Allocation of Additional H-1B Visas Created by the H-1B Visa Reform Act of 2004, 23775-23783 [05-8992]
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23775
Rules and Regulations
Federal Register
Vol. 70, No. 86
Thursday, May 5, 2005
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF HOMELAND
SECURITY
U.S. Citizenship and Immigration
Services
8 CFR Part 214
[CIS No. 2347–05]
[DHS Docket No. DHS–2005–0014]
RIN 1615–AB32
Allocation of Additional H–1B Visas
Created by the H–1B Visa Reform Act
of 2004
U.S. Citizenship and
Immigration Services, Department of
Homeland Security.
ACTION: Interim rule with request for
comments.
AGENCY:
SUMMARY: This interim rule implements
certain changes made by the Omnibus
Appropriations Act for Fiscal Year 2005
to the numerical limits of the H–1B
nonimmigrant visa category and the fees
for filing of H–1B petitions. This interim
rule also notifies the public of the
procedures U.S. Citizenship and
Immigration Services will use to
allocate, in fiscal year 2005 and in
future fiscal years starting with fiscal
year 2006, the additional 20,000 H–1B
numbers made available by the
exemption created pursuant to that Act.
This interim rule amends and clarifies
the process by which U.S. Citizenship
and Immigration Services, in the future,
will allocate all petitions subject to
numerical limitations under the
Immigration and Nationality Act. This
interim rule also notifies the public of
additional fees that must be filed with
certain H–1B petitions.
DATES: This rule is effective May 5,
2005. Written comments must be
submitted by July 5, 2005.
ADDRESSES: You may submit comments,
identified by DHS Docket No. DHS–
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2005–0014, by one of the following
methods:
• EPA Federal Partner EDOCKET
Web site: https://www.epa.gov/
feddocket. Follow instructions for
submitting comments on the Web site.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: The Director, Regulatory
Management Division, U.S. Citizenship
and Immigration Services, Department
of Homeland Security, 111
Massachusetts Avenue, NW., 2nd Floor,
Washington, DC 20529. To ensure
proper handling, please reference DHS
Docket No. DHS–2005–0014 on your
correspondence. This mailing address
may also be used for paper, disk, or CD–
ROM submissions.
• Hand Delivery/Courier: U.S.
Citizenship and Immigration Services,
Department of Homeland Security, 111
Massachusetts Avenue, NW., 2nd Floor,
Washington, DC 20529. Contact
Telephone Number (202) 272–8377.
Instructions: All submissions received
must include the agency name and DHS
Docket No. DHS–2005–0014. All
comments received will be posted
without change to https://www.epa.gov/
feddocket, including any personal
information provided. For detailed
instructions on submitting comments
and additional information on the
rulemaking process, see the ‘‘Public
Participation’’ heading of the
SUPPLEMENTARY INFORMATION section of
this document.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.epa.gov/feddocket. You may also
access the Federal eRulemaking Portal
at https://www.regulations.gov.
Submitted comments may also be
inspected at the Regulatory Management
Division, U.S. Citizenship and
Immigration Services, Department of
Homeland Security, 111 Massachusetts
Avenue, NW., 2nd Floor, Washington,
DC 20529. To make an appointment
please contact the Regulatory
Management Division at (202) 272–
8377.
FOR FURTHER INFORMATION CONTACT:
Kevin J. Cummings, Adjudications
Officer, Business and Trade Services
Branch/Program and Regulation
Development, U.S. Citizenship and
Immigration Services, Department of
Homeland Security, 111 Massachusetts
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Avenue, NW., 3rd Floor, Washington,
DC 20529, telephone (202) 353–8177.
This
supplementary information section is
organized as follows:
SUPPLEMENTARY INFORMATION:
I. Public Participation
II. Background and Statutory Authority
A. H–1B Nonimmigrant Classification
B. H–1B Visa Reform Act of 2004
III. Effect of the H–1B Visa Reform Act of
2004 on FY 2005 Filings
IV. General Process for FY 2005 H–1B Filings
V. General Process for FY 2006 and
Subsequent Fiscal Year H–1B Filings
VI. Allocation of H–1B Numbers in FY 2005,
FY 2006 and Subsequent Fiscal Years
VII. Special Filing Procedures for Additional
FY 2005 H–1B Numbers
A. Date of Filing
B. Filing Location and Method of Filing
C. Required Forms
D. Availability of Premium Processing
Program
E. Filing Fees
F. Requested Start Dates
VIII. Special Additional Filing Procedures for
FY 2006
A. Method of Filing
B. Upgrading FY 2006 Petitions
C. Required Forms
D. Availability of Premium Processing
Program
E. Filing Fees
IX. Section-by-Section Analysis
X. Regulatory Requirements
A. Administrative Procedure Act (Good
Cause exception)
B. Regulatory Flexibility Act
C. Unfunded Mandates Reform Act of 1995
D. Small Business Regulatory Enforcement
Fairness Act of 1996
E. Executive Order 12866 (Regulatory
Planning and Review)
F. Executive Order 13132 (Federalism)
G. Executive Order 12988 (Civil Justice
Reform)
H. Paperwork Reduction Act
I. Public Participation
Interested persons are invited to
participate in this rulemaking by
submitting written data, views, or
arguments on all aspects of the interim
rule. U.S. Citizenship and Immigration
Services (USCIS) also invites comments
that relate to the economic or federalism
effects that might result from this
interim rule. Comments that will
provide the most assistance to USCIS in
developing these procedures will
reference a specific portion of the
interim rule, explain the reason for any
recommended change, and include data,
information, or authority that support
such recommended change. See
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above for information on
how to submit comments.
ADDRESSES
II. Background and Statutory Authority
A. H–1B Nonimmigrant Classification
Under Section 101(a)(15)(H) of the
Immigration and Nationality Act (INA)
and 8 CFR 214.2(h)(4), an H–1B
nonimmigrant is an alien employed in
a specialty occupation or a fashion
model of distinguished merit and
ability. A specialty occupation is an
occupation that requires theoretical and
practical application of a body of
specialized knowledge and attainment
of a bachelor’s degree or higher degree
in the specific specialty as a minimum
qualification for entry into the United
States.
Section 214(g) of the INA provides
that the total number of nonimmigrant
aliens who may be issued H–1B visas,
or otherwise granted H–1B status, may
not exceed 65,000 during any fiscal
year. Under the INA, the 65,000 cap
does not include H–1B nonimmigrant
aliens who are employed by, or have
received offers of employment at: (1) An
institution of higher education, or a
related or affiliated nonprofit entity; or
(2) a nonprofit research organization or
a governmental research organization.
On October 1, 2004, USCIS issued a
press release announcing that USCIS
had received a sufficient number of H–
1B petitions to reach the statutory cap
for fiscal year (FY) 2005, and that
beginning October 2, 2004, USCIS
would not accept for adjudication any
H–1B petition for new employment
containing a request for a work start
date prior to October 1, 2005. A Notice
to this effect subsequently was
published in the Federal Register on
November 23, 2004 at 69 FR 68154.
B. H–1B Visa Reform Act of 2004
On December 8, 2004, the President
signed the Omnibus Appropriations Act
(OAA) for Fiscal Year 2005, Public Law
108–447, 118 Stat. 2809. Among the
provisions of OAA is the H–1B Visa
Reform Act of 2004. The H–1B Visa
Reform Act of 2004 amends section
214(g)(5) of the INA by adding a third
exemption, (C), to the H–1B cap:
(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
1101(a)(15)(H)(i)(b) of this title who * * *
*
*
*
*
*
(C) has earned a masters’ 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).’’
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This amendment became effective 90
days after enactment, March 8, 2005.
Although there is no direct legislative
history for this provision, it has the
purpose of expanding the availability of
needed professional workers for
employers in the United States.
The H–1B Visa Reform Act of 2004
also imposed two additional fees that
must be filed with H–1B petitions. First,
section 214(c)(9) of the INA was
amended to reinstitute and modify the
additional fees previously imposed by
the American Competitiveness and
Workforce Improvement Act of 1998
(ACWIA), Title IV of Div C., Public Law
105–277, which are used for
scholarships for U.S. low income
students and for job training for U.S.
workers. (The ACWIA fees expired
effective October 1, 2003). The H–1B
Visa Reform Act of 2004 raised the
ACWIA fee to $1,500 or $750,
depending on the size of the employer.
Therefore, effective December 8, 2004,
employers with 26 or more U.S. fulltime-equivalent employees, including
all affiliated or subsidiary entities, who
seek to employ an H–1B nonimmigrant
must pay $1,500, in addition to the base
filing fee of $185 for a Form I–129,
Petition for Temporary Nonimmigrant
Worker. For employers with 25 or fewer
U.S. full-time-equivalent employees,
including all affiliated or subsidiary
entities, the fee is $750, in addition to
the base filing fee of $185 for a Form I–
129.
Second, the H–1B Visa Reform Act of
2004 amended section 214(c) of the INA
by adding a new subsection (c)(12)
which imposes a $500 fraud prevention
and detection fee on certain employers
filing H–1B petitions. Effective March 8,
2005, employers seeking an initial grant
of H–1B nonimmigrant status or
authorization for an existing H–1B (or
L–1 alien seeking to become an H–1B
nonimmigrant) to change employers
must submit the $500 fraud prevention
and detection fee. The $500 fee does not
need to be submitted by: (1) Employers
who seek to extend a current H–1B
alien’s status where such an extension
does not involve a change of employers,
(2) employers who are seeking H–1B1,
Chile-Singapore Free Trade Act
nonimmigrants, or (3) dependents of H–
1B principal beneficiaries.
These fees must be filed to USCIS in
addition to the base filing fee (currently
$185) for the Form I–129, Petition for
Temporary Nonimmigrant Worker.
Payment for the $185 petition filing fee
and the $1,500 (or $750) additional
ACWIA fee may be made in the form of
a single check or money order for the
total amount due or two checks or
money orders. Those petitioners who
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must pay the $500 fraud prevention and
detection fee must pay with a check or
money order that is separate from the
additional ACWIA application fees of
$1,500 (or $750) and the $185 petition
filing fees. Thus, in certain instances
petitioners may have to, or elect to, file
three separate checks or money orders—
one for the $185 Form I–129 petition
fee; one for the $1,500 or $750
additional ACWIA fee; and one for the
$500 fraud prevention and detection fee.
The new ACWIA and Fraud Detection
and Prevention fees are statutorilymandated and do not require a separate
rulemaking to implement the new fee
provisions. However, USCIS, in a future
rulemaking, will codify these new fees
on H–1B petitions and the associated
exemptions in the regulations to provide
a place for affected petitioners to find all
fee-related information in one place.
USCIS specifically will amend 8 CFR
214.2(h)(19), which currently addresses
the fees initially required pursuant to
ACWIA, to reflect the enhanced ACWIA
fees of $1,500 (or $750) and to codify
the new fraud prevention and detection
fees ($500) affecting all H and L
petitioners.
III. Effect of H–1B Visa Reform Act of
2004 on FY 2005 Filings
To implement the H–1B Visa Reform
Act of 2004, USCIS had to consider the
plain language of the statute which
specifically limited the new exemption
to aliens who have earned a U.S.
master’s degree or higher. USCIS has
determined that it is a reasonable
interpretation of the H–1B Visa Reform
Act of 2004 to make available 20,000
new H–1B numbers in FY 2005, limited
to H–1B nonimmigrant aliens who
possess a U.S. earned master’s or higher
degree.
USCIS will allocate the 20,000 new
H–1B numbers authorized by the H–1B
Visa Reform Act of 2004 in this manner
for the following reasons. Congress left
to the Secretary of Homeland Security
broad discretion, through his authority
under sections 103 and 214 of the INA,
to prescribe regulations and procedures
for the admission of nonimmigrant
aliens, such as H–1B nonimmigrants.
Thus, USCIS has broad discretion and
authority to implement the H–1B Visa
Reform Act of 2004.
The H–1B Visa Reform Act of 2004
was enacted after the start of FY 2005
and after the receipt of all petitions
necessary to reach the existing 65,000
H–1B cap for FY 2005. The amendment
to section 214(g) of the INA, authorizing
the cap exemption of 20,000 H–1B
nonimmigrant aliens with U.S. master’s
or higher degrees, did not become
effective until March 8, 2005. Congress
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did not specify any procedures for
implementation or dictate the manner in
which USCIS should allocate H–1B
numbers made available pursuant to the
new exemption. Congress specifically
did not require USCIS to ‘‘reopen’’ its
review of H–1B petitions already
received and re-characterize the
petitions that would have qualified for
the new exemption had it been in effect
at the time the petitions were received.
Thus, in order to give full effect to the
newly created exemption, it is
reasonable to do so going forward only,
applying the exemption to up to 20,000
petitions seeking work start dates during
FY 2005. It also appears that Congress
intended for the fees for 20,000 new
petitions to be generated during FY
2005 to serve the important purposes of
supporting the development of the U.S.
labor market and the detection and
prevention of immigration fraud.
USCIS has never previously been
required to collect data concerning
whether beneficiaries of H–1B petitions
possess master’s or higher degrees
earned in the United States. While
USCIS did collect information about the
highest level of education of the
beneficiary, it did not specifically
collect information about whether the
beneficiary had a U.S. masters or higher
degree or whether the degree was
earned from a U.S. institution. Thus, as
to FY 2005, USCIS cannot accurately
count the petitions already filed for FY
2005 on behalf of beneficiaries who
have earned masters or higher degrees at
U.S. institutions. USCIS has made
amendments to its recordkeeping and
data collection systems that will allow
it, prospectively, to accurately capture
the data needed to assess the exact
number of H–1B nonimmigrant aliens
who have a U.S. master’s or higher
degree.
