80_FR_63576 80 FR 63375 - Improving and Expanding Training Opportunities for F-1 Nonimmigrant Students With STEM Degrees and Cap-Gap Relief for All Eligible F-1 Students

80 FR 63375 - Improving and Expanding Training Opportunities for F-1 Nonimmigrant Students With STEM Degrees and Cap-Gap Relief for All Eligible F-1 Students

DEPARTMENT OF HOMELAND SECURITY

Federal Register Volume 80, Issue 201 (October 19, 2015)

Page Range63375-63404
FR Document2015-26395

The Department of Homeland Security (DHS) proposes to amend its F-1 nonimmigrant student visa regulations on optional practical training (OPT) for certain students with degrees in science, technology, engineering, or mathematics (STEM) from U.S. institutions of higher education. Specifically, the proposal would allow such F-1 STEM students who have elected to pursue 12 months of OPT in the United States to extend the OPT period by 24 months (STEM OPT extension). This 24-month extension would effectively replace the 17-month STEM OPT extension currently available to certain STEM students. The rule also improves and increases oversight over STEM OPT extensions by, among other things, requiring the implementation of formal mentoring and training plans by employers, adding wage and other protections for STEM OPT students and U.S. workers, and allowing extensions only to students with degrees from accredited schools. As with the current 17-month STEM OPT extension, the proposed rule would authorize STEM OPT extensions only for students employed by employers enrolled in U.S. Citizenship and Immigration Services' (USCIS') E-Verify employment eligibility verification program. The proposal also includes the ``Cap-Gap'' relief first introduced in 2008 for any F-1 student with a timely filed H-1B petition and request for change of status. This Cap-Gap relief allows such students to automatically extend the duration of F-1 status and any current employment authorization until October 1 of the fiscal year for which such H-1B visa is being requested. In addition to improving the integrity and value of the STEM OPT program, this proposed rule also responds to a court decision that vacated a 2008 DHS regulation on procedural grounds. The proposed rule includes changes to the policies announced in the 2008 rule to further enhance the academic benefit provided by STEM OPT extensions and increase oversight, which will better ensure that students gain valuable practical STEM experience that supplements knowledge gained through their academic studies, while preventing adverse effects to U.S. workers. By earning a functional understanding of how to apply their academic knowledge in a work setting, students will be better positioned to begin careers in their fields of study. These on-the-job educational experiences would be obtained only with those employers that commit to developing students' knowledge and skills through practical application. The proposed changes would also help ensure that the nation's colleges and universities remain globally competitive in attracting international STEM students to study and lawfully remain in the United States.

Federal Register, Volume 80 Issue 201 (Monday, October 19, 2015)
[Federal Register Volume 80, Number 201 (Monday, October 19, 2015)]
[Proposed Rules]
[Pages 63375-63404]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-26395]



[[Page 63375]]

Vol. 80

Monday,

No. 201

October 19, 2015

Part IV





Department of Homeland Security





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8 CFR Parts 214 and 274a





 Improving and Expanding Training Opportunities for F-1 Nonimmigrant 
Students With STEM Degrees and Cap-Gap Relief for All Eligible F-1 
Students; Proposed Rule

Federal Register / Vol. 80 , No. 201 / Monday, October 19, 2015 / 
Proposed Rules

[[Page 63376]]


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DEPARTMENT OF HOMELAND SECURITY

8 CFR Parts 214 and 274a

[DHS Docket No. ICEB-2015-0002]
RIN 1653-AA72


Improving and Expanding Training Opportunities for F-1 
Nonimmigrant Students With STEM Degrees and Cap-Gap Relief for All 
Eligible F-1 Students

AGENCY: Department of Homeland Security.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Homeland Security (DHS) proposes to amend 
its F-1 nonimmigrant student visa regulations on optional practical 
training (OPT) for certain students with degrees in science, 
technology, engineering, or mathematics (STEM) from U.S. institutions 
of higher education. Specifically, the proposal would allow such F-1 
STEM students who have elected to pursue 12 months of OPT in the United 
States to extend the OPT period by 24 months (STEM OPT extension). This 
24-month extension would effectively replace the 17-month STEM OPT 
extension currently available to certain STEM students. The rule also 
improves and increases oversight over STEM OPT extensions by, among 
other things, requiring the implementation of formal mentoring and 
training plans by employers, adding wage and other protections for STEM 
OPT students and U.S. workers, and allowing extensions only to students 
with degrees from accredited schools.
    As with the current 17-month STEM OPT extension, the proposed rule 
would authorize STEM OPT extensions only for students employed by 
employers enrolled in U.S. Citizenship and Immigration Services' 
(USCIS') E-Verify employment eligibility verification program. The 
proposal also includes the ``Cap-Gap'' relief first introduced in 2008 
for any F-1 student with a timely filed H-1B petition and request for 
change of status. This Cap-Gap relief allows such students to 
automatically extend the duration of F-1 status and any current 
employment authorization until October 1 of the fiscal year for which 
such H-1B visa is being requested.
    In addition to improving the integrity and value of the STEM OPT 
program, this proposed rule also responds to a court decision that 
vacated a 2008 DHS regulation on procedural grounds. The proposed rule 
includes changes to the policies announced in the 2008 rule to further 
enhance the academic benefit provided by STEM OPT extensions and 
increase oversight, which will better ensure that students gain 
valuable practical STEM experience that supplements knowledge gained 
through their academic studies, while preventing adverse effects to 
U.S. workers. By earning a functional understanding of how to apply 
their academic knowledge in a work setting, students will be better 
positioned to begin careers in their fields of study. These on-the-job 
educational experiences would be obtained only with those employers 
that commit to developing students' knowledge and skills through 
practical application. The proposed changes would also help ensure that 
the nation's colleges and universities remain globally competitive in 
attracting international STEM students to study and lawfully remain in 
the United States.

DATES: Comments must be received by DHS on or before November 18, 2015. 
Comments on the information collection provisions proposed in this rule 
must be received by DHS and the Office of Management and Budget (OMB) 
on or before November 18, 2015.

ADDRESSES: You may submit comments, identified by the DHS docket number 
to this rulemaking, Docket No. ICEB-2015-0002, to the Federal Docket 
Management System (FDMS), a government-wide, electronic docket 
management system, by one of the following methods:
     Electronically: Submit comments to the Federal eRulemaking 
Portal at http://www.regulations.gov. Follow the instructions for 
submitting comments.
     Mail: Address your written comments to the individual in 
the FOR FURTHER INFORMATION CONTACT section below. DHS docket staff, 
which maintains and processes U.S. Immigration and Customs 
Enforcement's (ICE's) official regulatory dockets, will scan the 
submission and post it to FDMS.
    Collection of information. You must submit comments on the 
collection of information discussed in this notice of proposed 
rulemaking both to DHS's docket and to OMB's Office of Information and 
Regulatory Affairs (OIRA). OIRA submissions can be made using one of 
the listed methods.
     Electronically (preferred): [email protected] 
(include the docket number and ``Attention: Desk Officer for U.S. 
Immigration and Customs Enforcement, DHS'' in the subject line of the 
email).
     Fax: 202-395-6566.
     Mail: Office of Information and Regulatory Affairs, Office 
of Management and Budget, 725 17th Street NW., Washington, DC 20503, 
ATTN: Desk Officer, U.S. Immigration and Customs Enforcement, DHS.
    See the Public Participation portion of the SUPPLEMENTARY 
INFORMATION section below for additional instructions on submitting 
comments.

FOR FURTHER INFORMATION CONTACT: Katherine Westerlund, Policy Chief 
(Acting), Student and Exchange Visitor Program, U.S. Immigration and 
Customs Enforcement, 500 12th Street SW., Washington, DC 20536; 
telephone (703) 603-3400; email [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Public Participation
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
    D. Public Meeting
II. Abbreviations
III. Executive Summary
    A. Purpose of the Regulatory Action
    B. Summary of the Major Provisions of the Regulatory Action
    C. Costs and Benefits
IV. Background and Purpose
    A. Authority, Regulatory History, and Recent Litigation
    B. ICE and SEVIS
    C. Basis and Purpose of Regulatory Action
V. Discussion of Elements of the STEM OPT Extension
    A. Including a STEM OPT Extension Within the OPT Program
    B. STEM Extension Period for OPT
    C. STEM Definition and CIP Categories for STEM OPT Extension
    D. Mentoring and Training Plan
    E. USCIS E-Verify Employment Verification Program
    F. Previously Obtained STEM Degrees
    G. Safeguarding U.S. Workers through Measures Consistent with 
Labor Market Protections
    H. Oversight through School Accreditation Requirements and 
Employer Site Visits
    I. Additional Compliance Requirements
    J. Cap-Gap Extension for F-1 Students with Timely Filed H-1B 
Petitions and Change of Status Requests
VI. Statutory and Regulatory Requirements
    A. Executive Orders 12866 and 13563: Regulatory Planning and 
Review
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act of 1996
    D. Unfunded Mandates Reform Act
    F. Collection of Information
    G. Federalism
    H. Civil Justice Reform
    I. Energy Effects
    J. Environment
    K. Indian Tribal Governments
    L. Taking of Private Property
    M. Protection of Children
    N. Technical Standards

I. Public Participation

    We encourage you to participate in this rulemaking by submitting

[[Page 63377]]

comments and related materials. All comments received will be posted 
without change to http://www.regulations.gov and will include any 
personal information you provide unless you request that your 
personally identifiable information be redacted. We also invite 
comments relating to the economic, environmental, energy, or federalism 
impacts that might result from this rulemaking action. See the 
ADDRESSES section above for methods to submit comments.

 A. Submitting Comments

    If you submit comments, please include the docket number for this 
rulemaking, indicate the specific section of this document to which 
each comment applies, and provide a reason for each suggestion or 
recommendation. You may submit your comments and materials online or by 
mail, but please use only one of these means. We recommend that you 
include your name and a mailing address, an email address, or a phone 
number in the body of your document so that we can contact you if we 
have questions regarding your submission. ICE will file all comments 
sent to our docket address, as well as items sent to the address or 
email under the FOR FURTHER INFORMATION CONTACT section above, in the 
public docket, except for comments containing marked confidential 
information. If you submit a comment, it will be considered received by 
ICE when it is received at the Docket Management Facility.
    To submit your comments online, go to http://www.regulations.gov, 
and insert the complete Docket number starting with ``ICEB'' in the 
``Search'' box. Click on the ``Comment Now!'' box and input your 
comment in the text box provided. Click the ``Continue'' box, and if 
you are satisfied with your comment, follow the prompts to submit it. 
If you submit your comments by mail, submit them in an unbound format, 
no larger than 8\1/2\ by 11 inches, suitable for copying and electronic 
scanning and filing. Mailed submissions may be on paper, electronic 
disk, or CD-ROM. If you would like us to acknowledge receipt of 
comments submitted by mail, include with your comments a self-
addressed, stamped postcard or envelope on which the docket number 
appears. We will stamp the date of receipt on the postcard and mail it 
to you.
    We will consider all comments and materials received during the 
comment period and may change this proposed rule based on your 
comments. The docket is available for public inspection before and 
after the comment closing date.

 B. Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble 
as being available in the docket, go to http://www.regulations.gov and 
insert the complete Docket number starting with ``ICEB'' in the 
``Search'' box. Click on the ``Open Docket Folder,'' and you can click 
on ``View Comment'' or ``View All'' under the ``Comments'' section of 
the page. Individuals without internet access can make alternate 
arrangements for viewing comments and documents related to this 
rulemaking by contacting ICE through the FOR FURTHER INFORMATION 
CONTACT section above.

 C. Privacy Act

    Anyone can search the electronic form of comments received into any 
of our dockets by the name of the individual submitting the comment (or 
signing the comment, if submitted on behalf of an association, 
business, labor union, etc.). You may wish to consider limiting the 
amount of personal information that you provide in any voluntary public 
comment submission you make to DHS. DHS may withhold information 
provided in comments from public viewing that it determines may impact 
the privacy of an individual or is offensive. For additional 
information, please read the Privacy Act notice that is available via 
the link in the footer of http://www.regulations.gov.

 D. Public Meeting

    We do not currently plan to hold a public meeting, but you may 
submit a request for one on or before November 18, 2015 using one of 
the methods specified under the ADDRESSES section above. In your 
request, explain why you believe a public meeting would be beneficial. 
If we determine that one would aid this rulemaking, we will hold one at 
a time and place announced by a later notice in the Federal Register.

II. Abbreviations

CIP Classification of Instructional Program
CFR Code of Federal Regulations
DHS Department of Homeland Security
DOS Department of State
DSO Designated School Official
EBSVERA Enhanced Border Security and Visa Entry Reform Act of 2002
FDMS Federal Document Management System
ICE U.S. Immigration and Customs Enforcement
IIRIRA Illegal Immigration Reform and Immigrant Responsibility Act 
of 1996
IFR Interim Final Rule
OPT Optional Practical Training
RIA Regulatory Impact Analysis
IRFA Initial Regulatory Flexibility Analysis
SEVP Student and Exchange Visitor Program
SEVIS Student and Exchange Visitor Information System
STEM Science, Technology, Engineering, or Mathematics
U.S.C. United States Code
USCIS U.S. Citizenship and Immigration Services

III. Executive Summary

 A. Purpose of the Regulatory Action

    This proposed rule would affect F-1 nonimmigrant students who seek 
to obtain a STEM OPT extension, as well as F-1 nonimmigrant students 
who seek so-called Cap-Gap relief. The F-1 nonimmigrant classification 
is available to certain academic students seeking temporary admission 
to the United States as full-time students at an established college, 
university, seminary, conservatory, academic high school, elementary 
school, or other academic institution or in an accredited language 
training program. To obtain F-1 nonimmigrant classification, the 
student must be enrolled in a full course of study at a qualifying 
institution and have sufficient funds to self-support during the entire 
proposed course of study. Such course of study must occur at a school 
authorized by the U.S. government to accept international students.
    OPT is a form of temporary employment available to F-1 students 
(except those in English language training programs) that directly 
relates to and complements a student's study in the United States. A 
student can apply to engage in OPT during their academic program, known 
as ``pre-completion OPT,'' or after completing the academic program, 
known as ``post-completion OPT.'' A student can apply for 12 months of 
OPT at each education level (e.g., one 12-month OPT period at the 
bachelor's level and another 12-month period at the master's level). 
While school is in session, the student may work up to 20 hours per 
week pursuant to OPT.
    This notice of proposed rulemaking (NPRM) would make changes to the 
current OPT program by lengthening the extension of the OPT period for 
certain F-1 students who have earned STEM degrees. DHS first introduced 
an extension of OPT for STEM graduates in a 2008 interim final rule 
(2008 IFR). See 73 FR 18944. Under the 2008 IFR, an F-1 student with a 
STEM degree from a U.S. institution of higher education may be eligible 
for an additional 17 months of OPT (17-Month STEM OPT Extension), 
provided that the employer from which the student sought employment was 
enrolled in USCIS's E-Verify employment eligibility verification 
program. As discussed in

[[Page 63378]]

further detail below, on August 12, 2015, the U.S. District Court for 
the District of Columbia ordered the vacatur of the 2008 IFR for 
procedural deficiencies in its promulgation, and remanded the issue to 
DHS. DHS is proposing this rule to reinstate the STEM OPT extension, 
with changes intended to enhance the academic benefit afforded by the 
extension and increase program oversight, including safeguards to 
protect U.S. workers.\1\
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    \1\ These changes are consistent with the direction provided in 
the Secretary of Homeland Security's November 20, 2014 memorandum 
entitled, ``Policies Supporting U.S. High Skilled Businesses and 
Workers.'' DHS recognizes the nation's need to evaluate, strengthen, 
and improve practical training as part of an overall strategy to 
enhance our nation's economic, scientific, and technological 
competitiveness. Highly skilled persons educated in the United 
States contribute significantly to the U.S. economy, including 
advances in entrepreneurial and research and development endeavors, 
which correlate highly with overall economic growth and job 
creation.
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 B. Summary of the Major Provisions of the Regulatory Action

