Statement by Rep. Lamar Smith (R-TX). Re: Markup of HR 4227 IH, Technology Worker Temporary Relief Act, an H1B visa bill. Date: May 9, 2000. Source: Office of Rep. Smith. See also:  • TLJ summary of bills pertaining to visas for high tech workers.

I'd like to credit several individuals who have helped me with this legislation. Bob Goodlatte, Chairman of the House High-Tech Caucus, Chris Cannon, a high-tech entrepreneur himself, and Tom Campbell, who represents part of Silicon Valley, are each responsible for major components of this bill. And the ranking member of the Subcommittee, Sheila Jackson Lee, will offer a substantive amendment that has my support.

Although there is still no objective, credible study that documents a shortage of American high-tech workers, the INS said recently that the demand for highly skilled foreign workers is running at least 50,000 ahead of last year.

Such a demand can indicate an actual shortage of American workers, a spot shortage, a preference for cheap labor or replacement workers, or something else. But because of the importance of the high-tech industry to our economy, I think we should give the industry the benefit of the doubt.

However, all of us should be concerned that final regulations implementing provisions of similar legislation we approved two years ago are still not in effect.

While that law's extra visas became immediately available, its worker protections have never been implemented because the executive branch has never issued final regulations.

It is fundamentally unfair to American workers to ask them to accept another large increase in foreign worker competition when provisions designed to protect American workers have been ignored. Congress should demand that the Administration implement those regulations.

The bill we are considering, H.R. 4227, The Technology Worker Temporary Relief Act, sets no limits on the number of skilled foreign workers we admit under H-1B visas during the next three years. The market should determine how many high-tech workers we need rather than have Congress set limits based on arbitrary numbers.

The bill also contains provisions that benefit workers and reduce fraud.

H-1B visas are available to aliens who are paid at least $40,000 a year, unless working at universities. High-tech companies need to employ highly skilled and educated aliens. This wage is a good starting point for any high-tech professional and prevents companies from hiring cheap foreign workers who undercut the job market.

And we must deal with fraud. A hearing the Subcommittee held in 1999 provided evidence that the H-1B program is susceptible to massive fraud. Visas are often used by "front companies" set up for the sole purpose of applying for visas and by companies submitting bogus job experience letters and educational diplomas for applicants. The bill combats fraud with several provisions.

First, companies filing visa petitions that do not have assets of $250,000 must provide documentation of their business activity. Numerous H-1B petitions are filed by questionable companies that have few, if any, assets.

Second, work experience cannot be substituted for a degree. Current provisions encourage overstated and specious claims as to work experience.

Assuring that H-1B professionals have college degrees means that only well-qualified professionals come here to work. The alien of extraordinary skills who does not have a college education can still come in on an "O" visa.

Third, H-1B petitioners pay an additional fee of $150. The funds are earmarked for anti-fraud work and split between the INS and the State Department.

These common sense provisions that benefit American workers and reduce fraud are essential to any workable H-1B visa bill.

In my judgment, this bill represents a balance: it addresses both the needs of high-tech companies and the concerns of American workers.

These concerns about lost jobs and depressed wages are real and are reflected in every public opinion survey on the subject.

That's why I urge my colleagues to support this bill, which benefits both American high-tech companies and American high-tech workers.