In light of the above reasons, for FY
2005, USCIS has determined that the
only appropriate way to implement the
H–1B Visa Reform Act of 2004 is to
apply the 20,000 exemptions
prospectively.
IV. General Process for FY 2005 H–1B
Filings
USCIS will reopen the FY 2005 H–1B
filing period, effective May 12, 2005,
and make available 20,000 new H–1B
numbers for FY 2005. These additional
H–1B numbers will be limited to U.S.
employers seeking an H–1B
nonimmigrant alien who has earned a
master’s or higher degree from a U.S.
institution of higher education, as the
statute provides.
U.S. employers seeking an H–1B
nonimmigrant alien for FY 2005 will file
H–1B petitions through a special
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process, submitting the Form I–129
petition at a single USCIS service
center—Vermont Service Center—at the
address noted in section VII, paragraph
A below. USCIS will accept and
adjudicate properly filed H–1B petitions
on a first-in, first-out basis until USCIS
has allocated all 20,000 H–1B
exemption numbers authorized, as
provided in section VI below.
As noted below in section VII,
paragraph B, USCIS will not accept FY
2005 petitions via electronic filing (‘‘efiling’’). USCIS is precluding e-filing for
FY 2005 petitions because of the need
to quickly and accurately identify those
petitions that will be subject to the
20,000 numerical limit. Allowing efiling would complicate this effort due
to the additional DHS administrative
burden associated with matching e-filed
petitions with separately filed (through
paper) signed labor condition
applications (LCA) and evidence of
required degrees (which in general
cannot be submitted electronically).
V. General Process for FY 2006 and
Subsequent Fiscal Year H–1B Filings
For FY 2006 and future fiscal years,
U.S. employers seeking an H–1B
nonimmigrant alien, regardless of
whether the alien has a master’s or
higher degree, will file for an H–1B
number through the normal process,
submitting the Form I–129 petition at
the USCIS Service Center with
jurisdiction over the place of intended
employment.
For FY 2006 only, U.S. employers
who already have filed an FY 2006 H–
1B petition which USCIS has approved
or which is still pending with USCIS,
will be given the option to upgrade such
petitions and receive an FY 2005 H–1B,
if any are available, in accordance with
the procedures noted in section VIII,
paragraph B below.
For FY 2006 and future fiscal years,
USCIS will accept and adjudicate
properly filed H–1B petitions on a firstin, first-out basis and will track those
H–1B petitions that qualify for the U.S.
master’s or higher degree exemption
under the H–1B Visa Reform Act of
2004 as cases are received and
adjudicated. Petitions that are eligible
for the first two exemptions, applicable
to petitioners who are employed at
institutions of higher learning, or in
nonprofit research, will not count
against the 65,000 cap or against the
numerical limitation on the new
exemption. Similarly, H–1B
nonimmigrant aliens that are exempt
under the H–1B Visa Reform Act of
2004 will not be counted towards the
fiscal year numerical limit of 65,000.
USCIS will continue to exempt such
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aliens until USCIS has allocated all
20,000 H–1B exemption numbers
authorized, as provided in section VI
below. Thereafter, any H–1B petition
granted for an H–1B nonimmigrant alien
who has earned a U.S. master’s or
higher degree, unless otherwise exempt,
will be counted against the fiscal year
numerical limitations.
As noted below in section VIII,
paragraph A, USCIS is temporarily
suspending electronic filing (‘‘e-filing’’)
of FY 2006 petitions until USCIS has
received all petitions that would apply
to the FY 2005 numerical limits,
including any upgraded applications.
USCIS is temporarily suspending efiling for FY 2006 petitions because of
the need not only to quickly and
accurately identify those petitions that
will be subject to the FY 2005 numerical
limits, including requests for upgrades
from FY 2006 filings, but also to
determine which petitions will apply
against the FY 2006 U.S. master’s or
higher degree exemption. USCIS will
provide notice, via the USCIS website,
indicating when e-filing will be
resumed for FY 2006.
In general, USCIS will require use of
the Form I–129 (OMB 1615–0009) in the
filing of H–1B petitions; however, for
FY 2005 and 2006 filings, USCIS has
made the additional accommodation for
petitioners to utilize alternate versions
of the form as noted in Sections VII and
VIII below.
VI. Allocation of H–1B Numbers in FY
2005, FY 2006 and Subsequent Fiscal
Years
In the past, USCIS has faced two
primary challenges in actual cap
counting: (1) Anticipating when the cap
will be hit and (2) monitoring of the
inflow of H–1B petition filings. To
address the second challenge, USCIS
has implemented new technology and
enhanced its systems capability to allow
USCIS to monitor H–1B petition
receipts on a daily basis.
The first challenge however remains:
Picking the number of petitions
necessary for the cap to be reached.
USCIS cannot wait until the petitions
received have been adjudicated to make
this decision, because during the time
the adjudications are being completed
and an exact count obtained, the cap
would be exceeded by these petitions
already received and unnecessarily
processed. Petitioners whose petitions
were received and initially processed
after the point at which the cap would
be found to have been reached would
have gained an unrealistic expectation
of having a chance at an H–1B number,
and either such petitioners would lose
significant filing fees without
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substantive adjudication or USCIS
would expend unnecessary resources on
initially processing such petitions and
fees and then returning those petitions
and refunding the fees. Therefore,
estimating and projecting rates of
approval of petitions is required.
Through experience of several years,
USCIS has gained some statistical
understanding of various factors that
play into the cap, including the number
of petitions already approved, denied,
and still pending, the period of time that
unadjudicated petitions have been
pending, and the education level of the
petitions that are pending. USCIS can
apply different projected rates of
approval (including reversal of denials
on appeal) to groups of cases based on
these factors. None of these factors or
rates can be projected precisely, and
therefore determining when the cap will
be reached unavoidably involves
estimation. The specific factors and
rates may vary from year to year and
will be applied in USCIS’ discretion
with assistance of the DHS Office of
Statistics. The interim final rule
acknowledges USCIS’ unavoidable use
of projection and estimation in cap
management.
To ensure the fair and orderly
allocation of numbers in a particular
classification subject to numerical
limits, USCIS will employ a random
selection process. USCIS’ random
selection process will be computergenerated and validated by the Office of
Immigration Statistics. When
calculating the numerical limitations for
a given fiscal year, USCIS will make
numbers available to petitions in the
order in which the petitions are filed.
USCIS will make projections of the
number of petitions necessary to
achieve the numerical limit of
approvals, taking into account historical
data related to approvals, denials,
revocations, and other relevant factors.
USCIS will monitor the number of
petitions received (including the
number of beneficiaries when
necessary) and will notify the public of
the date that USCIS has received the
necessary number of petitions (the
‘‘final receipt date’’). The date of
publication will not control the final
receipt date.
During the random selection process,
USCIS will randomly select from among
the petitions received on the final
receipt date the remaining number of
petitions deemed necessary to generate
the numerical limit of approvals.
Petitions not selected, and petitions
received after the final receipt date, will
be rejected. If the final receipt date is
the same as the first date on which
petitions subject to the applicable cap
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may be filed (i.e., if the cap is reached
on the first day filings can be made),
USCIS will randomly apply all of the
numbers among the petitions filed on
the final receipt date and the following
day.
DHS seeks comment on the
methodology to approve eligible H–1B
petitions in circumstances where such
petitions were received on the day the
annual cap was forecasted to be
reached.
VII. Special Filing Procedures for
Additional FY 2005 H–1B Numbers
A. Date of Filing
U.S. employers seeking one of the
new FY 2005 H–1B numbers made
available pursuant to the H–1B Visa
Reform Act of 2004 may file H–1B
petitions beginning May 12, 2005. Any
petition requesting new FY 2005 H–1B
employment received before May 12,
2005 will be rejected and returned,
along with the associated filing fees, to
the petitioner or representative.
B. Filing Location and Method of Filing
Under the authority created by this
interim rule, USCIS is hereby advising
petitioners seeking an FY 2005 H–1B
number that they must submit the H–1B
petition to the following address: USCIS
Vermont Service Center, 1A Lemnah
Drive, St. Albans, VT 05479–7001.
Only H–1B petitions received at this
specific address at the Vermont Service
Center will be deemed eligible for an FY
2005 number. Filings may not be
personally delivered and must be
submitted by U.S. mail, express
shipping services, or by other courier
companies normally servicing the
Vermont Service Center. Any petition
seeking an FY 2005 H–1B number filed
or received at another USCIS Service
Center will be rejected and returned,
along with the associated filing fees, to
the petitioner or representative. USCIS
will not accept any FY 2005 petitions by
electronic filing (‘‘e-filing’’).
C. Required Forms
U.S. employers seeking one of the
new FY 2005 H–1B numbers made
available pursuant to the H–1B Visa
Reform Act of 2004 may file the new
Form I–129, Petition for Nonimmigrant
Worker (edition date 3–17–05, OMB
1615–0009), which incorporates the
Form I–129W, H–1B Data Collection
and Filing Fee Exemption, as well as the
H and H–1B Supplements. Petitioners
should note that as of May 30, 2005, all
H–1B submissions must be made on the
new Form I–129 (edition date 3–17–05,
OMB 1615–0009).
U.S. employers may also file the old
Form I–129 (edition date 12–10–01,
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OMB 1115–0168, OMB 1615–0093) and
the old Form I–129W (edition date 2–
14–02, OMB 1115–0225). U.S.
employers filing the old Form I–129
(edition date 12–10–01, OMB 1115–
0168, OMB 1615–0093) must complete
the data field in Part 5, marked ‘‘Current
number of employees’’. Petitioners filing
the old Form I–129W (edition date 2–
14–02, OMB 1115–0225) must complete
Part A, section ‘‘Beneficiary’s Highest
Level of Education’’, by: (1) Checking
the appropriate box indicating Master’s,
Professional or Doctorate degree; (2)
clearly annotating next to the selection
the phrase—‘‘U.S. earned’; and (3)
providing the name and location of the
U.S institution of higher education.
Petitioners seeking FY 2005 H–1B
numbers also may file one of a few
additional versions of the Form I–129
that were posted on USCIS’ Web site
during March 2005 before the 3–17–05
version was finalized. Regardless of
which version of the Form I–129, U.S.
employers choose to file, a certified
Labor Condition Application (LCA)
from the Department of Labor valid for
the period of requested employment
must be submitted with the Form I–129.
D. Availability of Premium Processing
Program
USCIS recognizes that many H–1B
petitioners seeking an FY 2005 H–1B
number desire the beneficiary to begin
work as soon as possible. USCIS
therefore will allow petitioners to file
for the additional FY 2005 numbers
using the Premium Processing Program.
E. Filing Fees
Petitioners are reminded that the
Form I–129 must be filed with the base
filing fee of $185, the ACWIA fees of
$1,500 (for employers with 26 or more
U.S. full-time-equivalent employees) or
$750 (for employers with 25 or less U.S.
full-time-equivalent employees,
including all affiliated or subsidiary
entities), the $500 fraud prevention and
detection fee (as applicable), as well as
the Form I–907 and premium processing
fee of $1,000. Payment for the $185
petition filing fee and the $1,500 (or
$750) additional ACWIA fee may be
made in the form of a single check or
money order for the total amount due or
two checks or money orders to the
Department of Homeland Security, in
accordance with the instructions on the
revised Form I–129. Those petitioners
who must pay the $500 fraud
prevention and detection fee must pay
with a check or money order that is
separate from the additional ACWIA
application fees of $1,500 (or $750) and
the $185 petition filing fees. Similarly,
any premium processing fee of $1,000
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must be paid by separate check. Thus,
in certain instances petitioners may
need to file up to four separate checks
or money orders: One for the $185 Form
I–129 petition fee; one for the $1,500 or
$750 additional ACWIA fee (which may
be combined with the $185 fee); one for
the $500 fraud prevention and detection
fee; and one for the $1,000 premium
processing fee (if applicable).
F. Requested Start Dates
USCIS anticipates that it will receive
a large volume of petitions from U.S.
employers seeking an FY 2005 number
for an H–1B nonimmigrant who has
earned a U.S. master’s degree or higher
and that there will likely be more
petitions filed than there are numbers
available. USCIS anticipates that many
U.S. employers will have already filed
H–1B petitions seeking an FY 2006
number or will be filing an H–1B
petition seeking an FY 2006 number.
USCIS also anticipates that petitioners
who do not receive an FY 2005 number
likely will seek an FY 2006 number or
be willing to accept an FY 2006 number
if available.
To facilitate processing of FY 2005
numbers, to avoid the filing of multiple
petitions on behalf of the same alien for
the same employment starting on
different possible dates, and to properly
segregate FY 2005 petitions, USCIS will
assume that petitioners who are filing
for a FY 2005 number are willing to
receive an FY 2006 number and start
date (October 1, 2005) if an FY 2005
number is unavailable and if the
petitioner still seeks an alien for
employment in FY 2006. Petitioners
who seek an FY 2005 number only
must, in addition to indicating a start
date for employment prior to October 1,
2005, clearly annotate the top of the first
page of the Form I–129 with the phrase
‘‘FY 2005 only.’’ Such petitions that are
found to exceed the numerical limit will
be returned to the petitioner, and any
associated filing fees will be returned or
refunded.
VIII. Special Additional Filing
Procedures for FY 2006
A. Method of Filing
Until further notice, USCIS has
temporarily suspended electronic filing
(‘‘e-filing’’) of FY 2006 H–1B petitions.