    The proposal would again provide for an extension of OPT for 
certain F-1 students with STEM degrees. As compared to the 2008 IFR, 
the proposed rule includes the following changes:
     Lengthened STEM Extension Period for OPT. The proposal 
would increase the OPT extension period for STEM OPT students from the 
2008 IFR's 17 months to 24 months. The proposal would also make F-1 
students who subsequently enroll in a new academic program and earn 
another qualifying STEM degree at a higher educational level eligible 
for one additional 24-month STEM OPT extension.
     STEM Definition and CIP Categories for STEM OPT Extension. 
The proposed rule would more clearly define which fields of study (more 
specifically, which Department of Education Classification of 
Instructional Program (CIP) categories) may serve as the basis for a 
STEM OPT extension. The proposal also sets forth a process for public 
notification in the Federal Register when DHS updates the list of 
eligible STEM fields on the Student and Exchange Visitor Program's 
(SEVP's) Web site.
     Mentoring and Training Plan. The proposal would require 
employers to implement formal mentoring and training programs to 
augment students' academic learning through practical experience, 
intended to equip students with a more comprehensive understanding of 
their selected area of study and broader functionality within that 
field.
     Previously Obtained STEM Degrees. The proposal would 
permit an F-1 student participating in post-completion OPT to use a 
prior eligible STEM degree from a U.S. institution of higher education 
as a basis to apply for a STEM OPT extension, as long as the student's 
most recent degree was also received from an accredited educational 
institution. Additionally, in order for such a student to be eligible 
for the STEM OPT extension, the employment opportunity must be directly 
related to the previously obtained STEM degree.
     Safeguards for U.S. Workers in Related Fields. To guard 
against adverse effects on U.S. workers, this proposal would require 
terms and conditions of a STEM practical training opportunity 
(including duties, hours, and compensation) to be commensurate with 
those applicable to similarly situated U.S. workers. In addition to 
requiring a related attestation in the Mentoring and Training Plan, an 
employer would also be required to attest that: (1) The employer has 
sufficient resources and trained personnel available to provide 
appropriate mentoring and training in connection with the specified 
opportunity; (2) the employer will not terminate, lay off, or furlough 
any full- or part-time, temporary or permanent U.S. workers as a result 
of providing the STEM OPT to the student; and (3) the student's 
opportunity assists the student in attaining his or her training 
objectives.
     School Accreditation and Employer Site Visits. The 
proposal would enhance the academic benefit and oversight of STEM OPT 
extensions by (1) generally limiting eligibility to students with 
degrees from schools that are accredited by an accrediting agency 
recognized by the Department of Education; and (2) clarifying DHS 
discretion to conduct employer on-site reviews at worksites to verify 
whether employers are meeting program requirements, including that they 
possess and maintain the ability and resources to provide structured 
and guided work-based learning experiences.
     Compliance Requirements. In addition to reinstating the 
2008 IFR's reporting and compliance requirements, the proposal would 
revise the number of days that an F-1 student may remain unemployed 
during the practical training period. The current program allows a 
student to be unemployed up to 90 days during his or her initial period 
of post-completion OPT, and up to an additional 30 days (for an 
aggregate of 120 days) if the student receives a 17-month STEM OPT 
extension. The proposed rule would retain the 90-day maximum period of 
unemployment during the initial period of post-completion OPT, but 
allow an additional 60 days (for an aggregate of 150 days) for students 
who obtain a 24-month STEM OPT extension.
    In addition to these changes (as compared to the 2008 IFR), the 
proposal would retain other provisions of the 2008 IFR, as follows:
     E-Verify and Reporting Requirements for STEM OPT 
Employers. The proposal would require STEM OPT employers to be enrolled 
in USCIS' E-Verify program and to report certain changes in the STEM 
OPT student's employment.
     Reporting Requirements for STEM OPT Students. The proposal 
would require STEM OPT students to report to DHS any changes to their 
names or addresses, as well as any changes to their employers' names or 
addresses. Students would also be required to periodically verify the 
accuracy of this reporting information.
     Cap-Gap Extension for F-1 Nonimmigrants with Timely Filed 
H-1B Petitions and Requests for Change of Status. The proposal would 
include the 2008 IFR's ``Cap-Gap'' provision, under which DHS would 
temporarily extend an F-1 student's duration of status and any current 
employment authorization if the student is the beneficiary of a timely 
filed H-1B petition and requests a change of status. The Cap-Gap 
extension would extend the OPT period until October 1 of the fiscal 
year for which the H-1B visa is being requested.

 C. Costs and Benefits

    The anticipated costs of compliance with the proposed rule, as well 
as the benefits, are discussed at length in section VI, entitled 
``Statutory and Regulatory Requirements--Executive Orders 12866 and 
13563.'' A combined Regulatory Impact Analysis (RIA) and an Initial 
Regulatory Flexibility Analysis (IRFA) are available in the docket as 
indicated under the Public Participation section of this preamble. A 
summary of the analysis follows.
    As shown in the Summary Table below, DHS estimates that the costs 
of the standards proposed in this rule would be approximately $503.3 
million over the period 2016-2025, discounted at 7 percent, or $71.7 
million per year when annualized at a 7 percent discount rate.
    With respect to benefits, making the STEM OPT extension available 
to additional students and extending the current 17-month extension 
will enhance students' ability to achieve the objectives of their 
courses of study by gaining valuable knowledge and skills through on-
the-job training that is often unavailable in their home countries. The 
proposed changes will also benefit

[[Page 63379]]

the U.S. educational system, U.S. employers, and the United States. The 
rule will benefit the U.S. educational system by helping ensure that 
the nation's colleges and universities remain globally competitive in 
attracting international students in STEM fields. U.S. employers will 
benefit from the increased ability to rely on the skills acquired by 
STEM OPT students while studying in the United States, as well as their 
knowledge of markets in their home countries. And the nation will 
benefit from the increased retention of such students in the United 
States, including through increased research, innovation, and other 
forms of productivity that enhance the nation's economic, scientific, 
and technological competitiveness.
    Furthermore, strengthening the STEM OPT extension by implementing 
requirements for training and mentoring, tracking objectives, reporting 
on program compliance, and accreditation of participating schools would 
further prevent abuse of the limited on-the-job training opportunities 
provided by this program. These and other proposals would also improve 
program oversight, strengthen the requirements for program 
participation, and better ensure that U.S. workers are protected.
    The Summary Table below presents a summary of the benefits and 
costs of the proposed rule. The costs are discounted at seven percent. 
Students will incur costs for completing application forms and paying 
application fees; reporting to designated school officials (DSOs); 
preparing, with their employers, the Mentoring and Training Plan 
required by this rule; and periodically submitting updates to employers 
and DSOs. DSOs will incur costs for reviewing information and forms 
submitted by students, inputting required information into the Student 
and Exchange Visitor Information System (SEVIS), and complying with 
other oversight requirements related to prospective and participating 
STEM OPT students. Employers of STEM OPT students will incur burdens 
for preparing the Mentoring and Training Plan with students, evaluating 
whether the students are receiving on-the-job learning experiences as 
outlined in the Mentoring and Training Plan, enrolling in (if not 
previously enrolled) and using the E-Verify system to verify employment 
eligibility for all new hires, and complying with additional 
requirements related to the E-Verify system.

                      Summary Table--Estimated Costs and Benefits of NPRM, ($2014 millions)
----------------------------------------------------------------------------------------------------------------
                                                   STEM OPT                    E-Verify                Total
----------------------------------------------------------------------------------------------------------------
10-Year Cost Annualized at 7 Percent      $64.9.....................  $6.8......................           $71.7
 Discount Rate.
10-Year Cost Annualized at 3 Percent      $66.9.....................  $7.2......................             $74
 Discount Rate.
----------------------------------------------------------------------------------------------------------------
Qualitative Costs.......................   Cost to students and schools resulting from proposed
                                           accreditation requirement;
                                           Cost to employers from the proposed requirement to provide
                                           STEM OPT students commensurate compensation to similarly situated
                                           U.S. workers; and
                                           Decreased practical training opportunities for students no
                                           longer eligible for the program due to proposed improvements to the
                                           STEM OPT extension.
----------------------------------------------------------------------------------------------------------------
Monetized Benefits......................  N/A.......................  ..........................             N/A
----------------------------------------------------------------------------------------------------------------
Non-monetized Benefits..................   Increased ability of students to gain valuable knowledge and
                                           skills through on-the-job training in their field that is often
                                           unavailable in their home countries;
                                           Increased global attractiveness of U.S. colleges and
                                           universities; and
                                           Increased program oversight and strengthened requirements for
                                           program participation, and new protections for U.S. workers.
----------------------------------------------------------------------------------------------------------------
Net Benefits............................  N/A.......................  N/A.......................             N/A
----------------------------------------------------------------------------------------------------------------

IV. Background and Purpose

A. Authority, Regulatory History, and Recent Litigation

    The Secretary of Homeland Security (Secretary) has broad authority 
to administer and enforce the nation's immigration laws. See generally 
6 U.S.C. 202; Immigration and Nationality Act of 1952, as amended, 
(INA) section 103, 8 U.S.C. 1103. Section 101(a)(15)(F)(i) of the INA 
establishes the F-1 nonimmigrant classification for individuals who 
wish to come to the United States temporarily to enroll in a full 
course of study at an academic or language training school certified by 
ICE's SEVP. 8 U.S.C. 1101(a)(15)(F)(i). The INA provides the Secretary 
with broad authority to determine the time and conditions under which 
nonimmigrants, including F-1 students, may be admitted to the United 
States. 8 U.S.C. 1184(a)(1), INA section 214(a)(1). The Secretary also 
has broad authority to determine which individuals are ``authorized'' 
for employment in the United States. 8 U.S.C. 1324a(h)(3).
    Federal agencies dealing with immigration have long interpreted 
section 101(a)(15)(F)(i) of the INA and related authorities to 
encompass on-the-job-training that supplements classroom training. See, 
e.g., 12 FR 5355, 5357 (Aug. 7, 1947) (authorizing employment for 
practical training under certain conditions, pursuant to statutory 
authority substantially similar to current INA section 
101(a)(15)(F)(i)); 38 FR 35425, 35426 (Dec. 28, 1973) (also 
authorizing, pursuant to the INA, employment for practical training 
under certain conditions).\2\
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    \2\ During a brief period following the Immigration Act of 1990, 
Congress expanded employment authorization for foreign students by 
allowing for a three-year pilot program in which students could be 
employed off-campus in positions unrelated to the student's field of 
study. Pub. L. 101-649, sec. 221(a), 104 Stat. 4978, 5027 (Nov. 29, 
1990). In general, however, practical training has historically been 
limited to the student's field of study.
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    ICE manages and oversees significant elements of the F-1 
nonimmigrant student process, including the certification of schools 
and institutions in the United States that enroll nonimmigrant 
students. In overseeing these institutions, ICE uses SEVIS to track and 
monitor foreign students, and communicate with the schools that enroll 
them, while they are in the United States and participating in 
educational opportunities. This tracking

[[Page 63380]]

and monitoring program is required and supported by additional 
statutory and other authority.\3\
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    \3\ DHS derives its authority to manage these programs from 
several sources, including, in addition to the authorities cited 
above, section 641 of Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (IIRIRA), Pub. L. 104-208, 110 Stat. 
3009-546, 3009-704 (Sep. 30, 1996) (codified as amended at 8 U.S.C. 
1372), which authorizes the creation of a program to collect current 
and ongoing information provided by schools and exchange visitor 
programs regarding F and other nonimmigrants during the course of 
their stays in the United States, using electronic reporting 
technology where practicable. Consistent with this statutory 
authority, DHS manages these programs pursuant to Homeland Security 
Presidential Directive--2 (HSPD--2) (Combating Terrorism Through 
Immigration Policies, Oct. 29, 2001, as amended by HSPD--5 
(Management of Domestic Incidents, Feb. 28, 2003, Compilation of 
HSPDs (updated through Dec. 31, 2007) available at http://www.thefederalregister.org/fdsys/pkg/CPRT-110HPRT39618/pdf/CPRT-110HPRT39618.pdf), 
which requires the Secretary of Homeland Security to conduct 
periodic, ongoing reviews of institutions certified to accept F 
nonimmigrants, and to include checks for compliance with 
recordkeeping and reporting requirements, see Weekly Comp. Pres. 
Docs., 37 WCPD 1570, http://www.thefederalregister.org/fdsys/granule/WCPD-2001-11-05/WCPD-2001-11-05-Pg1570/content-detail.html; and Section 502 of 
the Enhanced Border Security and Visa Entry Reform Act of 2002 
(EBSVERA), Pub. L. 107-173, 116 Stat. 543, 563 (May 14, 2002), which 
directs the Secretary to review the compliance with recordkeeping 
and reporting requirements under 8 U.S.C. 1101(a)(15)(F) and 1372, 
and INA 101(a)(15)(F), of all schools approved for attendance by F 
students within two years of enactment, and every two years 
thereafter. Moreover, the programs discussed in this rule, as is the 
case with all DHS programs, are carried out in keeping with DHS's 
primary mission that includes the responsibility to ``ensure that 
the overall economic security of the United States is not diminished 
by the efforts, activities, and programs aimed at securing the 
homeland.'' 6 U.S.C. 111(b)(1)(F).
---------------------------------------------------------------------------

OPT Background
    A student in F-1 status may remain in the United States for the 
duration of his or her education if otherwise meeting the requirements 
for the maintenance of status. 8 CFR 214.2(f)(5)(i). Once an F-1 
student has completed his or her academic program and any subsequent 
period of OPT, the student must generally leave the United States 
unless he or she: enrolls in another academic program, either at the 
same school or at another SEVP-certified school; changes to a different 
nonimmigrant status; or otherwise legally extends his or her period of 
authorized stay in the United States. As noted, DHS regulations have 
long defined an F-1 student's duration of status to include a foreign 
student's practical training. See, e.g., 48 FR 14575, 14583 (Apr. 5, 
1983).\4\ An F-1 student is allowed a 60-day ``grace period'' after the 
completion of the academic program or OPT to prepare for departure from 
the United States. 8 CFR 214.2(f)(5)(iv).
---------------------------------------------------------------------------

    \4\ See Washington Alliance of Tech. Workers v. U.S. Dep't of 
Homeland Security, No. 1:14-cv-00529, WL (D.D.C. Aug. 12, 2015) 
(slip op.), 25-26 (finding that DHS's interpretation permitting 
``employment for training purposes without requiring school 
enrollment'' is `` `longstanding' and entitled to [judicial] 
deference'').
---------------------------------------------------------------------------

    Unless an F-1 student meets certain limited exceptions, he or she 
may not be employed in the United States during the term of his or her 
F-1 status. DHS permits an F-1 student who has been enrolled on a full-
time basis for at least one full academic year in a college, 
university, conservatory, or seminary certified by SEVP, and who has 
otherwise maintained his or her status, to apply for practical training 
to work for a U.S. employer in a job directly related to his or her 
major area of study. 8 CFR 214.2(f)(10). DHS had previously limited the 
duration of OPT to a period of up to 12 months at a given educational 
level. An F-1 student may seek employment through OPT either during his 
or her academic program (pre-completion OPT) or immediately after 
graduation (post-completion OPT). The student remains in F-1 
nonimmigrant status throughout the OPT period. Thus, an F-1 student in 
post-completion OPT does not have to leave the United States within 60 
days after graduation, but instead has authorization to remain for the 
entire post-completion OPT period. 8 CFR 214.2(f)(5)(i). This initial 
post-completion OPT period (i.e., a period of practical training 
immediately following completion of an academic program) can be up to 
12 months, except in certain circumstances involving students who 
engaged in either pre-completion OPT or what is known as ``curricular 
practical training'' (CPT).\5\
---------------------------------------------------------------------------

    \5\ CPT provides a specially-designed program through which 
students can participate in an internship, alternative study, 
cooperative education, or similar programs. 52 FR 13223 (April 22, 
1987). Currently defined to also include practicums, CPT allows 
sponsoring employers to train F-1 nonimmigrant students as part of 
the students' established curriculum within their schools. 8 CFR 
214.2(f)(10)(i). CPT must relate to and be integral to a student's 
program of study. Unlike OPT and other training or employment, 
however, CPT can be full time even while a student is attending 
school that is in session. Schools have oversight of CPT through 
their DSOs, who are currently responsible for authorizing CPT that 
is directly related to the student's major area of study and 
reporting certain information, including the employer and location, 
the start and end dates, and whether the training is full time or 
part time. 8 CFR 214.2(f)(10)(i)(B).
---------------------------------------------------------------------------

