv) and (v), the percentage of 
                        visas made available under this 
                        paragraph to natives (other than 
                        natives of a high-admission state) in a 
                        low-admission region is the product 
                        of--
                                    [(I) the percentage 
                                determined under subparagraph 
                                (C), and
                                    [(II) the population ratio 
                                for that region determined 
                                under subparagraph (D)(ii).
                            [(iii) For low-admission states in 
                        high-admission regions.--Subject to 
                        clauses (iv) and (v), the percentage of 
                        visas made available under this 
                        paragraph to natives (other than 
                        natives of a high-admission state) in a 
                        high-admission region is the product 
                        of--
                                    [(I) 100 percent minus the 
                                percentage determined under 
                                subparagraph (C), and
                                    [(II) the population ratio 
                                for that region determined 
                                under subparagraph (D)(iii).
                            [(iv) Redistribution of unused visa 
                        numbers.--If the Secretary of State 
                        estimates that the number of immigrant 
                        visas to be issued to natives in any 
                        region for a fiscal year under this 
                        paragraph is less than the number of 
                        immigrant visas made available to such 
                        natives under this paragraph for the 
                        fiscal year, subject to clause (v), the 
                        excess visa numbers shall be made 
                        available to natives (other than 
                        natives of a high-admission state) of 
                        the other regions in proportion to the 
                        percentages otherwise specified in 
                        clauses (ii) and (iii).
                            [(v) Limitation on visas for 
                        natives of a single foreign state.--The 
                        percentage of visas made available 
                        under this paragraph to natives of any 
                        single foreign state for any fiscal 
                        year shall not exceed 7 percent.
                    [(F) Region defined.--Only for purposes of 
                administering the diversity program under this 
                subsection, Northern Ireland shall be treated 
                as a separate foreign state, each colony or 
                other component or dependent area of a foreign 
                state overseas from the foreign state shall be 
                treated as part of the foreign state, and the 
                areas described in each of the following 
                clauses shall be considered to be a separate 
                region:
                            [(i) Africa.
                            [(ii) Asia.
                            [(iii) Europe.
                            [(iv) North America (other than 
                        Mexico).
                            [(v) Oceania.
                            [(vi) South America, Mexico, 
                        Central America, and the Caribbean.
            [(2) Requirement of education or work experience.--
        An alien is not eligible for a visa under this 
        subsection unless the alien--
                    [(A) has at least a high school education 
                or its equivalent, or
                    [(B) has, within 5 years of the date of 
                application for a visa under this subsection, 
                at least 2 years of work experience in an 
                occupation which requires at least 2 years of 
                training or experience.
            [(3) Maintenance of information.--The Secretary of 
        State shall maintain information on the age, 
        occupation, education level, and other relevant 
        characteristics of immigrants issued visas under this 
        subsection.]
    (d) Treatment of Family Members.--A spouse or child as 
defined in subparagraph (A), (B), (C), (D), or (E) of section 
101(b)(1) shall, if not otherwise entitled to an immigrant 
status and the immediate issuance of a visa under subsection 
[(a), (b), or (c),] (a) or (b), be entitled to the same status, 
and the same order of consideration provided in the respective 
subsection, if accompanying or following to join, the spouse or 
parent.
    (e) Order of Consideration.--(1) * * *
    [(2) Immigrant visa numbers made available under subsection 
(c) (relating to diversity immigrants) shall be issued to 
eligible qualified immigrants strictly in a random order 
established by the Secretary of State for the fiscal year 
involved.]
    [(3)] (2) Waiting lists of applicants for visas under this 
section shall be maintained in accordance with regulations 
prescribed by the Secretary of State.
    (f) Authorization for Issuance.--In the case of any alien 
claiming in his application for an immigrant visa to be 
described in section 201(b)(2) or in subsection [(a), (b), or 
(c)] (a) or (b) of this section, the consular officer shall not 
grant such status until he has been authorized to do so as 
provided by section 204.
    (g) Lists.--For purposes of carrying out the Secretary's 
responsibilities in the orderly administration of this section, 
the Secretary of State may make reasonable estimates of the 
anticipated numbers of visas to be issued during any quarter of 
any fiscal year within each of the categories under subsections 
[(a), (b), and (c)] (a) and (b) and to rely upon such estimates 
in authorizing the issuance of visas. The Secretary of State 
shall terminate the registration of any alien who fails to 
apply for an immigrant visa within one year following 
notification to the alien of the availability of such visa, but 
the Secretary shall reinstate the registration of any such 
alien who establishes within 2 years following the date of 
notification of the availability of such visa that such failure 
to apply was due to circumstances beyond the alien's control.

           *       *       *       *       *       *       *

    (i) Permanent Priority Dates.--
            (1) In general.--Subject to subsection (h)(3) and 
        paragraph (2), the priority date for any employment-
        based petition shall be the date of filing of the 
        petition with the Secretary of Homeland Security (or 
        the Secretary of State, if applicable), unless the 
        filing of the petition was preceded by the filing of a 
        labor certification with the Secretary of Labor, in 
        which case that date shall constitute the priority 
        date.
            (2) Subsequent employment-based petitions.--Subject 
        to subsection (h)(3), an alien who is the beneficiary 
        of any employment-based petition that was approvable 
        when filed (including self-petitioners) shall retain 
        the priority date assigned with respect to that 
        petition in the consideration of any subsequently filed 
        employment-based petition (including self-petitions).

                procedure for granting immigrant status

    Sec. 204. (a)(1)(A)(i) Except as provided in clause (viii), 
any citizen of the United States claiming that an alien is 
entitled to classification by reason of a relationship 
described in paragraph [(1), (3), or (4)] (1) or (3) of section 
203(a) or to an immediate relative status under section 
201(b)(2)(A)(i) may file a petition with the Attorney General 
for such classification.

           *       *       *       *       *       *       *

    (F)(i) Any employer desiring and intending to employ within 
the United States an alien entitled to classification under 
section 203(b)(1)(B), 203(b)(1)(C), 203(b)(2), [or 203(b)(3)] 
203(b)(3), 203(b)(6), or 203(b)(7) may file a petition with the 
[Attorney General] Secretary of Homeland Security for such 
classification.
    (ii) The following processing standards shall apply with 
respect to petitions under clause (i) relating to alien 
beneficiaries qualifying under paragraph (6) or (7) of section 
203(b):
            (I) The Secretary of Homeland Security shall 
        adjudicate such petitions not later than 60 days after 
        the date on which the petition is filed. In the event 
        that additional information or documentation is 
        requested by the Secretary during such 60-day period, 
        the Secretary shall adjudicate the petition not later 
        than 30 days after the date on which such information 
        or documentation is received.
            (II) The petitioner shall be notified in writing 
        within 30 days of the date of filing if the petition 
        does not meet the standards for approval. If the 
        petition does not meet such standards, the notice shall 
        include the reasons therefore and the Secretary shall 
        provide an opportunity for the prompt resubmission of a 
        modified petition.

           *       *       *       *       *       *       *

    (H) Any alien desiring to be classified under [section 
203(b)(5)] paragraph (5) or (8) of section 203(b) may file a 
petition with the [Attorney General] Secretary of Homeland 
Security for such classification.
    [(I)(i) Any alien desiring to be provided an immigrant visa 
under section 203(c) may file a petition at the place and time 
determined by the Secretary of State by regulation. Only one 
such petition may be filed by an alien with respect to any 
petitioning period established. If more than one petition is 
submitted all such petitions submitted for such period by the 
alien shall be voided.
    [(ii)(I) The Secretary of State shall designate a period 
for the filing of petitions with respect to visas which may be 
issued under section 203(c) for the fiscal year beginning after 
the end of the period.
    [(II) Aliens who qualify, through random selection, for a 
visa under section 203(c) shall remain eligible to receive such 
visa only through the end of the specific fiscal year for which 
they were selected.
    [(III) The Secretary of State shall prescribe such 
regulations as may be necessary to carry out this clause.
    [(iii) A petition under this subparagraph shall be in such 
form as the Secretary of State may by regulation prescribe and 
shall contain such information and be supported by such 
documentary evidence as the Secretary of State may require.
            [(iv) Each petition to compete for consideration 
        for a visa under section 1153(c) of this title shall be 
        accompanied by a fee equal to $30. All amounts 
        collected under this clause shall be deposited into the 
        Treasury as miscellaneous receipts.]

           *       *       *       *       *       *       *

    (e) Nothing in this section shall be construed to entitle 
an immigrant, in behalf of whom a petition under this section 
is approved, to be admitted the United States as an immigrant 
under subsection [(a), (b), or (c)] (a) or (b) of section 203 
or as an immediate relative under section 201(b) if upon his 
arrival at a port of entry in the United States he is found not 
to be entitled to such classification.

           *       *       *       *       *       *       *


 Chapter 2--Qualifications for Admission of Aliens; Travel Control of 
Citizens and Aliens

           *       *       *       *       *       *       *


 general classes of aliens ineligible to receive visas and ineligible 
               for admission; waivers of inadmissibility

    Sec. 212. (a) Classes of Aliens Ineligible for Visas or 
Admission.--Except as otherwise provided in this Act, aliens 
who are inadmissible under the following paragraphs are 
ineligible to receive visas and ineligible to be admitted to 
the United States:
            (1) * * *

           *       *       *       *       *       *       *

            (5) Labor certification and qualifications for 
        certain immigrants.--
                    (A) Labor certification.--
                            (i) * * *
                            (ii) Job order.--
                                    (I) In general.--An 
                                employer who files an 
                                application under clause (i) 
                                shall submit a job order for 
                                the labor the alien seeks to 
                                perform to the State workforce 
                                agency in the State in which 
                                the alien seeks to perform the 
                                labor. The State workforce 
                                agency shall post the job order 
                                on its official agency website 
                                for a minimum of 30 days and 
                                not later than 3 days after 
                                receipt using the employment 
                                statistics system authorized 
                                under section 15 of the Wagner-
                                Peyser Act (29 U.S.C. 49 et 
                                seq.).
                                    (II) Links.--The Secretary 
                                of Labor shall include links to 
                                the official websites of all 
                                State workforce agencies on a 
                                single webpage of the official 
                                website of the Department of 
                                Labor.
                            [(ii)] (iii) Certain aliens subject 
                        to special rule.--For purposes of 
                        clause (i)(I), an alien described in 
                        this clause is an alien who--
                                    (I) is a member of the 
                                teaching profession[, or];
                                    (II) has exceptional 
                                ability in the sciences or the 
                                arts[.]; or
                                    (III) holds a doctorate 
                                degree in a field of science, 
                                technology, engineering, or 
                                mathematics from a United 
                                States doctoral institution of 
                                higher education (as defined in 
                                section 203(b)(6)(B)(iii)).
                            [(iii)] (iv) Professional 
                        athletes.--
                                    (I) * * *

           *       *       *       *       *       *       *

                            [(iv)] (v) Long delayed adjustment 
                        applicants.--A certification made under 
                        clause (i) with respect to an 
                        individual whose petition is covered by 
                        section 204(j) shall remain valid with 
                        respect to a new job accepted by the 
                        individual after the individual changes 
                        jobs or employers if the new job is in 
                        the same or a similar occupational 
                        classification as the job for which the 
                        certification was issued.
                            (vi) Processing standards for alien 
                        beneficiaries qualifying under 
                        paragraphs (6) and (7) of section 
                        203(b).--The following processing 
                        standards shall apply with respect to 
                        applications under clause (i) relating 
                        to alien beneficiaries qualifying under 
                        paragraph (6) or (7) of section 203(b):
                                    (I) The Secretary of Labor 
                                shall adjudicate such 
                                applications not later than 180 
                                days after the date on which 
                                the application is filed. In 
                                the event that additional 
                                information or documentation is 
                                requested by the Secretary 
                                during such 180-day period, the 
                                Secretary shall adjudicate the 
                                application not later than 60 
                                days after the date on which 
                                such information or 
                                documentation is received.
                                    (II) The applicant shall be 
                                notified in writing within 60 
                                days of the date of filing if 
                                the application does not meet 
                                the standards for approval. If 
                                the application does not meet 
                                such standards, the notice 
                                shall include the reasons 
                                therefore and the Secretary 
                                shall provide an opportunity 
                                for the prompt resubmission of 
                                a modified application.

           *       *       *       *       *       *       *

                    (D) Application of grounds.--The grounds 
                for inadmissibility of aliens under 
                subparagraphs (A) and (B) shall apply to 
                immigrants seeking admission or adjustment of 
                status under paragraph [(2) or (3)] (2), (3), 
                (6), or (7) of section 203(b).

           *       *       *       *       *       *       *

    (n)(1) No alien may be admitted or provided status as an H-
1B nonimmigrant in an occupational classification unless the 
employer has filed with the Secretary of Labor an application 
stating the following:
            (A) The employer--
                    (i)(I) except as provided in subclause 
                (II), is offering and will offer during the 
                period of authorized employment to aliens 
                admitted or provided status as an H-1B 
                nonimmigrant wages that are at least--
                            [(I)] (aa) the actual wage level 
                        paid by the employer to all other 
                        individuals with similar experience and 
                        qualifications for the specific 
                        employment in question, or
                            [(II)] (bb) the prevailing wage 
                        level for the occupational 
                        classification in the area of 
                        employment,
                whichever is greater, based on the best 
                information available as of the time of filing 
                the application[, and]; or
                    (II) if 80 percent or more of the 
                employer's workers in the same occupational 
                classification as the alien admitted or 
                provided status as an H-1B nonimmigrant and in 
                the same area of employment as the alien 
                admitted or provided status as an H-1B 
                nonimmigrant are United States workers (as 
                defined in paragraph (4)), is offering and will 
                offer during the period of authorized 
                employment to aliens admitted or provided 
                status as an H-1B nonimmigrant wages that are 
                at least the actual wage level paid by the 
                employer to all other individuals with similar 
                experience and qualifications for the specific 
                employment in question (but, in the case of an 
                employer with more than 25 employees, in no 
                event shall such wages be lower than the mean 
                of the lowest one-half of wages surveyed 
                pursuant to subsection (p)(5)); and

           *       *       *       *       *       *       *

    (2)(A) * * *

           *       *       *       *       *       *       *

    (F) The Secretary may, on a case-by-case basis, subject an 
employer to random [investigations for a period of up to 5 
years, beginning on the date (on or after the date of the 
enactment of the American Competitiveness and Workforce 
Improvement Act of 1998) on which the employer is found by the 
Secretary to have committed a willful failure to meet a 
condition of paragraph (1) (or has been found under paragraph 
(5) to have committed a willful failure to meet the condition 
of paragraph (1)(G)(i)(II)) or to have made a willful 
misrepresentation of material fact in an application.] 
investigations. An employer who has been subject to 2 random 
investigations may not be subject to another random 
investigation within 4 years of the second investigation unless 
the employer was found in the previous investigations or 
otherwise to have committed a willful failure to meet a 
condition of paragraph (1) (or has been found under paragraph 
(5) to have committed willful failure to meet the condition of 
paragraph (1)(G)(i)(II)) or to have made a willful 
misrepresentation of material fact in an application. The 
preceding sentence shall apply to an employer regardless of 
whether or not the employer is an H-1B-dependent employer. The 
authority of the Secretary under this subparagraph shall not be 
construed to be subject to, or limited by, the requirements of 
subparagraph (A).

           *       *       *       *       *       *       *

    (J) The Secretary of Labor is authorized to issue subpoenas 
as may be necessary to assure employer compliance with the 
terms and conditions of this subsection.