U.S. employers seeking an FY 2006
number, however, may file H–1B
petitions for an FY 2006 number by U.S.
mail, express shipping services, or by
other courier companies normally
servicing the USCIS Service Center with
jurisdiction over the place of intended
employment according to the normal
procedure. Such petitions may not be
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personally delivered to the applicable
USCIS Service Center.
B. Upgrading FY 2006 Petitions
USCIS is aware that some H–1B
petitioners who have already filed H–1B
petitions for FY 2006 employment may
wish to convert an approved or pending
petition into an FY 2005 filing to allow
the alien beneficiary to commence
employment at an earlier date. USCIS
will permit petitioners to ‘‘upgrade’’ a
pending or approved FY 2006 H–1B
petition if the beneficiary has a U.S.
master’s degree or higher degree from a
U.S. institution and the petition is
otherwise approvable. Such a petition
will be treated as a request for an FY
2005 number and start date and, in the
event that an FY 2005 number is not
available, as an alternative request for
an FY 2006 number with an October 1,
2005 start date for employment.
In order to upgrade an FY 2006 H–1B
petition, the petitioner must submit to
USCIS: (1) A letter requesting the
upgrade; (2) either (a) a copy of the
approval notice for the FY 2006
petition, (b) a copy of the receipt notice
for the FY 2006 petition, (c) a copy of
the first two pages of the related Form
I–129 if a receipt notice has not yet been
received, or (d) a new Form I–129; and
(3) a certified Labor Condition
Application (LCA) from the Department
of Labor valid for the period of
requested employment (or copy thereof
if not already provided with the FY
2006 petition).
Petitioners seeking an upgrade must
submit the required documentation to
the following address: USCIS Vermont
Service Center, 1A Lemnah Drive, St.
Albans, VT 05479–7001. There is no fee
to upgrade a previously filed or
approved FY 2006 petition. Upgrade
filings may not be personally delivered
and must be submitted by U.S. mail,
express shipping services, or by other
courier companies normally servicing
the Vermont Service Center.
Any request to upgrade a FY 2006 for
purposes of a FY 2005 filing will be
treated as having been filed on the date
of receipt at the Vermont Service Center
address and is subject to the same
timing rules for full petitions submitted
for FY 2005 as set forth in Section VII,
paragraph A above. In the event that a
FY 2005 number is not available for an
upgrade request, the original petition
will be deemed as having been filed for
an FY 2006 number on the date the
petition was initially filed at one of the
four service centers.
C. Required Forms
U.S. employers seeking FY 2006 H–1B
numbers may file the new Form I–129,
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Petition for Nonimmigrant Worker
(edition date 3–17–05, OMB 1615–
0009), which incorporates the Form I–
129W, H–1B Data Collection and Filing
Fee Exemption, as well as the H and H–
1B Supplements. Petitioners should
note that as of May 30, 2005, all H–1B
submissions must be made on the new
Form I–129 (edition date 3–17–05, OMB
1615–0009).
U.S. employers may also file the old
Form I–129 (edition date 12–10–01,
OMB 1115–0168, OMB 1615–0093) and
the old Form I–129W (edition date 2–
14–02, OMB 1115–0225). U.S.
employers filing the old Form I–129
(edition date 12–10–01, OMB 1115–
0168, OMB 1615–0093) must complete
the data field in Part 5, marked ‘‘Current
number of employees’’. Petitioners filing
the old Form I–129W (edition date 2–
14–02, OMB 1115–0225) must complete
Part A, section ‘‘Beneficiary’s Highest
Level of Education’’, by: (1) Checking
the appropriate box indicating Master’s,
Professional or Doctorate degree; (2)
clearly annotating next to the selection
the phrase—‘‘U.S. earned’’; and (3)
providing the name and location of the
U.S institution of higher education.
Petitioners may file also one of a few
additional versions of the Form I–129
that were posted on USCIS’ Web site
during March 2005 before the 3–17–05
version was finalized. Regardless of
which version of the Form I–129, U.S.
employers chose to file, a certified Labor
Condition Application (LCA) from the
Department of Labor valid for the period
of requested employment must be
submitted with the Form I–129.
D. Availability of Premium Processing
Program
FY 2006 petitions may be filed via the
Premium Processing Program and
should include the required Form I–907,
Request for Premium Processing, along
with the $1,000 premium processing
fee.
U.S. employers who: (1) Have already
filed an FY 2006 H–1B petition with
premium processing, (2) whose FY 2006
H–1B petition is still pending
adjudication, and (3) who now seek an
upgrade for an FY 2005 number, do not
need to submit a new Form I–907 or
new premium processing fee.
U.S. employers who: (1) Have already
filed an FY 2006 H–1B petition without
using premium processing, (2) whose
FY 2006 H–1B petition is still pending
adjudication, and (3) who now seek an
upgrade for an FY 2005 number, must
include with the upgrade request a
Form I–907, Request for Premium
Processing, along with the premium
processing fee.
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U.S. employers who: (1) Have already
filed an FY 2006 H–1B petition that has
been approved, regardless of whether
premium processing was requested, and
(2) who now seek an upgrade for an FY
2005 number, do not need to submit a
new Form I–907 or new premium
processing fee.
E. Filing Fees
Petitioners are reminded that the
Form I–129 must be filed with the base
filing fee of $185, the ACWIA fees of
$1,500 (for employers with 26 or more
U.S. full-time-equivalent employees) or
$750 (for employers with 25 or less U.S.
full-time-equivalent employees,
including all affiliated or subsidiary
entities), the $500 fraud prevention and
detection fee (as applicable), as well as
the Form I–907 and premium processing
fee of $1,000, if applicable. Payment for
the $185 petition filing fee and the
$1,500 (or $750) additional ACWIA fee
may be made in the form of a single
check or money order for the total
amount due or two checks or money
orders. Those petitioners who must pay
the $500 fraud prevention and detection
fee must pay with a check or money
order that is separate from the
additional ACWIA application fees of
$1,500 (or $750) and the $185 petition
filing fees. Similarly, any premium
processing fee of $1,000 must be paid by
separate check. Thus, in certain
instances petitioners may need to file up
to four separate checks or money orders:
One for the $185 Form I–129 petition
fee; one for the $1,500 or $750
additional ACWIA fee (which may be
combined with the $185 fee); one for the
$500 fraud prevention and detection fee;
and one for the $1,000 premium
processing fee (if applicable).
IX. Section-by-Section Analysis
USCIS is revising 8 CFR
214.2(h)(2)(i)(A) to provide that USCIS
may set alternate filing locations via
notice in the Federal Register.
USCIS is revising 8 CFR 214.2(h)(8)(ii)
in its entirety to properly reflect that
USCIS tracks petitions or applications
subject to numerical limits, not by
individual petition receipt numbers, but
by monitoring the total number of
petitions (including the number of
beneficiaries when necessary) filed
within a given fiscal year. This revision
applies to all H nonimmigrant
classifications subject to numerical
limits. In calculating when the
numerical limits have been or will
likely be reached, USCIS will make
projections of the number of petitions
necessary to achieve the numerical limit
of approvals, taking into account
historical data related to approvals,
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denials, revocations, and other relevant
factors. USCIS will continue to count
H–1B petitions on a first-in, first-out
basis and monitor the number of
petitions received, approved, and
pending adjudication to determine
when USCIS is likely to reach or exceed
the numerical limits in a given fiscal
year.
As discussed above in Section VI,
USCIS also is amending 8 CFR
214.2(h)(8)(ii)(B) to authorize random
selection of H–1B numbers in FY 2005,
FY 2006 and future fiscal years when
USCIS determines that the numerical
limits in a particular category will be
reached.
USCIS recognizes that, given the
period of time that has passed since capsubject H–1B filings last were received,
the anticipated high demand for
immediate validity dates is substantial
and may even exceed the 20,000 newly
available numbers for FY 2005 on the
first day. Therefore, any petitioner who
desires an FY 2005 number must
consider the importance of having the
petition (or ‘‘upgrade’’ of an already
filed FY 2006 petition) delivered on the
first day on which filings will be
accepted. Petitioners likely will send
the petition or upgrade on the day
before that date by overnight delivery to
ensure arrival at the Vermont Service
Center on the first day.
In order to reduce petitioners’ concern
that even an overnight delivery service
from a remote location might not
actually deliver the package on the first
day, USCIS has decided that, in the
event that the final receipt date is the
same as the first date on which petitions
may be filed (i.e. if the cap is reached
on the first day filings can be made for
FY 2005), USCIS will randomly apply
all of the numbers among the petitions
filed on the final receipt date and the
following day. In such cases, no
advantage will be gained by the
particular time of day a filing is
received. USCIS has concluded that
such a commitment best ensures general
fairness and orderly procedures for
allocations of petitions subject to
numerical limits.
X. Regulatory Requirements
A. Administrative Procedure Act (Good
Cause Exception)
Implementation of this rule without
notice and the opportunity for public
comment is warranted under the ‘‘good
cause’’ exception found under the
Administrative Procedure Act (APA) at
5 U.S.C. 553(b). USCIS has determined
that delaying implementation of this
rule to await public notice and comment
is impracticable and contrary to the
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public interest. The H–1B Visa Reform
Act of 2004 was enacted on December
8, 2004. The provisions related to the
H–1B numerical limitations and new
fraud prevention and detection fees
became effective March 8, 2005.
Immediate implementation of this
rule is in the public interest, specifically
that of U.S. employers, students and
workers. While processing for the FY
2006 H–1B cap began on April 1, 2005,
U.S. employers have been unable to hire
new H–1B workers since October 1,
2004. A worker with an FY 2006 cap
number cannot begin work until
October 1, 2005, the date on which FY
2006 begins. In order to provide U.S.
employers with the ability to address
their employment needs as soon as
possible and to alleviate the burdens
imposed on their ability to hire H–1B
workers since October 1, 2004, USCIS
must issue this interim rule to
implement immediately these
provisions and notify the public of the
process by which the remaining H–1B
numbers for FY 2005 will be made
available. This interim rule is necessary
to allocate fairly and equitably the new
FY 2005 H–1B numbers in an
expeditious manner. In addition, the
new fees to be generated by the FY 2005
filings will be allocated to public
purposes of low-income student
education, job training, and fraud
prevention and detection, and further
delay of the FY 2005 filings would delay
the funding of those purposes. It is
therefore impracticable and contrary to
the public interest to adopt this rule
with the prior notice and comment
period normally required under 5 U.S.C.
553(b).
USCIS also finds that good cause
exists under the Congressional Review
Act, 5 U.S.C. 808, to implement this
interim rule immediately upon
publication in the Federal Register.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 605(b)), as amended by the
Small Business Regulatory Enforcement
and Fairness Act of 1996 (SBREFA),
requires an agency to prepare and make
available to the public a regulatory
flexibility analysis that describes the
effect of the rule on small entities (i.e.,
small businesses, small organizations,
and small governmental jurisdictions).
Because good cause exists for issuing
this regulation as an interim rule, no
regulatory flexibility analysis is required
under the RFA.
C. Unfunded Mandates Reform Act of
1995
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA),
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2 U.S.C. 1531–1538, requires Federal
agencies to prepare a written assessment
of the costs, benefits and other effects of
proposed or final rules that include a
Federal mandate likely to result in the
expenditure by State, local or tribal
governments, in the aggregate, or by the
private sector of more than $100 million
in any one year (adjusted for inflation
with 1995 base year). Before
promulgating a rule for which a written
statement is needed, section 205 of
UMRA requires an agency to identify
and consider a reasonable number of
regulatory alternatives and adopt the
least costly, most cost-effective, or least
burdensome option that achieves the
objective of the rule. Section 205 allows
an agency to adopt an alternative, other
than the least costly, most cost-effective,
or least burdensome option if DHS
publishes an explanation with the final
rule.
As discussed below under Executive
Order 12866, this action will result in
the expenditure by the private sector of
$100 million or more in any one year,
but these fees are mandated by statute
and USCIS is obligated to implement
the law as enacted by the OAA. Further,
these costs do not accrue to the general
public, but only those who choose to
participate in the H–1B program, nor
will they result in expenditures in
excess of $100 million a year by State,
local, or tribal governments.
D. Small Business Regulatory
Enforcement Fairness Act of 1996
This interim rule is a major rule as
defined by section 804 of the Small
Business Regulatory Enforcement Act of
1996. This interim rule will result in an
annual effect on the economy of more
than $100 million.
E. Executive Order 12866
This interim final rule is considered
by DHS to be an economically
‘‘significant regulatory action’’ under
Executive Order 12866, section 3(f),
Regulatory Planning and Review. The
implementation of this interim rule will
provide USCIS with an additional
$36,200,000 in FY 2005 in annual fee
revenue over the fee revenue that would
be collected under the current fee
structure, based on a projected annual
fee-paying volume of 20,000 approved
petitions. This interim rule would
provide USCIS with $138,425,000 in FY
2006 annual fee revenue, based on a
projected annual fee-paying volume of
85,000 approved petitions (20,000 new
exemptions and 65,000 petitions). This
increase in revenue pursuant to the
OAA (and ACWIA as amended), will be
used to fund grants for training in highgrowth industries, job training services
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and related activities, and programs and
activities to prevent and detect fraud
with respect to H and L petitions.
Accordingly, this rule has been
submitted to the Office of Management
and Budget (OMB) for clearance.
USCIS is issuing this rule in order to
provide for a fair and equitable
allocation of additional H–1B numbers
made available for FY 2005 by Congress.