    On April 8, 2008, DHS published an interim final rule in the 
Federal Register (73 FR 18944) that, in part, extended the maximum 
period of OPT from 12 to 29 months (through a 17-month ``STEM OPT 
extension'') for an F-1 student who obtained a degree in a designated 
STEM field from a U.S. institution of higher education and who was 
engaged in practical training with an employer enrolled in the E-Verify 
employment eligibility verification program. As a result of that rule, 
F-1 students granted STEM OPT extensions were required to report to 
their DSOs any changes in their names or addresses, as well as any 
changes in their employer's information (including name or address), 
and periodically validate the accuracy of this information. The rule 
further required employers of such students to report to the relevant 
DSO within two business days if a student was terminated from or 
otherwise left employment prior to the end of the authorized period of 
OPT. The rule allowed an F-1 student to apply for post-completion OPT 
within the 60-day grace period at the conclusion of his or her academic 
program. The rule also limited the total period in which students on 
initial post-completion OPT could be unemployed to 90 days. Students 
granted 17-month STEM OPT extensions were provided an additional 30 
days in which they could be unemployed, for an aggregate period of 120 
days.
    The 2008 IFR also addressed the so-called ``Cap-Gap'' problem, 
which resulted when the expiration of an F-1 student's OPT 
authorization occurred prior to the commencement of the validity of an 
H-1B petition filed on his or her behalf. Specifically, F-1 students on 
initial post-completion OPT frequently complete their period of 
authorized practical training in June or July of the year following 
graduation. If such students are beneficiaries of H-1B petitions and 
requests for change of status for H-1B classification commencing in the 
following fiscal year (beginning on October 1), they will be unable to 
obtain their H-1B status before their OPT period expires. Prior to the 
2008 IFR, such students were often required to leave the country for a 
few months until they were able to obtain their H-1B status on October 
1. The 2008 IFR addressed this problem through a Cap-Gap provision that 
briefly extended the F-1 nonimmigrant's authorized period of stay and 
employment authorization to enable the student to remain in the United 
States until they could obtain their H-1B status.
    DHS received over 900 comments in response to the 2008 IFR. Such 
comments were submitted by a range of entities and individuals, 
including schools and universities, students, professional 
associations, labor organizations, advocacy groups, and businesses. In 
addition, DHS engaged the public and affected schools in a series of 
meetings held across the

[[Page 63381]]

country during the 2008 IFR's public comment period. DHS added 
transcripts of questions and comments from those meetings to the docket 
for the 2008 IFR.\6\ Public comments received on the 2008 IFR, and 
other records, may be reviewed at the Docket for that rule, No. ICEB-
2008-0002, available at www.regulations.gov.
---------------------------------------------------------------------------

    \6\ Many of the comments submitted to the docket for the 2008 
IFR were requests for the addition of specific programs of study to 
the STEM Designated Degree Programs list. Other comments addressed a 
variety of key issues, including concerns about the potential impact 
of the extension of OPT, unemployment limits during the 17-month 
extension of STEM OPT, the E-Verify requirement for the 17-month 
extension of STEM OPT, the distinction between pre- and post-
completion OPT, and student reporting requirements. As noted below, 
this rule proposes changes in a number of these areas, based in part 
on public input received in 2008.
---------------------------------------------------------------------------

    As described immediately below, in light of the period of time that 
has elapsed since the 2008 IFR, and due to the vacatur of that rule, 
DHS has established a new docket for this rulemaking. DHS welcomes 
comments on all aspects of this new proposal. Comments submitted on the 
2008 IFR will not be automatically incorporated into the docket for 
this rulemaking; commenters should resubmit those comments as 
necessary. DHS intends to respond to any significant comments submitted 
in connection with this proposed rule in the final rule for this 
proceeding.
Washington Alliance Litigation Regarding the 2008 IFR
    On August 12, 2015, the U.S. District Court for the District of 
Columbia issued an order in the case of Washington Alliance of Tech. 
Workers v. U.S. Dep't of Homeland Security, No. 1:14-cv-00529,___ WL 
___ (D.D.C. Aug. 12, 2015) (Washington Alliance) (slip op.). Although 
the court held that the 2008 IFR rested upon a reasonable 
interpretation of the INA, the court also held that DHS violated the 
notice and comment provisions of the Administrative Procedure Act 
(APA), 5 U.S.C. 553, by promulgating the 2008 IFR without advance 
notice and opportunity for public comment.\7\ In its order, the court 
invalidated the 2008 IFR as procedurally deficient, and remanded the 
issue to DHS.
---------------------------------------------------------------------------

    \7\ The court withheld judgment on the agency's substantive 
rationale for the 2008 IFR specifically. See Washington Alliance, at 
p. 29, n.9. As noted, however, the court found ample support for the 
Government's longstanding practice of granting F-1 students 
employment authorization for practical training.
---------------------------------------------------------------------------

    With respect to DHS's interpretation of the F-1 student visa 
provisions in the INA, the court found ample support for DHS's 
longstanding practice of ``permit[ting F-1 student] employment for 
training purposes without requiring ongoing school enrollment.'' 
Washington Alliance, at *26-27. The court recognized the Secretary's 
broad authority under the INA ``to regulate the terms and conditions of 
a nonimmigrant's stay, including its duration.'' Id. at *29 (citing 8 
U.S.C. 1103(a), 1184(a)(1)). The court also recognized the Secretary's 
authority to consider the potential economic contributions and labor 
market impacts that may result from particular regulatory decisions. 
Id. (citing 6 U.S.C. 111(b)(1)(F)).
    As noted above, the court ultimately vacated the 2008 IFR on 
procedural grounds. Recognizing the disruption and uncertainty that an 
immediate vacatur might cause, however, the court stayed the vacatur 
until February 12, 2016, to provide time for DHS to correct the 
deficiency through notice-and-comment rulemaking. Id. at *37.\8\ The 
court specifically explained that the stay was necessary to avoid 
``substantial hardship for foreign students and a major labor 
disruption for the technology sector'' and that immediate vacatur of 
the STEM OPT extension would be ``seriously disruptive.'' Id. at *36.
---------------------------------------------------------------------------

    \8\ In an earlier preliminary ruling in the case regarding 
plaintiffs challenge to DHS's general OPT and STEM OPT program, the 
court held that plaintiff did not have standing to challenge the 
general OPT program on behalf of its members because it had not 
identified a member of its association who suffered any harm from 
the general OPT program. See Washington Alliance of Tech. Workers v. 
U.S. Dep't of Homeland Security, 74 F. Supp. 3d 247, 252 & n.3 
(D.D.C. 2014). The court held in the alternative that the challenge 
to the general OPT program was barred by the applicable statute of 
limitations.
---------------------------------------------------------------------------

    Litigation in this matter is ongoing, as the plaintiff has appealed 
a portion of the court's August 12, 2015 decision. It is thus unclear 
what the final disposition of the case may be. Nevertheless, it is 
clear that if DHS does not act before the court's vacatur takes effect 
on February 12, 2016, a significant number of students may be unable to 
pursue valuable training opportunities that would otherwise be 
available to them.
    With this proposed rule, DHS proposes to provide an extension of 
OPT for certain STEM students, but with significant revisions as 
compared to the 2008 IFR. DHS thanks the public for its helpful input 
and engagement during the public comment period related to the 2008 
IFR. In light of the aforementioned developments, however, DHS has 
determined that it will replace the 2008 IFR in its entirety and seek a 
fresh round of public comment via this proposed rule. As described in 
more detail throughout this preamble, the revisions proposed by this 
rule are intended to continue and further enhance the academic benefit 
of the STEM OPT extension, while protecting STEM OPT students and U.S. 
workers. DHS welcomes public input on all aspects of this proposal and 
will consider and respond to comments on the newly proposed rule 
following the comment period.

 B. ICE and SEVIS

    As noted above, ICE's SEVP serves as the central liaison between 
the U.S. educational community and U.S. government agencies that have 
an interest in information regarding F and M nonimmigrants.\9\ ICE 
directs and oversees the process by which schools interact with F and M 
students to obtain information relevant to their immigration status and 
relay that information to the U.S. Government. ICE uses the SEVIS 
system to certify schools and designate exchange visitor programs, and 
to monitor F, J,\10\ and M nonimmigrants during their stay in the 
United States.\11\
---------------------------------------------------------------------------

    \9\ A foreign student is admitted into the United States in F-1 
nonimmigrant status to attend an academic or language training 
school or in M-1 status to attend a vocational education school. An 
accompanying spouse or minor child may be admitted as an F-2 or M-2 
dependent.
    \10\ Under section 101(a)(15)(J) of the INA, 8 U.S.C. 
1101(a)(15)(J), a foreign citizen may be admitted into the United 
States in nonimmigrant status as an exchange visitor (J visa). The 
Department of State (DOS) designates and manages exchange visitor 
programs.
    \11\ See IIRIRA sec. 641 (codified as amended at 8 U.S.C. 1372) 
(requiring the creation of a program to collect current and ongoing 
information provided by schools and exchange visitor programs 
regarding F, J, or M nonimmigrants during the course of their stay 
in the United States, using electronic reporting technology where 
practicable). IIRIRA also authorized the Secretary, acting through 
SEVP, to certify schools to participate in F or M student 
enrollment.
---------------------------------------------------------------------------

    ICE's SEVP carries out its programmatic responsibilities through 
SEVIS, a Web-based data entry, collection and reporting system. DHS, 
DOS, and other government agencies, as well as SEVP-certified schools 
and DOS-designated exchange visitor programs, use SEVIS data to monitor 
F, J, and M nonimmigrants for the duration of their admission in the 
United States. ICE and DOS require certified schools and designated 
exchange visitor programs to update information on their approved F, J, 
and M nonimmigrants regularly after their admission into the United 
States and throughout their stay. SEVIS data is also used to verify the 
eligibility of individuals applying for F, J, and M nonimmigrant 
status, to expedite port of entry screening by U.S. Customs and

[[Page 63382]]

Border Protection, to assist USCIS in processing immigration benefit 
applications, to monitor nonimmigrant status maintenance and, as 
needed, to facilitate timely removal.

 C. Basis and Purpose of Regulatory Action

    As noted above, this proposed rule would effectively reinstitute 
portions of the 2008 IFR, with significant modifications and 
enhancements. Public comments received on the 2008 IFR were 
overwhelmingly positive. Although, as described in more detail below, 
many commenters recommended specific changes to the STEM OPT extension 
and some commenters objected to the 2008 IFR altogether, the vast 
majority of commenters--including students, educational institutions, 
advocacy groups, and STEM employers--expressed strong support for the 
rule's main provisions. DHS continues to believe that practical 
training is frequently a key element of F-1 students' educational 
experience, and that STEM students in particular may benefit from an 
extended period of time in practical training. For the reasons 
discussed below, DHS also believes that attracting and retaining such 
students is in the short-term and long-term economic, cultural, and 
security interests of the nation.
    DHS also recognizes that it must quickly address the imminent 
vacatur of the 2008 IFR, and the significant uncertainty surrounding 
the status of thousands of students in the United States. As of 
September 16, 2015, over 34,000 students were in the United States on a 
STEM OPT extension. In addition, hundreds of thousands of international 
students, most of whom are in F-1 status, have already chosen to enroll 
in U.S. educational institutions and are currently pursuing courses of 
study in fields that may provide eligibility for this program. Some of 
those students may have considered the opportunities offered by the 
STEM OPT extension when deciding whether to pursue their degree in the 
United States. DHS must therefore act swiftly to mitigate the 
uncertainty surrounding the 2008 IFR. Prompt action is particularly 
appropriate with respect to those students who have already committed 
to study in the United States, in part based on the possibility of 
furthering their education through an extended period of practical 
training in the world's leading STEM economy.\12\
---------------------------------------------------------------------------

    \12\ The National Science Foundation reports that the United 
States is the largest single science and engineering R&D-performing 
nation in the world, accounting for just under 30% of the global 
total. See Science and Engineering Indicators 2014 (NSF) at Chapter 
4 (International Comparisons), at 4-17, available at http://www.nsf.gov/statistics/seind14/index.cfm/chapter-4. According to 
NSF, the United States expends $429 billion of the estimated $1.435 
trillion in global science and engineering R&D (p. 4-17), and 
business, government, higher education, and non-profits in the 
United States expend more than double that of any other country 
(Table 4-5).
---------------------------------------------------------------------------

1. Benefits of International Students in the United States
    In proposing this rule, DHS recognizes the substantial economic, 
scientific, technological, and cultural benefits provided by the F-1 
nonimmigrant program generally, and the STEM OPT extension in 
particular. As described below, international students have 
historically made significant contributions to the United States, both 
through the payment of tuition and other expenditures in the U.S. 
economy, as well as by significantly enhancing academic discourse and 
cultural exchange on campuses throughout the United States. In addition 
to these general benefits, STEM students further contribute through 
research, innovation, and the provision of knowledge and skills that 
help maintain and grow increasingly important sectors of the U.S. 
economy.
    Foreign students, for example, regularly contribute a significant 
amount of money into the U.S. economy. According to statistics compiled 
by the Association of International Educators (NAFSA), foreign students 
made a net contribution of $26.8 billion to the U.S. economy in the 
2013-2014 academic year.\13\ This contribution included tuition ($19.8 
billion) and living expenses for self and family ($16.7 billion), after 
adjusting for U.S. financial support ($9.7 billion).\14\ And public 
colleges and universities particularly benefit from the payment of 
tuition by foreign students, especially in comparison to the tuition 
paid by in-state students.\15\
---------------------------------------------------------------------------

    \13\ NAFSA: Association of International Educators, ``The 
Economic Benefits of International Students: $26.8 billion 
Contributed; 340,000 U.S. Jobs Supported; Economic Analysis for 
Academic Year 2013-2014'', available at http://www.nafsa.org/_/File/_/eis2014/USA.pdf.
    \14\ Id.
    \15\ Washington Post, ``College Group Targets Incentive Payments 
for International Student Recruiters'' (June 2, 2011), available at 
http://www.washingtonpost.com/local/education/college-group-targets-incentive-payments-for-international-student-recruiters/2011/05/31/AGvl5aHH_story.html.
---------------------------------------------------------------------------

    Foreign students also increase the benefits of academic exchange, 
while reinforcing ties with foreign countries and fostering increased 
understanding of American society.\16\ International students, for 
example ``enrich U.S. universities and communities with unique 
perspectives and experiences that expand the horizons of American 
students and [make] U.S. institutions more competitive in the global 
economy.'' \17\ At the same time, ``the international community in 
American colleges and universities has implications regarding global 
relationships, whether that is between nation-states, or global 
business and economic communities.'' \18\ International education and 
exchange at the post-secondary level in the United States builds 
relationships that ``promote cultural understanding and dialogue,'' 
integrating a global dimension into the purpose and functions of higher 
education through the ``diversity in culture, politics, religions, 
ethnicity, and worldview'' brought by international students in the 
United States.\19\
---------------------------------------------------------------------------

    \16\ See The White House, National Security Strategy 29 (May 
2010), available at https://www.whitehouse.gov/sites/default/files/rss_viewer/national_security_strategy.pdf.
    \17\ U.S. Department of State, ``Why Internationalize,'' 
available at https://educationusa.state.gov/us-higher-education-professionals/why-internationalize (last visited Sept. 29, 2015).
    \18\ Pamela Leong, ``Coming to America: Assessing the Patterns 
of Acculturation, Friendship Formation, and the Academic Experiences 
of International Students at a U.S. College,'' Journal of 
International Students Vol. 5 (4): 459-474 (2015) at p. 459.
    \19\ Hugo Garcia and Maria de Lourdes Villareal, ``The 
``Redirecting'' of International Students: American Higher Education 
Policy Hindrances and Implications,'' Journal of International 
Students Vol. 4 (2): 126-136 (2014) at p. 132.
---------------------------------------------------------------------------

