U.S. Senate Republican Policy Committee - Larry E. Craig, Chairman - Jade West, Staff Director

No. 64 May 11, 1998

S. 1723 -- The American Competitiveness Act

Calendar No. 335

Reported April 2, 1998, by the Senate Judiciary Committee, with an amendment in the nature of a substitute, by voice.

NOTEWORTHY
  • At press time, it was anticipated S. 1723 would come before the Senate early this week under a yet-to-be-determined unanimous consent agreement limiting both amendments and time for consideration. However, no votes will occur on the bill before noon on Tuesday, May 12.

  • S. 1723, introduced by Judiciary Immigration Subcommittee Chairman Abraham, raises the current cap for temporary foreign workers (referred to as category H1-B) to 95,000 in fiscal year 1998 and a maximum of 105,000 in fiscal year 1999 and 115,000 for fiscal years 2000 through 2002.

  • The bill creates a new H1-C temporary foreign visa category for health care assistants. Beginning with fiscal year 1999, the category is capped at 10,000 workers.

  • The bill also increases the authorization to $155 million for educational grants for mathematics, computer and engineering degrees for disadvantaged, low-income students. It provides authorization of $8 million for an Internet data bank to allow technology job searches as well as matching applicants with available technology jobs. It also authorizes $10 million to provide training opportunities in information technology.

  • S. 1723 contains a five-year sunset for the additional H1-B visas.

BACKGROUND

Earlier this year, the Senate Judiciary Immigration Subcommittee held a hearing on the apparent high-tech worker shortage and U.S. immigration policy. In response, Chairman Abraham introduced the "American Competitiveness Act."

According to a March 31 letter of support to Senator Abraham, 14 of our nation's high-technology CEOs expressed support for S. 1723:

Let us be clear about what is at stake: Failure to address current and future worker shortages could mean a loss of America's high technology leadership in the world. A short term solution is to raise the cap on the H-1B visa. The long-term solution, and one in which each of our companies is already engaged, lies in preparing more American students for the high technology workforce of the future.

The bill deals with an Immigration and Naturalization Service program for temporary foreign workers who are admitted to the United States under a nonimmigrant category, a part of the INA (Section 101(a)(15)(H)). Such workers are admitted for a limited time and with specific restrictions, depending on the occupation. The H1-B temporary foreign worker program requires foreign workers to have some "theoretical and practical application of a body of highly specialized knowledge" and "attainment of a bachelor's or higher degree in the specific specialty (or the equivalent) as a minimum." [8 U.S.C. §1184(i)(1)]

An employer wishing to hire a temporary foreign worker must attest to the Department of Labor that he or she: "will pay ... the greater of the actual wages paid other employees in the same job or the prevailing wage for that occupation; "will provide working conditions ... that do not cause the working conditions of the other employees to be adversely affected; and will not cause a "strike or lockout" [CRS, Immigration: Nonimmigrant H1-B Specialty Worker Facts and Issues, Ruth Ellen Wasem, March 19, 1998].

According to 1997 Department of Labor figures, of the occupational classifications certified as open for H1-B foreign workers in 1997, the largest portion, composing 44.4 percent, were for computer-related fields, such as system analysis/programming; computer systems technical support; data communications and networks; computer system user support; and other computer-related occupations. The next largest classifications certified as open were for therapists and electrical/electronic engineers, composing 25.9 and 3.1 percent respectively.

BILL PROVISIONS

Section 1: Short Title
Section 2: Findings
Section 3: Increased Access to Short Term Temporary Workers

Section 4: Education and Training in Science and Technology

Section 5: Enforcement Penalties

Section 6: Reports on H1-B Visas

Section 7: Report on High-Technology Labor Market Needs

Section 8: Lifting Per Country Ceilings for Employment-Based Immigrants

Section 9: Academic Honoraria

ADMINISTRATION POSITION

The Administration submitted a statement to Chairman Hatch on April 2, 1998, signed by Attorney General Janet Reno, Secretary of Commerce William Daley and Secretary of Labor Alexis Herman. It stated that "the Administration strongly opposes S. 1723."

The Administration believes that the first step in increasing the availability of skilled workers must be raising the skills of U.S. workers and helping the labor market work better to match employers with U.S. workers. Therefore, substantial additional efforts by industry to increase the skill level of U.S. workers and needed improvements in the H1-B visa program are necessary prerequisites for the Administration to support any short-term increases in the number of visas for temporary foreign workers. Since 1993, this Administration has sought reforms of the H1-B program. . . .These reforms, if enacted, would help target H1-B usage to industries and employers that are experiencing skill shortages.

Regrettably, S. 1723, as introduced, emphasizes providing opportunities for foreign workers rather than providing for and protecting U.S. workers . . .. Moreover, rather than strengthening program requirements and enforcement to prevent employer abuses of the H1-B program, S. 1723 undermines some of the program's important enforcement provisions.

The letter also notes its support for the Kennedy/Feinstein substitute, offered and rejected during the full committee markup, saying that language is, "on the whole, consistent with the objectives we have articulated."

POSSIBLE AMENDMENTS

Kennedy/Feinstein substitute. The amendment increases preconditions on employers for hiring H1-B workers including additional "no layoff" protections for U.S. workers; a limitation on visa terms from six to three years; open-ended investigative authority for the Department of Labor to lessen employer abuses; and a new $250 fee for applications submitted for each H1-B worker.

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