           *       *       *       *       *       *       *

    (p)(1) In computing the prevailing wage level for an 
occupational classification in an area of employment for 
purposes of [subsections (a)(5)(A), (n)(1)(A)(i)(II), and 
(t)(1)(A)(i)(II)] subsections (a)(5)(A), (n)(1)(A)(i)(II), and 
(t)(1)(A)(i)(II) of this section, and subsections (c)(2)(G), 
(e), and (s) of section 214, in the case of an employee of--
            (A) * * *

           *       *       *       *       *       *       *

    (2) In computing the prevailing wage level for an 
occupational classification in an area of employment for 
purposes of subsections (a)(5)(A), (n)(1)(A)(i)(II), and 
(t)(1)(A)(i)(II) of this section, and subsections (c)(2)(G), 
(e), and (s) of section 214, the wage level shall be the wage 
level specified in subparagraph (A), (B), or (C) of paragraph 
(5) depending on the experience, education, and level of 
supervision required for the position.
    [(2)] (3) With respect to a professional athlete (as 
defined in subsection (a)(5)(A)(iii)(II)) when the job 
opportunity is covered by professional sports league rules or 
regulations, the wage set forth in those rules or regulations 
shall be considered as not adversely affecting the wages of 
United States workers similarly employed and be considered the 
prevailing wage.
    [(3)] (4) The prevailing wage required to be paid pursuant 
to [subsections (a)(5)(A), (n)(1)(A)(i)(II), and 
(t)(1)(A)(i)(II)] subsections (a)(5)(A), (n)(1)(A)(i)(II), and 
(t)(1)(A)(i)(II) of this section, and subsections (c)(2)(G), 
(e), and (s) of section 214, shall be 100 percent of the wage 
determined pursuant to those sections.
    [(4) Where the Secretary of Labor uses, or makes available 
to employers, a governmental survey to determine the prevailing 
wage, such survey shall provide at least 4 levels of wages 
commensurate with experience, education, and the level of 
supervision. Where an existing government survey has only 2 
levels, 2 intermediate levels may be created by dividing by 3, 
the difference between the 2 levels offered, adding the 
quotient thus obtained to the first level and subtracting that 
quotient from the second level.]
    (5) Subject to paragraph (2), the Secretary of Labor shall 
make available to employers a governmental survey to determine 
the prevailing wage for each occupational classification by 
metropolitan statistical area in the United States. Such 
survey, or other survey approved by the Secretary of Labor, 
shall provide 3 levels of wages commensurate with experience, 
education, and level of supervision. Such wage levels shall be 
determined as follows:
            (A) The first level shall be the mean of the lowest 
        two-thirds of wages surveyed, but in no case less than 
        80 percent of the mean of the wages surveyed.
            (B) The second level shall be the mean of wages 
        surveyed.
            (C) The third level shall be the mean of the 
        highest two-thirds of wages surveyed.
    (6) An employer may use an independent authoritative survey 
approved by the Secretary of Labor for purposes of paragraph 
(5), if--
            (A) the survey data was collected within 24 months;
            (B) the survey was published within the prior 24 
        months;
            (C) the survey reflects the area of intended 
        employment;
            (D) the employer's job description adequately 
        matches the job description in the survey;
            (E) the survey is across industries that employ 
        workers in the occupation;
            (F) the wage determination is based on the 
        arithmetic mean (weighted average); and
            (G) the survey identifies a statistically valid 
        methodology that was used to collect the data.

           *       *       *       *       *       *       *

    (t)(1) No alien may be admitted or provided status as a 
nonimmigrant under section 101(a)(15)(H)(i)(b1) or section 
101(a)(15)(E)(iii) in an occupational classification unless the 
employer has filed with the Secretary of Labor an attestation 
stating the following:
            (A) The employer--
                    (i)(I) except as provided in subclause 
                (II), is offering and will offer during the 
                period of authorized employment to aliens 
                admitted or provided status under section 
                101(a)(15)(H)(i)(b1) or section 
                101(a)(15)(E)(iii) wages that are at least--
                            [(I)] (aa) the actual wage level 
                        paid by the employer to all other 
                        individuals with similar experience and 
                        qualifications for the specific 
                        employment in question; or
                            [(II)] (bb) the prevailing wage 
                        level for the occupational 
                        classification in the area of 
                        employment,
                whichever is greater, based on the best 
                information available as of the time of filing 
                the attestation[; and]; or
                    (II) if 80 percent or more of the 
                employer's workers in the same occupational 
                classification as the alien admitted or 
                provided status under section 
                101(a)(15)(H)(i)(b1) or 101(a)(15)(E)(iii) and 
                in the same area of employment as the alien 
                admitted or provided status under section 
                101(a)(15)(H)(i)(b1) or 101(a)(15)(E)(iii) are 
                United States workers (as defined in subsection 
                (n)(4)), is offering and will offer during the 
                period of authorized employment to aliens 
                admitted or provided status under section 
                101(a)(15)(H)(i)(b1) or section 
                101(a)(15)(E)(iii) wages that are at least the 
                actual wage level paid by the employer to all 
                other individuals with similar experience and 
                qualifications for the specific employment in 
                question (but, in the case of an employer with 
                more than 25 employees, in no event shall such 
                wages be lower than the mean of the lowest one-
                half of wages surveyed pursuant to subsection 
                (p)(5)); and

           *       *       *       *       *       *       *

    (3)(A) * * *

           *       *       *       *       *       *       *

    (E) The Secretary of Labor may, on a case-by-case basis, 
subject an employer to random [investigations for a period of 
up to 5 years, beginning on the date on which the employer is 
found by the Secretary of Labor to have committed a willful 
failure to meet a condition of paragraph (1) or to have made a 
willful misrepresentation of material fact in an attestation.] 
investigations. An employer who has been subject to 2 random 
investigations may not be subject to another random 
investigation within 4 years of the second investigation unless 
the employer was found in the previous investigations or 
otherwise to have committed a willful failure to meet a 
condition of paragraph (1) (or has been found under paragraph 
(5) to have committed willful failure to meet the condition of 
paragraph (1)(G)(i)(II)) or to have made a willful 
misrepresentation of material fact in an application. The 
authority of the Secretary of Labor under this subparagraph 
shall not be construed to be subject to, or limited by, the 
requirements of subparagraph (A).

           *       *       *       *       *       *       *

    (G) The Secretary of Labor is authorized to issue subpoenas 
as may be necessary to assure employer compliance with the 
terms and conditions of this subsection.

           *       *       *       *       *       *       *

    [(t)] (u)(1) * * *

           *       *       *       *       *       *       *


                       admission of nonimmigrants

    Sec. 214. (a) * * *
    (b) Every alien [(other than a nonimmigrant described in 
subparagraph (L) or (V) of section 101(a)(15), and other than a 
nonimmigrant described in any provision of section 
101(a)(15)(H)(i) except subclause (b1) of such section)] (other 
than a nonimmigrant described in subparagraph (F)(i), (L), or 
(V) of section 101(a)(15), a nonimmigrant described in any 
provision of section 101(a)(15)(H)(i), except subclause (b1) of 
such section, and an alien coming to the United States to 
receive graduate medical education or training as described in 
section 212(j) or to take examinations required to receive 
graduate medical education or training as described in section 
212(j)) shall be presumed to be an immigrant until he 
establishes to the satisfaction of the consular officer, at the 
time of application for a visa, and the immigration officers, 
at the time of application for admission, that he is entitled 
to a nonimmigrant status under section 101(a)(15). An alien who 
is an officer or employee of any foreign government or of any 
international organization entitled to enjoy privileges, 
exemptions, and immunities under the International 
Organizations Immunities Act, or an alien who is the attendant, 
servant, employee, or member of the immediate family of any 
such alien shall not be entitled to apply for or receive an 
immigrant visa, or to enter the United States as an immigrant 
unless he executes a written waiver in the same form and 
substance as is prescribed by section 247(b).
    (c)(1) * * *
    (2)(A) * * *

           *       *       *       *       *       *       *

    (E) In the case of an alien spouse admitted under section 
[101(a)(15)(L),] subparagraph (H)(i)(b), (H)(i)(b1), (E)(iii), 
or (L) of section 101(a)(15) who is accompanying or following 
to join a principal alien admitted under such section, the 
Attorney General shall authorize the alien spouse to engage in 
employment in the United States and provide the spouse with an 
``employment authorized'' endorsement or other appropriate work 
permit.

           *       *       *       *       *       *       *

    (G)(i) An employer of an alien who will serve in a capacity 
for the employer involving specialized knowledge under section 
101(a)(15)(L) for a cumulative period of time in excess of 6 
months over a 2-year period--
            (I)(aa) except as provided in item (bb), will offer 
        to the alien during the period of authorized employment 
        wages that are at least--
                    (AA) the actual wage level paid by the 
                employer to all other individuals with similar 
                experience and qualifications for the specific 
                employment in question; or
                    (BB) the prevailing wage level for the 
                occupational classification in the area of 
                employment, whichever is greater, based on the 
                best information available; or
            (bb) if 80 percent or more of the employer's 
        workers in the same occupational classification as the 
        alien and in the same area of employment as the alien 
        are United States workers (as defined in section 
        212(n)(4)), will offer to the alien during the period 
        of authorized employment wages that are at least the 
        actual wage level paid by the employer to all other 
        individuals with similar experience and qualifications 
        for the specific employment in question; and
            (II) will provide working conditions for such alien 
        that will not adversely affect the working conditions 
        of workers similarly employed.
    (ii) In complying with the requirements of clause (i), an 
employer may keep the alien on their home country payroll, and 
may take into account the value of wages paid by the employer 
to the alien in the currency of the alien's home country, the 
value of benefits paid by the employer to the alien in the 
alien's home country, employer-provided housing or housing 
allowances, employer-provided vehicles or transportation 
allowances, and other benefits provided to the alien as an 
incident of the assignment in the United States.
    (iii) The Secretary of Labor shall have the same 
investigatory and enforcement powers to ensure compliance with 
this subparagraph as are set forth in section 212(n)(2).
    (3) The [Attorney General] Secretary of Homeland Security 
shall approve a petition--
            (A) * * *

           *       *       *       *       *       *       *

[In the case of an alien seeking entry for a motion picture or 
television production, (i) any opinion under the previous 
sentence shall only be advisory, (ii) any such opinion that 
recommends denial must be in writing, (iii) in making the 
decision the Attorney General shall consider the exigencies and 
scheduling of the production, and (iv) the Attorney General 
shall append to the decision any such opinion. The Attorney 
General shall provide by regulation for the waiver of the 
consultation requirement under subparagraph (A) in the case of 
aliens who have been admitted as nonimmigrants under section 
101(a)(15)(O)(i) because of extraordinary ability in the arts 
and who seek readmission to perform similar services within 2 
years after the date of a consultation under such 
subparagraph.] In the case of an alien seeking entry for a 
motion picture or television production, (i) any opinion under 
the previous sentence shall only be advisory, (ii) any such 
opinion that recommends denial must be in writing, (iii) in 
making the decision the Secretary of Homeland Security shall 
consider the exigencies and scheduling of the production, (iv) 
the Secretary of Homeland Security shall append to the decision 
any such opinion, and (v) upon making the decision, the 
Secretary of Homeland Security shall immediately provide a copy 
of the decision to the consulting labor and management 
organizations. The Secretary of Homeland Security shall provide 
by regulation for the waiver of the consultation requirement 
under subparagraph (A) in the case of aliens who have been 
admitted as nonimmigrants under section 101(a)(15)(O)(i) 
because of extraordinary ability in the arts or extraordinary 
achievement in motion picture or television production and who 
seek readmission to perform similar services within 3 years 
after the date of a consultation under such subparagraph 
provided that, in the case of aliens admitted because of 
extraordinary achievement in motion picture or television 
production, such waiver shall apply only if the prior 
consultations by the appropriate union and management 
organization were favorable or raised no objection to the 
approval of the petition. Not later than 5 days after the date 
such a waiver is provided, the [Attorney General] Secretary of 
Homeland Security shall forward a copy of the petition and all 
supporting documentation to the national office of an 
appropriate labor organization.

           *       *       *       *       *       *       *

    (12)(A) In addition to any other fees authorized by law, 
the Secretary of Homeland Security shall impose a fraud 
prevention and detection fee on an employer filing a petition 
under paragraph (1)--
            (i) * * *

           *       *       *       *       *       *       *

The Secretary of Homeland Security shall also impose the fee 
described in the preceding sentence on an employer filing an 
attestation under section 212(t)(1) or employing an alien 
pursuant to subsection (e).

           *       *       *       *       *       *       *

    (15) The Secretary of Homeland Security may not approve any 
petition under paragraph (1) filed by an employer with respect 
to an alien seeking to obtain the status of a nonimmigrant 
under subclause (b) or (b1) of section 101(a)(15)(H)(i) and the 
Secretary of State may not approve a visa with respect to an 
alien seeking to obtain the status of a nonimmigrant under 
subparagraph (E)(iii) or (H)(i)(b1) of section 101(a)(15) 
unless--
            (A) the employer--
                    (i) is an institution of higher education 
                (as defined in section 101(a) of the Higher 
                Education Act of 1965 (20 U.S.C. 1001(a))), or 
                a governmental or nonprofit entity; or
                    (ii) maintains a place of business in the 
                United States that is licensed in accordance 
                with any applicable State or local business 
                licensing requirements and is used exclusively 
                for business purposes; and
            (B) the employer--
                    (i) is a governmental entity;
                    (ii) has aggregate gross assets with a 
                value of not less than $50,000--
                            (I) in the case of an employer that 
                        is a publicly held corporation, as 
                        determined using its most recent report 
                        filed with the Securities and Exchange 
                        Commission; or
                            (II) in the case of any other 
                        employer, as determined as of the date 
                        on which the petition is filed under 
                        regulations promulgated by the 
                        Secretary of Homeland Security; or
                    (iii) provides appropriate documentation of 
                business activity under regulations promulgated 
                by the Secretary of Homeland Security.
    (16) The Secretary of Homeland Security shall establish a 
pre-certification procedure for employers who file multiple 
petitions described in this subsection or section 204(a)(1)(F). 
Such precertification procedure shall enable an employer to 
avoid repeatedly submitting documentation that is common to 
multiple petitions and establish, through a single filing, 
criteria relating to the employer and the offered employment 
opportunity.

           *       *       *       *       *       *       *

    (e)(1) * * *

           *       *       *       *       *       *       *

    (7)(A) An employer of a Mexican or Canadian professional 
under this subsection--
            (i)(I) except as provided in subclause (II), will 
        offer to the alien during the period of authorized 
        employment wages that are at least--
                    (aa) the actual wage level paid by the 
                employer to all other individuals with similar 
                experience and qualifications for the specific 
                employment in question; or
                    (bb) the prevailing wage level for the 
                occupational classification in the area of 
                employment, whichever is greater, based on the 
                best information available; or
            (II) if 80 percent or more of the employer's 
        workers in the same occupational classification as the 
        alien and in the same area of employment as the alien 
        are United States workers (as defined in section 
        212(n)(4)), will offer to the alien during the period 
        of authorized employment wages that are at least the 
        actual wage level paid by the employer to all other 
        individuals with similar experience and qualifications 
        for the specific employment in question (but, in the 
        case of an employer with more than 25 employees, in no 
        event shall such wages be lower than the mean of the 
        lowest one-half of wages surveyed pursuant to section 
        212(p)(5)); and
            (ii) will provide working conditions for such alien 
        that will not adversely affect the working conditions 
        of workers similarly employed.
    (B) The Secretary of Labor shall have the same 
investigatory and enforcement powers to ensure compliance with 
this paragraph as are set forth in section 212(n)(2).

           *       *       *       *       *       *       *

    (g)(1) The total number of aliens who may be issued visas 
or otherwise provided nonimmigrant status during any fiscal 
year (beginning with fiscal year 1992)--
            (A) under section 101(a)(15)(H)(i)(b), may not 
        exceed--
                    (i) * * *

           *       *       *       *       *       *       *

                    (vi) 195,000 in fiscal year 2003; [and]
                    [(vii) 65,000 in each succeeding fiscal 
                year; or]
                    (vii) 65,000 in fiscal years 2004 through 
                2013; and
                    (viii) 155,000 in each succeeding fiscal 
                year; or

           *       *       *       *       *       *       *

    (5) The numerical limitations contained in paragraph (1)(A) 
shall not apply to any nonimmigrant alien issued a visa or 
otherwise provided status under section 101(a)(15)(H)(i)(b) 
who--
            (A) * * *

           *       *       *       *       *       *       *

            [(C) has earned a master's or higher degree from a 
        United States institution of higher education (as 
        defined in section 101(a) of the Higher Education Act 
        of 1965 (20 U.S.C. 1001(a)), until the number of aliens 
        who are exempted from such numerical limitation during 
        such year exceeds 20,000.]
            (C) meets the requirements of paragraph (6)(A) or 
        (7)(A) of section 203(b), until the number of aliens 
        who are exempted from such numerical limitation during 
        such year exceeds 40,000.