    Accordingly, foreign students provide substantial benefits to their 
U.S. colleges and universities, including beneficial economic and 
cultural impacts. A study by Duke University in 2013 analyzing 5,676 
alumni surveys showed that ``substantial international interaction was 
positively correlated with U.S. students' perceived skill development 
in a wide range of areas across three cohorts.'' \20\ Current research 
also suggests that international students contribute to the overall 
economy by building global connections between their hometowns and U.S. 
host cities.\21\ Evidence links skilled migration to transnational 
business creation, trade,

[[Page 63383]]

and direct investment between the United States and a migrant's country 
of origin.\22\
---------------------------------------------------------------------------

    \20\ Jiali Luo and David Jamieson-Drake, ``Examining the 
Educational Benefits of Interacting with International Students'' at 
96 (June 2013), available at https://jistudents.files.wordpress.com/2013/05/2013-volume-3-number-3-journal-of-international-students-published-in-june-1-2013.pdf. The authors noted that U.S. 
educational institutions play an important role in ensuring U.S. 
students benefit as much as possible from this interaction.
    \21\ Brookings Institution, ``The Geography of Foreign Students 
in U.S. Higher Education: Origins and Destinations'' (August 29, 
2014), available at http://www.brookings.edu/research/interactives/2014/geography-of-foreign-students#/M10420.
    \22\ Sonia Plaza, Diaspora resources and policies, in 
International Handbook on the Economics of Migration, 505-529 
(Amelie F. Constant and Klaus F. Zimmermann, eds., 2013).
---------------------------------------------------------------------------

    Foreign STEM students, of course, contribute to the United States 
in all the ways mentioned above. But they also contribute more 
specifically to a number of advanced and innovative fields that are 
critical to national prosperity and security. By conducting scientific 
research, developing new technologies, advancing existing technologies, 
and creating new products and industries, for example, STEM workers 
diversify the economy and drive economic growth, while also producing 
increased employment opportunities and higher wages.\23\ A premise 
supported by economic research is that Scientists, Technology 
professionals, Engineers, and Mathematicians (STEM workers) are 
fundamental inputs in scientific innovation and technological adoption, 
critical drivers of productivity growth in the United States.\24\ For 
example, research has shown that foreign students who earn a degree and 
remain in the United States are more likely than native-born workers to 
engage in activities, such as patenting and the commercialization of 
patents, that increase U.S. labor productivity.\25\ Similarly, other 
research has found that a one percentage-point increase in immigrant 
college graduates' population share increases patents per capita by 9 
to 18 percent.\26\ Research has also shown that foreign-born workers 
are particularly innovative, especially in research and development, 
and that they have positive spillover effects on native-born 
workers.\27\ One paper, for example, shows that foreign-born workers 
patent at twice the rate of U.S.-born workers, and that U.S.-born 
workers patent at greater rates in areas with more immigration.\28\ The 
quality of the nation's STEM workforce in particular has played a 
central role in ensuring national prosperity over the last century and 
helps bolster the nation's economic future.\29\ This, in turn, has 
helped to enhance national security, which is dependent on the nation's 
ability to maintain a growing and innovative economy.\30\ Innovation is 
crucial for economic growth, which in turn is vital to continued 
funding for defense and security.\31\
---------------------------------------------------------------------------

    \23\ See Michael Greenstone and Adam Looney, ``A Dozen Economic 
Facts About Innovation'' 2-3, available at http://www.brookings.edu/
~/media/research/files/papers/2011/8/innovation-greenstone-looney/
08_innovation_greenstone_looney.pdf [hereinafter Greenstone and 
Looney]; Bureau of Labor Statistics 2014 data show that employment 
in occupations related to STEM has been projected to grow more than 
9 million, or 13 percent, during the period between 2012 and 2022, 2 
percent faster than the rate of growth projected for all 
occupations. Bureau of Labor Statistics, Occupational Outlook 
Quarterly, Spring 2014, ``STEM 101: Intro to Tomorrow's Jobs'' 6, 
available at http://www.stemedcoalition.org/wp-content/uploads/2010/05/BLS-STEM-Jobs-report-spring-2014.pdf. See also, Australian 
Government, Strategic Review of the Student Visa Program 2011 
Report, ix, 1 (June 30, 2011), available at http://www.border.gov.au/ReportsandPublications/Documents/reviews-and-inquiries/2011-knight-review.pdf#search=knight%20review (concluding 
that the economic benefit of international masters and doctoral 
research students includes third-party job creation).
    \24\ See e.g., Giovanni Peri, Kevin Shih, Chad Sparber, 
``Foreign STEM Workers and Native Wages and Employment in U.S. 
Cities,'' (National Bureau of Economic Research, May 2014), 
available at http://www.nber.org/papers/w20093.
    \25\ Jennifer Hunt, ``Which Immigrants are Most Innovative and 
Entrepreneurial? Distinctions by Entry Visa,'' Journal of Labor 
Economics Vol 29 (3): 417-457 (2011).
    \26\ Jennifer Hunt and Marjolaine Gauthier-Loiselle, ``How Much 
Does Immigration Boost Innovation?'' American Economic Journal: 
Macroeconomics 2: 31-56 (2010).
    \27\ Id.
    \28\ Id.
    \29\ Greenstone and Looney, supra note 23, at 2-3.
    \30\ See Congressional Research Service, Economics and National 
Security: Issues and Implications for U.S. Policy 28, available at 
https://www.fas.org/sgp/crs/natsec/R41589.pdf [hereinafter Economics 
and National Security]; see also The White House, National Security 
Strategy 16 (Feb. 2015), available at https://www.whitehouse.gov/sites/default/files/docs/2015_national_security_strategy.pdf 
(``Scientific discovery and technological innovation empower 
American leadership with a competitive edge that secures our 
military advantage, propels our economy, and improves the human 
condition.'') [hereinafter 2015 National Security Strategy]; The 
White House, National Security Strategy 29 (May 2010), available at 
https://www.whitehouse.gov/sites/default/files/rss_viewer/national_security_strategy.pdf (``America's long-term leadership 
depends on educating and producing future scientists and 
innovators.'').
    \31\ The 2015 National Security Strategy concludes that ``the 
American economy is an engine for global growth and a source of 
stability for the international system. In addition to being a key 
measure of power and influence in its own right, it underwrites our 
military strength and diplomatic influence. A strong economy, 
combined with a prominent U.S. presence in the global financial 
system, creates opportunities to advance our security.'' 2015 
National Security Strategy, supra note 30, at 15.
---------------------------------------------------------------------------

2. Increased Competition for International Students
    DHS recognizes that the United States has long been a global leader 
in international education. The number of foreign students affiliated 
with U.S. colleges and universities grew by 72 percent between 1999 and 
2013 to a total of 886,052.\32\ However, although the overall number of 
foreign students increased over that period, the nation's share of such 
students decreased. In 2001, the United States received 28 percent of 
international students; by 2011 that share had decreased to 19 
percent.\33\ Countries such as Canada, the United Kingdom, New Zealand, 
Australia, Malaysia, Taiwan, and China are actively instituting new 
strategies to attract international students.\34\
---------------------------------------------------------------------------

    \32\ Pew Research Center, ``Growth from Asia Drives Surge in 
U.S. Foreign Students'' (June 18, 2015), available at http://www.pewresearch.org/fact-tank/2015/06/18/growth-from-asia-drives-surge-in-u-s-foreign-students/ (citing Institute for International 
Education, Open Doors Data: International Students: Enrollment 
Trends, available at http://www.iie.org/Research-and-Publications/Open-Doors/Data/International-Students/Enrollment-Trends/1948-2014).
    \33\ Organization for Economic Co-operation and Development 
(OECD) 2014, ``Education at a Glance 2014: OECD Indicators,'' OECD 
Publishing at http://dx.doi.org/10.1787/eag-2014-en or http://www.oecd.org/edu/eag.htm.
    \34\ University World News Global Edition Issue 376, ``Schools 
are the New Battleground for Foreign Students'' (July 15, 2015), 
available at http://www.universityworldnews.com/article.php?story=201507150915156.
---------------------------------------------------------------------------

    For example, Canada also recognizes that educational institutions 
need international students to compete in the ``global race for 
research talent.'' \35\ In April, 2008, Canada modified its Post-
Graduation Work Permit Program to allow international students who have 
graduated from a recognized Canadian post-secondary institution to stay 
and gain valuable post-graduate work experience for a period equal to 
the length of the student's study program, up to a maximum of three 
years, with no restrictions on type of employment.\36\ This change 
resulted in a 64% increase in the number of post-graduation work 
permits issued to international students in 2008.\37\ By 2014, the 
number of international

[[Page 63384]]

students in the program more than doubled its 2008 total.\38\ In 
addition, Canada aims to double the number of international students in 
the country to 450,000 by 2022.\39\
---------------------------------------------------------------------------

    \35\ Citizenship and Immigration Canada, ``Evaluation of the 
International Student Program'' 14 (July 2010) available at http://www.cic.gc.ca/english/pdf/research-stats/2010-eval-isp-e.pdf (citing 
Association of Universities and Colleges of Canada, Momentum: The 
2008 report on university research and knowledge mobilization: A 
Primer: Driver 2: Global race for research talent, 3 (2008) 
[hereinafter Evaluation of the Int'l Student Program].
    \36\ Citizenship and Immigration Canada, Study permits: Post 
Graduation Work Permit Program, available at http://www.cic.gc.ca/english/resources/tools/temp/students/post-grad.asp [hereinafter 
Canadian Study permits]. Similarly, Australia, now offers 
international students who graduate with a higher education degree 
from an Australian education provider, regardless of their field of 
study, a post-study work visa for up to four years, depending on the 
student's qualification. Students who complete a bachelor's degree 
may receive a two-year post study work visa, research graduates with 
a master's degree are eligible for a three-year work visa, and 
doctoral graduates are eligible for a four-year work visa. See 
Australian Department of Immigration and Border Protection, 
Application for a Temporary Graduate visa, available at http://www.border.gov.au/FormsAndDocuments/Documents/1409.pdf [hereinafter 
Australian Temporary Grad. visa].
    \37\ Evaluation of the Int'l Student Program, supra note 29, at 
9.
    \38\ Citizenship and Immigration Canada, Quarterly 
Administrative Data Release, available at http://www.cic.gc.ca/english/resources/statistics/data-release/2014-Q4/index.asp.
    \39\ University World News Global Edition, Schools are the New 
Battleground for Foreign Students, July 15, 2015, Issue 376, 
available at http://www.universityworldnews.com/article.php?story=201507150915156.
---------------------------------------------------------------------------

    In light of the United States' decrease in the percentage of 
international students received, and increased global efforts to 
attract them, DHS believes that the United States must take additional 
steps to improve these students' educational experience (both academic 
and practical) to ensure that we do not continue to lose ground. This 
is particularly true for foreign STEM students, who have comprised a 
significant portion of students in STEM degree programs in the United 
States, particularly at the graduate degree level.
    The difference is particularly stark at the doctoral level, where 
foreign students earned 56.9 percent of all doctoral degrees in 
engineering; 52.5 percent of doctoral degrees in computer and 
information sciences; and approximately half the doctoral degrees in 
mathematics and statistics in the 2012-2013 academic year.\40\ 
Recognizing that the international education programs for these 
students are increasingly competitive, DHS is committed to helping U.S. 
educational institutions contend with the expanded and diverse global 
opportunities for international study.
---------------------------------------------------------------------------

    \40\ Pew Research Center, ``Growth from Asia Drives Surge in 
U.S. Foreign Students'' (June 18, 2015), available at http://www.pewresearch.org/fact-tank/2015/06/18/growth-from-asia-drives-surge-in-u-s-foreign-students/.
---------------------------------------------------------------------------

3. The Need to Improve the Existing STEM OPT Extension
    With this proposed rule, DHS also recognizes the need to strengthen 
the existing STEM OPT extension to enhance the academic benefit of the 
program and maintain the nation's economic, scientific, and 
technological competitiveness. DHS is working to find new and 
innovative ways to encourage international STEM students to choose the 
United States as a destination for their studies. This proposal, in 
addition to including a modified version of the STEM OPT extension from 
the 2008 IFR, would increase the maximum training time period for STEM 
students, require a formal mentoring and training plan for each STEM 
OPT extension, and take steps to strengthen protections for F-1 
nonimmigrant students and U.S. workers. Providing an on-the-job 
educational experience through a U.S. employer qualified to develop and 
enhance skills through practical application has been DHS's primary 
guiding objective.
    Many of the elements of this proposed rule have been the result of 
public comment on the 2008 IFR, which contained input from a range of 
stakeholders, including students and the broader academic community. 
This proposal also incorporates recommendations from the Homeland 
Security Academic Advisory Committee (HSAAC).\41\ Following an in-depth 
review of stakeholder feedback, DHS believes that the changes proposed 
by this rule to the existing STEM OPT extension would benefit both F-1 
students and international study programs in the United States, while 
adding important protections.
---------------------------------------------------------------------------

    \41\ The HSAAC provides advice and recommendations to the 
Secretary and senior leadership on matters related to homeland 
security and the academic community, including: student and recent 
graduate recruitment, international students, academic research and 
faculty exchanges, campus resilience, homeland security academic 
programs, and cybersecurity. See U.S. Department of Homeland 
Security, Homeland Security Academic Advisory Council Charter, 
available at http://www.dhs.gov/publication/hsaac-charter.
---------------------------------------------------------------------------

    The changes will help improve the ability of F-1 STEM students to 
gain valuable on-the-job training from employers qualified to develop 
and enhance skills through practical application. Maintaining and 
improving practical training for STEM students provides these students 
with an improved ability to absorb a full range of project-based 
practical skills and knowledge directly related to their study.
    The proposed changes will also help the nation's colleges and 
universities remain globally competitive, including by improving their 
ability to attract foreign STEM students to study in the United States. 
As noted above, these students enrich the cultural and academic life of 
college and university campuses throughout the United States and make 
important contributions to the U.S. economy and academic sector. The 
changes proposed in this rule will help strengthen the overall F-1 
program in the face of growing international competition for the 
world's most promising international students.
    Additionally, safeguards such as employer attestations, requiring 
employers to enroll in E-Verify, providing for DHS site visits, and 
requiring that STEM training opportunities provide commensurate terms 
and conditions to those provided to U.S. workers will help protect both 
STEM OPT students and U.S. workers. Implementing the changes proposed 
in this rule thus will more effectively assist STEM OPT students with 
achieving the objectives of their courses of study while also 
benefiting U.S. academic institutions and guarding against adverse 
effects on U.S. workers.
    Finally, DHS notes that the focus of this rule on the extension of 
OPT for STEM students also represents a step by the agency to improve a 
discrete portion of the practical training program.\42\ DHS is not 
considering adding the requirements contained within this rulemaking to 
the general OPT program at this time. DHS may, however, consider the 
impacts of these proposed changes, once implemented, as a model for 
possible future changes to practical training programs more generally.
---------------------------------------------------------------------------

    \42\ During calendar year 2014, the number of students 
participating in a STEM OPT extension represented approximately 8.5 
percent of all OPT participation.
---------------------------------------------------------------------------

 V. Discussion of Elements of the STEM OPT Extension

A. Including a STEM OPT Extension Within the OPT Program

    As referenced above, DHS is taking this action to include a STEM 
OPT extension as part of the OPT program under the F-1 nonimmigrant 
classification in order to better ensure, among other important 
national interests, that the U.S. academic sector can remain 
competitive globally. Enabling continued extended OPT for qualifying 
students with experience in STEM fields is consistent with DHS's 
``Study in the States'' initiative, announced after the 2008 IFR in 
September 2011 to encourage international students to study in the 
United States. That initiative particularly focused on enhancing our 
nation's economic, scientific and technological competitiveness by 
finding new ways to encourage talented international students to become 
involved in expanded post-graduate opportunities in the United States. 
The initiative has taken various steps to enhance and improve the 
Nation's nonimmigrant student programs.\43\
---------------------------------------------------------------------------

    \43\ See ``Study in the States,'' U.S. Department of Homeland 
Security, http://studyinthestates.dhs.gov.
---------------------------------------------------------------------------

    The proposed rule would enhance the ability of F-1 students to 
achieve the objectives of their courses of study while also benefiting 
the U.S. economy. More students will return home confident in their 
training, ready to begin a career in their field of study; others may 
take advantage of other provisions proposed herein to request to

[[Page 63385]]

change status following a STEM OPT extension and help further drive 
economic growth and cultural exchange in the United States.