USCIS has assessed both the costs and
benefits of this rule as required by
Executive Order 12866, section 1(b)(6),
and has made a reasoned determination
that this rule will result in additional
costs to petitioning employers. The
additional costs to employers are due to
the new statutory requirement that H–
1B petitioners must now pay an
additional fee of either $1,500 or $750
per petition, depending upon the size of
the business, unless otherwise exempt.
In addition to the $1,500 or $750 fee, as
of March 8, 2005, H–1B petitioners must
also pay a separate fee of $500 per
petition to assist federal agencies in
fraud prevention and detection.
USCIS estimates that for FY 2005, all
of the aforementioned new fees will cost
H–1B petitioning employers an
additional $36,200,000. DHS reached
this conclusion by estimating that
approximately half of the 20,000 new
H–1B petitions that will be approved for
FY 2005 employment will be for
businesses with 25 or less full-time
equivalent employees ($750 × 10,000 =
$7,500,000), while the other half will be
for businesses with 26 or more full-time
equivalent employees ($1,500 × 10,000
= $15,000,000). USCIS has also included
in this estimate the new $500 Fraud
Prevention and Detection Fee applicable
to the forthcoming 20,000 new H–1B
petition approvals for FY 2005
employment ($500 × 20,000 =
$10,000,000).
There will also be an additional
20,000 I–129 petitions approved for new
H–1B employment in FY 2005 at a base
filing fee cost of $185 per Form I–129,
which adds an additional cost to H–1B
petitioners ($185 × 20,000 =
$3,700,000). Therefore, the total
additional cost to the public during FY
2005 is $36,200,000.
In future fiscal years, the additional
cost to H–1B petitioners is estimated to
be $138,425,000 each fiscal year. USCIS
reached this conclusion by estimating
that approximately half of the 85,000 H–
1B petitions approved per fiscal year
will be for businesses with 25 or less
full-time equivalent employees ($750 ×
42,500 = $31,875,000), while the other
half will be for businesses with 26 or
more full-time equivalent employees
($1,500 × 42,500 = $63,750,000). USCIS
includes in this estimate the fact that an
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additional 20,000 petitions for H–1B
classification will be filed each fiscal
year at a base filing fee cost of $185 per
I–129 petition ($185 × 20,000 =
$3,700,000). USCIS has also included in
this estimate the new $500 Fraud
Prevention and Detection Fee applicable
to 78,200 new H–1B petitions approved
per fiscal year ($500 × 78,200 =
$39,100,000). USCIS notes that the $500
Fraud Prevention and Detection Fee is
not required for Chileans and
Singaporeans entering the United States
under the Free Trade Agreements.
Therefore, USCIS estimates that the total
additional cost to the public in the
future each fiscal year will be
$138,425,000.
Although this interim rule will result
in additional costs to H–1B petitioners
that may deter some employers from
seeking H–1B nonimmigrant workers,
USCIS notes that these fees and the
specific amounts of these fees are
mandated by statute. USCIS is obligated
to implement the law as enacted by the
OAA.
The benefit of this interim rule is that
affected employers will be able to
address inconveniences and difficulties
caused by the reaching of the FY 2005
H–1B, and USCIS will be able to
facilitate that process in a manner that
is fair to all employers. This interim rule
will also facilitate the hiring of H–1B
nonimmigrant aliens by U.S. employers
who have not been able to fill jobs due
to the H–1B cap being reached early in
recent fiscal years and who demonstrate
that they are willing to offer the same
prevailing wage and working conditions
as those of U.S. workers. The fees
imposed will benefit congressional
purposes of education for low-income
students, job training for U.S. workers,
and fraud detection and prevention in
immigration programs.
USCIS will receive a larger number of
filings subject to the increased filing
fees than the number of petitions that
ultimately will be approved. Almost all
of such filings, however, will be those
received in excess of the applicable
numerical limits, and USCIS will be
rejecting or refunding fee payments for
such petitions. Petitions that are exempt
from the cap, because they are for
beneficiaries who are already in H–1B
status and were previously been
counted against the cap, are also exempt
from the ACWIA fees. Such petitions,
the number of which is unpredictable,
are not exempt from the $500 fraud
prevention and detection fee. Also a
somewhat unpredictable number of
petitions subject to the new ACWIA and
fraud detection and prevention fees will
be filed for initial petitions that will be
denied or withdrawn, and those will be
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in excess of the 85,000 set forth above.
These petitions will impose costs on the
employers that result from the OAA and
this interim final rule, but funds will be
applied to the congressionally required,
publicly beneficial purposes of lowincome student education, job training,
and fraud detection and prevention.
During fiscal years 2001, 2002 and 2003,
an average of less than 2.5 percent of
initial petitions were denied; thus, this
cost factor is relatively insignificant.
The additional fees mandated by the
OAA are not being codified by USCIS
within the context of this rulemaking.
However, USCIS, in a future
rulemaking, will amend 8 CFR
214.2(h)(19), which currently addresses
the fees initially required pursuant to
ACWIA, to reflect the enhanced ACWIA
fees of $1,500 (or $750) and to codify
the new fraud prevention and detection
fees ($500) affecting all H and L
petitioners. USCIS notes, however, that
the Form I–129 has recently been
revised to comport with the provisions
of the OAA by adding a supplement
titled H–1B Data Collection and Filing
Fee Exemption. The inclusion of the H–
1B Data Collection and Filing Fee
Exemption supplement within the
revised Form I–129 has rendered the
previous Form I–129W moot, as it
captures the required information
previously obtained via the Form I–
129W. Therefore, the Form I–129W has
been removed from the USCIS forms
inventory. OMB has approved the
revised Form I–129 for official use by
the public and USCIS has released the
revised Form I–129 for official use as of
March 11, 2005. Petitioners are urged to
consult and comply with the
instructions on the revised I–129 and
the H–1B Data Collection and Filing Fee
Exemption supplement when filing
their petitions for H–1B nonimmigrant
workers.
Accounting Statement
As required by OMB Circular A–4
(available at https://
www.whitehouse.gov/omb/circ), in
Table 1, USCIS has prepared an
accounting statement showing the
classification of the expenditures
associated with the Allocation of
Additional H–1B Visas created by the
H–1B Visa Reform Act of 2004. The
table provides our best estimate of the
dollar amount of these costs and
benefits, expressed in 2005 dollars, at
three percent and seven percent
discount rates. We estimate that the cost
of this interim rule will be
approximately $125 million annualized
(7 percent discount rate) and
approximately $127 million annualized
(3 percent discount rate). The nonquantified benefit is compliance with
the OAA.
TABLE 1.—ACCOUNTING STATEMENT: CLASSIFICATION OF EXPENDITURES, FY 2005 THROUGH FY 2014
[2005 dollars]
Three Percent Annual Discount Rate
BENEFITS
Annualized monetized benefits
(Un-quantified) benefits: compliance with the law; funding of congressionally mandated programs; acquisition of needed professional workers
COSTS
Annualized monetized costs: $127 million
Annualized quantified, but un-monetized costs
Qualitative (un-quantified) costs
Seven Percent Annual Discount Rate
BENEFITS
Annualized monetized benefits
(Un-quantified) benefits: compliance with the law; funding of congressionally mandated programs; acquisition of needed professional workers
COSTS
Annualized monetized costs: $125 million
Annualized quantified, but un-monetized costs
Qualitative (un-quantified) costs
In accordance with the provisions of
E.O. 12866, this regulation was
reviewed by the Office of Management
and Budget.
F. Executive Order 13132
This interim rule will not have
substantial direct effects on the states,
on the relationship between the
National Government and the states, or
on the distribution of power and
responsibilities among the various
levels of government. Therefore, in
accordance with section 6 of Executive
Order 13132, it is determined that this
interim rule does not have sufficient
federalism implications to warrant the
preparation of a federalism summary
impact statement.
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G. Executive Order 12988 Civil Justice
Reform
This interim rule meets the applicable
standards set forth in sections 3(a) and
3(b)(2) of Executive Order 12988.
H. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995, Public Law 104–13, all
Departments are required to submit to
OMB, for review and approval, any
reporting and recordkeeping
requirements inherent in a rule. This
interim rule does not impose any new
reporting or recordkeeping requirements
under the Paperwork Reduction Act. As
previously stated under Executive Order
12866, the Form I–129, Petition for
Nonimmigrant Worker (OMB 1615–
0009), has recently been revised to
include the H–1B Data Collection and
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Filing Fee Exemption supplement to
comport with the provisions of the
OAA. These revisions include
amendments to the H–1B Data
Collection and Filing Fee Exemption
Supplement to capture information
about the beneficiary’s level of
education and whether the degrees were
earned from a U.S. institution of higher
education; to assist U.S. employers in
assessing whether they are subject to the
new $1,500 (or $750) ACWIA and $500
Fraud Detection and Prevention fees;
and to assist U.S. employers in assessing
whether they are eligible for the
numerical limit exemptions provided
under section 214(g)(5) of the INA. OMB
has approved the revised Form I–129 for
official use by the public (OMB Control
Number 1615–0009); however, USCIS
will continue to accept the prior paper
E:\FR\FM\05MYR1.SGM
05MYR1
Federal Register / Vol. 70, No. 86 / Thursday, May 5, 2005 / Rules and Regulations
editions of Form I–129 until May 30,
2005. In addition, by increasing the
number of Forms I–129 and Forms I–
907 being submitted as a result of the
OAA, USCIS has submitted to OMB for
emergency clearance the Paperwork
Reduction Change Worksheet (OMB–
83C) increasing the total annual burden
hours. Further, USCIS has submitted to
OMB for emergency clearance
Paperwork Reduction Act Submission
(OMB 83–I) to permit USCIS to
concurrent use of the Form I–129
(edition date 3–17–05, OMB 1615–0009
and the old Form I–129 (edition date
12–10–01, OMB 1115–0168, OMB 1615–
0093) until May 30, 2005. Due to this
temporary information collection,
USCIS submitted the OMB 83–I to
formally request that OMB adjust the
burden hours for the use of the 12–10–
01 version of the Form I–129. The
public should reference the Federal
Register notice contained at 70 FR
20590 (Apr. 20, 2005) for information
about this collection. Please note
however that USCIS hereby extends the
deadline for comments solicited in that
notice until May 30, 2005.
(2) * * *
(i) * * *
(A) General. A United States
employer seeking to classify an alien as
an H–1B, H–2A, H–2B, or H–3,
temporary employee shall file a petition
on Form I–129, Petition for
Nonimmigrant Worker, only with the
USCIS Service Center which has
jurisdiction in the area where the alien
will perform services, or receive
training, even in emergent situations,
except as provided in this section or as
specifically designated by USCIS via
notice in the Federal Register.
*
*
*
*
*
(8) * * *
(ii) * * *
(B) When calculating the numerical
limitations for a given fiscal year, USCIS
will make numbers available to
petitions in the order in which the
petitions are filed. USCIS will make
projections of the number of petitions
necessary to achieve the numerical limit
of approvals, taking into account
historical data related to approvals,
denials, revocations, and other relevant
List of Subjects in 8 CFR Part 214
factors. USCIS will monitor the number
Administrative practice and
of petitions (including the number of
procedure, Aliens, Employment,
beneficiaries requested when necessary)
Foreign officials, Health professions,
received and will notify the public of
Reporting and recordkeeping
the date that USCIS has received the
requirements, Students.
necessary number of petitions (the
I Accordingly, chapter I of title 8 of the
‘‘final receipt date’’). The date of
Code of Federal Regulations is amended publication will not control the final
as follows:
receipt date. When necessary to ensure
PART 214—NONIMMIGRANT CLASSES the fair and orderly allocation of
numbers in a particular classification
I 1. The authority citation for part 214 is
subject to numerical limits, USCIS may
revised to read as follows:
randomly select from among the
Authority: 8 U.S.C. 1101, 1102, 1103, 1182, petitions received on the final receipt
date the remaining number of petitions
1184, 1185 (pursuant to E.O. 13323, 69 FR
deemed necessary to generate the
241, 3 CFR, 2003 Comp., p. 278), 1186a,
1187, 1221, 1281, 1282, 1301–1305, 1372,
numerical limit of approvals. This
1379, 1731–32; section 643, Pub. L. 104–208, random selection will be made via
110 Stat. 3009–708; section 141 of the
computer-generated selection as
Compacts of Free Association with the
validated by the Office of Immigration
Federated States of Micronesia and the
Statistics. Petitions not randomly
Republic of the Marshall Islands, and with
selected, and petitions received after the
the Government of Palau, 48 U.S.C. 1901
final receipt date, will be rejected. If the
note, and 1931 note, respectively, 8 CFR part
final receipt date is the same as the first
2.
date on which petitions subject to the
I 2. Section 214.2 is amended by
applicable cap may be filed (i.e., if the
I (a) Revising (h)(2)(i)(A);
cap is reached on the first day filings
I (b) Revising (h)(8)(ii)(B);
can be made), USCIS will randomly
I (c) Removing (h)(8)(ii)(C) and
apply all of the numbers among the
redesignating (h)(8)(ii)(D) through (F)
petitions filed on the final receipt date
respectively as (h)(8)(ii)(C) through (E);
and the following day.
I (d) Revising the last sentence of newly
designated (h)(8)(ii)(C) to read as follows:
(C) * * * The petition shall be
revoked pursuant to paragraph
§ 214.2 Special requirements for
(h)(11)(ii) of this section and USCIS will
admission, extension, and maintenance of
take into account the unused number
status.
during the appropriate fiscal year.
*
*
*
*
*
*
*
*
*
*
(h) * * *
VerDate jul<14>2003
14:24 May 04, 2005
Jkt 205001
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
23783
Dated: May 2, 2005.