           *       *       *       *       *       *       *

    (12) Notwithstanding any other provision of this Act, any 
alien admitted or provided status as a nonimmigrant in order to 
provide services in a specialty occupation described in 
paragraph (1) or (3) of subsection (i) (other than services 
described in subparagraph (H)(ii)(a), (O), or (P) of section 
101(a)(15)) or as a fashion model shall have been issued a visa 
(or otherwise been provided nonimmigrant status) under 
subclause (b) or (b1) of section 101(a)(15)(H)(i) or section 
101(a)(15)(E)(iii).

           *       *       *       *       *       *       *

    (i)(1) * * *

           *       *       *       *       *       *       *

    (4)(A) For purposes of paragraphs (1)(B) and (3)(B), the 
term ``bachelor's or higher degree'' includes a foreign degree 
that is a recognized foreign equivalent of a bachelor's or 
higher degree.
    (B)(i) In the case of an alien with a foreign degree, any 
determination with respect to the equivalence of that degree to 
a degree obtained in the United States shall be made by the 
Secretary of State.
    (ii) In carrying out the preceding clause, the Secretary of 
State shall verify the authenticity of any foreign degree 
proffered by an alien. The Secretary of State may enter into 
contracts with public or private entities in conducting such 
verifications.
    (iii) In addition to any other fees authorized by law, the 
Secretary of State may impose a fee on an employer filing a 
petition under subsection (c)(1) initially to grant an alien 
nonimmigrant status described in section 101(a)(15)(H)(i)(b), 
if a determination or verification described in clause (i) or 
(ii) is required with respect to the petition. Fees collected 
under this clause shall be deposited in the Treasury in 
accordance with section 286(t).

           *       *       *       *       *       *       *

    (l)(1) In the case of a request by an interested State 
agency, or by an interested Federal agency, for a waiver of the 
2-year foreign residence requirement under section 212(e) on 
behalf of an alien described in clause (iii) of such section, 
the Attorney General shall not grant such waiver unless--
            (A) * * *

           *       *       *       *       *       *       *

            (C) in the case of a request by an interested 
        Federal agency or by an interested State agency--
                    [(i) the alien demonstrates a bona fide 
                offer of full-time employment at a health 
                facility or health care organization, which 
                employment has been determined by the Attorney 
                General to be in the public interest; and
                    [(ii) the alien agrees to begin employment 
                with the health facility or health care 
                organization within 90 days of receiving such 
                waiver, and agrees to continue to work for a 
                total of not less than 3 years (unless the 
                Attorney General determines that extenuating 
                circumstances exist, such as closure of the 
                facility or hardship to the alien, which would 
                justify a lesser period of employment at such 
                health facility or health care organization, in 
                which case the alien must demonstrate another 
                bona fide offer of employment at a health 
                facility or health care organization for the 
                remainder of such 3-year period); and]
                    (i) the alien demonstrates a bona fide 
                offer of full-time employment, at a health care 
                organization, which employment has been 
                determined by the Secretary of Homeland 
                Security to be in the public interest; and
                    (ii) the alien agrees to begin employment 
                with the health facility or health care 
                organization in a geographic area or areas 
                which are designated by the Secretary of Health 
                and Human Services as having a shortage of 
                health care professionals by the later of the 
                date that is 90 days after receiving such 
                waiver, 90 days after completing graduate 
                medical education or training under a program 
                approved pursuant to section 212(j)(1), or 90 
                days after receiving nonimmigrant status or 
                employment authorization, and agrees to 
                continue to work for a total of not less than 3 
                years in any status authorized for such 
                employment under this subsection unless--
                            (I) the Secretary determines that 
                        extenuating circumstances exist that 
                        justify a lesser period of employment 
                        at such facility or organization, in 
                        which case the alien shall demonstrate 
                        another bona fide offer of employment 
                        at a health facility or health care 
                        organization, for the remainder of such 
                        3-year period;
                            (II) the interested State agency 
                        that requested the waiver attests that 
                        extenuating circumstances exist that 
                        justify a lesser period of employment 
                        at such facility or organization in 
                        which case the alien shall demonstrate 
                        another bona fide offer of employment 
                        at a health facility or health care 
                        organization so designated by the 
                        Secretary of Health and Human Services, 
                        for the remainder of such 3-year 
                        period; or
                            (III) if the alien elects not to 
                        pursue a determination of extenuating 
                        circumstances pursuant to subclause (I) 
                        or (II), the alien terminates the 
                        alien's employment relationship with 
                        such facility or organization, in which 
                        case the alien shall be employed for 
                        the remainder of such 3-year period, 
                        and 1 additional year for each 
                        determination, at another health 
                        facility or health care organization in 
                        a geographic area or areas which are 
                        designated by the Secretary of Health 
                        and Human Services as having a shortage 
                        of health care professionals; and
            (D) in the case of a request by an interested 
        Federal agency (other than a request by an interested 
        Federal agency to employ the alien full-time in medical 
        research or training) or by an interested State agency, 
        the alien agrees to practice primary care or specialty 
        medicine in accordance with paragraph (2) for a total 
        of not less than 3 years only in the geographic area or 
        areas which are designated by the Secretary of Health 
        and Human Services as having a shortage of health care 
        professionals, except that--
                    (i) * * *
                    (ii) in the case of a request by an 
                interested State agency, the head of such State 
                agency determines that the alien is to practice 
                medicine under such agreement in a facility 
                that serves patients who reside in one or more 
                geographic areas so designated by the Secretary 
                of Health and Human Services (without regard to 
                whether such facility is located within such a 
                designated geographic area), and the grant of 
                such waiver would not cause the number of the 
                waivers granted on behalf of aliens for such 
                State for a fiscal year (within the limitation 
                in subparagraph (B)) in accordance with the 
                conditions of this clause to exceed 10; [and]
                    (iii) in the case of a request by an 
                interested Federal agency or by an interested 
                State agency for a waiver for an alien who 
                agrees to practice specialty medicine in a 
                facility located in a geographic area so 
                designated by the Secretary of Health and Human 
                Services, the request shall demonstrate, based 
                on criteria established by such agency, that 
                there is a shortage of health care 
                professionals able to provide services in the 
                appropriate medical specialty to the patients 
                who will be served by the alien[.]; and
                    (iv) in the case of a request by an 
                interested State agency--
                            (I) the head of such agency 
                        determines that the alien is to 
                        practice medicine in, or be on the 
                        faculty of a residency program at, an 
                        academic medical center (as that term 
                        is defined in section 411.355(e)(2) of 
                        title 42, Code of Federal Regulations, 
                        or similar successor regulation), 
                        without regard to whether such facility 
                        is located within an area designated by 
                        the Secretary of Health and Human 
                        Services as having a shortage of health 
                        care professionals; and
                            (II) the head of such agency 
                        determines that--
                                    (aa) the alien physician's 
                                work is in the public interest; 
                                and
                                    (bb) the grant of such 
                                waiver would not cause the 
                                number of the waivers granted 
                                on behalf of aliens for such 
                                State for a fiscal year (within 
                                the limitation in subparagraph 
                                (B) and subject to paragraph 
                                (4)) in accordance with the 
                                conditions of this clause to 
                                exceed 3.
            (2)(A) Notwithstanding section 248(a)(2), the 
        Attorney General may change the status of an alien who 
        qualifies under this subsection and section 212(e) to 
        that of [an alien described in section 
        101(a)(15)(H)(i)(b).] any status authorized for 
        employment under this Act. The numerical limitations 
        contained in subsection (g)(1)(A) shall not apply to 
        any alien whose status is changed under the preceding 
        sentence, if the alien obtained a waiver of the 2-year 
        foreign residence requirement upon a request by an 
        interested Federal agency or an interested State 
        agency.

           *       *       *       *       *       *       *

    (4)(A)(i) A State shall be allotted a total of 35 waivers 
under paragraph (1)(B) for a fiscal year if 90 percent of the 
waivers available to the State were used in the previous fiscal 
year.
    (ii) When an allotment has occurred under clause (i), the 
State shall be allotted an additional 5 waivers under paragraph 
(1)(B) for each subsequent fiscal year if 90 percent of the 
waivers available to the State were used in the previous fiscal 
year, except that if the State is allotted 60 or more waivers 
for a fiscal year, the State shall be eligible for the 
additional 5 waivers under this clause only if 90 percent of 
the waivers available to all States receiving at least 1 waiver 
under paragraph (1)(B) were used in the previous fiscal year.
    (B) Any increase in allotments under subparagraph (A) shall 
be maintained indefinitely, unless in a fiscal year, the total 
number of such waivers granted is 5 percent lower than in the 
last year in which there was an increase in the number of 
waivers allotted pursuant to this paragraph, in which case--
            (i) the number of waivers allotted shall be 
        decreased by 5 for all States beginning in the next 
        fiscal year; and
            (ii) each additional 5 percent decrease in such 
        waivers granted from the last year in which there was 
        an increase in the allotment, shall result in an 
        additional decrease of 5 waivers allotted for all 
        States, provided that the number of waivers allotted 
        for all States shall not drop below 30.
    (5) An alien granted a waiver under paragraph (1)(C) shall 
enter into an employment agreement with the contracting health 
facility or health care organization that--
            (A) specifies the maximum number of on-call hours 
        per week (which may be a monthly average) that the 
        alien will be expected to be available and the 
        compensation the alien will receive for on-call time;
            (B) specifies whether the contracting facility or 
        organization will pay for the alien's malpractice 
        insurance premiums, including whether the employer will 
        provide malpractice insurance and, if so, the amount of 
        such insurance that will be provided;
            (C) describes all of the work locations that the 
        alien will work and a statement that the contracting 
        facility or organization will not add additional work 
        locations without the approval of the Federal agency or 
        State agency that requested the waiver; and
            (D) does not include a non-compete provision.
    (6) An alien granted a waiver under paragraph (1)(C) whose 
employment relationship with a health facility or health care 
organization terminates during the 3-year service period 
required by such paragraph--
            (A) shall have a period of 120 days beginning on 
        the date of such determination of employment to submit 
        to the Secretary of Homeland Security applications or 
        petitions to commence employment with another 
        contracting health facility or health care organization 
        in a geographic area or areas which are designated by 
        the Secretary of Health and Human Services as having a 
        shortage of health care professionals; and
            (B) shall be considered to be maintaining lawful 
        status in an authorized stay during the 120-day period 
        referred to in subparagraph (A).
    (m)(1) An alien may not be accorded status as a 
nonimmigrant under clause [(i) or (iii)] (i), (ii), or (iv) of 
section 101(a)(15)(F) in order to pursue a course of study--
            (A) * * *

           *       *       *       *       *       *       *

    (n)(1) A nonimmigrant alien described in paragraph (2) who 
was previously issued a visa or otherwise provided nonimmigrant 
status under [section 101(a)(15)(H)(i)(b)] subparagraphs 
(H)(i)(b) and (O)(i) of section 101(a)(15) is authorized to 
accept new employment under such sections upon the filing by 
the prospective employer of a new petition on behalf of such 
nonimmigrant as provided under subsection (a). Employment 
authorization shall continue for such alien until the new 
petition is adjudicated. If the new petition is denied, such 
authorization shall cease.

           *       *       *       *       *       *       *

    (s)(1) An employer providing optional practical training to 
an alien who has been issued a visa or otherwise provided 
nonimmigrant status under subparagraph (F) or (M) of section 
101(a)(15) after completion of the alien's course of study--
            (A)(i) except as provided in clause (ii), shall 
        offer to the alien during the period of optional 
        practical training wages that are at least--
                    (I) the actual wage level paid by the 
                employer to all other individuals with similar 
                experience and qualifications for the specific 
                employment in question; or
                    (II) the prevailing wage level for the 
                occupational classification in the area of 
                employment, whichever is greater, based on the 
                best information available; or
            (ii) if 80 percent or more of the employer's 
        workers in the same occupational classification as the 
        alien and in the same area of employment as the alien 
        are United States workers (as defined in section 
        212(n)(4)), shall offer to the alien during the period 
        of authorized employment wages that are at least the 
        actual wage level paid by the employer to all other 
        individuals with similar experience and qualifications 
        for the specific employment in question (but, in the 
        case of an employer with more than 25 employees, in no 
        event shall such wages be lower than the mean of the 
        lowest one-half of wages surveyed pursuant to section 
        212(p)(5)); and
            (B) shall provide working conditions for such alien 
        that will not adversely affect the working conditions 
        of workers similarly employed.
    (2) The Secretary of Labor has the same investigatory and 
enforcement powers to ensure compliance with paragraph (1) as 
are set forth in section 212(n)(2).
    (t) A nonimmigrant issued a visa or otherwise provided 
nonimmigrant status under subparagraph (A), (E), (G), (H), (I), 
(J), (L), (O), (P), (Q), or (R) of section 101(a)(15), or 
section 214(e), and otherwise as the Secretary of Homeland 
Security may by regulations prescribe, whose status has expired 
but who has, or whose sponsoring employer or authorized agent 
has, filed a timely application or petition for an extension of 
authorized status as provided under this section, is authorized 
to continue employment with the same employer for a period not 
to exceed 240 days beginning on the date of the expiration of 
the authorized period of stay until and unless the application 
or petition is denied. Such authorization shall be subject to 
the same conditions and limitations noted on the original 
authorization.