B. STEM Extension Period for OPT

    As noted above, in the 2008 IFR, DHS implemented a 17-month STEM 
OPT extension to provide STEM students and employers with improved OPT 
opportunities beyond the initial year of practical training. The 17-
month period was intended to allow STEM students to receive additional 
practical experience aligned with their educational degree, and it 
would generally terminate near the beginning of the fiscal year. 
Following seven years of experience with the STEM OPT extension, DHS 
has decided in this rule to re-evaluate its length. Consistent with the 
discussion above, DHS believes the STEM OPT extension should first and 
foremost be targeted to complement the student's academic experience. 
The length of any extension should aim to produce an optimal 
educational experience in the relevant field of study, particularly 
given the complex nature of STEM projects and associated skill-
development that require relatively lengthy time frames. The length 
should be conditioned on full compliance with the other requirements 
set forth in this preamble.
    DHS proposes in this rule to increase the STEM OPT extension period 
to 24 months for students meeting the qualifying requirements. This 24-
month extension, when combined with the 12 months of initial post-
completion OPT, would effectively allow STEM students up to 36 months 
of practical training. DHS would also provide, for students who 
subsequently attain another STEM degree at a higher educational level, 
the ability to participate in an additional 24-month extension of any 
post-completion OPT based upon that second STEM degree.\44\ The 
duration of an extension would be set at 24 months, rather than limited 
to a shorter period, due to the complexity and typical durations of 
research, development, testing, and other projects commonly undertaken 
in STEM fields. Affording greater participation in STEM training 
through changes to the period of the STEM OPT extension would also help 
the nation and its academic institutions remain competitive in light of 
global efforts offering international students longer post-study 
training experience without restrictions on the type of work that may 
be performed.\45\
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    \44\ DHS notes that, under this proposal, a student seeking to 
obtain a second STEM OPT extension during his or her lifetime will 
be unable to link this extension with his or her first extension. 
The student would need to complete a new initial post-completion 
practical training period and request a new STEM extension based on 
a different STEM degree. DHS welcomes comments on this aspect of the 
proposal.
    \45\ See, e.g., Canadian Study permits and Australian Temporary 
Grad. visa, supra note 36.
---------------------------------------------------------------------------

    DHS considered many factors in determining the proposed length for 
an improved STEM OPT extension period. An important consideration was 
the general duration of projects to be pursued by students on STEM OPT 
extensions. DHS believes that students participating in practical 
training in STEM fields should be encouraged to pursue meaningful 
projects that contribute to a deeper understanding of their field of 
study and help develop the practical skills necessary to advance their 
careers. This type of significant project--often involving a grant or 
fellowship application, management of grant money, focused research, 
and publication of a report--typically requires several years to 
complete. Stakeholders have indicated, moreover, that this process 
often takes longer in the STEM community than in other academic or 
business areas. For example, the National Science Foundation (NSF) 
typically funds projects through grants that last for up to three 
years.\46\ And in many fields such as mathematics, computer science, 
and the social sciences, NSF is the major source of federal 
funding.\47\
---------------------------------------------------------------------------

    \46\ Id. at sec. II.c.2.a.(4)(b) (``The proposed duration for 
which support is requested must be consistent with the nature and 
complexity of the proposed activity. Grants are normally awarded for 
up to three years but may be awarded for periods of up to five 
years.''). For instance, NSF funding rate data show that in fiscal 
years 2012-2014, grant awards for biology were provided for an 
average duration of 2.87, 2.88, and 2.81 years, respectively.
    \47\ ``About the National Science Foundation,'' NSF, http://www.nsf.gov/about/. Such grants are commonly solicited by and 
awarded to organizations similar to those in the STEM OPT employer 
community, including universities, colleges, and research 
laboratories having strong capabilities in scientific or engineering 
research or education, and cooperative projects that involve both 
universities and the private sector. See NSF, ``Grant Proposal 
Guide'' (December 2014), available at http://www.nsf.gov/pubs/policydocs/pappguide/nsf15001/gpg_1.jsp#categories (listing 
categories of organizations that are eligible to submit grant 
proposals). Based on SEVIS data, three of the top six employers 
offering STEM OPT opportunities and employing STEM OPT students that 
have begun over the past five years are either higher education 
institutions or entities conducting research affiliated with 
universities.
---------------------------------------------------------------------------

    Fostering integration of research and education through the types 
of programs, projects, and activities described above will help 
recruit, train, and prepare a diverse STEM workforce to advance the 
frontiers of science and participate in the U.S. technology-based 
economy.\48\ Combined with the initial 12-month OPT period, a maximum 
24-month STEM OPT extension would provide students a sufficient 
opportunity to participate through the life of such a grant.\49\ 
Accordingly, and following consultation with the Department of 
Education and the National Science Foundation (NSF), DHS believes that 
an appropriate benchmark for the maximum duration of OPT for STEM 
students is the standard duration of an NSF grant--approximately three 
years.
---------------------------------------------------------------------------

    \48\ Id., available at http://www.nsf.gov/pubs/policydocs/pappguide/nsf15001/gpg_2.jsp.
    \49\ Although DHS has considered tailoring the length of the 
STEM OPT extension in this rule to individual student practical 
training proposals, DHS's initial assessment is that an across-the-
board maximum period for such extensions would be significantly more 
straightforward to administer and would also be consistent with past 
administration of the general OPT program, as well as the existing 
STEM OPT extension.
---------------------------------------------------------------------------

    DHS anticipates that the 24-month extension would significantly 
enhance the academic benefit of a STEM student's OPT experience. As 
noted above, many research projects take years to complete, and under 
the new STEM OPT extension, a student would have increased 
opportunities to learn how to apply for a grant or fellowship, become a 
responsible steward of grant money, initiate a study or project, see 
the study or project through to conclusion, write a report and obtain 
peer review, and have the report published. DHS requests public comment 
and the submission of empirical data in relation to this proposition. 
In addition, DHS requests public comment regarding the length of 
research, development, testing and other projects for which STEM 
graduates (regardless of nationality) from U.S. universities are 
typically assigned in the workplace.
    DHS also proposes to allow a student who has completed a STEM OPT 
extension pursuant to previous study in the United States and who 
obtains another qualifying degree at a higher degree level (or has a 
qualifying prior degree, as discussed in more detail below), to qualify 
for eligibility for a second 24-month STEM OPT extension upon the 
expiration of the general period of OPT based on that additional 
degree.
    DHS requests public comment on the proposed 24-month STEM OPT 
extension and the ability for qualifying students to receive an 
additional such STEM OPT extension based on a second STEM degree. In 
particular, DHS requests comment from STEM students, educational 
institutions, and employers on the appropriate STEM OPT extension 
length to ensure that practical training

[[Page 63386]]

for STEM students is most meaningfully educational and beneficial to 
them, and less disruptive for institutions and employers. DHS is 
particularly interested in public input regarding whether 24 months is 
the appropriate duration for STEM OPT extensions, or whether a shorter 
or longer duration (e.g., 17 months or 36 months) is preferable, and 
why.
    As a transitional measure, DHS is also proposing to allow a subset 
of students already on a 17-month extension to take advantage of the 
proposed 24-month program, consistent with the requirements set forth 
in this proposed rule. Qualifying students would be able to request the 
balance of the modified extension up to 120 days before the end of the 
student's 17-month period. Such requesting students would have to meet 
all requirements of the new STEM OPT extension proposal, including 
submission of the Mentoring and Training Plan described below.
    With respect to applications for STEM OPT extension currently 
pending before DHS or submitted prior to the effective date of any 
final rule, DHS intends to adjudicate the application consistent with 
the regulations that existed at the time the application was submitted 
(i.e., such applications, if approved, would result in a 17-month 
extension). Following the effective date of a final rule with a 
different STEM OPT extension duration, a student would then be able to 
request the balance of the modified extension up to 120 days before the 
end of the student's 17-month period, provided the student meets all 
requirements of the new STEM OPT extension proposal, including 
submission of the Mentoring and Training Plan. In the alternative, a 
student with a pending application for a 17-month extension may also 
choose to withdraw that application and file a new application for the 
proposed 24-month STEM OPT extension.
    DHS is making every effort to have a final rule take effect prior 
to February 13, 2016, when the stay on the vacatur of the 2008 IFR is 
currently set to expire. In the event, however, that a final rule 
resulting from this rulemaking does not take effect before the vacatur 
of the 2008 IFR, DHS will lack clear regulatory authority to grant 
pending applications for STEM OPT extensions. In that case, DHS will 
evaluate options to address pending applications, such as returning 
such applications and requiring re-filing upon completion of a final 
rule. DHS seeks comments on these and other options for addressing 
pending applications if a final rule is not in place prior to the 
court's vacatur, including comments on the harm that such a gap may 
cause.
    DHS welcomes comments regarding each of the proposed transition 
procedures described above, including alternatives to the potential 
courses of action identified here.

 C. STEM Definition and CIP Categories for STEM OPT Extension

    The 2008 IFR first introduced the STEM Designated Degree Program 
list, which includes all Department of Education CIP codes that are 
eligible for the current 17-month extension. The 2008 IFR noted that 
any future changes to the list would be posted on SEVP's Web site, but 
did not set forth a formal definition for ``STEM fields'' or a public 
notice process regarding updates to the list. Many commenters on the 
2008 IFR indicated that the STEM OPT extension should be available to 
students in all fields of study, or that the list promulgated at that 
time be expanded to include various other degree programs. DHS has 
taken these concerns into consideration in crafting a proposed approach 
for this rule that seeks to strike a reasonable balance between the 
current understanding of STEM needs and potential future changes in 
these fields. The approach focuses on generally understood STEM degree 
fields that are of particular academic and practical demand for the 
U.S. and international community, while also ensuring flexibility for 
potential changes as fields of study in STEM sectors evolve with 
changes in technology, as well as in academic programs, interests and 
trends.
    DHS proposes in this rulemaking a general definition of ``STEM 
fields'' and proposes a process for public notification in the Federal 
Register when DHS updates the Designated Degree Program list on SEVP's 
Web site. DHS would continue to produce a list identifying the groups 
within the Department of Education's CIP taxonomy that qualify as 
appropriate categories for the STEM OPT extension. DHS may from time to 
time revise the Designated Degree Program list based upon the dynamic 
nature of STEM fields and potential changes to the CIP taxonomy.
    To provide a clear definition to guide changes to the STEM 
Designated Degree Program list, DHS proposes to utilize the description 
referenced by the Department of Education's National Center for 
Education Statistics (NCES), Institute of Education Services, to define 
``STEM fields.'' DHS would define ``STEM field'' as a field included in 
the Department of Education's CIP taxonomy within the summary groups 
containing mathematics, natural sciences (including physical sciences 
and biological/agricultural sciences), engineering/engineering 
technologies, and computer/information sciences, and related fields. 
DHS believes the NCES definition provides a sound basis because it not 
only encompasses many of the fields already contained on the current 
STEM Designated Degree Program list, but draws on the Department of 
Education's expertise in the area of higher education and academic 
studies generally. ICE often defers to the Department of Education's 
definitions or processes in the area of higher education. DHS therefore 
proposes that the definition of STEM fields encompass mathematics, 
natural sciences (including physical sciences and biological/
agricultural sciences), engineering/engineering technologies, and 
computer/information sciences, as well as related fields.\50\ DHS 
believes that a clear definition of the types of degree fields eligible 
under the regulation would improve the process for altering categories 
contained within the STEM Designated Degree Program list.
---------------------------------------------------------------------------

    \50\ U.S. Department of Education National Center for Education 
Statistics Institute of Education Sciences, ``Stats in Brief'' (July 
2009), available at http://nces.ed.gov/pubs2009/2009161.pdf.
---------------------------------------------------------------------------

    DHS believes that its definition of STEM fields should be tailored 
to capture those STEM fields of study for which an extension of 
practical training is most beneficial. DHS requests comment from the 
public on the academic benefit of the STEM OPT extension for STEM 
students generally as well as for specific STEM fields. DHS also 
requests comment on whether changes to the current content or structure 
of the list may be helpful or appropriate.\51\ Although DHS is not 
currently considering expanding the STEM OPT extension to non-STEM 
fields, commenters are encouraged to compare STEM and non-STEM fields 
of study for purposes of commenting on this definition. As is the 
current process, DHS envisions that, upon finalizing this proposed 
rule, the agency would continue to accept, for DHS review, suggested 
additions to the STEM Designated Degree Program list at 
[email protected]
---------------------------------------------------------------------------

    \51\ The current list is available in the docket for this 
rulemaking. Future revisions may include additional degrees, 
including degrees listed within the summary groups for Agriculture, 
Agriculture Operations, and Related Sciences; Computer and 
Information Sciences and Support Services; Engineering; Engineering 
Technologies and Engineering-Related Fields; Biological and 
Biomedical Sciences; Mathematics and Statistics; and Physical 
Sciences.

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[[Page 63387]]

D. Mentoring and Training Plan

    Multiple commenters to the 2008 IFR highlighted the important 
academic benefits associated with OPT participation. Commenters 
emphasized that real-world experience is a vital part of the 
educational experience, and that the opportunity for OPT participation 
draws high-quality students to the United States from around the world. 
Other commenters noted that the 2008 IFR did not include an explicit 
mechanism to inform employers of the purpose of or requirements 
associated with practical training.
    The proposed rule seeks to ensure that the STEM OPT extension more 
effectively enables STEM OPT students to obtain valuable practical work 
experience directly related to their fields of study. To achieve this 
aim, the proposed rule requires that employers incorporate a formal 
mentoring and training program for STEM OPT students. Mentoring is a 
time-tested and widely used strategic approach to developing 
professional skills. The mentor should be an experienced employee or 
group of employees who would teach and counsel the student. As part of 
this mentoring and training program, the employer would agree to take 
responsibility for the student's training and ensure that skill 
enhancement is the primary goal. The student would be required to 
prepare a formalized Mentoring and Training Plan with the employer and 
to submit the plan to the student's DSO before the DSO could recommend 
a STEM OPT extension in the student's SEVIS record. This would 
generally provide review of the Mentoring and Training Plan by the 
educational institution granting the degree related to the training. In 
cases where the student intends to use the newly proposed option of 
requesting an extension based on a previously-obtained degree, the 
review would come from the institution that provided the student's most 
recent degree (i.e., the institution whose official is certifying, 
based on SEVIS or official transcripts, that a prior STEM degree 
enables the student to continue his or her eligibility for the 
practical training).\52\
---------------------------------------------------------------------------

    \52\ The proposed rule clarifies the student's responsibility to 
present his or her Mentoring and Training Plan to the DSO of the 
school of most recent enrollment, so that the DSO who has been 
involved with the student most recently would be the DSO responsible 
regarding all ongoing OPT. This change is a necessary result of this 
rule also proposing changes that could enable a student to engage in 
a STEM OPT opportunity related to a previously obtained degree.
---------------------------------------------------------------------------

    To better ensure that the STEM OPT extension fulfills the specific 
practical training needs of STEM students, the employer that intends to 
provide a STEM OPT opportunity to a student would work with the student 
to design a customized training plan to enhance the practical skills 
and methods the student studied while attaining his or her degree. Such 
training plans would require specific training goals, as well as a 
description of how those goals will be achieved.
    DHS also proposes that the student provide his or her DSO with an 
evaluation of his or her STEM OPT every six months, as well as a final 
evaluation at the conclusion of the OPT period. These evaluations would 
document the student's progress toward the agreed-upon training goals 
and thus better ensure that such goals are being met. The factors to be 
evaluated would be included on the Mentoring and Training Plan, which 
must be signed by both the student and the immediate supervisor at the 
student's workplace. The student's school of most recent enrollment 
would be responsible for ensuring ICE has access to records of student 
evaluations for a period of three years following completion of the 
student's STEM OPT training.
    DHS plans to incorporate the submission of the Mentoring and 
Training Plan into SEVIS at a later date. Until that time DHS may 
require the submission of the Plan to ICE or USCIS, including to USCIS 
when the student seeks certain benefit requests from USCIS, such as an 
application for employment authorization. Under 8 CFR 103.2(b)(8)(iii), 
USCIS may issue a Request for Evidence or Notice of Intent to Deny if 
all required initial evidence has been submitted, but the evidence 
submitted does not establish eligibility. Accordingly, USCIS may 
request a copy of the Mentoring and Training Plan, in addition to other 
documentation, when such documentation is necessary to determine an 
applicant's eligibility for the benefit, including instances when there 
is suspected fraud in the application.