Michael Chertoff,
Secretary.
[FR Doc. 05–8992 Filed 5–2–05; 3:58 pm]
BILLING CODE 4410–10–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. 99–NE–41–AD; Amendment 39–
14015; AD 2005–06–07]
RIN 2120–AA64
Airworthiness Directives; General
Electric Company (GE) CF6–80A1/A3
and CF6–80C2A Series Turbofan
Engines, Installed on Airbus Industrie
A300–600 and A310 Series Airplanes;
Correction
Federal Aviation
Administration, DOT.
AGENCY:
ACTION:
Final rule; correction
SUMMARY: This document makes a
correction to Airworthiness Directive
(AD) 2005–06–07. That AD applies to
GE CF6–80A1/A3 and CF6–80C2A
series turbofan engines. We published
AD 2005–06–07 in the Federal Register
on March 21, 2005, (70 FR 13365). A
service bulletin number in the
compliance section is incorrect. This
document corrects that service bulletin
number. In all other respects, the
original document remains the same.
EFFECTIVE DATE:
Effective May 5, 2005.
FOR FURTHER INFORMATION CONTACT:
Karen Curtis, Aerospace Engineer,
Engine Certification Office, FAA, Engine
and Propeller Directorate, 12 New
England Executive Park, Burlington, MA
01803–5299; telephone (781) 238–7192;
fax (781) 238–7199.
A final
rule AD, FR Doc. 05–5299, that applies
to GE CF6–80A1/A3 and CF6–80C2A
series turbofan engines, was published
in the Federal Register on March 21,
2005, (70 FR 13365). The following
correction is needed:
SUPPLEMENTARY INFORMATION:
PART 39—[CORRECTED]
§ 39.13
[Corrected]
On page 13368, in the first column, in
compliance section paragraph (i)(2), in
the sixth line, ‘‘No. CF6–80C2A SB
78A4022, Revision 2,’’ is corrected to
read ‘‘No. CF6–80C2A SB 78A1081,
Revision 2’’.
I
E:\FR\FM\05MYR1.SGM
05MYR1
Agencies
[Federal Register Volume 70, Number 86 (Thursday, May 5, 2005)]
[Rules and Regulations]
[Pages 23775-23783]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-8992]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 70, No. 86 / Thursday, May 5, 2005 / Rules
and Regulations
[[Page 23775]]
DEPARTMENT OF HOMELAND SECURITY
U.S. Citizenship and Immigration Services
8 CFR Part 214
[CIS No. 2347-05]
[DHS Docket No. DHS-2005-0014]
RIN 1615-AB32
Allocation of Additional H-1B Visas Created by the H-1B Visa
Reform Act of 2004
AGENCY: U.S. Citizenship and Immigration Services, Department of
Homeland Security.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This interim rule implements certain changes made by the
Omnibus Appropriations Act for Fiscal Year 2005 to the numerical limits
of the H-1B nonimmigrant visa category and the fees for filing of H-1B
petitions. This interim rule also notifies the public of the procedures
U.S. Citizenship and Immigration Services will use to allocate, in
fiscal year 2005 and in future fiscal years starting with fiscal year
2006, the additional 20,000 H-1B numbers made available by the
exemption created pursuant to that Act. This interim rule amends and
clarifies the process by which U.S. Citizenship and Immigration
Services, in the future, will allocate all petitions subject to
numerical limitations under the Immigration and Nationality Act. This
interim rule also notifies the public of additional fees that must be
filed with certain H-1B petitions.
DATES: This rule is effective May 5, 2005. Written comments must be
submitted by July 5, 2005.
ADDRESSES: You may submit comments, identified by DHS Docket No. DHS-
2005-0014, by one of the following methods:
EPA Federal Partner EDOCKET Web site: https://www.epa.gov/
feddocket. Follow instructions for submitting comments on the Web site.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: The Director, Regulatory Management Division, U.S.
Citizenship and Immigration Services, Department of Homeland Security,
111 Massachusetts Avenue, NW., 2nd Floor, Washington, DC 20529. To
ensure proper handling, please reference DHS Docket No. DHS-2005-0014
on your correspondence. This mailing address may also be used for
paper, disk, or CD-ROM submissions.
Hand Delivery/Courier: U.S. Citizenship and Immigration
Services, Department of Homeland Security, 111 Massachusetts Avenue,
NW., 2nd Floor, Washington, DC 20529. Contact Telephone Number (202)
272-8377.
Instructions: All submissions received must include the agency name
and DHS Docket No. DHS-2005-0014. All comments received will be posted
without change to https://www.epa.gov/feddocket, including any personal
information provided. For detailed instructions on submitting comments
and additional information on the rulemaking process, see the ``Public
Participation'' heading of the SUPPLEMENTARY INFORMATION section of
this document.
Docket: For access to the docket to read background documents or
comments received, go to https://www.epa.gov/feddocket. You may also
access the Federal eRulemaking Portal at https://www.regulations.gov.
Submitted comments may also be inspected at the Regulatory Management
Division, U.S. Citizenship and Immigration Services, Department of
Homeland Security, 111 Massachusetts Avenue, NW., 2nd Floor,
Washington, DC 20529. To make an appointment please contact the
Regulatory Management Division at (202) 272-8377.
FOR FURTHER INFORMATION CONTACT: Kevin J. Cummings, Adjudications
Officer, Business and Trade Services Branch/Program and Regulation
Development, U.S. Citizenship and Immigration Services, Department of
Homeland Security, 111 Massachusetts Avenue, NW., 3rd Floor,
Washington, DC 20529, telephone (202) 353-8177.
SUPPLEMENTARY INFORMATION: This supplementary information section is
organized as follows:
I. Public Participation
II. Background and Statutory Authority
A. H-1B Nonimmigrant Classification
B. H-1B Visa Reform Act of 2004
III. Effect of the H-1B Visa Reform Act of 2004 on FY 2005 Filings
IV. General Process for FY 2005 H-1B Filings
V. General Process for FY 2006 and Subsequent Fiscal Year H-1B
Filings
VI. Allocation of H-1B Numbers in FY 2005, FY 2006 and Subsequent
Fiscal Years
VII. Special Filing Procedures for Additional FY 2005 H-1B Numbers
A. Date of Filing
B. Filing Location and Method of Filing
C. Required Forms
D. Availability of Premium Processing Program
E. Filing Fees
F. Requested Start Dates
VIII. Special Additional Filing Procedures for FY 2006
A. Method of Filing
B. Upgrading FY 2006 Petitions
C. Required Forms
D. Availability of Premium Processing Program
E. Filing Fees
IX. Section-by-Section Analysis
X. Regulatory Requirements
A. Administrative Procedure Act (Good Cause exception)
B. Regulatory Flexibility Act
C. Unfunded Mandates Reform Act of 1995
D. Small Business Regulatory Enforcement Fairness Act of 1996
E. Executive Order 12866 (Regulatory Planning and Review)
F. Executive Order 13132 (Federalism)
G. Executive Order 12988 (Civil Justice Reform)
H. Paperwork Reduction Act
I. Public Participation
Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of the
interim rule. U.S. Citizenship and Immigration Services (USCIS) also
invites comments that relate to the economic or federalism effects that
might result from this interim rule. Comments that will provide the
most assistance to USCIS in developing these procedures will reference
a specific portion of the interim rule, explain the reason for any
recommended change, and include data, information, or authority that
support such recommended change. See
[[Page 23776]]
ADDRESSES above for information on how to submit comments.
II. Background and Statutory Authority
A. H-1B Nonimmigrant Classification
Under Section 101(a)(15)(H) of the Immigration and Nationality Act
(INA) and 8 CFR 214.2(h)(4), an H-1B nonimmigrant is an alien employed
in a specialty occupation or a fashion model of distinguished merit and
ability. A specialty occupation is an occupation that requires
theoretical and practical application of a body of specialized
knowledge and attainment of a bachelor's degree or higher degree in the
specific specialty as a minimum qualification for entry into the United
States.
Section 214(g) of the INA provides that the total number of
nonimmigrant aliens who may be issued H-1B visas, or otherwise granted
H-1B status, may not exceed 65,000 during any fiscal year. Under the
INA, the 65,000 cap does not include H-1B nonimmigrant aliens who are
employed by, or have received offers of employment at: (1) An
institution of higher education, or a related or affiliated nonprofit
entity; or (2) a nonprofit research organization or a governmental
research organization.
On October 1, 2004, USCIS issued a press release announcing that
USCIS had received a sufficient number of H-1B petitions to reach the
statutory cap for fiscal year (FY) 2005, and that beginning October 2,
2004, USCIS would not accept for adjudication any H-1B petition for new
employment containing a request for a work start date prior to October
1, 2005. A Notice to this effect subsequently was published in the
Federal Register on November 23, 2004 at 69 FR 68154.
B. H-1B Visa Reform Act of 2004
On December 8, 2004, the President signed the Omnibus
Appropriations Act (OAA) for Fiscal Year 2005, Public Law 108-447, 118
Stat. 2809. Among the provisions of OAA is the H-1B Visa Reform Act of
2004. The H-1B Visa Reform Act of 2004 amends section 214(g)(5) of the
INA by adding a third exemption, (C), to the H-1B cap:
(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 1101(a)(15)(H)(i)(b) of this title who
* * *
* * * * *
(C) has earned a masters' 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).''
This amendment became effective 90 days after enactment, March 8, 2005.
Although there is no direct legislative history for this provision, it
has the purpose of expanding the availability of needed professional
workers for employers in the United States.
The H-1B Visa Reform Act of 2004 also imposed two additional fees
that must be filed with H-1B petitions. First, section 214(c)(9) of the
INA was amended to reinstitute and modify the additional fees
previously imposed by the American Competitiveness and Workforce
Improvement Act of 1998 (ACWIA), Title IV of Div C., Public Law 105-
277, which are used for scholarships for U.S. low income students and
for job training for U.S. workers. (The ACWIA fees expired effective
October 1, 2003). The H-1B Visa Reform Act of 2004 raised the ACWIA fee
to $1,500 or $750, depending on the size of the employer. Therefore,
effective December 8, 2004, employers with 26 or more U.S. full-time-
equivalent employees, including all affiliated or subsidiary entities,
who seek to employ an H-1B nonimmigrant must pay $1,500, in addition to
the base filing fee of $185 for a Form I-129, Petition for Temporary
Nonimmigrant Worker. For employers with 25 or fewer U.S. full-time-
equivalent employees, including all affiliated or subsidiary entities,
the fee is $750, in addition to the base filing fee of $185 for a Form
I-129.
Second, the H-1B Visa Reform Act of 2004 amended section 214(c) of
the INA by adding a new subsection (c)(12) which imposes a $500 fraud
prevention and detection fee on certain employers filing H-1B
petitions. Effective March 8, 2005, employers seeking an initial grant
of H-1B nonimmigrant status or authorization for an existing H-1B (or
L-1 alien seeking to become an H-1B nonimmigrant) to change employers
must submit the $500 fraud prevention and detection fee. The $500 fee
does not need to be submitted by: (1) Employers who seek to extend a
current H-1B alien's status where such an extension does not involve a
change of employers, (2) employers who are seeking H-1B1, Chile-
Singapore Free Trade Act nonimmigrants, or (3) dependents of H-1B
principal beneficiaries.
These fees must be filed to USCIS in addition to the base filing
fee (currently $185) for the Form I-129, Petition for Temporary
Nonimmigrant Worker. Payment for the $185 petition filing fee and the
$1,500 (or $750) additional ACWIA fee may be made in the form of a
single check or money order for the total amount due or two checks or
money orders. Those petitioners who must pay the $500 fraud prevention
and detection fee must pay with a check or money order that is separate
from the additional ACWIA application fees of $1,500 (or $750) and the
$185 petition filing fees. Thus, in certain instances petitioners may
have to, or elect to, file three separate checks or money orders--one
for the $185 Form I-129 petition fee; one for the $1,500 or $750
additional ACWIA fee; and one for the $500 fraud prevention and
detection fee.
The new ACWIA and Fraud Detection and Prevention fees are
statutorily-mandated and do not require a separate rulemaking to
implement the new fee provisions. However, USCIS, in a future
rulemaking, will codify these new fees on H-1B petitions and the
associated exemptions in the regulations to provide a place for
affected petitioners to find all fee-related information in one place.
USCIS specifically will amend 8 CFR 214.2(h)(19), which currently
addresses the fees initially required pursuant to ACWIA, to reflect the
enhanced ACWIA fees of $1,500 (or $750) and to codify the new fraud
prevention and detection fees ($500) affecting all H and L petitioners.
III. Effect of H-1B Visa Reform Act of 2004 on FY 2005 Filings
To implement the H-1B Visa Reform Act of 2004, USCIS had to
consider the plain language of the statute which specifically limited
the new exemption to aliens who have earned a U.S. master's degree or
higher. USCIS has determined that it is a reasonable interpretation of
the H-1B Visa Reform Act of 2004 to make available 20,000 new H-1B
numbers in FY 2005, limited to H-1B nonimmigrant aliens who possess a
U.S. earned master's or higher degree.
USCIS will allocate the 20,000 new H-1B numbers authorized by the
H-1B Visa Reform Act of 2004 in this manner for the following reasons.
Congress left to the Secretary of Homeland Security broad discretion,
through his authority under sections 103 and 214 of the INA, to
prescribe regulations and procedures for the admission of nonimmigrant
aliens, such as H-1B nonimmigrants. Thus, USCIS has broad discretion
and authority to implement the H-1B Visa Reform Act of 2004.