           *       *       *       *       *       *       *


        conditional permanent resident status for certain alien 
           [entrepreneurs,] investors, spouses, and children

    Sec. 216A. (a) In General.--
            (1) Conditional basis for status.--Notwithstanding 
        any other provision of this Act, an alien 
        [entrepreneur] investor (as defined in subsection 
        (f)(1)), alien spouse, and alien child (as defined in 
        subsection (f)(2)) shall be considered, at the time of 
        obtaining the status of an alien lawfully admitted for 
        permanent residence, to have obtained such status on a 
        conditional basis subject to the provisions of this 
        section.
            (2) Notice of requirements.--
                    (A) At time of obtaining permanent 
                residence.--At the time an alien [entrepreneur] 
                investor, alien spouse, or alien child obtains 
                permanent resident status on a conditional 
                basis under paragraph (1), the [Attorney 
                General] Secretary of Homeland Security shall 
                provide for notice to such an [entrepreneur] 
                investor, spouse, or child respecting the 
                provisions of this section and the requirements 
                of subsection (c)(1) to have the conditional 
                basis of such status removed.
                    (B) At time of required petition.--In 
                addition, the [Attorney General] Secretary of 
                Homeland Security shall attempt to provide 
                notice to such an [entrepreneur] investor, 
                spouse, or child, at or about the beginning of 
                the 90-day period described in subsection 
                (d)(2)(A), of the requirements of subsection 
                (c)(1).
                    (C) Effect of failure to provide notice.--
                The failure of the [Attorney General] Secretary 
                of Homeland Security to provide a notice under 
                this paragraph shall not affect the enforcement 
                of the provisions of this section with respect 
                to such an [entrepreneur] investor, spouse, or 
                child.
    (b) Termination of Status if Finding that Qualifying 
Entrepreneurship Improper.--
            (1) In general.--In the case of an alien 
        [entrepreneur] investor with permanent resident status 
        on a conditional basis under subsection (a), if the 
        [Attorney General] Secretary of Homeland Security 
        determines, before the second anniversary of the 
        alien's obtaining the status of lawful admission for 
        permanent residence, that--
                    (A) * * *

           *       *       *       *       *       *       *

        then the [Attorney General] Secretary of Homeland 
        Security shall so notify the alien involved and, 
        subject to paragraph (2), shall terminate the permanent 
        resident status of the alien (and the alien spouse and 
        alien child) involved as of the date of the 
        determination.
            (2) Hearing in removal proceeding.--Any alien whose 
        permanent resident status is terminated under paragraph 
        (1) may request a review of such determination in a 
        proceeding to remove the alien. In such proceeding, the 
        burden of proof shall be on the [Attorney General] 
        Secretary of Homeland Security to establish, by a 
        preponderance of the evidence, that a condition 
        described in paragraph (1) is met.
    (c) Requirements of Timely Petition and Interview for 
Removal of Condition.--
            (1) In general.--In order for the conditional basis 
        established under subsection (a) for an alien 
        [entrepreneur] investor, alien spouse, or alien child 
        to be removed--
                    (A) the alien [entrepreneur] investor must 
                submit to the [Attorney General] Secretary of 
                Homeland Security, during the period described 
                in subsection (d)(2), a petition which requests 
                the removal of such conditional basis and which 
                states, under penalty of perjury, the facts and 
                information described in subsection (d)(1), and
                    (B) in accordance with subsection (d)(3), 
                the alien [entrepreneur] investor must appear 
                for a personal interview before an officer or 
                employee of the Service respecting the facts 
                and information described in subsection (d)(1).
            (2) Termination of permanent resident status for 
        failure to file petition or have personal interview.--
                    (A) In general.--In the case of an alien 
                with permanent resident status on a conditional 
                basis under subsection (a), if--
                            (i) * * *
                            (ii) unless there is good cause 
                        shown, the alien [entrepreneur] 
                        investor fails to appear at the 
                        interview described in paragraph (1)(B) 
                        (if required under subsection (d)(3)),
                the [Attorney General] Secretary of Homeland 
                Security shall terminate the permanent resident 
                status of the alien (and the alien's spouse and 
                children if it was obtained on a conditional 
                basis under this section or section 216) as of 
                the second anniversary of the alien's lawful 
                admission for permanent residence.

           *       *       *       *       *       *       *

            (3) Determination after petition and interview.--
                    (A) In general.--If--
                            (i) * * *
                            (ii) the alien [entrepreneur] 
                        investor appears at any interview 
                        described in paragraph (1)(B),
                the [Attorney General] Secretary of Homeland 
                Security shall make a determination, within 90 
                days of the date of [the such filing] such 
                filing or interview (whichever is later), as to 
                whether the facts and information described in 
                subsection (d)(1) and alleged in the petition 
                are true with respect to the qualifying 
                commercial enterprise.
                    [(B) Removal of conditional basis if 
                favorable determination.--If the Attorney 
                General determines that such facts and 
                information are true, the Attorney General 
                shall so notify the alien involved and shall 
                remove the conditional basis of the alien's 
                status effective as of the second anniversary 
                of the alien's lawful admission for permanent 
                residence.]
                    (B) Removal or extension of conditional 
                basis.--
                            (i) In general.--Except as provided 
                        under clause (ii), if the Secretary of 
                        Homeland Security determines that such 
                        facts and information are true, 
                        including demonstrating that the alien 
                        complied with section (d)(1)(B)(i), the 
                        Secretary shall so notify the alien 
                        involved and shall remove the 
                        conditional basis of the alien's status 
                        effective as of the second anniversary 
                        of the alien's lawful admission for 
                        permanent residence.
                            (ii) Exception.--If the petition 
                        demonstrates that the facts and 
                        information are true, including 
                        demonstrating that the alien is in 
                        compliance with section (d)(1)(B)(ii), 
                        then the Secretary of Homeland Security 
                        may in the Secretary's discretion 
                        extend the conditional status for an 
                        additional year at the end of which--
                                    (I) the alien must file a 
                                petition within 30 days after 
                                the third anniversary of the 
                                alien's lawful admission for 
                                permanent residence 
                                demonstrating that the alien 
                                complied with section 
                                (d)(1)(B)(i) and the Secretary 
                                shall remove the conditional 
                                basis of the alien's status 
                                effective as of such third 
                                anniversary; or
                                    (II) the conditional status 
                                shall terminate.
                    (C) Termination if adverse determination.--
                If the [Attorney General] Secretary of Homeland 
                Security determines that such facts and 
                information are not true, the [Attorney 
                General] Secretary of Homeland Security shall 
                so notify the alien involved and, subject to 
                subparagraph (D), shall terminate the permanent 
                resident status of an alien [entrepreneur] 
                investor, alien spouse, or alien child as of 
                the date of the determination.
                    (D) Hearing in removal proceeding.--Any 
                alien whose permanent resident status is 
                terminated under subparagraph (C) may request a 
                review of such determination in a proceeding to 
                remove the alien. In such proceeding, the 
                burden of proof shall be on the [Attorney 
                General] Secretary of Homeland Security to 
                establish, by a preponderance of the evidence, 
                that the facts and information described in 
                subsection (d)(1) and alleged in the petition 
                are not true with respect to the qualifying 
                commercial enterprise.
    (d) Details of Petition and Interview.--
            (1) Contents of petition.--Each petition under 
        subsection (c)(1)(A) shall contain facts and 
        information demonstrating that the alien--
                    (A)(i) * * *
                    (ii) sustained the actions described in 
                clause (i) throughout the period of the alien's 
                residence in the United States; [and]
                    (B)(i) created the employment required 
                under section 203(b)(5)(A)(ii); or
                    (ii) is actively in the process of creating 
                the employment required under section 
                203(b)(5)(A)(ii) and will create such 
                employment before the third anniversary of the 
                alien's lawful admission for permanent 
                residence; and
                    [(B)] (C) is otherwise conforming to the 
                requirements of section 203(b)(5).
            (2) Period for filing petition.--
                    (A) * * *
                    (B) Date petitions for good cause.--Such a 
                petition may be considered if filed after such 
                date, but only if the alien establishes to the 
                satisfaction of the [Attorney General] 
                Secretary of Homeland Security good cause and 
                extenuating circumstances for failure to file 
                the petition during the period described in 
                subparagraph (A).
                    (C) Filing of petitions during removal.--In 
                the case of an alien who is the subject of 
                removal hearings as a result of failure to file 
                a petition on a timely basis in accordance with 
                subparagraph (A), the [Attorney General] 
                Secretary of Homeland Security may stay such 
                removal proceedings against an alien pending 
                the filing of the petition under subparagraph 
                (B).
            (3) Personal interview.--The interview under 
        subsection (c)(1)(B) shall be conducted within 90 days 
        after the date of submitting a petition under 
        subsection (c)(1)(A) and at a local office of the 
        Service, designated by the [Attorney General] Secretary 
        of Homeland Security, which is convenient to the 
        parties involved. The [Attorney General] Secretary of 
        Homeland Security, in the Attorney General's 
        discretion, may waive the deadline for such an 
        interview or the requirement for such an interview in 
        such cases as may be appropriate.

           *       *       *       *       *       *       *

    (f) Definitions.--In this section:
            (1) The term ``alien [entrepreneur] investor'' 
        means an alien who obtains the status of an alien 
        lawfully admitted for permanent residence (whether on a 
        conditional basis or otherwise) under section 
        203(b)(5).
            (2) The term ``alien spouse'' and the term ``alien 
        child'' mean an alien who obtains the status of an 
        alien lawfully admitted for permanent residence 
        (whether on a conditional basis or otherwise) by virtue 
        of being the spouse or child, respectively, of an alien 
        [entrepreneur] investor.

           *       *       *       *       *       *       *


SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS FOR CERTAIN ALIEN 
                    ENTREPRENEURS, SPOUSES, AND CHILDREN.

    (a) In General.--
            (1) Conditional basis for status.--Notwithstanding 
        any other provision of this Act, an alien entrepreneur 
        (as defined in subsection (f)(1) of this section), 
        alien spouse, and alien child (as defined in subsection 
        (f)(2) of this section) shall be considered, at the 
        time of obtaining the status of an alien lawfully 
        admitted for permanent residence, to have obtained such 
        status on a conditional basis subject to the provisions 
        of this section.
            (2) Notice of requirements.--
                    (A) At time of obtaining permanent 
                residence.--At the time an alien entrepreneur, 
                alien spouse, or alien child obtains permanent 
                resident status on a conditional basis under 
                paragraph (1), the Secretary of Homeland 
                Security shall provide for notice to such an 
                entrepreneur, spouse, or child respecting the 
                provisions of this section and the requirements 
                of subsection (c)(1) of this section to have 
                the conditional basis of such status removed.
                    (B) At time of required petition.--In 
                addition, the Secretary of Homeland Security 
                shall attempt to provide notice to such an 
                entrepreneur, spouse, or child, at or about the 
                beginning of the 90-day period described in 
                subsection (d)(2)(A) of this section, of the 
                requirements of subsection (c)(1) of this 
                section.
                    (C) Effect of failure to provide notice.--
                The failure of the Secretary of Homeland 
                Security to provide a notice under this 
                paragraph shall not affect the enforcement of 
                the provisions of this section with respect to 
                such an entrepreneur, spouse, or child.
    (b) Termination of Status if Finding that Qualifying 
Entrepreneurship Improper.--
            (1) In general.--In the case of an alien 
        entrepreneur with permanent resident status on a 
        conditional basis under subsection (a) of this section, 
        if the Secretary of Homeland Security determines, 
        before the third anniversary of the alien's obtaining 
        the status of lawful admission for permanent residence, 
        that--
                    (A) the required investment in the 
                commercial enterprise under section 
                203(b)(8)(A)(i)(I) was intended solely as a 
                means of evading the immigration laws of the 
                United States;
                    (B)(i) any requisite capital to be invested 
                under section 203(b)(8)(A)(i)(I) had not been 
                invested, or was not actively in the process of 
                being invested; or
                    (ii) the alien was not sustaining the 
                actions described in clause (i) throughout the 
                period of the alien's residence in the United 
                States; or
                    (C) the alien was otherwise not conforming 
                to the requirements of section 203(b)(8)(A)(i);
        then the Secretary of Homeland Security shall so notify 
        the alien involved and, subject to paragraph (2), shall 
        terminate the permanent resident status of the alien 
        (and the alien spouse and alien child) involved as of 
        the date of the determination.
            (2) Hearing in removal proceeding.--Any alien whose 
        permanent resident status is terminated under paragraph 
        (1) may request a review of such determination in a 
        proceeding to remove the alien. In such proceeding, the 
        burden of proof shall be on the Secretary of Homeland 
        Security to establish, by a preponderance of the 
        evidence, that a condition described in paragraph (1) 
        is met.
    (c) Requirements of Timely Petition and Interview for 
Removal of Condition.--
            (1) In general.--In order for the conditional basis 
        established under subsection (a) of this section for an 
        alien entrepreneur, alien spouse, or alien child to be 
        removed--
                    (A) the alien entrepreneur must submit to 
                the Secretary of Homeland Security, during the 
                period described in subsection (d)(2), a 
                petition which requests the removal of such 
                conditional basis and which states, under 
                penalty of perjury, the facts and information 
                described in subsection (d)(1); and
                    (B) in accordance with subsection (d)(3), 
                the alien entrepreneur must appear for a 
                personal interview before an officer or 
                employee of the Department of Homeland Security 
                respecting the facts and information described 
                in subsection (d)(1).
            (2) Termination of permanent resident status for 
        failure to file petition or have personal interview.--
                    (A) In general.--In the case of an alien 
                with permanent resident status on a conditional 
                basis under subsection (a) of this section, 
                if--
                            (i) no petition is filed with 
                        respect to the alien in accordance with 
                        the provisions of paragraph (1)(A); or
                            (ii) unless there is good cause 
                        shown, the alien entrepreneur fails to 
                        appear at the interview described in 
                        paragraph (1)(B) (if required under 
                        subsection (d)(3) of this section), the 
                        Secretary of Homeland Security shall 
                        terminate the permanent resident status 
                        of the alien (and the alien's spouse 
                        and children if it was obtained on a 
                        conditional basis under this section or 
                        section 216A) as of the third 
                        anniversary of the alien's lawful 
                        admission for permanent residence.
                    (B) Hearing in removal proceeding.--In any 
                removal proceeding with respect to an alien 
                whose permanent resident status is terminated 
                under subparagraph (A), the burden of proof 
                shall be on the alien to establish compliance 
                with the conditions of subparagraphs (A) and 
                (B) of paragraph (1).
            (3) Determination after petition and interview.--
                    (A) In general.--If--
                            (i) a petition is filed in 
                        accordance with the provisions of 
                        paragraph (1)(A); and
                            (ii) the alien entrepreneur appears 
                        at any interview described in paragraph 
                        (1)(B);
                the Secretary of Homeland Security shall make a 
                determination, within 90 days of the date of 
                such filing or interview (whichever is later), 
                as to whether the facts and information 
                described in subsection (d)(1) and alleged in 
                the petition are true with respect to the 
                qualifying commercial enterprise.
                    (B) Removal or extension of conditional 
                basis.--
                            (i) In general.--Except as provided 
                        in clause (ii), if the Secretary of 
                        Homeland Security determines that such 
                        facts and information are true, 
                        including demonstrating that the alien 
                        complied with subsection (d)(1)(B)(i), 
                        the Secretary shall so notify the alien 
                        involved and shall remove the 
                        conditional basis of the alien's status 
                        effective as of the third anniversary 
                        of the alien's lawful admission for 
                        permanent residence.
                            (ii) Exception.--If the petition 
                        demonstrates that the facts and 
                        information are true, including 
                        demonstrating that the alien is in 
                        compliance with section (d)(1)(B)(ii), 
                        then the Secretary of Homeland Security 
                        may, in the Secretary's discretion, 
                        extend the conditional status for an 
                        additional year at the end of which--
                                    (I) the alien must file a 
                                petition within 30 days after 
                                the fourth anniversary of the 
                                alien's lawful admission for 
                                permanent residence 
                                demonstrating that the alien 
                                complied with subsection 
                                (d)(1)(B)(i) and the Secretary 
                                shall remove the conditional 
                                basis of the alien's status 
                                effective as of such fourth 
                                anniversary; or
                                    (II) the conditional status 
                                shall terminate.
                    (C) Determination if adverse 
                determination.--If the Secretary of Homeland 
                Security determines that such facts and 
                information are not true, the Secretary shall 
                so notify the alien involved and, subject to 
                subparagraph (D), shall terminate the permanent 
                resident status of an alien entrepreneur, alien 
                spouse, or alien child as of the date of the 
                determination.
                    (D) Hearing in removal proceeding.--Any 
                alien whose permanent resident status is 
                terminated under subparagraph (C) may request a 
                review of such determination in a proceeding to 
                remove the alien. In such proceeding, the 
                burden of proof shall be on the Secretary of 
                Homeland Security to establish, by a 
                preponderance of the evidence, that the facts 
                and information described in subsection (d)(1) 
                of this section and alleged in the petition are 
                not true with respect to the qualifying 
                commercial enterprise.
    (d) Details of Petition and Interview.--
            (1) Contents of petition.--Each petition under 
        subsection (c)(1)(A) shall contain facts and 
        information demonstrating that--
                    (A)(i) any requisite capital to be invested 
                under section 203(b)(8)(A)(i)(I) had been 
                invested, or was actively in the process of 
                being invested; and
                    (ii) the alien sustained the actions 
                described in clause (i) throughout the period 
                of the alien's residence in the United States;
                    (B)(i) the alien created the employment 
                required under section 
                203(b)(8)(A)(i)(I)(bb)(AA); or
                    (ii) the alien is actively in the process 
                of creating the employment required under 
                section 203(b)(8)(A)(i)(I)(bb)(AA) and will 
                create such employment before the fourth 
                anniversary of the alien's lawful admission for 
                permanent residence; and
                    (C) the alien is otherwise conforming to 
                the requirements of section 203(b)(8)(A)(i).
            (2) Period for filing petition.--
                    (A) 90-day period before second 
                anniversary.--Except as provided in 
                subparagraph (B), the petition under subsection 
                (c)(1)(A) of this section must be filed during 
                the 90-day period before the third anniversary 
                of the alien's lawful admission for permanent 
                residence.
                    (B) Date petitions for good cause.--Such a 
                petition may be considered if filed after such 
                date, but only if the alien establishes to the 
                satisfaction of the Secretary of Homeland 
                Security good cause and extenuating 
                circumstances for failure to file the petition 
                during the period described in subparagraph 
                (A).
                    (C) Filing of petitions during removal.--In 
                the case of an alien who is the subject of 
                removal hearings as a result of failure to file 
                a petition on a timely basis in accordance with 
                subparagraph (A), the Secretary of Homeland 
                Security may stay such removal proceedings 
                against an alien pending the filing of the 
                petition under subparagraph (B).
            (3) Personal interview.--The interview under 
        subsection (c)(1)(B) shall be conducted within 90 days 
        after the date of submitting a petition under 
        subsection (c)(1)(A) and at a local office of the 
        Department of Homeland Security, designated by the 
        Secretary of Homeland Security, which is convenient to 
        the parties involved. The Secretary, in the Secretary's 
        discretion, may waive the deadline for such an 
        interview or the requirement for such an interview in 
        such cases as may be appropriate.
    (e) Treatment of Period for Purposes of Naturalization.--
For purposes of title III, in the case of an alien who is in 
the United States as a lawful permanent resident on a 
conditional basis under this section, the alien shall be 
considered to have been admitted as an alien lawfully admitted 
for permanent residence and to be in the United States as an 
alien lawfully admitted to the United States for permanent 
residence.
    (f) Definitions.--In this section:
            (1) The term ``alien entrepreneur'' means an alien 
        who obtains the status of an alien lawfully admitted 
        for permanent residence (whether on a conditional basis 
        or otherwise) under section 203(b)(8)(A)(i)(I) of this 
        title.
            (2) The term ``alien spouse'' and the term ``alien 
        child'' mean an alien who obtains the status of an 
        alien lawfully admitted for permanent residence 
        (whether on a conditional basis or otherwise) by virtue 
        of being the spouse or child, respectively, of an alien 
        entrepreneur.
            (3) The term ``commercial enterprise'' includes a 
        limited partnership.