 E. USCIS E-Verify Employment Verification Program

    The 2008 IFR provided that the STEM OPT extension would only be 
available to those students seeking employment or seeking to maintain 
employment with employers that are enrolled and in good standing in 
USCIS' E-Verify program. A number of commenters to the 2008 IFR 
addressed this provision. Some commenters believed that this provision 
would unduly limit the opportunities available to STEM OPT students; 
others expressed concern about reported inaccuracies in E-Verify-
related databases. Finally, some commenters stated that the E-Verify 
provision would not ensure electronic verification of all STEM OPT 
students, because the E-Verify program only applies to new hires and 
therefore would not apply to students who are using the STEM OPT 
extension to extend their employment with the same employer. A number 
of commenters acknowledged, however, that the program was improving and 
that participation in the E-Verify program was rapidly growing.
    DHS continues to believe that the E-Verify program is an important 
measure to ensure the integrity of the STEM OPT extension. The E-Verify 
program is an Internet-based service operated by USCIS, in partnership 
with the Social Security Administration (SSA). E-Verify is currently 
free to employers and is available in all 50 states, the District of 
Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. E-Verify 
electronically compares information contained on the Employment 
Eligibility Verification Form I-9 (herein Form I-9) with records 
contained in government databases to help employers verify the identity 
and employment eligibility of newly-hired employees. This program 
currently is the best means available for employers to determine 
employment eligibility of new hires and, in some cases, existing 
employees.
    Before an employer can participate in the E-Verify program, the 
employer must enter into a Memorandum of Understanding (MOU) with DHS 
and SSA. This memorandum requires employers to agree to abide by 
current legal hiring procedures and to follow required procedures in 
the E-Verify process to ensure that E-Verify maximizes the reliability 
and ease of use of the system, while preventing unauthorized disclosure 
of personal information and unlawful discriminatory practices based on 
national origin or citizenship status. Violation of the terms of this 
agreement by the employer is grounds for immediate termination of its 
participation in the program.\53\
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    \53\ See U.S. Citizenship and Immigration Services, The E-Verify 
Memorandum of Understanding for Employers, available at http://www.uscis.gov/sites/default/files/USCIS/Verification/E-Verify/E-Verify_Native_Documents/MOU_for_E-Verify_Employer.pdf.
---------------------------------------------------------------------------

    Employers participating in E-Verify must still complete a Form I-9 
for each newly hired employee, as required under current law. Following 
completion of the Form I-9, the employer must enter the newly hired 
worker's information into the E-Verify system, which would then check 
that information against information

[[Page 63388]]

contained in government databases. For example, E-Verify compares 
employee information against more than 425 million records in the SSA 
database and more than 60 million records stored in the DHS database. 
At the start of 2015, over 98 percent of all employer queries were 
instantly verified as work authorized. Between 2008 (the year the 2008 
IFR included the original E-Verify requirement for STEM OPT employers) 
and the beginning of 2015, E-Verify participation by employers has 
increased by over 500 percent.\54\ E-Verify is now a well-established 
and important measure that would complement other oversight elements in 
this proposed rule, and it is the most efficient means available for 
employers to determine the employment eligibility of new hires, 
including students who are participating in the STEM OPT extension.
---------------------------------------------------------------------------

    \54\ U.S. Citizenship and Immigration Services, E-Verify 
Overview 8, available at http://www.uscis.gov/sites/default/files/USCIS/Verification/E-Verify/E-Verify_Native_Documents/e-verify-presentation.pdf (noting that 87,758 employers were enrolled as of 
fiscal year 2008 compared to 568,759 employers as of fiscal year 
2015).
---------------------------------------------------------------------------

    It is important to note that once an employer enrolls in E-Verify, 
that employer is responsible for verifying all new hires, including 
newly hired students with STEM OPT extensions, at the hiring site(s) 
identified in the MOU executed between the employer and DHS. The 
earliest an employer may use E-Verify with respect to an individual is 
after the individual accepts an offer of employment and the employee 
and employer complete the Form I-9. The verification must be made no 
later than the end of three business days after the new hire's first 
day of employment. If, however, an employer enrolls in E-Verify to 
retain a student already employed pursuant to an initial 12-month grant 
of OPT, the employer would reverify the student's STEM OPT extension on 
Form I-9 but may not verify the employment eligibility of the employee 
in E-Verify, as the MOU generally prohibits the use of E-Verify with 
respect to existing employees.
    Additional information on enrollment and responsibilities under E-
Verify can be found at http://www.uscis.gov/E-Verify. Employers can 
register for E-Verify on-line at http://www.uscis.gov/E-Verify. The 
site provides instructions for completing the MOU needed to officially 
register for the program. DHS believes that the E-Verify enrollment 
requirement would continue to provide an efficient and accurate manner 
of better ensuring that students participating in the STEM OPT 
extension are legally authorized to work. DHS requests comment on this 
proposal, including from students and employers that have had 
experience with this requirement under the 2008 IFR.

F. Previously Obtained STEM Degrees

    Commenters to the 2008 IFR inquired about eligibility for a STEM 
OPT extension in instances where a student earns a bachelor's degree in 
a STEM field but a master's degree in a non-STEM field, or two degrees 
at the same education level, one of which is in a STEM field. Since the 
2008 IFR, DHS has found that some F-1 students approved for OPT in 
STEM-related fields remain unable to extend their OPT, even if they 
have a prior STEM degree. This is because the regulations have 
effectively required that the OPT be directly related to the student's 
most recent major area of study and that the DSO certify that the 
student's degree that is the basis for his or her current period of OPT 
is a degree contained on the current STEM Designated Degree Program 
list. See 8 CFR 214.2(f)(10)(ii)(A) and (f)(11)(ii)(A). This limitation 
decreases the number of F-1 students with STEM degrees and STEM-related 
expertise available to participate in a STEM OPT extension.
    Stakeholders, including the academic community and the HSAAC, have 
requested the elimination of this restriction, such that a STEM OPT 
extension would be available to a student with a prior qualifying STEM 
degree, even if the student's most recent degree would not qualify. 
Stakeholders assert that such a modification would broaden the 
educational and training benefits of the STEM OPT extension to 
additional students with STEM backgrounds and would further benefit the 
U.S. economy by enhancing our nation's ability to compete and innovate 
in these fields.
    DHS agrees and is accordingly proposing to permit students to use a 
previously obtained and directly related STEM degree from an accredited 
school as a basis to apply for a STEM OPT extension. This previously 
obtained degree would make the STEM OPT extension available to students 
who have a prior background in STEM but who are currently engaging in 
OPT that has been authorized based on their study towards a different 
degree. Such an OPT extension, however, would be available only to such 
students who seek to develop and utilize STEM skills from their prior 
STEM degree during the extended OPT period.
    Under this proposal, students would not be able to use a previously 
obtained degree to obtain a STEM OPT extension immediately subsequent 
to another STEM OPT extension. In other words, the proposed changes 
would not provide students the ability to obtain two immediately 
consecutive STEM OPT extensions. Under the proposed rule, the second 
extension would be available to students only upon completion of a new 
initial post-completion OPT period.
    DHS proposes to permit DSOs at the student's school of most recent 
enrollment to certify prior STEM degrees, so long as the STEM degree 
was earned at a school accredited by an accrediting agency recognized 
by the Department of Education.\55\ The degree would also need to be on 
the STEM Designated Degree Program list at the time of the student's 
application. For a student who is relying on a previously obtained 
degree for the STEM OPT extension, his or her most recent degree must 
also be from an accredited institution and the student's practical 
training opportunity must be directly related to the previously 
obtained STEM degree. For a previously obtained degree to qualify as 
the basis for a STEM OPT extension, the degree must have been conferred 
within the 10 years preceding the student's application date. This 
requirement is intended to ensure the degree was conferred recently 
enough that it would be relevant to a present-day STEM OPT opportunity.
---------------------------------------------------------------------------

    \55\ A qualifying, previously obtained degree would provide 
eligibility for an extension so long as the educational institution 
that conferred the degree was accredited at the time the degree was 
granted.
---------------------------------------------------------------------------

    Finally, due to the difficulty in determining the equivalency of a 
degree obtained at a foreign institution, and because the purpose of 
OPT is to further one's course of study in the United States, STEM 
degrees from foreign schools will not be permitted to qualify under the 
proposed program.
    DHS requests comment on all aspects of this proposal.

G. Safeguarding U.S. Workers Through Measures Consistent With Labor 
Market Protections

    Many commenters to the 2008 IFR agreed with the Department's 
assessment that the 17-month STEM OPT extension would benefit both 
students and the U.S. economy. Commenters noted that the STEM labor 
shortage described in the 2008 IFR was well documented and that the 
United States faced stiff competition from other countries for high-
skilled STEM workers. One commenter stated that the IFR provided 
``small, but helpful steps'' towards addressing a critical need for

[[Page 63389]]

qualified, highly-trained and well-educated STEM workers. Another 
commenter stated that the rule partially addressed the severe shortage 
of U.S. workers in science, engineering, mathematics and technology. 
Commenters highlighted the importance of the STEM OPT extension not 
only for research universities that seek to attract high-quality 
international students, but also for employers seeking to fill empty 
positions. Some commenters characterized the availability of meaningful 
practical training as a critical aspect of the educational experience. 
As noted elsewhere in this preamble, many commenters also stated that 
the impact of the rule was too limited, and requested that eligibility 
for the extension be expanded to students in additional degree 
programs, as well as to students employed by employers that do not use 
E-Verify.
    A number of commenters, however, objected to the 17-month STEM OPT 
extension on the basis of potential negative impacts on U.S. workers in 
STEM fields. For instance, a commenter stated that demand for technical 
workers was very weak in engineering occupations and growing modestly 
in computing and mathematics occupations. The same commenter stated 
that, especially when combined with H-1B, L-1, and other skilled 
workers, the number of students taking advantage of the STEM OPT 
extension would distort the domestic labor market. Some commenters 
specifically stated that employers would prefer to hire F-1 students on 
STEM OPT extensions because these students would work for lower wages. 
Some commenters noted that some U.S. firms had previously advertised 
STEM positions as being available only to OPT students. Commenters 
requested that DHS consider written reports, testimony, and other 
sources describing the state of the U.S. STEM workforce. Commenters 
also questioned the veracity of studies and reports cited in the 
preamble to the 2008 IFR, and some questioned whether DHS had 
interpreted that information correctly in assessing the then-prevailing 
STEM labor market. Some commenters stated that the STEM OPT extension 
was contrary to the academic purpose of the F-1 statute. In general, 
commenters who made these and similar points requested that DHS 
eliminate the STEM OPT extension and the Cap Gap provision in their 
entirety.
    DHS's initial assessment, consistent with many of the public 
comments and following consultation with the U.S. Departments of 
Education and Labor, is that the direct benefit to the academic 
experience resulting from the STEM OPT extension is significant, and 
that on the whole, positive indirect effects on educational 
institutions and academic exchange support the availability of a STEM 
OPT extension at this time. Nevertheless, DHS recognizes the concerns 
expressed above and proposes to modify the terms and conditions for 
employer participation in the STEM OPT extension in order to protect 
U.S. workers from possible employer abuses of these programs.
    For instance, any employer wishing to hire a student participating 
in the STEM OPT extension would, as part of a newly required Mentoring 
and Training Plan, be required to sign a sworn attestation affirming 
that, among other things: (1) The employer has sufficient resources and 
personnel available and is prepared to provide appropriate mentoring 
and training in connection with the specified opportunity; (2) the 
employer will not terminate, lay off, or furlough a U.S. worker as a 
result of providing the STEM OPT to the student; and (3) the student's 
opportunity assists the student in attaining his or her training 
objectives. As with all affirmations contained in the Mentoring and 
Training Plan, the employer would attest that these commitments are 
true and correct to the best of the employer's knowledge, information 
and belief.
    Additionally, the proposed rule would require that the terms and 
conditions of an employer's STEM practical training opportunity--
including duties, hours and compensation \56\--be commensurate with 
those provided to the employer's similarly situated U.S. workers. Work 
duties must be designed to assist the student with continued learning 
and satisfy the existing ICE guidelines for work hours when 
participating in post-completion OPT, which are set at a minimum of 20 
hours per week, and would be so defined under this proposed rule.\57\ 
If the employer does not employ and has not recently employed more than 
two similarly situated U.S. workers, the employer would be required to 
ensure that the terms and conditions of a STEM practical training 
opportunity are commensurate with those for similarly situated U.S. 
workers in other employers of analogous size and industry and in the 
same geographic area of employment. ``Similarly situated U.S. workers'' 
would include U.S. workers performing similar duties and with similar 
educational backgrounds, employment experience, levels of 
responsibility, and skill sets as the STEM OPT student. The student's 
compensation would be reported on the Mentoring and Training Plan and 
the student would be responsible for reporting any adjustments. DHS 
requests public comment, especially from employers and labor 
organizations, on all aspects of this provision, including the types of 
business factors employers would use to evaluate whether their workers 
are similarly situated.
---------------------------------------------------------------------------

    \56\ DHS interprets the proposed compensation element to 
encompass wages and any other non-employee-benefit remuneration, 
including housing allotments, stipends, or similar provisions that 
are typically provided to employed students.
    \57\ See U.S. Immigration and Customs Enforcement, Policy 
Guidance 1004-03--Update to Optional Practical Training: Policy 
Guidance For SEVP and DSOs of SEVP-Certified Schools with F-1 
Students Eligible for or Pursuing Post-Completion OPT, 17 (April 23, 
2010), available at http://www.ice.gov/doclib/sevis/pdf/opt_policy_guidance_042010.pdf (stating that a student, including 
those participating in the 17-month STEM OPT extension, must work at 
least 20 hours per week in a qualifying position to be considered 
employed).
---------------------------------------------------------------------------

    With regard to the requirement to provide commensurate 
compensation, DHS anticipates that employers would be able to show 
compliance through a variety of existing real-world practices. So long 
as the attestation is made in good faith and to the best of the 
employer's knowledge, information and belief, employers would be able 
to continue relying on many of the same resources they already use, 
such as local associations or national or local wage surveys, to set 
compensation for their U.S. workers. The rule would also permit 
employers to rely on other bases for establishing compensation levels. 
For example, employers hiring high-skilled STEM OPT students would be 
able to refer to prevailing wages provided by the Department of Labor's 
Office of Foreign Labor Certification for employees in the same 
occupation in the same area of employment.
    To help gauge compliance, employers would be required to provide 
DHS with student compensation information, which would better situate 
the agency to monitor whether STEM OPT students are being compensated 
fairly. This would both protect such students and ensure the practical 
training has no appreciable adverse consequences on the U.S. labor 
market. Additionally, the proposed rule would authorize a recurrent 
evaluation process that would allow ICE to monitor student progress 
during the OPT period. These evaluations would ensure continuous focus 
on the student's development throughout the student's training period, 
consistent with the Mentoring and Training Plan.
    With the added assurances that a student will be enhancing his or 
her course of study through training-based