The H-1B Visa Reform Act of 2004 was enacted after the start of FY
2005 and after the receipt of all petitions necessary to reach the
existing 65,000 H-1B cap for FY 2005. The amendment to section 214(g)
of the INA, authorizing the cap exemption of 20,000 H-1B nonimmigrant
aliens with U.S. master's or higher degrees, did not become effective
until March 8, 2005. Congress
[[Page 23777]]
did not specify any procedures for implementation or dictate the manner
in which USCIS should allocate H-1B numbers made available pursuant to
the new exemption. Congress specifically did not require USCIS to
``reopen'' its review of H-1B petitions already received and re-
characterize the petitions that would have qualified for the new
exemption had it been in effect at the time the petitions were
received. Thus, in order to give full effect to the newly created
exemption, it is reasonable to do so going forward only, applying the
exemption to up to 20,000 petitions seeking work start dates during FY
2005. It also appears that Congress intended for the fees for 20,000
new petitions to be generated during FY 2005 to serve the important
purposes of supporting the development of the U.S. labor market and the
detection and prevention of immigration fraud.
USCIS has never previously been required to collect data concerning
whether beneficiaries of H-1B petitions possess master's or higher
degrees earned in the United States. While USCIS did collect
information about the highest level of education of the beneficiary, it
did not specifically collect information about whether the beneficiary
had a U.S. masters or higher degree or whether the degree was earned
from a U.S. institution. Thus, as to FY 2005, USCIS cannot accurately
count the petitions already filed for FY 2005 on behalf of
beneficiaries who have earned masters or higher degrees at U.S.
institutions. USCIS has made amendments to its recordkeeping and data
collection systems that will allow it, prospectively, to accurately
capture the data needed to assess the exact number of H-1B nonimmigrant
aliens who have a U.S. master's or higher degree.
In light of the above reasons, for FY 2005, USCIS has determined
that the only appropriate way to implement the H-1B Visa Reform Act of
2004 is to apply the 20,000 exemptions prospectively.
IV. General Process for FY 2005 H-1B Filings
USCIS will reopen the FY 2005 H-1B filing period, effective May 12,
2005, and make available 20,000 new H-1B numbers for FY 2005. These
additional H-1B numbers will be limited to U.S. employers seeking an H-
1B nonimmigrant alien who has earned a master's or higher degree from a
U.S. institution of higher education, as the statute provides.
U.S. employers seeking an H-1B nonimmigrant alien for FY 2005 will
file H-1B petitions through a special process, submitting the Form I-
129 petition at a single USCIS service center--Vermont Service Center--
at the address noted in section VII, paragraph A below. USCIS will
accept and adjudicate properly filed H-1B petitions on a first-in,
first-out basis until USCIS has allocated all 20,000 H-1B exemption
numbers authorized, as provided in section VI below.
As noted below in section VII, paragraph B, USCIS will not accept
FY 2005 petitions via electronic filing (``e-filing''). USCIS is
precluding e-filing for FY 2005 petitions because of the need to
quickly and accurately identify those petitions that will be subject to
the 20,000 numerical limit. Allowing e-filing would complicate this
effort due to the additional DHS administrative burden associated with
matching e-filed petitions with separately filed (through paper) signed
labor condition applications (LCA) and evidence of required degrees
(which in general cannot be submitted electronically).
V. General Process for FY 2006 and Subsequent Fiscal Year H-1B Filings
For FY 2006 and future fiscal years, U.S. employers seeking an H-1B
nonimmigrant alien, regardless of whether the alien has a master's or
higher degree, will file for an H-1B number through the normal process,
submitting the Form I-129 petition at the USCIS Service Center with
jurisdiction over the place of intended employment.
For FY 2006 only, U.S. employers who already have filed an FY 2006
H-1B petition which USCIS has approved or which is still pending with
USCIS, will be given the option to upgrade such petitions and receive
an FY 2005 H-1B, if any are available, in accordance with the
procedures noted in section VIII, paragraph B below.
For FY 2006 and future fiscal years, USCIS will accept and
adjudicate properly filed H-1B petitions on a first-in, first-out basis
and will track those H-1B petitions that qualify for the U.S. master's
or higher degree exemption under the H-1B Visa Reform Act of 2004 as
cases are received and adjudicated. Petitions that are eligible for the
first two exemptions, applicable to petitioners who are employed at
institutions of higher learning, or in nonprofit research, will not
count against the 65,000 cap or against the numerical limitation on the
new exemption. Similarly, H-1B nonimmigrant aliens that are exempt
under the H-1B Visa Reform Act of 2004 will not be counted towards the
fiscal year numerical limit of 65,000. USCIS will continue to exempt
such aliens until USCIS has allocated all 20,000 H-1B exemption numbers
authorized, as provided in section VI below. Thereafter, any H-1B
petition granted for an H-1B nonimmigrant alien who has earned a U.S.
master's or higher degree, unless otherwise exempt, will be counted
against the fiscal year numerical limitations.
As noted below in section VIII, paragraph A, USCIS is temporarily
suspending electronic filing (``e-filing'') of FY 2006 petitions until
USCIS has received all petitions that would apply to the FY 2005
numerical limits, including any upgraded applications. USCIS is
temporarily suspending e-filing for FY 2006 petitions because of the
need not only to quickly and accurately identify those petitions that
will be subject to the FY 2005 numerical limits, including requests for
upgrades from FY 2006 filings, but also to determine which petitions
will apply against the FY 2006 U.S. master's or higher degree
exemption. USCIS will provide notice, via the USCIS website, indicating
when e-filing will be resumed for FY 2006.
In general, USCIS will require use of the Form I-129 (OMB 1615-
0009) in the filing of H-1B petitions; however, for FY 2005 and 2006
filings, USCIS has made the additional accommodation for petitioners to
utilize alternate versions of the form as noted in Sections VII and
VIII below.
VI. Allocation of H-1B Numbers in FY 2005, FY 2006 and Subsequent
Fiscal Years
In the past, USCIS has faced two primary challenges in actual cap
counting: (1) Anticipating when the cap will be hit and (2) monitoring
of the inflow of H-1B petition filings. To address the second
challenge, USCIS has implemented new technology and enhanced its
systems capability to allow USCIS to monitor H-1B petition receipts on
a daily basis.
The first challenge however remains: Picking the number of
petitions necessary for the cap to be reached. USCIS cannot wait until
the petitions received have been adjudicated to make this decision,
because during the time the adjudications are being completed and an
exact count obtained, the cap would be exceeded by these petitions
already received and unnecessarily processed. Petitioners whose
petitions were received and initially processed after the point at
which the cap would be found to have been reached would have gained an
unrealistic expectation of having a chance at an H-1B number, and
either such petitioners would lose significant filing fees without
[[Page 23778]]
substantive adjudication or USCIS would expend unnecessary resources on
initially processing such petitions and fees and then returning those
petitions and refunding the fees. Therefore, estimating and projecting
rates of approval of petitions is required. Through experience of
several years, USCIS has gained some statistical understanding of
various factors that play into the cap, including the number of
petitions already approved, denied, and still pending, the period of
time that unadjudicated petitions have been pending, and the education
level of the petitions that are pending. USCIS can apply different
projected rates of approval (including reversal of denials on appeal)
to groups of cases based on these factors. None of these factors or
rates can be projected precisely, and therefore determining when the
cap will be reached unavoidably involves estimation. The specific
factors and rates may vary from year to year and will be applied in
USCIS' discretion with assistance of the DHS Office of Statistics. The
interim final rule acknowledges USCIS' unavoidable use of projection
and estimation in cap management.
To ensure the fair and orderly allocation of numbers in a
particular classification subject to numerical limits, USCIS will
employ a random selection process. USCIS' random selection process will
be computer-generated and validated by the Office of Immigration
Statistics. When calculating the numerical limitations for a given
fiscal year, USCIS will make numbers available to petitions in the
order in which the petitions are filed. USCIS will make projections of
the number of petitions necessary to achieve the numerical limit of
approvals, taking into account historical data related to approvals,
denials, revocations, and other relevant factors. USCIS will monitor
the number of petitions received (including the number of beneficiaries
when necessary) and will notify the public of the date that USCIS has
received the necessary number of petitions (the ``final receipt
date''). The date of publication will not control the final receipt
date.
During the random selection process, USCIS will randomly select
from among the petitions received on the final receipt date the
remaining number of petitions deemed necessary to generate the
numerical limit of approvals. Petitions not selected, and petitions
received after the final receipt date, will be rejected. If the final
receipt date is the same as the first date on which petitions subject
to the applicable cap may be filed (i.e., if the cap is reached on the
first day filings can be made), USCIS will randomly apply all of the
numbers among the petitions filed on the final receipt date and the
following day.
DHS seeks comment on the methodology to approve eligible H-1B
petitions in circumstances where such petitions were received on the
day the annual cap was forecasted to be reached.
VII. Special Filing Procedures for Additional FY 2005 H-1B Numbers
A. Date of Filing
U.S. employers seeking one of the new FY 2005 H-1B numbers made
available pursuant to the H-1B Visa Reform Act of 2004 may file H-1B
petitions beginning May 12, 2005. Any petition requesting new FY 2005
H-1B employment received before May 12, 2005 will be rejected and
returned, along with the associated filing fees, to the petitioner or
representative.
B. Filing Location and Method of Filing
Under the authority created by this interim rule, USCIS is hereby
advising petitioners seeking an FY 2005 H-1B number that they must
submit the H-1B petition to the following address: USCIS Vermont
Service Center, 1A Lemnah Drive, St. Albans, VT 05479-7001.
Only H-1B petitions received at this specific address at the
Vermont Service Center will be deemed eligible for an FY 2005 number.
Filings may not be personally delivered and must be submitted by U.S.
mail, express shipping services, or by other courier companies normally
servicing the Vermont Service Center. Any petition seeking an FY 2005
H-1B number filed or received at another USCIS Service Center will be
rejected and returned, along with the associated filing fees, to the
petitioner or representative. USCIS will not accept any FY 2005
petitions by electronic filing (``e-filing'').
C. Required Forms
U.S. employers seeking one of the new FY 2005 H-1B numbers made
available pursuant to the H-1B Visa Reform Act of 2004 may file the new
Form I-129, Petition for Nonimmigrant Worker (edition date 3-17-05, OMB
1615-0009), which incorporates the Form I-129W, H-1B Data Collection
and Filing Fee Exemption, as well as the H and H-1B Supplements.
Petitioners should note that as of May 30, 2005, all H-1B submissions
must be made on the new Form I-129 (edition date 3-17-05, OMB 1615-
0009).
U.S. employers may also file the old Form I-129 (edition date 12-
10-01, OMB 1115-0168, OMB 1615-0093) and the old Form I-129W (edition
date 2-14-02, OMB 1115-0225). U.S. employers filing the old Form I-129
(edition date 12-10-01, OMB 1115-0168, OMB 1615-0093) must complete the
data field in Part 5, marked ``Current number of employees''.
Petitioners filing the old Form I-129W (edition date 2-14-02, OMB 1115-
0225) must complete Part A, section ``Beneficiary's Highest Level of
Education'', by: (1) Checking the appropriate box indicating Master's,
Professional or Doctorate degree; (2) clearly annotating next to the
selection the phrase--``U.S. earned'; and (3) providing the name and
location of the U.S institution of higher education.
Petitioners seeking FY 2005 H-1B numbers also may file one of a few
additional versions of the Form I-129 that were posted on USCIS' Web
site during March 2005 before the 3-17-05 version was finalized.
Regardless of which version of the Form I-129, U.S. employers choose to
file, a certified Labor Condition Application (LCA) from the Department
of Labor valid for the period of requested employment must be submitted
with the Form I-129.
D. Availability of Premium Processing Program
USCIS recognizes that many H-1B petitioners seeking an FY 2005 H-1B
number desire the beneficiary to begin work as soon as possible. USCIS
therefore will allow petitioners to file for the additional FY 2005
numbers using the Premium Processing Program.
E. Filing Fees
Petitioners are reminded that the Form I-129 must be filed with the
base filing fee of $185, the ACWIA fees of $1,500 (for employers with
26 or more U.S. full-time-equivalent employees) or $750 (for employers
with 25 or less U.S. full-time-equivalent employees, including all
affiliated or subsidiary entities), the $500 fraud prevention and
detection fee (as applicable), as well as the Form I-907 and premium
processing fee of $1,000. Payment for the $185 petition filing fee and
the $1,500 (or $750) additional ACWIA fee may be made in the form of a
single check or money order for the total amount due or two checks or
money orders to the Department of Homeland Security, in accordance with
the instructions on the revised Form I-129. Those petitioners who must
pay the $500 fraud prevention and detection fee must pay with a check
or money order that is separate from the additional ACWIA application
fees of $1,500 (or $750) and the $185 petition filing fees. Similarly,
any premium processing fee of $1,000
[[Page 23779]]
must be paid by separate check. Thus, in certain instances petitioners
may need to file up to four separate checks or money orders: One for
the $185 Form I-129 petition fee; one for the $1,500 or $750 additional
ACWIA fee (which may be combined with the $185 fee); one for the $500
fraud prevention and detection fee; and one for the $1,000 premium
processing fee (if applicable).
F. Requested Start Dates
USCIS anticipates that it will receive a large volume of petitions
from U.S. employers seeking an FY 2005 number for an H-1B nonimmigrant
who has earned a U.S. master's degree or higher and that there will
likely be more petitions filed than there are numbers available. USCIS
anticipates that many U.S. employers will have already filed H-1B
petitions seeking an FY 2006 number or will be filing an H-1B petition
seeking an FY 2006 number. USCIS also anticipates that petitioners who
do not receive an FY 2005 number likely will seek an FY 2006 number or
be willing to accept an FY 2006 number if available.