           *       *       *       *       *       *       *


               Chapter 5--Adjustment and Change of Status

  adjustment of status of nonimmigrant to that of person admitted for 
                          permanent residence

    Sec. 245. (a) * * *

           *       *       *       *       *       *       *

    (n) Adjustment of Status for Employment-Based Immigrants.--
            (1) Petition.--An alien who has status under 
        subparagraph (H)(i)(b), (L), or (O)(i) of section 
        101(a)(15) or who has status under subparagraph (F) or 
        (M) of such section and who has received optional 
        practical training after completion of the alien's 
        course of study, and any eligible dependents of such 
        alien, who has filed a petition or on whose behalf a 
        petition has been filed for immigrant status pursuant 
        to subparagraph (E), (F), (G), or (H) of section 
        204(a)(1), may concurrently, or at any time thereafter, 
        file an application with the Secretary of Homeland 
        Security for adjustment of status if such petition has 
        been approved, regardless of whether an immigrant visa 
        is immediately available at the time the application is 
        filed.
            (2) Availability.--An application filed pursuant to 
        paragraph (1) may not be approved until the date on 
        which an immigrant visa becomes available.

           *       *       *       *       *       *       *


Chapter 9--Miscellaneous

           *       *       *       *       *       *       *


   disposition of moneys collected under the provisions of this title

    Sec. 286. (a) * * *

           *       *       *       *       *       *       *

    (w) H-1B Educational Credential Verification Account.--
There is established in the general fund of the Treasury a 
separate account, which shall be known as the ``H-1B 
Educational Credential Verification Account''. Notwithstanding 
any other provision of law, there shall be deposited as 
offsetting receipts into the account all fees collected under 
section 214(i)(4)(B)(iii). Amounts deposited into the account 
shall remain available to the Secretary of State until expended 
to carry out section 214(i)(4)(B).

           *       *       *       *       *       *       *

                              ----------                              


  SECTION 610 OF THE DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE 
        JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS ACT, 1993

    Sec. 610. [Pilot] Immigration Program.--(a) * * *
    (b) For purposes of the program established in subsection 
(a), beginning on October 1, 1992, but no later than October 1, 
1993, the Secretary of State, together with the Secretary of 
Homeland Security, shall set aside 3,000 visas annually [until 
September 30, 2015] to include such aliens as are eligible for 
admission under section 203(b)(5) of the Immigration and 
Nationality Act and this section, as well as spouses or 
children which are eligible, under the terms of the Immigration 
and Nationality Act, to accompany or follow to join such 
aliens.

           *       *       *       *       *       *       *

    (e)(1) No person who--
            (A) has been convicted of an aggravated felony (as 
        defined in section 101(a)(43) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(43)));
            (B) would be inadmissible under section 212(a)(3) 
        of such Act (8 U.S.C. 1182(a)(3)) if they were an alien 
        seeking admission; or
            (C) has been convicted of violating, or found to 
        have violated, a fraud provision of the Federal 
        securities laws (as such term is defined under section 
        3 of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c)),
shall knowingly be permitted by any regional center to be 
involved with the regional center as its principal, 
representative, administrator, owner, officer, board member, 
manager, executive, general partner, fiduciary, member, or in 
other similar position of substantive authority for the 
operations, management, or promotion of the regional center.
    (2) The Secretary of Homeland Security shall require such 
attestations and information (including biometric information), 
and shall perform such criminal record checks and other 
background checks with respect to a regional center, and 
persons involved in a regional center as described in paragraph 
(1), as the Secretary, in the Secretary's discretion, considers 
appropriate to determine whether the regional center is in 
compliance with paragraph (1).
    (3) The Secretary may terminate any regional center from 
the program under this section if the Secretary determines 
that--
            (A) the regional center is in violation of 
        paragraph (1);
            (B) the regional center has provided any false 
        attestation or information under paragraph (2), or 
        continues to allow any person who was involved with the 
        regional center as described in paragraph (1) to 
        continue to be involved with the regional center if the 
        regional center knows that the person has provided any 
        false attestation or information under paragraph (2); 
        or
            (C) the regional center fails to provide an 
        attestation or information requested by the Secretary 
        under paragraph (2), or continues to allow any person 
        who was involved with the regional center as described 
        in paragraph (1) to continue to be involved with the 
        regional center if the regional center knows that the 
        person has failed to provide an attestation or 
        information requested by the Secretary under paragraph 
        (2).
    (4) For the purpose of this subsection, the term ``regional 
center'' shall, in addition to the regional center itself, 
include any commercial enterprise or job creating enterprise in 
which a regional center has invested.
    (f)(1) The Secretary of Homeland Security shall not approve 
an application for regional center designation or regional 
center amendment that does not certify that the regional center 
and all parties to the regional center are in and will maintain 
compliance with Federal securities laws (as such term is 
defined under section 3 of the Securities Exchange Act of 1934 
(15 U.S.C. 78c)).
    (2) The Secretary of Homeland Security shall immediately 
terminate the designation of any regional center that does not 
provide the certification described in paragraph (1) on an 
annual basis.
    (3) In addition to any other authority provided to the 
Secretary of Homeland Security regarding the program described 
in this section, the Secretary may suspend or terminate the 
designation of any regional center if the Secretary determines 
that the regional center, or any party to the regional center:
            (A) is permanently or temporarily enjoined by 
        order, judgment, or decree of any court of competent 
        jurisdiction in connection with the purchase or sale of 
        a security;
            (B) is subject to any order of the Securities and 
        Exchange Commission that bars such person from 
        association with an entity regulated by the Securities 
        and Exchange Commission, or constitutes a final order 
        based on violations in connection with the purchase or 
        sale of a security;
            (C) has been convicted of violating, or found to 
        have violated, a fraud provision of the Federal 
        securities laws (as such term is defined under section 
        3 of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c)); or
            (D) knowingly submitted or caused to be submitted a 
        certification described in paragraphs (1) or (2) of 
        this subsection that contained an untrue statement of 
        material fact, or omitted to state a material fact 
        necessary, in order to make the statements made, in 
        light of the circumstances under which they were made, 
        not misleading.
    (4) Nothing in this subsection shall be construed to impair 
or limit the authority of the Securities and Exchange 
Commission under the Federal securities laws.
    (5) For the purpose of this subsection, the term ``party to 
the regional center'' shall include, in addition to the 
regional center itself, its agents, servants, employees, 
attorneys, or any persons in active concert or participation 
with the regional center.
                              ----------                              


                 CHINESE STUDENT PROTECTION ACT OF 1992



           *       *       *       *       *       *       *
SEC. 2. ADJUSTMENT TO LAWFUL PERMANENT RESIDENT STATUS OF CERTAIN 
                    NATIONALS OF THE PEOPLE'S REPUBLIC OF CHINA.

    (a) In General.--Subject to subsection (c)(1), whenever an 
alien described in subsection (b) applies for adjustment of 
status under section 245 of the Immigration and Nationality Act 
during the application period (as defined in [subsection (e))] 
subsection (d)) the following rules shall apply with respect to 
such adjustment:
            (1) * * *

           *       *       *       *       *       *       *

    [(d) Offset in Per Country Numerical Level.--
            [(1) In general.--The numerical level under section 
        202(a)(2) of the Immigration and Nationality Act 
        applicable to natives of the People's Republic of China 
        in each applicable fiscal year (as defined in paragraph 
        (3)) shall be reduced by 1,000.
            [(2) Allotment if section 202(e) applies.--If 
        section 202(e) of the Immigration and Nationality Act 
        is applied to the People's Republic of China in an 
        applicable fiscal year, in applying such section--
                    [(A) 300 immigrant visa numbers shall be 
                deemed to have been previously issued to 
                natives of that foreign state under section 
                203(b)(3)(A)(i) of such Act in that year, and
                    [(B) 700 immigrant visa numbers shall be 
                deemed to have been previously issued to 
                natives of that foreign state under section 
                203(b)(5) of such Act in that year.
            [(3) Applicable fiscal year.--
                    [(A) In general.--In this subsection, the 
                term ``applicable fiscal year'' means each 
                fiscal year during the period--
                            [(i) beginning with the fiscal year 
                        in which the application period begins; 
                        and
                            [(ii) ending with the first fiscal 
                        year by the end of which the cumulative 
                        number of aliens counted for all fiscal 
                        years under subparagraph (B) equals or 
                        exceeds the total number of aliens 
                        whose status has been adjusted under 
                        section 245 of the Immigration and 
                        Nationality Act pursuant to subsection 
                        (a).
                    [(B) Number counted each year.--The number 
                counted under this subparagraph for a fiscal 
                year (beginning during or after the application 
                period) is 1,000, plus the number (if any) by 
                which (i) the immigration level under section 
                202(a)(2) of the Immigration and Nationality 
                Act for the People's Republic of China in the 
                fiscal year (as reduced under this subsection), 
                exceeds (ii) the number of aliens who were 
                chargeable to such level in the year.]
    [(e)] (d) Application Period Defined.--In this section, the 
term ``application period'' means the 12-month period beginning 
July 1, 1993.

           *       *       *       *       *       *       *

                              ----------                              


     IMMIGRATION AND NATIONALITY TECHNICAL CORRECTIONS ACT OF 1994



           *       *       *       *       *       *       *
TITLE II--TECHNICAL CORRECTIONS OF IMMIGRATION LAWS

           *       *       *       *       *       *       *


SEC. 220. WAIVER OF FOREIGN COUNTRY RESIDENCE REQUIREMENT WITH RESPECT 
                    TO INTERNATIONAL MEDICAL GRADUATES.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Effective Date.--The amendments made by this section 
shall apply to aliens admitted to the United States under 
section 101(a)(15)(J) of the Immigration and Nationality Act, 
or acquiring such status after admission to the United States, 
before, on, or after the date of enactment of this Act [and 
before September 30, 2015].

           *       *       *       *       *       *       *


                            Dissenting Views

    Our Nation's high-skilled employment-based immigration 
system, like the overall U.S. immigration system, faces many 
serious problems. Chief among them is the fact that American 
businesses are forced to wait for years--and even decades--to 
obtain permanent residency for critical high-skilled workers. 
Experts estimate that some 400,000 to 500,000 workers on H-1B 
or other temporary visas are currently waiting in the 
employment-based green card backlogs for skilled workers and 
professionals (i.e., the ``third preference'' backlog). Some of 
those workers--nationals from India, for example--currently 
face a 70-year wait to convert an H-1B visa into a green card.
    Companies routinely hire critical foreign workers through 
the H-1B temporary visa program, but those companies then 
struggle to keep those workers due to the insufficient number 
of green cards available every year. Many companies complain of 
losing critical workers who grew frustrated with the 
limitations of a temporary visa and simply decided to return 
home or to another country with more generous immigration 
programs. And as word of these problems spreads, U.S. companies 
are finding it harder and harder to attract talented workers in 
the first place.
    Ostensibly to deal with this problem, H.R. 2131 more than 
doubles the number of H-1B temporary visas available to such 
workers and modestly increases the number of available green 
cards. In the short term, the small increase in green cards 
will ensure that some people who have been waiting for years 
will finally receive permanent residence. But in the long term, 
the enormous increase in temporary visas without a comparable 
increase in green card numbers will merely ensure the growth of 
an even larger and longer backlog in the future. Indian 
nationals with bachelor's degrees now face a 70-year backlog, 
but they may be facing a 150-year backlog in just a few years 
if the SKILLS Act is enacted into law.
    At the same time, H.R. 2131 would do considerable damage to 
our family- and diversity-based immigration systems. It would 
eliminate a longstanding program that ensures diversity in our 
immigration system and is a primary source of immigration for 
persons from African nations. And the bill would also eliminate 
the sibling visa category that helps reunify immediate family 
members and serves as an important tool for strengthening 
immigrant communities and businesses. Instead of providing what 
this Nation desperately needs--namely, a comprehensive solution 
that fixes our entire broken immigration system--H.R. 2131 is a 
flawed piecemeal approach that ensures the continued 
dysfunction of that system. The bill is thus opposed by 
immigration advocacy and religious organizations of all 
stripes, including the U.S. Conference of Catholic Bishops, the 
Episcopal Church, the Lutheran Immigration and Refugee Service, 
and the Union for Reform Judaism.\1\
---------------------------------------------------------------------------
    \1\Letter from Faith-Based Organizations, to Hon. Robert Goodlatte, 
Chairman, and Hon. John Conyers, Jr. (June 26, 2013) (on file with the 
H. Comm. on the Judiciary, Democratic Staff).
---------------------------------------------------------------------------
    For these reasons, and those described below, we 
respectfully dissent and urge our colleagues to reject this 
dangerous and seriously flawed bill.