[[Page 63390]]

learning experiences and mentoring, combined with the employer non-
displacement assurance, the requirement that STEM OPT students receive 
terms and conditions of employment (including compensation) 
commensurate with those of similarly situated U.S. workers, and other 
related requirements, DHS is confident that practical training during 
the STEM OPT extension will be carried out in a manner that safeguards 
U.S. worker interests.
    Some commenters to the 2008 IFR also expressed concern that the 
STEM OPT extension could be exploited by entities that hope to profit 
from the program but that may not have an actual STEM opportunity 
available for a student at the time of the student's application for 
the extension. To the extent that this comment refers to temporary 
placement agencies, DHS does not envision that such ``temp'' agencies 
will generally be able to provide eligible opportunities under the 
proposed STEM OPT extension, including by complying with the Mentoring 
and Training Plan process and requirements.
    Moreover, under this rule, DSOs would be prohibited from 
recommending a student for a STEM OPT extension if the employer has not 
provided the assurances required by this rule or is otherwise not in 
compliance with the relevant reporting, evaluation and other 
requirements described in this rule. Additionally, DHS has the ability 
to deny STEM OPT extensions with employers that the agency determines 
have failed to comply with the regulatory requirements, including the 
requirement to formerly execute the student's Mentoring and Training 
Plan and the requirement to comply with the assurances contained 
therein. ICE may investigate an employer's compliance with these 
assurances, based on a complaint or otherwise, consistent with the 
proposed employer site visit provision discussed in the following 
section. These safeguards will more effectively ensure that STEM OPT 
students achieve the objectives of their courses of study, while 
benefiting U.S. academic institutions and protecting U.S. workers. DHS 
requests comment on the feasibility and effectiveness of each of these 
provisions, including the obligations to confirm (1) that the terms and 
conditions of a STEM OPT student's employment are commensurate with 
those for similarly situated U.S. workers, and (2) that no U.S. worker 
will be terminated, laid off, or furloughed as a result of a STEM OPT 
opportunity.
    DHS recognizes that many university personnel submitted comments on 
the 2008 IFR highlighting the significant administrative burdens faced 
by DSOs in helping to coordinate participation in the F-1 program, 
including OPT. DHS acknowledges that the aforementioned proposals may 
impose additional resource burdens on DSOs, and may require 
universities to invest further in DSOs in order to take full advantage 
of the F-1 program.\58\ DHS requests comment from universities, DSOs, 
and other interested members of the public on how DHS can most 
effectively ensure an appropriate level of participation in this 
program by educational institutions. In light of the passage of time 
since implementation of the 2008 IFR, DHS particularly welcomes the 
submission of specific data related to the cost of implementation for 
that rulemaking.
---------------------------------------------------------------------------

    \58\ DHS notes, however, that it has implemented the Mentoring 
and Training Plan requirement in part to ensure that students and 
employers are fully aware of the requirements associated with this 
program.
---------------------------------------------------------------------------

 H. Oversight Through School Accreditation Requirements and Employer 
Site Visits

    With this rule, DHS proposes that in order for a student to be 
eligible for a STEM OPT extension, the student's STEM degree must be 
received from an educational institution accredited by an accrediting 
agency recognized by the Department of Education.\59\ The goal of 
accreditation is to ensure the quality of educational institutions and 
programs. Specifically, the accreditation process involves the periodic 
review of institutions and programs to determine whether they meet 
established standards in the profession and are achieving their stated 
educational objectives.\60\ Given these safeguards, DHS believes that 
requiring qualified degrees to be from accredited institutions would 
strengthen and better ensure the proper use of STEM OPT extensions.
---------------------------------------------------------------------------

    \59\ An accrediting agency is a private educational association 
of regional or national scope that develops evaluation criteria and 
conducts peer evaluations of educational institutions and academic 
programs. U.S. Department of Education Office of Postsecondary 
Education, ``The Database of Accredited Postsecondary Schools and 
Programs,'' available at http://ope.ed.gov/accreditation.
    \60\ U.S. Department of Education Office of Postsecondary 
Accreditation, ``FAQs about Accreditation'', available at http://ope.ed.gov/accreditation/FAQAccr.aspx.
---------------------------------------------------------------------------

    ICE's SEVP currently performs an examination and assessment of all 
schools applying for certification and re-certification to accept F-1 
students. 8 CFR 214.3(b). Although SEVP has procedures ``in lieu of 
accreditation'' to establish the validity and quality of schools in 
certain cases, accreditation is preferred and given significant weight 
in the overall certification assessment. Increasingly, schools are 
choosing to obtain accreditation. In the past five years, less than one 
percent of students participating in a STEM OPT extension had graduated 
from non-accredited schools.\61\ Thus, while accreditation may impose 
certain burdens, DHS does not expect the accreditation requirement to 
have broad impact on STEM OPT students.
---------------------------------------------------------------------------

    \61\ Based on data from 2010 to 2014, 0.56 percent of STEM OPT 
extensions were granted to students who graduated from non-
accredited schools.
---------------------------------------------------------------------------

    DHS also proposes to clarify that ICE, at its discretion, may 
conduct ``on-site reviews'' to ensure that employers meet program 
requirements, including that they are complying with assurances and 
that they possess the ability and resources to provide structured and 
guided work-based learning experiences according to the individualized 
Mentoring and Training Plans. The combination of requiring school 
accreditation and conducting discretionary ICE inspections of employers 
will reduce the potential for any fraudulent use of F-1 nonimmigrant 
status during the period of STEM OPT training.
    DHS requests comment from the public on all aspects of this 
proposal, including the feasibility and effectiveness of imposing a 
firm accreditation requirement as a condition of participation in the 
STEM OPT extension. DHS requests input specifically from non-accredited 
institutions that currently have or previously had F-1 students 
participating in a STEM OPT extension. DHS requests comment from such 
institutions and other members of the public on the availability and 
cost of accreditation, the practical significance of accreditation, and 
the potential that some student populations may lose eligibility for 
the STEM OPT extension.

 I. Additional Compliance Requirements

    This proposed rule includes additional requirements to track STEM 
OPT students, mitigate the potential for fraud, and ensure that 
students are truly furthering their course of study. As discussed in 
the 2008 IFR, DHS' ability to track nonimmigrant students in the United 
States relies on reporting by the students' DSOs, who obtain required 
information from the school's recordkeeping systems and through contact 
with the students. Students on OPT, however, are often away from the

[[Page 63391]]

academic environment, making it difficult for DSOs to ensure proper and 
prompt reporting on student status to ICE. While DHS regulations 
currently require DSOs to update SEVIS, the current reporting 
requirements depend entirely on the student's timely compliance. And 
DSOs are not currently required to review and verify information 
reported by students on a recurring basis. This combination of factors 
hinders systematic reporting and ICE's ability to track F-1 students 
during OPT.
    Accordingly, this proposed rule includes a number of compliance 
requirements established in the 2008 IFR for the current 17-month STEM 
OPT extension and adds additional measures that would supplement the 
goal of ensuring that the STEM OPT extension is directly related to a 
student's field of study. Requirements from the 2008 IFR that are 
proposed to be included in the STEM OPT extension under this rule 
include the following:
     The employer must report to the relevant DSO when an F-1 
student on a STEM OPT extension terminates or otherwise leaves his or 
her employment prior to the end of the authorized period of OPT and 
must do so no later than 48 hours after the student leaves employment. 
Employers must report this information to the DSO unless DHS announces, 
through a Federal Register notice, another means to report such 
information. The contact information for the DSO is on the student's 
Form I-20. DHS will only extend OPT for STEM students employed by 
employers that agree in the Mentoring and Training Plan to report this 
information.
     Students who are granted the STEM OPT extension are 
required to report to their DSO every six months, confirming the 
validity of their SEVIS information, including legal name, residential 
or mailing address, employer name and address, and/or loss of 
employment.
    These six-month requirements ensure adequate DHS oversight of the 
STEM OPT program by enhancing DHS's knowledge of the student's 
activities and whereabouts.
    The proposed rule also includes several other requirements to 
provide additional oversight over the STEM OPT extension, consistent 
with the proposed change to the duration of the extension. The proposed 
rule would require any employer providing a STEM practical training 
opportunity to have an employer identification number (EIN) used for 
tax purposes. Access to this EIN will help DHS better ensure program 
compliance. The proposed rule would also require students who are 
granted the STEM OPT extension to provide, at six-month intervals, an 
evaluation on their training progress and an update on the extent that 
their training goals are being met.
    The proposed rule would also limit the maximum period in which a 
student may be unemployed to 90 days during his or her initial period 
of post-completion OPT, and permit an additional 60 days, for an 
aggregate of 150 days, for students whose OPT includes a 24-month STEM 
OPT extension. The 90-day aggregate period during initial post-
completion OPT would remain at the level proposed in the 2008 IFR. Such 
a safeguard prevents OPT students from taking improper advantage of the 
program by, for instance, remaining in the United States without 
attempting to complement their learning through training. DHS proposes 
to revise the aggregate maximum allowed period of unemployment to 150 
days for an F-1 student having an approved STEM OPT extension 
consistent with the lengthened 24-month period for such an extension.
    In comments received on the 2008 IFR, many commenters opposed, or 
requested revising, the limits on unemployment during OPT. Some 
commenters suggested that unemployment limits pose significant burdens 
and that students should be able to maintain their status by simply 
seeking employment. Other commenters offered suggestions for revising 
the unemployment limits by allowing 120, 150, or 180 days of 
unemployment during initial post-completion OPT and a longer period 
during any STEM OPT extension. DHS believes that removing unemployment 
limits would be inconsistent with the agency's role of overseeing and 
ensuring OPT program integrity. DHS also believes that the proposed 150 
days for students granted a STEM OPT extension would provide additional 
flexibility when compared to the 120 days permitted under the current 
program's 17-month extension. With this change, DHS acknowledges the 
concerns of commenters who described the challenges that international 
students face in locating and obtaining training experiences in the 
United States. DHS welcomes comments on this issue.
    An additional newly proposed aspect of the STEM OPT extension is 
that a student seeking an extension would be required to properly file 
his or her Application for Employment Authorization with USCIS within 
60 days of the date the DSO enters the recommendation for the STEM OPT 
extension into the SEVIS record. Under the 2008 IFR, students were 
required to file their Application for Employment Authorization with 
USCIS within 30 days of the DSO recommendation. By expanding the 
application filing period, applicants would be afforded additional 
flexibility. Among other things, a longer application filing window 
would reduce: (1) The number of USCIS denials on Forms I-765 that 
result from expired Forms I-20, (2) the number of associated data 
corrections needed in SEVIS, and (3) the number of students who would 
otherwise need to ask DSOs for updated Forms I-20 to replace those that 
have expired.
    Additionally, ICE is working toward technology that would allow 
students to update their basic information in SEVIS without gaining 
access to restricted areas of the system where student access would be 
inappropriate. Once this technology is implemented, students would have 
increased ability to maintain their own records. This would also 
decrease the workload on DSOs, who would no longer be required to 
update student information while students are participating in 
practical training.

J. Cap-Gap Extension for F-1 Students With Timely Filed H-1B Petitions 
and Change of Status Requests

    As noted elsewhere in this preamble, the 2008 IFR included 
provisions, such as 8 CFR 214.2(f)(5)(vi) and 8 CFR 274a.12(b)(6)(v), 
that allowed for automatic extension of status and employment 
authorization for any F-1 student with a timely filed H-1B petition and 
request for change of status, if the student's petition has an 
employment start date of October 1 of the following fiscal year. The 
2008 IFR made these extensions available only until the beginning of 
the succeeding fiscal year. The extensions were intended to avoid 
situations where F-1 students who are affected by the H-1B cap are 
required to leave the country or terminate employment at the end of 
their authorized period of stay, even though they have an approved H-1B 
petition that would again provide status to the student in a few 
months' time.
    Many comments on the 2008 IFR were supportive of the ``Cap-Gap'' 
extension provided in that rule. Some commenters, however, objected to 
the Cap-Gap provision for reasons related to its potential impact on 
U.S. workers.
    The ``Cap-Gap'' provision is intended to avoid the inconvenience of 
temporary gaps in status, which would normally require individuals to 
leave the country and thereby suffer significant disruption to their 
careers and family. With respect to comments requesting elimination of 
the provision, DHS continues to believe that the Cap-Gap provision is a

[[Page 63392]]

commonsense administrative measure fully consistent with the underlying 
purpose of the practical training program. The so-called ``Cap-Gap'' is 
a result of the misalignment of the academic year with the start of the 
fiscal year. The Cap-Gap relief measure avoids inconvenience to some F-
1 students and U.S. employers through a straightforward administrative 
mechanism to bridge two periods of authorized legal status. DHS 
therefore proposes to include the 2008 IFR's Cap-Gap relief measure in 
this rule.

VI. Statutory and Regulatory Requirements

    DHS developed this proposed rule after considering numerous 
statutes and executive orders related to rulemaking. The below sections 
summarize our analyses based on a number of these statutes or executive 
orders.

 A. Executive Orders 12866 and 13563: Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health, and safety effects, as well as distributive impacts and 
equity). Executive Order 13563 emphasizes the importance of quantifying 
both costs and benefits, of reducing costs, of harmonizing rules, and 
of promoting flexibility. This rule is a ``significant regulatory 
action,'' and has been determined to be an economically significant 
regulatory action, under section 3(f) of Executive Order 12866. 
Accordingly, the Office of Management and Budget has reviewed this 
regulation.
1. Summary of Proposed Rule
    This proposed rule, if made final, would permit eligible STEM 
graduates to receive a maximum STEM OPT extension of 24 months; permit 
eligible STEM graduates who have obtained a second qualifying STEM 
degree to obtain a second STEM OPT extension of 24 months; permit 
eligibility for the extension based on a STEM degree that is not the 
student's most recently obtained degree; limit eligibility for STEM OPT 
extensions to students that graduate from accredited institutions; 
require that students on STEM OPT extensions receive conditions of 
employment, including compensation, commensurate with similarly 
situated U.S. workers; require the disclosure of additional 
information, such as the student's compensation, to ICE; implement a 
formal process to update the STEM Designated Degree Program list; 
implement a formal mentoring requirement for students on STEM OPT 
extensions; and require employers of students applying for STEM OPT 
extensions to enroll in and use E-Verify on all new hires.
    The cost estimates set forth in this analysis represent the costs 
of compliance with, and implementation of, the proposed standards 
within the scope of the proposed rulemaking. The following quantified 
costs include time burdens for initial implementation of the student 
training and mentoring plan, six-month evaluations, reporting student 
information updates in SEVIS, eligibility verifications for new hires 
for employers of STEM OPT students using the E-Verify program, and 
filing Form I-675 applications. Additional quantified costs for 
students include fees for filing Form I-765, and some employers may 
incur implementation costs for the E-Verify program. Compared to the 
2008 IFR criteria for STEM OPT, qualitative costs for the proposed rule 
include reduced opportunities for students due to proposed restrictions 
on unaccredited school programs and not allowing volunteer work to be 
eligible for the extension. Additionally, compared to the 2008 IFR 
requirements for employers, there would be employer costs for paying 
STEM OPT students commensurate compensation, if the employer previously 
did not pay such compensation. DHS does not have data to support a cost 
estimate for this proposed requirement.
2. Summary of Affected Population
    The proposed rule would affect four categories of STEM OPT 
students: (1) Students who would have previously been eligible for 
participation in the 17-month STEM OPT extension under the 2008 IFR and 
would be, based on this NPRM, eligible for a 24-month extension; (2) 
students who would be eligible based upon a STEM degree earned prior to 
their most recent degree; (3) students who would be eligible based upon 
a second, and more advanced, qualifying STEM degree; and (4) students 
who would be eligible with a potential change to the current STEM-
Designated Degree Program List. Additionally, students currently on 17-
month extensions would be able to apply for the balance of the 24-month 
extension, depending on how much time remained in their current 17-
month extension and the effective date of a final regulation. DHS 
estimates that the population of current 17-month STEM OPT students who 
could apply for the expanded extension is 18,210. DHS provided an 
explanation on the methodology and data for the population estimates in 
the accompanying RIA published on the NPRM docket folder.