To facilitate processing of FY 2005 numbers, to avoid the filing of
multiple petitions on behalf of the same alien for the same employment
starting on different possible dates, and to properly segregate FY 2005
petitions, USCIS will assume that petitioners who are filing for a FY
2005 number are willing to receive an FY 2006 number and start date
(October 1, 2005) if an FY 2005 number is unavailable and if the
petitioner still seeks an alien for employment in FY 2006. Petitioners
who seek an FY 2005 number only must, in addition to indicating a start
date for employment prior to October 1, 2005, clearly annotate the top
of the first page of the Form I-129 with the phrase ``FY 2005 only.''
Such petitions that are found to exceed the numerical limit will be
returned to the petitioner, and any associated filing fees will be
returned or refunded.
VIII. Special Additional Filing Procedures for FY 2006
A. Method of Filing
Until further notice, USCIS has temporarily suspended electronic
filing (``e-filing'') of FY 2006 H-1B petitions. U.S. employers seeking
an FY 2006 number, however, may file H-1B petitions for an FY 2006
number by U.S. mail, express shipping services, or by other courier
companies normally servicing the USCIS Service Center with jurisdiction
over the place of intended employment according to the normal
procedure. Such petitions may not be personally delivered to the
applicable USCIS Service Center.
B. Upgrading FY 2006 Petitions
USCIS is aware that some H-1B petitioners who have already filed H-
1B petitions for FY 2006 employment may wish to convert an approved or
pending petition into an FY 2005 filing to allow the alien beneficiary
to commence employment at an earlier date. USCIS will permit
petitioners to ``upgrade'' a pending or approved FY 2006 H-1B petition
if the beneficiary has a U.S. master's degree or higher degree from a
U.S. institution and the petition is otherwise approvable. Such a
petition will be treated as a request for an FY 2005 number and start
date and, in the event that an FY 2005 number is not available, as an
alternative request for an FY 2006 number with an October 1, 2005 start
date for employment.
In order to upgrade an FY 2006 H-1B petition, the petitioner must
submit to USCIS: (1) A letter requesting the upgrade; (2) either (a) a
copy of the approval notice for the FY 2006 petition, (b) a copy of the
receipt notice for the FY 2006 petition, (c) a copy of the first two
pages of the related Form I-129 if a receipt notice has not yet been
received, or (d) a new Form I-129; and (3) a certified Labor Condition
Application (LCA) from the Department of Labor valid for the period of
requested employment (or copy thereof if not already provided with the
FY 2006 petition).
Petitioners seeking an upgrade must submit the required
documentation to the following address: USCIS Vermont Service Center,
1A Lemnah Drive, St. Albans, VT 05479-7001. There is no fee to upgrade
a previously filed or approved FY 2006 petition. Upgrade filings may
not be personally delivered and must be submitted by U.S. mail, express
shipping services, or by other courier companies normally servicing the
Vermont Service Center.
Any request to upgrade a FY 2006 for purposes of a FY 2005 filing
will be treated as having been filed on the date of receipt at the
Vermont Service Center address and is subject to the same timing rules
for full petitions submitted for FY 2005 as set forth in Section VII,
paragraph A above. In the event that a FY 2005 number is not available
for an upgrade request, the original petition will be deemed as having
been filed for an FY 2006 number on the date the petition was initially
filed at one of the four service centers.
C. Required Forms
U.S. employers seeking FY 2006 H-1B numbers may file the new Form
I-129, Petition for Nonimmigrant Worker (edition date 3-17-05, OMB
1615-0009), which incorporates the Form I-129W, H-1B Data Collection
and Filing Fee Exemption, as well as the H and H-1B Supplements.
Petitioners should note that as of May 30, 2005, all H-1B submissions
must be made on the new Form I-129 (edition date 3-17-05, OMB 1615-
0009).
U.S. employers may also file the old Form I-129 (edition date 12-
10-01, OMB 1115-0168, OMB 1615-0093) and the old Form I-129W (edition
date 2-14-02, OMB 1115-0225). U.S. employers filing the old Form I-129
(edition date 12-10-01, OMB 1115-0168, OMB 1615-0093) must complete the
data field in Part 5, marked ``Current number of employees''.
Petitioners filing the old Form I-129W (edition date 2-14-02, OMB 1115-
0225) must complete Part A, section ``Beneficiary's Highest Level of
Education'', by: (1) Checking the appropriate box indicating Master's,
Professional or Doctorate degree; (2) clearly annotating next to the
selection the phrase--``U.S. earned''; and (3) providing the name and
location of the U.S institution of higher education.
Petitioners may file also one of a few additional versions of the
Form I-129 that were posted on USCIS' Web site during March 2005 before
the 3-17-05 version was finalized. Regardless of which version of the
Form I-129, U.S. employers chose to file, a certified Labor Condition
Application (LCA) from the Department of Labor valid for the period of
requested employment must be submitted with the Form I-129.
D. Availability of Premium Processing Program
FY 2006 petitions may be filed via the Premium Processing Program
and should include the required Form I-907, Request for Premium
Processing, along with the $1,000 premium processing fee.
U.S. employers who: (1) Have already filed an FY 2006 H-1B petition
with premium processing, (2) whose FY 2006 H-1B petition is still
pending adjudication, and (3) who now seek an upgrade for an FY 2005
number, do not need to submit a new Form I-907 or new premium
processing fee.
U.S. employers who: (1) Have already filed an FY 2006 H-1B petition
without using premium processing, (2) whose FY 2006 H-1B petition is
still pending adjudication, and (3) who now seek an upgrade for an FY
2005 number, must include with the upgrade request a Form I-907,
Request for Premium Processing, along with the premium processing fee.
[[Page 23780]]
U.S. employers who: (1) Have already filed an FY 2006 H-1B petition
that has been approved, regardless of whether premium processing was
requested, and (2) who now seek an upgrade for an FY 2005 number, do
not need to submit a new Form I-907 or new premium processing fee.
E. Filing Fees
Petitioners are reminded that the Form I-129 must be filed with the
base filing fee of $185, the ACWIA fees of $1,500 (for employers with
26 or more U.S. full-time-equivalent employees) or $750 (for employers
with 25 or less U.S. full-time-equivalent employees, including all
affiliated or subsidiary entities), the $500 fraud prevention and
detection fee (as applicable), as well as the Form I-907 and premium
processing fee of $1,000, if applicable. Payment for the $185 petition
filing fee and the $1,500 (or $750) additional ACWIA fee may be made in
the form of a single check or money order for the total amount due or
two checks or money orders. Those petitioners who must pay the $500
fraud prevention and detection fee must pay with a check or money order
that is separate from the additional ACWIA application fees of $1,500
(or $750) and the $185 petition filing fees. Similarly, any premium
processing fee of $1,000 must be paid by separate check. Thus, in
certain instances petitioners may need to file up to four separate
checks or money orders: One for the $185 Form I-129 petition fee; one
for the $1,500 or $750 additional ACWIA fee (which may be combined with
the $185 fee); one for the $500 fraud prevention and detection fee; and
one for the $1,000 premium processing fee (if applicable).
IX. Section-by-Section Analysis
USCIS is revising 8 CFR 214.2(h)(2)(i)(A) to provide that USCIS may
set alternate filing locations via notice in the Federal Register.
USCIS is revising 8 CFR 214.2(h)(8)(ii) in its entirety to properly
reflect that USCIS tracks petitions or applications subject to
numerical limits, not by individual petition receipt numbers, but by
monitoring the total number of petitions (including the number of
beneficiaries when necessary) filed within a given fiscal year. This
revision applies to all H nonimmigrant classifications subject to
numerical limits. In calculating when the numerical limits have been or
will likely be reached, USCIS will make projections of the number of
petitions necessary to achieve the numerical limit of approvals, taking
into account historical data related to approvals, denials,
revocations, and other relevant factors. USCIS will continue to count
H-1B petitions on a first-in, first-out basis and monitor the number of
petitions received, approved, and pending adjudication to determine
when USCIS is likely to reach or exceed the numerical limits in a given
fiscal year.
As discussed above in Section VI, USCIS also is amending 8 CFR
214.2(h)(8)(ii)(B) to authorize random selection of H-1B numbers in FY
2005, FY 2006 and future fiscal years when USCIS determines that the
numerical limits in a particular category will be reached.
USCIS recognizes that, given the period of time that has passed
since cap-subject H-1B filings last were received, the anticipated high
demand for immediate validity dates is substantial and may even exceed
the 20,000 newly available numbers for FY 2005 on the first day.
Therefore, any petitioner who desires an FY 2005 number must consider
the importance of having the petition (or ``upgrade'' of an already
filed FY 2006 petition) delivered on the first day on which filings
will be accepted. Petitioners likely will send the petition or upgrade
on the day before that date by overnight delivery to ensure arrival at
the Vermont Service Center on the first day.
In order to reduce petitioners' concern that even an overnight
delivery service from a remote location might not actually deliver the
package on the first day, USCIS has decided that, in the event that the
final receipt date is the same as the first date on which petitions may
be filed (i.e. if the cap is reached on the first day filings can be
made for FY 2005), USCIS will randomly apply all of the numbers among
the petitions filed on the final receipt date and the following day. In
such cases, no advantage will be gained by the particular time of day a
filing is received. USCIS has concluded that such a commitment best
ensures general fairness and orderly procedures for allocations of
petitions subject to numerical limits.
X. Regulatory Requirements
A. Administrative Procedure Act (Good Cause Exception)
Implementation of this rule without notice and the opportunity for
public comment is warranted under the ``good cause'' exception found
under the Administrative Procedure Act (APA) at 5 U.S.C. 553(b). USCIS
has determined that delaying implementation of this rule to await
public notice and comment is impracticable and contrary to the public
interest. The H-1B Visa Reform Act of 2004 was enacted on December 8,
2004. The provisions related to the H-1B numerical limitations and new
fraud prevention and detection fees became effective March 8, 2005.
Immediate implementation of this rule is in the public interest,
specifically that of U.S. employers, students and workers. While
processing for the FY 2006 H-1B cap began on April 1, 2005, U.S.
employers have been unable to hire new H-1B workers since October 1,
2004. A worker with an FY 2006 cap number cannot begin work until
October 1, 2005, the date on which FY 2006 begins. In order to provide
U.S. employers with the ability to address their employment needs as
soon as possible and to alleviate the burdens imposed on their ability
to hire H-1B workers since October 1, 2004, USCIS must issue this
interim rule to implement immediately these provisions and notify the
public of the process by which the remaining H-1B numbers for FY 2005
will be made available. This interim rule is necessary to allocate
fairly and equitably the new FY 2005 H-1B numbers in an expeditious
manner. In addition, the new fees to be generated by the FY 2005
filings will be allocated to public purposes of low-income student
education, job training, and fraud prevention and detection, and
further delay of the FY 2005 filings would delay the funding of those
purposes. It is therefore impracticable and contrary to the public
interest to adopt this rule with the prior notice and comment period
normally required under 5 U.S.C. 553(b).
USCIS also finds that good cause exists under the Congressional
Review Act, 5 U.S.C. 808, to implement this interim rule immediately
upon publication in the Federal Register.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 605(b)), as amended
by the Small Business Regulatory Enforcement and Fairness Act of 1996
(SBREFA), requires an agency to prepare and make available to the
public a regulatory flexibility analysis that describes the effect of
the rule on small entities (i.e., small businesses, small
organizations, and small governmental jurisdictions). Because good
cause exists for issuing this regulation as an interim rule, no
regulatory flexibility analysis is required under the RFA.
C. Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA),
[[Page 23781]]
2 U.S.C. 1531-1538, requires Federal agencies to prepare a written
assessment of the costs, benefits and other effects of proposed or
final rules that include a Federal mandate likely to result in the
expenditure by State, local or tribal governments, in the aggregate, or
by the private sector of more than $100 million in any one year
(adjusted for inflation with 1995 base year). Before promulgating a
rule for which a written statement is needed, section 205 of UMRA
requires an agency to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome option that achieves the objective of
the rule. Section 205 allows an agency to adopt an alternative, other
than the least costly, most cost-effective, or least burdensome option
if DHS publishes an explanation with the final rule.
As discussed below under Executive Order 12866, this action will
result in the expenditure by the private sector of $100 million or more
in any one year, but these fees are mandated by statute and USCIS is
obligated to implement the law as enacted by the OAA. Further, these
costs do not accrue to the general public, but only those who choose to
participate in the H-1B program, nor will they result in expenditures
in excess of $100 million a year by State, local, or tribal
governments.
D. Small Business Regulatory Enforcement Fairness Act of 1996
This interim rule is a major rule as defined by section 804 of the
Small Business Regulatory Enforcement Act of 1996. This interim rule
will result in an annual effect on the economy of more than $100
million.
E. Executive Order 12866
This interim final rule is considered by DHS to be an economically
``significant regulatory action'' under Executive Order 12866, section
3(f), Regulatory Planning and Review. The implementation of this
interim rule will provide USCIS with an additional $36,200,000 in FY
2005 in annual fee revenue over the fee revenue that would be collected
under the current fee structure, based on a projected annual fee-paying
volume of 20,000 approved petitions. This interim rule would provide
USCIS with $138,425,000 in FY 2006 annual fee revenue, based on a
projected annual fee-paying volume of 85,000 approved petitions (20,000
new exemptions and 65,000 petitions). This increase in revenue pursuant
to the OAA (and ACWIA as amended), will be used to fund grants for
training in high-growth industries, job training services and related
activities, and programs and activities to prevent and detect fraud
with respect to H and L petitions. Accordingly, this rule has been
submitted to the Office of Management and Budget (OMB) for clearance.