                       DESCRIPTION AND BACKGROUND

                          SUMMARY OF H.R. 2131

    H.R. 2131, the ``Supplying Knowledge-based Immigrants and 
Lifting Levels of STEM Visas Act'' or ``SKILLS Visa Act,'' was 
introduced by Representative Darrell Issa (R-CA) on May 23, 
2013. It has no Democratic co-sponsors. The Committee has not 
held a legislative hearing on the bill, but on March 5, 2013, 
the Committee's Subcommittee on Immigration and Border Security 
held a general hearing on high skilled immigration issues, 
entitled ``Enhancing American Competitiveness through Skilled 
Immigration.''
    H.R. 2131 attempts to improve America's employment-based 
immigration system by creating and altering various employment-
based immigrant (green card) and nonimmigrant (temporary) visa 
categories. The bill would alter permanent employment-based 
immigration by creating several new green card categories, 
including one for graduates with doctoral degrees in science, 
technology, engineering, or mathematics (STEM) from U.S. 
research universities; one for graduates with masters' degrees 
in STEM from U.S. research universities; and one for immigrant 
entrepreneurs who receive significant venture-capital funding 
or can demonstrate a history of job creation for American 
workers. The bill would also increase the number of green cards 
available every year for immigrants in existing employment-
based green card categories, while reforming provisions related 
to immigrant investors and foreign physicians.
    The bill, however, would offset these increases in 
employment-based green cards by eliminating other, unrelated 
green card categories. Specifically, the bill would eliminate 
(1) the diversity visa program that currently provides 50,000 
green cards every year to immigrants from countries with low 
levels of immigration to the U.S. and (2) the ``sibling'' 
category that provides 65,000 green cards every year to the 
brothers and sisters of U.S. citizens. As amended at the 
markup, the bill would allow siblings who have approved 
petitions and are now waiting in the green card backlogs to 
receive green cards if their priority dates become current in 
the 10 years following enactment of the bill. Persons with 
later priority dates would essentially have their petitions 
rendered null and void. Because 65,000 visas are issued every 
year to persons in the sibling backlog, the 10-year window 
created by the bill would effectively provide visas to 650,000 
of the approximate 2.5 million siblings currently waiting in 
green card backlogs.
    H.R. 2131 also amends several categories of temporary visas 
for workers in ``specialty occupations'' or with ``specialized 
knowledge'' who are needed by employers in the United States. 
With respect to the H-1B category for workers in specialty 
occupations, the bill increases the number of temporary H-1B 
visas available every year, increases the Department of Labor's 
authority to conduct investigations of employers, and provides 
work authorization to the spouses of H-1B holders. The bill 
applies the H-1B prevailing wage requirements to other visa 
categories--temporary TN visas for Mexican and Canadian workers 
in specialty occupations, temporary F visas for students 
engaged in employment through ``optional practical training,'' 
and temporary L-1B visas for intra-company transferees with 
specialized knowledge who will work in the U.S. for more than 6 
months over a 2-year period. The bill also provides additional 
portability to workers with temporary O visas, and it provides 
so-called ``dual intent'' for students on F visas who are 
coming to the United States to seek higher education in STEM 
fields.
    Finally, H.R. 2131 reforms the prevailing wage system that 
now applies to employers seeking to obtain permanent green 
cards or certain temporary visas (i.e., F, H-1B, H-1B1, L-1B, 
and TN visas). The bill would replace the current 4-level 
prevailing wage system with a new 3-level system that 
effectively raises prevailing wages that must be paid to 
workers in each of the above visa categories, commensurate with 
skills and experience. In the case of an employer who seeks to 
employ an immigrant in an occupation for which the vast 
majority of the employer's current employees are U.S. workers, 
the employer may instead pay the immigrant the same as the 
employer pays its U.S. workers with the same skills and 
experience.

                      SECTION-BY-SECTION ANALYSIS

    Sec. 1. Short Title. Section 1 sets forth the short title 
of the bill as the ``Supplying Knowledge-based Immigrants and 
Lifting Levels of STEM Visas Act'' or the ``SKILLS Visa Act.''
TITLE I--IMMIGRANT VISA REFORMS
    Sec. 101. Immigrant Visas for Certain Stem Graduates. 
Subsection (a) effectively increases the worldwide level of 
employment-based (EB) green cards by 50,000. The current EB 
green card cap of 140,000 is increased by 55,000 to a total of 
195,000 green cards, but 5,000 of those extra green cards are 
then subtracted and made available to applicants under the 
Nicaraguan Adjustment and Central American Relief Act (NACARA).
    Subsection (b) creates two new EB preference categories 
that allocate the 50,000 new green cards described in 
subsection (a) to foreign students with advanced degrees in 
STEM fields from U.S. universities with high levels of research 
activity. The subsection creates a new ``sixth preference'' 
(EB-6) category that allocates 50,000 visas to graduates with 
PhD or other doctoral degrees in STEM fields. And the 
subsection creates a new ``seventh preference'' (EB-7) category 
that allocates unused visas from the new EB-6 category to 
graduates with master's degrees in STEM fields, so long as 
those graduates also hold bachelor's degrees in STEM fields.
    STEM is defined to include science, technology, 
engineering, and mathematics degrees, as well as medical, 
osteopathy, dental, veterinary, nursing, geography and 
cartography degrees. To be eligible for a STEM green card under 
EB-6 or EB-7:

         Lthe student must have taken at least 85% of 
        course work related to the degree while physically in 
        the United States;

         Lthe relevant institution of higher education 
        must: (1) be at least 10 years old; (2) be accredited 
        by an appropriate accrediting body; (3) be eligible for 
        Federal student financial aid programs; and (4) be 
        classified on the date of enactment by the Carnegie 
        Foundation as a doctorate-granting university with a 
        very high or high level of research activity (or be 
        classified after the date of enactment by the National 
        Science Foundation as having equivalent research 
        activity to such schools); and

         Lthe employer must have obtained a labor 
        certification from the Department of Labor (which shows 
        that there are not sufficient U.S. workers able, 
        willing, qualified, and available for the job), except 
        the Secretary of Homeland Security can waive this 
        requirement when the Secretary deems it to be in the 
        national interest.

    Subsections (c) and (d) ensure that unused visas from the 
new EB-6 and EB-7 categories are made available to persons 
applying for visas under the existing EB-2 and EB-3 preference 
categories.
    Subsection (e) conforms the Immigration and Nationality Act 
(INA) to provide a procedure for the adjustment of status for 
EB-6 and EB-7 applicants.
    Subsection (f) amends the labor certification requirements 
in the INA to codify the existing requirement that employers 
file job orders with state workforce agencies as part of the 
labor certification process. The subsection also:

         Lrequires state workforce agencies to post job 
        orders on their agency websites;

         Lprovides ``special handling'' for employers 
        hiring EB-6 applicants (doctoral STEM graduates), which 
        allows employers to prove that there are no equally 
        qualified U.S. workers (rather than the normal 
        procedure of having to prove that there are no 
        minimally qualified U.S. workers); and

         Lprovides expedited processing for both EB-6 
        and EB-7 petitions.

    Subsection (g) requires a Government Accountability Office 
(GAO) study with respect to the certification of research 
universities by the National Science Foundation.
    Subsection (h) requires DHS to publish information about 
employers who file EB-6 and EB-7 petitions.
    Subsection (i) makes the above changes effective on October 
1, 2014.
    Sec. 102. Immigrant Visas for Entrepreneurs. Subsection (a) 
creates a new employment-based ``eighth preference'' (EB-8) 
category with 10,000 conditional green cards for entrepreneurs 
who start businesses and create jobs in the United States. 
Clause (i) authorizes green cards for entrepreneurs who receive 
at least $500,000 in venture capital from a qualified venture 
capital company or qualified angel investors, if such 
entrepreneurs will create full-time employment for at least 
five U.S. workers and will either: (1) raise an additional $1 
million in venture capital financing or (2) generate not less 
than $1 million in revenue. Clause (ii) authorizes green cards 
for E-2 treaty investors who have maintained E-2 status for at 
least 10 years and have created full-time employment for at 
least five U.S. workers for a minimum of 10 years. (The E-2 
program allows aliens to come to the U.S. on a temporary, but 
indefinitely renewable, basis pursuant to a treaty of commerce 
and navigation to open and run businesses in which they have 
invested a substantial amount of capital.)
    Subsection (b) conforms the INA to provide a procedure to 
provide conditional green cards to EB-8 applicants.
    Subsection (c) amends the INA to provide procedures for 
removing the conditions on the permanent resident status of EB-
8 applicants.
    Subsection (d) makes the above changes effective on October 
1, 2013.
    Sec. 103. Additional Employment-based Immigrant Visas. 
Subsection (a) increases the worldwide level of employment-
based (EB) green cards by another 40,000, further increasing 
the cap from 195,000 to 230,000 effective green cards (235,000 
minus 5,000 green cards allocated to NACARA applicants). Of 
these 230,000 visas:

         Lsubsection (b) allocates 40,040 (the same as 
        current law) to the first preference category (EB-1) 
        for: aliens with extraordinary ability; outstanding 
        professors and researchers; and multinational 
        executives and managers;

         Lsubsection (c) allocates 55,040 (an increase 
        of 15,000 over current law) to the second preference 
        category (EB-2) for aliens of exceptional ability and 
        aliens with advanced degrees in certain professions;

         Lsubsection (d) allocates 55,040 (an increase 
        of 15,000 over current law) to the third preference 
        category (EB-3) for skilled workers and aliens with 
        bachelor's degrees in certain professions;

         Lsubsection (e) allocates 9,940 (the same as 
        current law) to the fourth preference category (EB-4) 
        for certain special immigrants; and

         Lsubsection (f) allocates 9,940 (the same as 
        current law) to the fifth preference category (EB-5) 
        for immigrant investors.

    Subsection (g) makes the above changes effective on October 
1, 2013.
    Sec. 104. Employment Creation Immigration Visas. This 
section makes changes to the EB-5 immigrant investor program 
and the EB-5 regional center program. The EB-5 program 
currently makes 9,940 green cards available each year to aliens 
who: (1) invest at least $1,000,000 in a new business (or at 
least $500,000 if the business is located in a rural area or an 
area of high unemployment); and (2) create at least ten full-
time jobs for U.S. workers. Approved investors receive 
``conditional'' green cards, and they can remove those 
conditions if they fulfill their investment and job creation 
requirements within 2 years. The EB-5 regional center program 
sets aside 3,000 EB-5 visas each year for aliens to pool 
investments in ``designated regional centers'' that fund larger 
projects to further promote economic growth and job creation. 
Rather than run their own businesses, regional center investors 
invest in a new or pre-existing large-scale project along with 
other investors. Necessary job creation requirements are 
established through reasonable methodologies estimating job 
creation based on the economic activity created by the project.
    Subsection (a) makes several changes to the EB-5 immigrant 
investor program, including:

         Ldefining ``capital'' as not including assets 
        acquired through unlawful means;

         Lincreasing the amount of capital that is 
        required to be invested under the program by the 
        percentage that the Consumer Price Index has increased 
        since 1990;

         Ltying future increases in the capital 
        requirement to inflation, as measured by the Consumer 
        Price Index;

         Lallowing investors an additional year (for a 
        total of 3 years) to meet the job creation requirements 
        in the EB-5 program; and

         Lredefining the term ``targeted employment 
        area'' to prevent gerrymandering of areas for regional 
        center designation by providing that: (1) the relevant 
        targeted employment area must fit entirely within a 
        geographical unit that the Labor Department has 
        determined has an unemployment rate of at least 150 
        percent of the national rate; (2) the Secretary of 
        Labor set forth a uniform methodology for determining 
        whether an area qualifies as having unemployment of at 
        least 150 percent of the national rate; and (3) DHS is 
        not bound by the decision of any other entity that a 
        particular area has experienced high unemployment.

    Subsection (b) makes changes to the EB-5 regional center 
program, including:

         Lpermanently reauthorizing the EB-5 regional 
        center program;

         Lbarring persons with certain criminal 
        convictions, or who have been found to have violated 
        the Federal securities laws, from holding a position of 
        substantive authority in a regional center; and

         Lrequiring background checks of persons 
        holding positions of substantive authority in regional 
        centers.

    Subsection (c) makes the above changes effective upon 
enactment, except that they will apply only to future petitions 
filed by immigrant investors.
    Sec. 105. Family-Sponsored Immigrant Visas. Subsection (a) 
increases the worldwide level of family-based green cards by 
25,000 per year for the first 10 years after enactment, but 
then reduces it by 65,000 per year after the first 10 years, 
for a total net reduction in family-based green cards of 40,000 
per year in perpetuity. For the period beginning 10 years after 
enactment, the subsection specifically reduces both the overall 
cap of FB green cards from 480,000 to 440,000 and the specific 
cap on preference category green cards from 226,000 to 186,000.
    Subsection (b) allocates an additional 25,000 green cards 
to the family-based ``second-preference A'' category (F-2A), 
thus increasing the current cap of 87,934 to 112,934 green 
cards for the spouses and minor children of lawful permanent 
residents.
    Subsections (c) and (d) eliminate the family-based fourth-
preference category (``sibling category'') for the brothers and 
sisters of U.S. citizens. U.S. citizens would no longer be able 
to file petitions for their siblings beginning on October 1, 
2013, but 65,000 green cards per year would continue to be 
available for the 10 years after enactment to siblings with 
approved immigrant petitions. This provision would effectively 
make another 650,000 sibling green cards available for the next 
10 years, which would help a relatively small portion of the 
2.5 million siblings with approved immigrant petitions.
    Sec. 106. Elimination of Diversity Immigration Program. 
This section eliminates the diversity visa program, which makes 
50,000 green cards available each year to nationals from 
countries with low levels of immigration to the United States.
    Sec. 107. Numerical Limitation To Any Single Foreign State. 
Subsection (a) eliminates the ``per country'' limits for 
employment-based green cards and raises the limit from 7% to 
15% for family-based green cards.
    Subsection (b) makes conforming amendments to the INA.
    Subsection (c) eliminates a country-specific offset that 
reduces by 1,000 the available number of green cards available 
to nationals from China.
    Subsection (d) makes the above changes effective on October 
1, 2013.
    Sec. 108. Physicians. This section modifies laws related to 
the ``Conrad State 30'' Program. Currently, foreign medical 
graduates can come to the United States to enter residency 
programs under J foreign exchange visas, after which they must 
return home for 2 years before being able to continue working 
in the United States. Under the Conrad State 30 Program, such 
medical graduates can receive waivers of the 2-year foreign 
residency requirement if they promise to serve for 3 years in 
health-care shortage areas as designated by the Secretary of 
HHS. Each state can receive up to 30 waivers a year requested 
by state agencies.
    Subsection (a) permanently authorizes the Conrad State 30 J 
Waiver Program.
    Subsection (b) allocates each state additional ``J 
waivers'' if 90% of available waivers are used in a year. The 
subsection also allocates an additional three waivers per state 
that can be used only at academic medical centers.
    Subsection (c) adds a number of employment protections for 
physicians, including by:

         Limproving the ability of physicians to change 
        employers by allowing them to either: (1) meet the 
        ``extenuating circumstances'' requirement through the 
        attestation of a state agency; or (2) change employers 
        without such a determination if they agree to perform 
        an additional year of service in underserved areas;

         Lrequiring employment contracts to specify: 
        (1) the number of on-call hours physicians must work 
        and the compensation they will receive for on-call 
        time; (2) whether the employer will provide malpractice 
        insurance; and (3) the specific facilities at which the 
        physicians will work;

         Lprohibiting such contracts from including 
        non-compete provisions;

         Lgiving physicians whose employment is 
        terminated 120 days to begin new employment in 
        underserved areas before being considered out of 
        status; and

         Lpermitting physicians to perform their J 
        waiver service in any authorized status, rather than 
        just under the H-1B visa program as under current law.

    Subsection (d) makes other changes related to physician 
immigration, including:

         Lproviding ``dual intent'' to physicians 
        seeking graduate medical training, which means such 
        physicians will no longer need to prove that they lack 
        the intent to immigrate permanently to the United 
        States;

         Lproviding additional flexibility for 
        physicians who work at least 5 years in medically-
        underserved areas and want to self-petition for green 
        cards under the current ``national interest'' waiver;

         Lclarifying that foreign medical degrees 
        qualify as advanced degrees for purposes of immigration 
        through the employment-based second preference category 
        (EB-2) for aliens with advanced degrees in certain 
        professions;

         Lextending visa status for physicians 
        completing their residencies; and

         Lclarifying that spouses and children of 
        physicians on J visas are not subject to the 2-year 
        home country return requirement.

    Subsection (e) provides various effective dates for this 
section.
    Sec. 109. Permanent Priority Dates. Subsection (a) codifies 
the current practice that the ``priority date'' (for 
determining the alien's place in an employment-based green card 
line) for an employer's green card petition is the date that 
the employer files the labor certification application on 
behalf of the alien. The subsection also ensures that an alien 
who switches from one employment-based green card category to 
another retains his or her original priority date.
    Subsection (b) makes the above changes effective on October 
1, 2013.
TITLE II--NONIMMIGRANT VISA REFORMS
    Sec. 201. H-1B Visas. This section amends the H-1B visa 
program for workers coming temporarily to perform services in a 
``specialty occupation.'' Such an occupation is one that 
requires: (1) theoretical and practical application of a body 
of highly specialized knowledge; and (2) attainment of a 
bachelor's or higher degree in the specific specialty (or its 
equivalent) as a minimum for entry into the occupation in the 
United States. Currently, the H-1B visa cap is 65,000 a year 
(although it has been as high as 195,000 in the past). The cap 
does not apply to H-1B petitions filed by institutions of 
higher education (or related or affiliated nonprofit entities), 
nonprofit research organizations, or governmental research 
organization. In addition, the cap does not apply to the first 
20,000 H-1B visas granted to aliens who have earned advanced 
degrees from U.S. institutions of higher education.
    Subsection (a) increases the current 85,000 H-1B visa cap 
to 195,000 (an increase of 110,000 visas), by: (1) increasing 
the base H-1B cap from 65,000 to 155,000 (an increase of 90,000 
visas); and (2) increasing the master's cap from 20,000 to 
40,000 (an increase of 20,000 visas). The subsection also 
limits the 40,000 master's cap to graduates in STEM fields.
    Subsection (b) provides work authorization to the spouses 
of H-1B workers.
    Subsection (c) provides a number of anti-fraud measures in 
the H-1B program, including:

         Lrequiring the Secretary of State to 
        authenticate foreign degrees;

         Lallowing the Secretary of Labor to conduct 
        audits and investigations without first having to make 
        a determination concerning misconduct or a 
        misrepresentation;

         Lrequiring employers to prove that they are 
        bona fide businesses in the United States; and

         Lproviding subpoena authority to the Secretary 
        of Labor.

    Subsection (d) eliminates a practice known as ``B visas in 
lieu of H-B visas'' by requiring that any alien coming to work 
in a specialty occupation must have an H-1B visa.
    Subsection (e) provides various effective dates for this 
section.
    Sec. 202. L VISAS. This section amends the L visa program, 
which makes temporary visas available to ``intracompany 
transferees,'' i.e., employees who have been with a 
multinational company for at least 1 year and who seek to 
transfer from a foreign work site to a U.S. work site. L-1A 
visas are available to managers and executives, and L-1B visas 
are available to lower-level employees with ``specialized 
knowledge.'' ``Specialized knowledge'' is defined as the 
special knowledge of a company product and its application in 
international markets or an advanced level of knowledge of 
company processes and procedures. There is no numerical cap or 
prevailing wage requirements associated with the L visa 
program.
    Subsection (a) requires employers who are petitioning to 
bring in workers with ``specialized knowledge'' on L-1B visas 
to meet prevailing wage requirements if such workers will be in 
the United States for more than 6 months over a 2-year period. 
In complying with the prevailing wage requirement, an employer 
may take into account the value of wages paid by the employer 
to the alien in the currency of the alien's home country, the 
value of benefits provided in the home country, employer-
provided housing or housing allowances, employer-provided 
vehicles or transportation allowances, and other benefits 
provided to the alien as an incident of the assignment in the 
United States. The subsection also provides the Labor 
Department with the same investigatory and enforcement powers 
to ensure compliance as it has in the H-1B program.
    Subsection (b) makes this section effective on the date of 
enactment.
    Sec. 203. O Visas. This section amends the O visa program, 
which makes temporary visas available to aliens with 
extraordinary ability in the sciences, arts, education, 
business, athletics or in motion picture and television (or who 
seek to accompany and assist in the artistic or athletic 
performance of such aliens) and have critical skills needed for 
the performance. An O visa petition must be filed with a 
written advisory opinion (a ``consultation'') issued by a union 
or peer group with expertise in the alien's area of specialty. 
Currently, a petition for an alien with extraordinary ability 
in the ``live arts'' may be filed without a consultation, if 
the alien had previously received an O visa, has received a 
consultation within the last 2 years, and seeks to perform 
similar services.
    Subsection (a) makes the O visa more portable by allowing O 
visa holders to begin working for a new employer upon the 
employer's filing of a non-frivolous petition.
    Subsection (b) extends the consultation waiver authority 
for the live arts to aliens with extraordinary ability in 
motion pictures or television. The subsection also extends the 
validity period for a prior consultation from two to 3 years.
    Sec. 204. Mexican and Canadian Professionals. This section 
applies the H-1B program's prevailing wage requirements to the 
similar ``TN'' visas for Mexican and Canadian professionals 
under the North American Free Trade Agreement.
    Sec. 205. Students. Subsection (a) provides ``dual intent'' 
to students on F visas who are enrolled in a full course of 
study in a STEM field at a U.S. institution of higher 
education, which means such students will no longer need to 
prove that they lack the intent to immigrate permanently to the 
United States.
    Subsection (b) applies the H-1B program's prevailing wage 
requirements to students on F visas who are working for a U.S. 
employer under the F visa's ``optional practical training'' 
component that allows foreign students to seek employment in 
their fields in the U.S. for a period of time after obtaining 
their degrees.
    Subsection (c) provides various effective dates for this 
section.
    Sec. 206. Extension of Employment Eligibility While Visa 
Extension Pending. Subsection (a) codifies the practice of 
extending work authorization by 240 days for a temporary worker 
when the worker's employer files a timely petition for 
extension of the worker's status. The subsection makes this 
practice available for many nonimmigrant statuses, and it 
authorizes the Secretary of Homeland Security to add additional 
visa categories.
    Subsection (b) makes this section effective on the date of 
enactment.
    Sec. 207. Fraud Detection and Prevention Fee. This section 
expands the H-1B fraud detection and prevention fee to other H-
1B-like categories, including the TN and E-3 visa categories.
    Sec. 207. Technical Correction. This section makes a 
technical correction to the INA.
TITLE III--REFORMS AFFECTING BOTH IMMIGRANT AND NONIMMIGRANT VISAS
    Sec. 301. Prevailing Wages. Subsection (a) reforms the 
current prevailing wage system by eliminating the current four-
level wage system and replacing it with a new three-level wage 
system that effectively raises the wages that employers must 
pay immigrant and nonimmigrant workers. The three new levels 
are calculated by the Department of Labor for each occupational 
classification in each metropolitan statistical area as 
follows:

         LLevel 1 is the mean of the lowest 2/3 of 
        wages surveyed.

         LLevel 2 is the mean of all wages surveyed.

         LLevel 3 is the mean of the highest 2/3 of 
        wages surveyed.

The new wage provisions are made applicable to employers using 
the permanent labor certification process, as well as employers 
seeking to hire temporary workers on H-1B, H-1B1, L-1B, and TN 
status or on F visa status through optional practical training. 
However, in the case of an employer who seeks to employ an 
immigrant in an occupation for which the vast majority of the 
employer's current employees are U.S. workers, the employer may 
instead pay the immigrant the same as the employer pays its 
U.S. workers with the same skills and experience. Employers 
using this alternate system, however, may not pay a prevailing 
wage that falls below the mean of the lowest half of wages 
surveyed in that occupation by the Department of Labor.
    Subsection (b) makes the above changes effective on the 
date of enactment.
    Sec. 302. Streamlining Petitions for Established Employers. 
Subsection (a) provides for a pre-certification procedure for 
established employers who file multiple immigration petitions 
every year.
    Subsection (b) makes the above change effective on the date 
of enactment.

                        CONCERNS WITH H.R. 2131

I. H.R. 2131 FOLLOWS A ZERO-SUM APPROACH THAT DOOMS BROADER IMMIGRATION 
                             REFORM EFFORTS

    Everyone agrees that our immigration system is 
fundamentally broken. One of the greatest symptoms of that 
broken system is the presence of an estimated 11 million 
undocumented immigrants in the United States. Equally important 
and related symptoms are the decades-long backlogs that 
currently plague our legal employment- and family-based 
permanent immigration systems. Both of these symptoms are 
primarily caused by an insufficient number of available green 
cards to meet the economic and family-reunification needs of 
American businesses, citizens, and permanent residents.
    The answer to the above problem is simple: increase the 
annual allotment of green cards to make legal immigration a 
viable option for people seeking to fill needs in the American 
economy or reunify with family members in the United States. 
But the Majority has long rejected such a solution. Instead, it 
has insisted that increases in green cards in one category be 
offset with the elimination or reduction of green cards in 
other categories. Historically, the Majority has sought to 
increase green cards available to American businesses by 
eliminating green cards made available to diversity immigrants 
or the families of U.S. citizens.
    When the House considered Representative Lamar Smith's 
``STEM Jobs Act'' in the 112th Congress,\2\ the Majority sought 
to increase green cards for advanced degree graduates in STEM 
fields by eliminating the diversity visa category with a 
commensurate number of green cards. The Majority claimed it was 
just ``reallocating'' immigrant visas, but there is simply no 
rule that requires Congress to offset increases in immigrant 
visas. There is no set number of immigrant visas such that 
Congress must tie an increase in employment-based visas to a 
decrease in diversity visas or any other immigrant visa 
category.
---------------------------------------------------------------------------
    \2\H.R. 5429, 112th Cong. (2012).
---------------------------------------------------------------------------
    Indeed, the concept that new green cards must be offset by 
reducing immigration is a newly created fiction. In fact, 
Congress has often responded to our Nation's immigration needs 
by creating or increasing visas without eliminating or reducing 
other types of visas. For instance, when the 110th Congress 
created 25,000 green cards for Iraqi nationals who worked with 
the U.S. military, the Congress did not seek to eliminate 
25,000 visas from other categories. Neither did recent 
Congresses offset visas when they created new immigrant visas 
for Afghan translators or when refugee admissions have 
increased. Since the current Majority has been in control of 
the House of Representatives, however, they have been unwilling 
to support clean bills to create STEM visas or otherwise 
address employment-based immigration issues. They have only 
been willing to increase immigration avenues for such 
immigrants by eliminating such avenues for others.
    Like the STEM Jobs Act, H.R. 2131 would offset increases in 
green cards for certain employment-based immigrants by 
eliminating the diversity visa program that now provides 50,000 
green cards annually to immigrants from countries with low 
levels of immigration to the United States. The bill would 
additionally eliminate the sibling category that provides 
65,000 green cards per year to the brothers and sisters of U.S. 
citizens. This zero-sum approach to immigration means that we 
can only address one area of our broken immigration system by 
doing further harm to other areas of that system. This, in 
turn, would relegate the system to eternal dysfunction.
    The U.S. immigration system cannot be fixed without 
addressing the incredibly long green card backlogs for 
employment- and family-based immigrants that have been plaguing 
the U.S. for decades. There are currently an estimated 4.4 
million approved immigrant visa petitions pending at the 
National Visa Center, 111,000 of which involve employment-based 
petitions that are stuck in the green card backlogs.\3\ It is 
worth noting that according to the Department of State, the 
figures ``do not include the significant number of 
applications'' for persons in the United States whose 
applications are held by U.S. Citizenship and Immigration 
Services.\4\ Due to these backlogs, U.S. employers are often 
forced to wait for years--or decades for workers from India and 
China--before they can get green cards for needed workers. 
Lawful permanent residents are forced to wait for two to 5 
years before they can reunite with their spouses and minor 
children. And U.S. citizens are forced to wait decades before 
they can reunite with their adult children and siblings. To 
address these backlogs--whether on the employment or the family 
side--Congress needs to allocate additional green cards. The 
zero-sum approach advocated by H.R. 2131 would partially 
address some problems by making others worse.
---------------------------------------------------------------------------
    \3\Dept. of State, Annual Report of Immigrant Visa Applicants in 
the Family-sponsored and Employment-based preferences Registered at the 
National Visa Center as of November 1, 2014 at http://travel.state.gov/
content/dam/visas/Statistics/Immigrant-Statistics/WaitingListItem.pdf 
(last accessed Dec. 10, 2014).
    \4\Id.
---------------------------------------------------------------------------
    It is important to note that although H.R. 2131 would help 
alleviate green card backlogs for certain employment-based 
immigrants, the number of green cards provided by the bill are 
far from sufficient to fully address employment-based backlogs. 
Even if H.R. 2131 were to become law, years-long backlogs would 
continue to exist for American employers seeking to hire 
foreign talent. Moreover, the bill's large increases in H-1B 
visas would likely increase green card backlogs as larger 
numbers of temporary H-1B workers seek green cards to remain 
permanently in the United States. Thus, H.R. 2131 would fail to 
fully address our broken employment-based immigration system, 
while at the same time doing tremendous damage to our family- 
and diversity-based immigration systems. This is not a trade 
worth making. Instead of providing what this Nation desperately 
needs--namely, a comprehensive solution that fixes our broken 
immigration system--H.R. 2131 is a flawed piecemeal approach 
that ensures the continued dysfunction of our immigration 
system.