USCIS is issuing this rule in order to provide for a fair and
equitable allocation of additional H-1B numbers made available for FY
2005 by Congress.
USCIS has assessed both the costs and benefits of this rule as
required by Executive Order 12866, section 1(b)(6), and has made a
reasoned determination that this rule will result in additional costs
to petitioning employers. The additional costs to employers are due to
the new statutory requirement that H-1B petitioners must now pay an
additional fee of either $1,500 or $750 per petition, depending upon
the size of the business, unless otherwise exempt. In addition to the
$1,500 or $750 fee, as of March 8, 2005, H-1B petitioners must also pay
a separate fee of $500 per petition to assist federal agencies in fraud
prevention and detection.
USCIS estimates that for FY 2005, all of the aforementioned new
fees will cost H-1B petitioning employers an additional $36,200,000.
DHS reached this conclusion by estimating that approximately half of
the 20,000 new H-1B petitions that will be approved for FY 2005
employment will be for businesses with 25 or less full-time equivalent
employees ($750 x 10,000 = $7,500,000), while the other half will be
for businesses with 26 or more full-time equivalent employees ($1,500 x
10,000 = $15,000,000). USCIS has also included in this estimate the new
$500 Fraud Prevention and Detection Fee applicable to the forthcoming
20,000 new H-1B petition approvals for FY 2005 employment ($500 x
20,000 = $10,000,000).
There will also be an additional 20,000 I-129 petitions approved
for new H-1B employment in FY 2005 at a base filing fee cost of $185
per Form I-129, which adds an additional cost to H-1B petitioners ($185
x 20,000 = $3,700,000). Therefore, the total additional cost to the
public during FY 2005 is $36,200,000.
In future fiscal years, the additional cost to H-1B petitioners is
estimated to be $138,425,000 each fiscal year. USCIS reached this
conclusion by estimating that approximately half of the 85,000 H-1B
petitions approved per fiscal year will be for businesses with 25 or
less full-time equivalent employees ($750 x 42,500 = $31,875,000),
while the other half will be for businesses with 26 or more full-time
equivalent employees ($1,500 x 42,500 = $63,750,000). USCIS includes in
this estimate the fact that an additional 20,000 petitions for H-1B
classification will be filed each fiscal year at a base filing fee cost
of $185 per I-129 petition ($185 x 20,000 = $3,700,000). USCIS has also
included in this estimate the new $500 Fraud Prevention and Detection
Fee applicable to 78,200 new H-1B petitions approved per fiscal year
($500 x 78,200 = $39,100,000). USCIS notes that the $500 Fraud
Prevention and Detection Fee is not required for Chileans and
Singaporeans entering the United States under the Free Trade
Agreements. Therefore, USCIS estimates that the total additional cost
to the public in the future each fiscal year will be $138,425,000.
Although this interim rule will result in additional costs to H-1B
petitioners that may deter some employers from seeking H-1B
nonimmigrant workers, USCIS notes that these fees and the specific
amounts of these fees are mandated by statute. USCIS is obligated to
implement the law as enacted by the OAA.
The benefit of this interim rule is that affected employers will be
able to address inconveniences and difficulties caused by the reaching
of the FY 2005 H-1B, and USCIS will be able to facilitate that process
in a manner that is fair to all employers. This interim rule will also
facilitate the hiring of H-1B nonimmigrant aliens by U.S. employers who
have not been able to fill jobs due to the H-1B cap being reached early
in recent fiscal years and who demonstrate that they are willing to
offer the same prevailing wage and working conditions as those of U.S.
workers. The fees imposed will benefit congressional purposes of
education for low-income students, job training for U.S. workers, and
fraud detection and prevention in immigration programs.
USCIS will receive a larger number of filings subject to the
increased filing fees than the number of petitions that ultimately will
be approved. Almost all of such filings, however, will be those
received in excess of the applicable numerical limits, and USCIS will
be rejecting or refunding fee payments for such petitions. Petitions
that are exempt from the cap, because they are for beneficiaries who
are already in H-1B status and were previously been counted against the
cap, are also exempt from the ACWIA fees. Such petitions, the number of
which is unpredictable, are not exempt from the $500 fraud prevention
and detection fee. Also a somewhat unpredictable number of petitions
subject to the new ACWIA and fraud detection and prevention fees will
be filed for initial petitions that will be denied or withdrawn, and
those will be
[[Page 23782]]
in excess of the 85,000 set forth above. These petitions will impose
costs on the employers that result from the OAA and this interim final
rule, but funds will be applied to the congressionally required,
publicly beneficial purposes of low-income student education, job
training, and fraud detection and prevention. During fiscal years 2001,
2002 and 2003, an average of less than 2.5 percent of initial petitions
were denied; thus, this cost factor is relatively insignificant.
The additional fees mandated by the OAA are not being codified by
USCIS within the context of this rulemaking. However, USCIS, in a
future rulemaking, will amend 8 CFR 214.2(h)(19), which currently
addresses the fees initially required pursuant to ACWIA, to reflect the
enhanced ACWIA fees of $1,500 (or $750) and to codify the new fraud
prevention and detection fees ($500) affecting all H and L petitioners.
USCIS notes, however, that the Form I-129 has recently been revised to
comport with the provisions of the OAA by adding a supplement titled H-
1B Data Collection and Filing Fee Exemption. The inclusion of the H-1B
Data Collection and Filing Fee Exemption supplement within the revised
Form I-129 has rendered the previous Form I-129W moot, as it captures
the required information previously obtained via the Form I-129W.
Therefore, the Form I-129W has been removed from the USCIS forms
inventory. OMB has approved the revised Form I-129 for official use by
the public and USCIS has released the revised Form I-129 for official
use as of March 11, 2005. Petitioners are urged to consult and comply
with the instructions on the revised I-129 and the H-1B Data Collection
and Filing Fee Exemption supplement when filing their petitions for H-
1B nonimmigrant workers.
Accounting Statement
As required by OMB Circular A-4 (available at https://
www.whitehouse.gov/omb/circ), in Table 1, USCIS has prepared an
accounting statement showing the classification of the expenditures
associated with the Allocation of Additional H-1B Visas created by the
H-1B Visa Reform Act of 2004. The table provides our best estimate of
the dollar amount of these costs and benefits, expressed in 2005
dollars, at three percent and seven percent discount rates. We estimate
that the cost of this interim rule will be approximately $125 million
annualized (7 percent discount rate) and approximately $127 million
annualized (3 percent discount rate). The non-quantified benefit is
compliance with the OAA.
Table 1.--Accounting Statement: Classification of Expenditures, FY 2005
Through FY 2014
[2005 dollars]
------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Percent Annual Discount Rate
BENEFITS
Annualized monetized benefits
(Un-quantified) benefits: compliance with the law; funding of
congressionally mandated programs; acquisition of needed professional
workers
COSTS
Annualized monetized costs: $127 million
Annualized quantified, but un-monetized costs
Qualitative (un-quantified) costs
Seven Percent Annual Discount Rate
BENEFITS
Annualized monetized benefits
(Un-quantified) benefits: compliance with the law; funding of
congressionally mandated programs; acquisition of needed professional
workers
COSTS
Annualized monetized costs: $125 million
Annualized quantified, but un-monetized costs
Qualitative (un-quantified) costs
------------------------------------------------------------------------
In accordance with the provisions of E.O. 12866, this regulation
was reviewed by the Office of Management and Budget.
F. Executive Order 13132
This interim rule will not have substantial direct effects on the
states, on the relationship between the National Government and the
states, or on the distribution of power and responsibilities among the
various levels of government. Therefore, in accordance with section 6
of Executive Order 13132, it is determined that this interim rule does
not have sufficient federalism implications to warrant the preparation
of a federalism summary impact statement.
G. Executive Order 12988 Civil Justice Reform
This interim rule meets the applicable standards set forth in
sections 3(a) and 3(b)(2) of Executive Order 12988.
H. Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995, Public Law 104-13, all
Departments are required to submit to OMB, for review and approval, any
reporting and recordkeeping requirements inherent in a rule. This
interim rule does not impose any new reporting or recordkeeping
requirements under the Paperwork Reduction Act. As previously stated
under Executive Order 12866, the Form I-129, Petition for Nonimmigrant
Worker (OMB 1615-0009), has recently been revised to include the H-1B
Data Collection and Filing Fee Exemption supplement to comport with the
provisions of the OAA. These revisions include amendments to the H-1B
Data Collection and Filing Fee Exemption Supplement to capture
information about the beneficiary's level of education and whether the
degrees were earned from a U.S. institution of higher education; to
assist U.S. employers in assessing whether they are subject to the new
$1,500 (or $750) ACWIA and $500 Fraud Detection and Prevention fees;
and to assist U.S. employers in assessing whether they are eligible for
the numerical limit exemptions provided under section 214(g)(5) of the
INA. OMB has approved the revised Form I-129 for official use by the
public (OMB Control Number 1615-0009); however, USCIS will continue to
accept the prior paper
[[Page 23783]]
editions of Form I-129 until May 30, 2005. In addition, by increasing
the number of Forms I-129 and Forms I-907 being submitted as a result
of the OAA, USCIS has submitted to OMB for emergency clearance the
Paperwork Reduction Change Worksheet (OMB-83C) increasing the total
annual burden hours. Further, USCIS has submitted to OMB for emergency
clearance Paperwork Reduction Act Submission (OMB 83-I) to permit USCIS
to concurrent use of the Form I-129 (edition date 3-17-05, OMB 1615-
0009 and the old Form I-129 (edition date 12-10-01, OMB 1115-0168, OMB
1615-0093) until May 30, 2005. Due to this temporary information
collection, USCIS submitted the OMB 83-I to formally request that OMB
adjust the burden hours for the use of the 12-10-01 version of the Form
I-129. The public should reference the Federal Register notice
contained at 70 FR 20590 (Apr. 20, 2005) for information about this
collection. Please note however that USCIS hereby extends the deadline
for comments solicited in that notice until May 30, 2005.
List of Subjects in 8 CFR Part 214
Administrative practice and procedure, Aliens, Employment, Foreign
officials, Health professions, Reporting and recordkeeping
requirements, Students.
0
Accordingly, chapter I of title 8 of the Code of Federal Regulations is
amended as follows:
PART 214--NONIMMIGRANT CLASSES
0
1. The authority citation for part 214 is revised to read as follows:
Authority: 8 U.S.C. 1101, 1102, 1103, 1182, 1184, 1185 (pursuant
to E.O. 13323, 69 FR 241, 3 CFR, 2003 Comp., p. 278), 1186a, 1187,
1221, 1281, 1282, 1301-1305, 1372, 1379, 1731-32; section 643, Pub.
L. 104-208, 110 Stat. 3009-708; section 141 of the Compacts of Free
Association with the Federated States of Micronesia and the Republic
of the Marshall Islands, and with the Government of Palau, 48 U.S.C.
1901 note, and 1931 note, respectively, 8 CFR part 2.
0
2. Section 214.2 is amended by
0
(a) Revising (h)(2)(i)(A);
0
(b) Revising (h)(8)(ii)(B);
0
(c) Removing (h)(8)(ii)(C) and redesignating (h)(8)(ii)(D) through (F)
respectively as (h)(8)(ii)(C) through (E);
0
(d) Revising the last sentence of newly designated (h)(8)(ii)(C) to
read as follows:
Sec. 214.2 Special requirements for admission, extension, and
maintenance of status.
* * * * *
(h) * * *
(2) * * *
(i) * * *
(A) General. A United States employer seeking to classify an alien
as an H-1B, H-2A, H-2B, or H-3, temporary employee shall file a
petition on Form I-129, Petition for Nonimmigrant Worker, only with the
USCIS Service Center which has jurisdiction in the area where the alien
will perform services, or receive training, even in emergent
situations, except as provided in this section or as specifically
designated by USCIS via notice in the Federal Register.
* * * * *
(8) * * *
(ii) * * *
(B) When calculating the numerical limitations for a given fiscal
year, USCIS will make numbers available to petitions in the order in
which the petitions are filed. USCIS will make projections of the
number of petitions necessary to achieve the numerical limit of
approvals, taking into account historical data related to approvals,
denials, revocations, and other relevant factors. USCIS will monitor
the number of petitions (including the number of beneficiaries
requested when necessary) received and will notify the public of the
date that USCIS has received the necessary number of petitions (the
``final receipt date''). The date of publication will not control the
final receipt date. When necessary to ensure the fair and orderly
allocation of numbers in a particular classification subject to
numerical limits, USCIS may randomly select from among the petitions
received on the final receipt date the remaining number of petitions
deemed necessary to generate the numerical limit of approvals. This
random selection will be made via computer-generated selection as
validated by the Office of Immigration Statistics. Petitions not
randomly selected, and petitions received after the final receipt date,
will be rejected. If the final receipt date is the same as the first
date on which petitions subject to the applicable cap may be filed
(i.e., if the cap is reached on the first day filings can be made),
USCIS will randomly apply all of the numbers among the petitions filed
on the final receipt date and the following day.
(C) * * * The petition shall be revoked pursuant to paragraph
(h)(11)(ii) of this section and USCIS will take into account the unused
number during the appropriate fiscal year.
* * * * *
Dated: May 2, 2005.
Michael Chertoff,
Secretary.
[FR Doc. 05-8992 Filed 5-2-05; 3:58 pm]
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