 II. H.R. 2131'S ELIMINATION OF THE DIVERSITY VISA PROGRAM WOULD HARM 
                           THE UNITED STATES

A. LThe Diversity Visa Program Serves Important National Needs
    Elimination of the diversity visa program would be 
detrimental to various U.S. interests, including our ability to 
sustain a diverse nation and attract immigrants from all over 
the world. Our current immigration system, created in 1965, was 
preceded by the now-infamous national origin quota system that 
heavily favored immigrants from select countries, largely from 
Western Europe. That system unfairly locked out immigrants from 
other countries and ensured a lack of diversity in the United 
States. But even when national origin quotas were abolished in 
1965, the new system's emphasis on family ties led to the 
continued concentration of immigrants from the countries that 
had been previously favored by the national origin quotas. 
Thus, in 1990, Congress created the diversity visa program to 
stimulate ``new seed'' immigration, both to address the 
imbalance in historical immigration and to ensure our ability 
to grow and sustain a diverse nation.
    Based on the numbers alone, the program has been a 
resounding success. By making 50,000 immigrant visas\5\ 
available per year to immigrants from otherwise under-
represented countries,\6\ the program has undeniably helped to 
balance demand within our immigration system so that countries 
with historically low immigration levels have experienced ever-
growing representation within that system. The best example of 
this success concerns immigrants from African countries, which 
have been the largest beneficiaries of the program and normally 
use between two-fifths and one-half of diversity visas every 
year.\7\ In 1997, for example, persons from African countries 
received a total of 47,791 green cards, only 19,903 of which 
were obtained through the family-based immigration system.\8\ 
But in 2013, after 17 years of benefitting from diversity-based 
immigration, African countries accounted for 98,304 green 
cards, 53,153 of which were family-based.\9\ During this time 
period, the share of total immigrants who came from African 
countries increased from 6 percent to 10 percent.\10\
---------------------------------------------------------------------------
    \5\Although the Immigration and Nationality Act (INA) sets the 
worldwide level of immigrant visas available under the diversity visa 
program at 55,000 annually, 5,000 of these visas are unavailable as a 
set-aside for immigrants eligible for relief under the Nicaraguan 
Adjustment and Central American Relief Act of 1997 (NACARA). See INA 
Sec. 201(e), 8 U.S.C. Sec. 1151(e) (setting diversity visa levels at 
55,000); see also, section 203(d) of P.L. 105-100 (allocating 5,000 
visas from the diversity visa program for recipients of relief under 
NACARA).
    \6\See INA Sec. 203(c), 8 U.S.C. Sec. 1153(c) (outlining how 
countries are determined to be high- or low-admission countries for 
purposes of diversity visa program eligibility).
    \7\U.S. Government Accountability Office, Border Security: Fraud 
Risks Complicate State's Ability to Manage Diversity Visa Program, GAO-
07-1174 at 13 (2007) [hereinafter GAO Report].
    \8\U.S. Dept. of Justice, 1997 Statistical Yearbook of the 
Immigration and Naturalization Service, at Table 5 (Oct. 1999), 
available at http://www.dhs.gov/xlibrary/assets/statistics/yearbook/
1997YB.pdf (last visited on July 12, 2013) [hereinafter 1997 
Immigration Statistical Yearbook].
    \9\Dept. of Homeland Security, 2013 Yearbook of Immigration 
Statistics, at Table 10 (June 16, 2014), available at http://
www.dhs.gov/yearbook-immigration-statistics-2013-lawful-permanent-
residents (last visited on Dec. 9, 2014) [hereinafter 2013 Immigration 
Statistical Yearbook].
    \10\Compare 1997 Immigration Statistical Yearbook, Table 5, with 
2013 Immigration Statistical Yearbook, Table 10.
---------------------------------------------------------------------------
    By completely eliminating the diversity visa program, H.R. 
2131 would dramatically and adversely change the fact of 
immigration to the United States by closing off one of the few 
avenues for legal immigration. Our current immigration system 
revolves heavily around family- and employment-based 
immigration. For persons who lack familial ties to U.S. 
citizens or lawful permanent residents, or ties to U.S. 
employers, the only meaningful opportunity to immigrate to the 
U.S. is often the diversity visa program. Closing off that 
avenue means closing off the very opportunity to immigrate 
legally to the U.S. for the vast majority of people in the 
world.
    Moreover, eliminating the diversity visa program would 
drastically reduce immigration from certain parts of the world 
and harm our ability to sustain a diverse Nation. Due to the 
relatively low levels of immigration from African nations, for 
example, immigrants from those nations normally comprise almost 
half of the diversity visa program's beneficiaries. In Fiscal 
Year 2013, African nations received 18,560 diversity visas, 
representing almost one-fifth (19%) of the 98,304 immigrants 
who came to the U.S. from those nations.\11\ Eliminating the 
diversity visa program would thus have the immediate effect of 
reducing immigration levels from African countries by a similar 
percentage. And over time, this reduction in African 
immigration would compound as relatively fewer and fewer 
immigrants from those countries would be eligible to use the 
family-based immigration system for relatives. There is no 
question that eliminating the diversity visa program would 
seriously undermine African immigration and reduce diversity in 
the country.
---------------------------------------------------------------------------
    \11\2013 Immigration Statistical Yearbook, Table 10.
---------------------------------------------------------------------------
    Elimination of the diversity visa program would also reduce 
the number of immigrants who successfully contribute to the 
U.S. economy. In order to be eligible for a diversity visa, a 
person must have a high school diploma (or the equivalent) or 
at least 2 years of work experience in an occupation requiring 
at least 2 years of training or experience. While these 
requirements are less stringent than in some other immigrant 
visa categories, diversity visa immigrants have been generally 
more--not less--successful than the overall lawful permanent 
resident population. According to an analysis issued by the 
Congressional Research Service (CRS) in April 2011:

        Although the diversity immigrants are required to have 
        only a high school education (or the equivalent) or 2 
        years experience in an occupation which requires at 
        least 2 years of training or experience, they were more 
        likely to report managerial and professional 
        occupations than LPRs [(lawful permanent residents)] 
        generally. Specifically, almost [a] quarter (24%) of 
        diversity immigrants reported managerial and 
        professional occupations in contrast to 10% of the 1.1 
        million LPRs in FY2009.\12\
---------------------------------------------------------------------------
    \12\Ruth Wasem, Diversity Immigrant Visa Lottery Issues, 
Congressional Research Service, R41747 at 6 (Apr. 1, 2011) [hereinafter 
CRS Report].

The CRS report also notes that diversity visa recipients are 
generally younger and more likely to become lawful permanent 
residents earlier in their working years than other persons who 
become lawful permanent residents, which means that diversity 
visa immigrants contribute to our Nation's economy for longer 
periods than lawful permanent residents generally.\13\ 
Moreover, according to a recent Department of Homeland Security 
yearbook of immigration statistics, diversity visa immigrants 
had only a 5-percent rate of unemployment in 2013, 
significantly lower than the general unemployment rate of 
approximately 8 percent for all immigrants.\14\
---------------------------------------------------------------------------
    \13\2013 Immigration Statistical Yearbook, Table 9.
    \14\Id.; see also Letter from Sen. Charles E. Schumer, Chairman, 
Senate Judiciary Subcommittee on Immigration, Refugees and Border 
Security, to Rep. Elton Gallegly & Rep. Zoe Lofgren (Apr. 5, 2011) (on 
file with the H. Comm. on the Judiciary, Democratic Staff) (referring 
to statistics in CRS Report).
---------------------------------------------------------------------------
    Finally, elimination of the diversity visa program would 
undercut the significant foreign policy goal of sustaining the 
American dream in parts of the world where obtaining a 
diversity visa represents the only realistic opportunity for 
immigrating to the United States. Former Representative Bruce 
Morrison (D-CT)--one of the architects of the diversity visa 
program--testified in 2005 that it advances a principle that is 
``at the heart of the definition of America''--the principle 
that ``all nationalities are welcome.''\15\ Similarly, 
Ambassador Johnny Young, Executive Director of Migration and 
Refugee Services for the U.S. Conference of Catholic Bishops, 
testified at a 2011 Judiciary Committee hearing that:
---------------------------------------------------------------------------
    \15\Hearing on the Diversity Visa Program Before the H. Subcomm. on 
Immigration, Border Security, and Claims of the H. Comm. on Judiciary, 
109th Cong. 49 (2005) (statement of the Honorable Bruce A. Morrison, 
former Member of Congress).

        the diversity immigrant visa program generates goodwill 
        and hope among millions across the globe ravaged by 
        war, poverty, undemocratic regimes, and opacity in 
        government. Through the diversity immigrant visa 
        program, the United States makes a counterpoint to that 
        reality, a chance at becoming an integral member of an 
        open, democratic society that places a premium on hard 
        work and opportunity.\16\
---------------------------------------------------------------------------
    \16\Safe for America Act: Hearing on H.R. 704 Hearing Before the H. 
Subcomm. on Immigration Policy and Enforcement of the H. Comm. on the 
Judiciary, 112th Cong. 22, 45 (2011) [hereinafter H.R. 704 Hearing] 
(statement of Ambassador Johnny Young, Executive Director, Migration 
and Refugee Services, United States Conference of Catholic Bishops).

Eliminating the diversity program means an end to the hope that 
the program engenders throughout the world.
B. LEliminating the Diversity Visa Program Will Not Reduce Fraud.
    The argument that the diversity visa program raises fraud 
and sceurity concerns is misleading. In fact, diversity visa 
winners are subject to the same immigration, criminal and 
national security background checks applicable to all persons 
applying to become lawful permanent residents, as well as 
interviews performed by officials from the State Department and 
the Department of Homeland Security. As discussed further 
below, following reports by both the GAO and the State 
Department's Office of Inspector General (OIG), numerous 
improvements have already been made to address concerns over 
fraud and security.
    Although the Majority charges that the diversity visa 
program ``is an open invitation for fraud and a jackpot for 
terrorists,''\17\ the GAO ``found no documented evidence that 
[diversity visa] immigrants . . . posed a terrorist or other 
threat.''\18\ To the extent that security and other 
programmatic weaknesses have been identified, the State 
Department has made major improvements, such as converting to 
an electronic application process, requiring the submission of 
digital photographs for facial recognition analysis, ending the 
practice of notifying winners by mail, and increasing outreach 
and education to applicants.\19\
---------------------------------------------------------------------------
    \17\See Markup Transcript at 7.
    \18\See GAO Report at 26.
    \19\H.R. 704 Hearing at 126-27.
---------------------------------------------------------------------------
    At the markup, Members of the Majority claimed that the 
diversity visa program is susceptible to abuse by terrorist 
groups who would do the Nation harm. But as former 
Representative Morrison testified in 2005, ``it is absurd to 
think that a lottery would be the vehicle of choice for 
terrorists.''\20\ Twelve to twenty million people enter the 
diversity visa lottery each year, and no more than 50,000 visas 
are available. The diversity visa program is perhaps the most 
inefficient path for any alien seeking entry into the United 
States.
---------------------------------------------------------------------------
    \20\See supra note 15
---------------------------------------------------------------------------
    In truth, eliminating the diversity visa program has 
nothing to do with preventing fraud or protecting the United 
States from terrorists. Members of the Majority have long 
wanted to eliminate this legal immigration program simply to 
reduce immigration to the United States. The Judiciary 
Committee last Congress reported a bill on partisan lines that 
eliminated the diversity visa program without doing anything at 
all to boost STEM visas, reduce existing family- or employment-
based backlogs, or reinforce diversity elsewhere in our 
immigration system. The Majority often talks about its support 
for legal immigrants, but this bill eliminates entirely one of 
the few programs providing a legal option for immigrating here. 
If there are flaws in the Program, they should be identified 
and addressed. Unfortunately, this bill simply terminates the 
program.
C. LElimination of The Sibling Category Would Undermine Family 
        Immigration
    The sibling category makes 65,000 green cards per year 
available to the brothers and sisters of U.S. citizens. H.R. 
2131 would eliminate the category and render null and void the 
approved petitions of family members already in line. As of 
November 2014, there were about 2.5 million siblings with 
approved petitions waiting in the sibling backlog.\21\ Of 
these, the 10 countries with the most family members in the 
sibling category were: Mexico (741,233), India (244,813), 
China-mainland born (175,485), Vietnam (174,111) Philippines 
(159,538), Bangladesh (159,071), Pakistan (93,427), Dominican 
Republic (60,131), Haiti (50,487), and Cuba (50,077).\22\
---------------------------------------------------------------------------
    \21\See supra note 3.
    \22\See supra note 3.
---------------------------------------------------------------------------
    The sibling category is the only avenue for the immigration 
of siblings, and its elimination would only damage the strong 
and robust family immigration system that is crucial to the 
social and economic success of immigrant families in the United 
States. It is well-accepted that family-based immigration 
benefits communities and businesses all across the Nation. 
Siblings often contribute to family-owned businesses, pooling 
resources such as time and money to ensure the success of their 
ventures. Many of these small and medium-sized businesses, 
which create jobs for American workers, would not exist without 
sibling-based immigration. Studies show that immigrants, the 
vast majority of whom come to the United States through family 
visas, are nearly twice as likely to start businesses in the 
U.S. as native-born Americans.\23\ Immigrant businesses have 
grown their contribution to the national business income by 36% 
in a decade, whereas businesses started by native-born 
Americans have increased their contribution by 14% over the 
same period.\24\
---------------------------------------------------------------------------
    \23\Robert W. Fairlie, Kauffman Index of Entrepreneurial Activity, 
Ewing Marion Kauffman Foundation, 3 (Apr. 2014).
    \24\Josephine Goube, US Immigrant Entrepreneurs: Latest Data and 
Statistics, Sept. 25, 2014.
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    Siblings also play a critical role as caregivers for 
children and the elderly, providing their families with 
necessary support. This caregiving function further frees up 
others in the family to continue running businesses, work and 
contribute to the economy. We should all be able to agree that 
strong families build a strong middle class and help grow our 
economy, making the United States more competitive in the 
global market.
    It is also important to keep in mind that our Nation is 
stronger when both the employer- and family-based immigration 
systems work together in harmony. Our family-based immigration 
system makes the United States even more attractive to 
employment-based immigrants who may want the flexibility to 
bring loved ones to the United States once they are established 
here. Many highly-skilled immigrants may forego immigrating to 
the United States without the option of petitioning for their 
siblings. At the same time, workers who have the support and 
encouragement of their family members are more likely to be 
productive and successful as they strive to integrate into our 
communities. Lengthy family separations are stressful and take 
a personal toll on workers. It forces many immigrant workers 
who are separated from their families to send money overseas 
rather than being able to invest all of it in their local 
communities.
    Also, eliminating the ability for U.S. citizens to sponsor 
their siblings will significantly disadvantage women who want 
to come to the United States, particularly unmarried women. 
Approximately 70% of immigrant women come to this country 
through the family-based system, as many women in other 
countries do not have the same educational or career 
advancement opportunities available to men. In the current 
immigration system, employment-based visas favor men over women 
by nearly a four to one margin as they place a premium on male-
dominated fields, like engineering and computer science.\25\ By 
eliminating the sibling category, the bill would severely cut 
off a main avenue for women to immigrate to the United States 
and in effect cement into U.S. immigration law the unfairness 
women face across the globe. Moreover, immigrant women are 
critical for the successful integration of their families. They 
provide stability for the family and help establish permanent 
roots in our communities. Immigrant women are also more likely 
to initiate the citizenship process for their families, as well 
as having a higher propensity to naturalize and become active 
members of our society.
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    \25\Letter from Wade Henderson, President and CEO, The Leadership 
Conference on Civil and Human Rights, and Nancy Zirkin, Executive Vice 
President, The Leadership Conference on Civil and Human Rights, to 
Senator, June 26, 2013, available at http://civilrightsdocs.info/pdf/
policy/letters/Hirono-Amednment-1718-letter-6-26-13.pdf.
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    Finally, in its current form, the bill would not only 
eliminate the sibling category, it would also render null and 
void the approved petitions of family members already in line. 
Some siblings have already been waiting for years, even 
decades, to be reunited with their U.S. citizen brothers and 
sisters. This extreme change would conflict with our 
fundamental principle of fairness. Moreover, by unnecessarily 
eliminating family members who have already waited for many 
years, the bill hurts our standing with the international 
community and signals to aspiring talented new Americans that 
the United States does not follow through on its commitments.

                               CONCLUSION

    The zero-sum approach to immigration employed by H.R. 2131 
is caustic, both because it pits groups of immigrants against 
each other and because it fails to address the fundamental 
problems afflicting our Nation's broken immigration system. Our 
dysfunctional immigration system cannot be fixed without 
addressing the incredibly long green card backlogs for 
employment- and family-based immigrants that have been plaguing 
the U.S. for decades. There are currently an estimated 400,000 
to 500,000 persons with approved employment-based petitions who 
are stuck in the employment-based green card backlogs, which 
means they cannot actually receive a green card because there 
are insufficient numbers made available every year. On the 
family-side, there are more than 4.5 million persons with 
approved petitions waiting in the green card backlogs.
    To address these backlogs--whether on the employment or the 
family side--Congress needs to allocate additional green cards. 
While H.R. 2131 would help alleviate green card backlogs for 
certain employment-based immigrants, the number of green cards 
provided by the bill are far from sufficient to fully address 
employment-based backlogs. In fact, if H.R. 2131 were to become 
law, years-long backlogs would continue to exist for American 
employers seeking to hire foreign talent. And because of the 
bill's large increases in temporary H-1B visas, green card 
backlogs are likely to increase as larger numbers of H-1B 
workers seek green cards to remain permanently in the United 
States.
    Thus, H.R. 2131 would fail to fully address our broken 
employment-based immigration system, while at the same time 
doing tremendous damage to our family- and diversity-based 
immigration systems. Adoption of the bill's zero-sum approach, 
if carried forward, would prevent future fixes to further 
address employment- and family-based green card backlogs. 
Instead of providing what this Nation desperately needs--
namely, a comprehensive solution that fixes our broken 
immigration system--H.R. 2131 is a flawed piecemeal approach 
that ensures the continued dysfunction of our immigration 
system.
    For the foregoing reasons we urge our colleagues to oppose 
H.R. 2131.

                                   John Conyers, Jr.
                                   Jerrold Nadler.
                                   Robert C. ``Bobby'' Scott.
                                   Zoe Lofgren.
                                   Sheila Jackson Lee.
                                   Henry C. ``Hank'' Johnson, Jr.
                                   Pedro R. Pierluisi.
                                   Judy Chu.
                                   Ted Deutch.
                                   Luis V. Gutierrez.
                                   Karen Bass.
                                   Cedric Richmond.
                                   Suzan DelBene.
                                   Joe Garcia.
                                   David N. Cicilline.