                                               Table 1--Summary of New STEM OPT Student Extension Request
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Transitional      New STEM OPT
                                                                population        extension       Increased                   Second     Total STEM OPT
                            Year                              from 17  month    students from      CIP list   Prior  STEM      STEM        population
                                                               to  24 month       accredited     eligibility     degrees      degree        impacted
                                                                 extension         schools
--------------------------------------------------------------------------------------------------------------------------------------------------------
1...........................................................          18,210             29,100        2,910          459          285            50,964
2...........................................................  ..............             33,465        3,347          528          316            37,656
3...........................................................  ..............             38,485        3,848          607          351            43,291
4...........................................................  ..............             44,257        4,426          698          390            49,771
5...........................................................  ..............             50,896        5,090          803          433            57,221
6...........................................................  ..............             56,495        5,649          891          480            63,515
7...........................................................  ..............             62,709        6,271          989          533            70,502
8...........................................................  ..............             69,607        6,961        1,098          592            78,257
9...........................................................  ..............             77,264        7,726        1,219          657            86,866
10..........................................................  ..............             85,763        8,576        1,353          729            96,421
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimates may not total due to rounding.


[[Page 63393]]

    The proposed rule would also affect schools and employers of the 
students seeking STEM OPT extensions. A description of the impacts to 
schools and employers is included in the following section on the 
estimated costs of the proposed rule. The Regulatory Flexibility 
Analysis also provides a detailed description of the estimated number 
of schools and employers affected by the proposed rule.
    Table 2 displays the estimated number of affected employers that 
could be impacted by the proposed E-verify enrollment and ongoing 
implementation requirements.

     Table 2--Summary of STEM OPT NPRM Employers E-Verify Population
------------------------------------------------------------------------
                                         Previously      Total STEM  OPT
                                       enrolled  STEM    employers  with
       New STEM OPT employers          OPT  employers        burden
                                         impacted by     resulting from
                                        proposed rule     proposed rule
------------------------------------------------------------------------
2,244...............................             2,834             5,078
2,670...............................             3,513             6,183
3,177...............................             4,181             7,358
3,781...............................             4,975             8,756
4,499...............................             5,920            10,419
5,354...............................             7,045            12,399
6,371...............................             8,383            14,754
7,582...............................             9,976            17,558
9,022...............................            11,872            20,894
10,737..............................            14,127            24,864
------------------------------------------------------------------------

3. Estimated Costs of Proposed Rule
    The cost estimates set forth in this analysis represent the costs 
of compliance with the proposed rule. This analysis concludes that 
compliance with the proposed requirements would be approximately $503.3 
million, discounted at 7 percent, over the period 2016-2025, or $71.7 
million per year when annualized at a 7 percent discount rate. The 
total cost, discounted at 7 percent, consists of $455.7 million for 
compliance with the STEM OPT program, and $47.6 million for compliance 
with E-Verify requirements. Table 3 below presents a 10-year summary of 
the estimated benefits and costs of the NPRM.

                                           Table 3--Total Cost of NPRM
                                                   [$millions]
----------------------------------------------------------------------------------------------------------------
                                                                                  E-Verify
                                                                STEM OPT      requirement  for
                           Year                                extensions         STEM OPT            Total
                                                                                  employer
----------------------------------------------------------------------------------------------------------------
1.........................................................             $53.3              $3.0             $56.3
2.........................................................              40.7               3.6              44.3
3.........................................................              46.8               4.3              51.1
4.........................................................              53.9               5.1              58.9
5.........................................................              61.9               6.0              68.0
6.........................................................              68.7               7.2              75.9
7.........................................................              76.3               8.6              84.9
8.........................................................              84.7              10.2              94.9
9.........................................................              94.0              12.1             106.1
10........................................................             104.3              14.4             118.8
                                                           -----------------------------------------------------
    Total.................................................             684.8              74.5             759.3
Total (7%)................................................             455.7              47.6             503.3
Total (3%)................................................             570.4              61.0             631.5
Annual (7%)...............................................              64.9               6.8              71.7
Annual (3%)...............................................              66.9               7.2              74.0
----------------------------------------------------------------------------------------------------------------

4. Estimated Benefits of the Rule
    Continuing the STEM OPT extension, making it available to 
additional students, and lengthening the current 17-month extension 
will enhance students' ability to achieve the objectives of their 
courses of study by gaining valuable knowledge and skills through on-
the-job training that is often unavailable in their home countries. The 
proposed changes will also benefit the U.S. educational system, U.S. 
employers, and the United States. The rule will benefit the U.S. 
educational system by helping ensure that the nation's colleges and 
universities remain globally competitive in attracting international 
students in STEM fields. U.S. employers will benefit from the increased 
ability to rely on the skills acquired by STEM OPT students while 
studying in the United States, as well as their knowledge of markets in 
their home countries. Moreover, the nation will benefit from the 
increased retention of such students in the United States, including 
through increased research, innovation, and other forms of productivity 
that enhance the nation's economic, scientific, and technological 
competitiveness.
    New safeguards for the STEM OPT program, including accreditation,

[[Page 63394]]

reporting, and tracking requirements, would decrease the opportunity 
for abuse and reduce any potential negative impact on U.S. workers. 
These improvements will increase program oversight and strengthen the 
requirements for program participation.
5. Alternatives
    In preparing the preferred regulatory approach proposed in the 
NPRM, DHS examined three options:
    1. Under the first option, DHS would take no regulatory action. The 
STEM OPT extension would no longer be available to F-1 STEM students 
after February 2016.
    2. The second, and proposed, option would strengthen the 2008 IFR 
by establishing a program requiring employers and students to prepare 
Mentoring and Training Plans and to present those plans to the relevant 
DSOs. The program would require that the proposed practical training be 
directly related to the student's course of study. Employers would be 
required to provide certain information, including: Learning objectives 
for the employment, how those objectives will be achieved and measured, 
and place of employment. DSOs would be required to review submissions 
for the STEM OPT extension in SEVIS. DHS may require the submission of 
the Mentoring and Training Plan to ICE and/or USCIS. As noted elsewhere 
in this preamble, a STEM OPT extension would be available to a student 
with a prior qualifying STEM degree, even if the student's most recent 
degree would not qualify. And a second STEM OPT extension would be 
available to students who earn an additional advanced STEM degree.
    3. The third option is similar to option two in all respects except 
for the duration of the STEM OPT extension, which would be limited to a 
one-time extension of 17 months, as in the 2008 IFR.
    DHS provides an analysis of these alternatives in the accompanying 
RIA provided in the NPRM docket folder.
    The following table summarizes the total monetized costs of each 
alternative regulatory option. Although the proposed rule option does 
have higher monetized costs than the third option, DHS has not 
quantified the benefits of the increased extension period under the 
proposed option because DHS does not have specific data to quantify the 
month-to-month economic benefits of the STEM OPT extension. DHS 
believes that the proposed option would have higher benefits to 
students and employers and increase attractiveness for U.S. academic 
programs.

                                Table 4--Regulatory Alternative Costs Comparison
----------------------------------------------------------------------------------------------------------------
                                                                           Regulatory alternatives
                           Year                            -----------------------------------------------------
                                                                   1               2                  3
                                                                 No action    Proposed rule     Maintain 17 Ext.
                                                                                alternative             STEM OPT
                                                                                                length & 12 Ext.
                                                                                               for second degree
----------------------------------------------------------------------------------------------------------------
1.........................................................            $0.0            $56.3                $35.7
2.........................................................             0.0             44.3                 41.1
3.........................................................             0.0             51.1                 47.5
4.........................................................             0.0             58.9                 54.4
5.........................................................             0.0             68.0                 62.9
6.........................................................             0.0             75.9                 69.9
7.........................................................             0.0             84.9                 78.2
8.........................................................             0.0             94.9                   87
9.........................................................             0.0            106.1                 97.9
10........................................................             0.0            118.8                109.7
                                                           -----------------------------------------------------
    Total.................................................             0.0            759.3                684.8
Total (7%)................................................             0.0            503.3                449.6
Total (3%)................................................             0.0            631.5                567.3
----------------------------------------------------------------------------------------------------------------

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996, Public Law 104-121 (March 29, 1996), requires Federal agencies to 
consider the potential impact of regulations on small entities during 
rulemaking. The term ``small entities'' comprises small business, not-
for-profit organizations that are independently owned and operated and 
are not dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000.
    DHS has published an IRFA, in the accompanying RIA, to aid the 
public in commenting on the small entity impact of the proposed 
requirements. The following discussion is a summary of the IRFA and a 
more detailed description of these findings is available in the RIA. 
DHS presents the number of estimated entities which would be impacted 
by the proposed rule, the number of small entities from a sample of the 
estimated impacted population, the estimated annual average cost impact 
per entity, and the estimated ratio of annual costs to revenue for 
sampled small entities.
    During the period from 2010 through 2014, a total of 1,109 approved 
and accredited \62\ schools recommended students for STEM OPT 
extensions.\63\ Of this population, DHS sampled 293 schools, to 
estimate the proportion of governmental jurisdictions, not-for-profit 
organizations, and for-profit firms for the total population. DHS then 
determined whether the sampled entities were small entities based on 
size standards set by the Small Business Administration. DHS assumed 
not-for-profit organizations and entities with insufficient data were 
small entities in the IRFA. Table 5 below summarizes the number of 
schools by category.
---------------------------------------------------------------------------

    \62\ Accredited by a Department of Education-approved 
accrediting agency.
    \63\ ICE SEVIS data.

[[Page 63395]]



                                Table 5--Estimated Number of Schools by Category
----------------------------------------------------------------------------------------------------------------
                                                       Small entities  (sample
               Parameter                  Quantity             segment)                      Comments
----------------------------------------------------------------------------------------------------------------
Population--Schools....................       1,109  N/A........................  Total number of accredited
                                                                                   schools endorsing STEM-OPT
                                                                                   Students between 2010-2014.
Sample:................................         293  N/A........................
    Non-matched Sample Segment.........           2  Yes........................  Entities not found in online
                                                                                   databases, assumed to be
                                                                                   small entities.
    Matched Sample Segment Non-Profit           138  Yes........................  Entities determined to be
     Schools.                                                                      private not-for-profit,
                                                                                   assumed to be small entities.
    Matched Sample Segment For-Profit             1  Yes........................  Private for-profit, matched in
     Schools.                                                                      online database with revenue
                                                                                   lower than SBA size standard,
                                                                                   assumed to be small entity.
    Matched Sample Segment For-Profit             3  No.........................  Entities determined to be
     Schools.                                                                      private for-profit, matched
                                                                                   in online databases with
                                                                                   revenue exceeding SBA size
                                                                                   standard, assumed not small
                                                                                   entities.
    Matched Sample Segment Government           149  No.........................  Entities among the 293 sampled
     Jurisdictions.                                                                confirmed as large
                                                                                   governmental jurisdictions.
----------------------------------------------------------------------------------------------------------------

    During the period from 2010 through 2014, a total of 26,260 
employers employed STEM OPT students.\64\ Of this population, DHS 
sampled 659 employers, to estimate the proportion of governmental 
jurisdictions, not-for-profit organizations, and for-profit firms for 
the total population. DHS then determined whether the sampled entities 
were small entities based on size standards set by the Small Business 
Administration. DHS also found that three of the sampled entities were 
temporary placement agencies (temporary agencies) and removed these 
three from the analysis, as DHS assumed most temporary agencies would 
not be able to comply with the requirements of the Mentoring and 
Training Plan. DHS again assumed not-for-profit organizations and 
entities with insufficient data were small entities in the IRFA. Table 
6 below summarizes the number of employers by category.
---------------------------------------------------------------------------

    \64\ ICE SEVIS data.

                               Table 6--Estimated Number of Employers by Category
----------------------------------------------------------------------------------------------------------------
                                                       Small entities  (sample
               Parameter                  Quantity             segment)                      Comments
----------------------------------------------------------------------------------------------------------------
Population--Employers..................      26,260  N/A........................  Total number of STEM-OPT
                                                                                   employers between 2010-2014.
Sample:................................         659  N/A........................  Estimated sample needed to
                                                                                   match 379 entities.
    Non-matched Sample Segment.........         279  Yes........................  Entities not found in online
                                                                                   databases, assumed to be
                                                                                   small entities.
Matched Sample Segment For-Profit......         214  Yes........................  For-profit entities matched in
                                                                                   online databases that did not
                                                                                   exceed SBA size standard.
    Matched Sample Segment Not-For-               7  Yes........................  Entities confirmed as private
     Profit.                                                                       not-for-profit.
    Matched Sample Segment For-Profit..         140  No.........................  For-profit entities matched in
                                                                                   online databases that did
                                                                                   exceed SBA size standard.
    Temporary Agencies.................           3  No.........................  Quantitative impact not
                                                                                   analyzed.
    Matched Sample Segment Government            16  No.........................  Entities that are large
     Jurisdictions.                                                                governmental jurisdictions.
----------------------------------------------------------------------------------------------------------------

Schools Costs
    Schools would incur costs for providing oversight and reporting 
STEM OPT students' information as well as reviewing required 
documentation. DSOs would be required to ensure the form has been 
completed and signed prior to making a recommendation in SEVIS. Schools 
would be required to ensure that SEVP has access to student evaluations 
(electronic or hard copy) for a period of at least three years 
following the completion of each STEM practical training opportunity. 
The 2008 IFR previously required six-month student validation check-ins 
with DSOs, and this proposed rule would maintain the validation 
requirement. While the DSO would be in communication with the student 
during a six-month validation check-in, DHS proposes to add an 
additional requirement that DSOs would also check to ensure the six-
month evaluation has been properly completed and retain a copy. The 
NPRM proposes to maintain the 2008 IFR requirements for periodic 
information reporting requirements on students, which would result in a 
burden for DSOs.
Unaccredited Schools
    Schools not accredited by a Department of Education-recognized 
accrediting agency may incur unquantified costs from the proposed 
prohibition on participation in STEM OPT extensions by students 
attending unaccredited schools. A few schools may choose to seek 
accreditation, or may potentially lose future foreign students and 
associated revenue. DHS requests comment from unaccredited institutions 
on this provision, including the potential effect of the requirement on 
your school and any data associated with the impact, such as the cost 
of accreditation or potential revenue loss.
    DHS summarizes the estimated annual first and second year costs for 
schools in the following table. DHS requests comments on burdens 
described below if additional data or

[[Page 63396]]

information is available. DHS acknowledges there may be additional 
regulatory costs \65\ to the following quantified costs, and requests 
comments specifically addressing concerns on costs for entities of all 
sizes, including small entities.
---------------------------------------------------------------------------

    \65\ Such costs could be related to train DSOs on how to comply 
with the requirements, program changes within the school, and time 
to generally review and comprehend the requirements of the 
regulation and make determinations on how to best implement the 
requirements with the least negative impact to their ongoing 
operations.

                          Table 7--Schools--Cost of Compliance per STEM OPT Opportunity
----------------------------------------------------------------------------------------------------------------
                                                                                         Cost in       Cost in
               Proposed provision                   Calculation of school cost per     year 1  per   year 2  per
                                                                student                  student       student
----------------------------------------------------------------------------------------------------------------
Initial Completion of Mentor & Train Plan.......  ((0.25 hrs + 0.083 hrs) x $39.33).        $13.09         $0.00
6 Month Evaluations & Validation Check-Ins \1\..  (0.333 hrs x 2 Evals x $39.33)....         26.20         26.20
Additional Implementation Cost \2\..............  0.1 x Mentor & Train Plan Initial           3.93          2.62
                                                   + Evals & Check-Ins Costs.
Student Info. Reporting Requirements............  0.167 hrs x 2 rpts x $39.33.......         13.14         13.14
                                                                                     ---------------------------
    Total.......................................     Total..........................         56.35         41.95
----------------------------------------------------------------------------------------------------------------
\1\ Estimated based on 12 month period costs per extension, for students on a 12-month second extension such as
  those with prior degrees and second degrees, only Year 1 costs were applied.
\2\ Mentoring and Training Plan initial costs are only in Year 1 per STEM OPT.

    DHS estimates the annual impact to the schools based on the school 
cost of compliance as a percentage of annual revenue. Second year costs 
account for new additional STEM OPT extension students. For not-for-
profit schools, DHS multiplied the tuition per full-time first-year 
student with total enrollment numbers to estimate their revenue.\66\ 
While tuition revenue may underestimate the actual school revenue, this 
is the best information available to DHS. It is the most significant 
source of income for most schools, and DHS believes it is a reasonable 
approach to measuring the impact of this proposed rule. Based on the 
results of the sampled small-entity schools with sufficient data, all 
had first year annual impacts less than 1 percent, with the average 
annual impact being 0.006 percent. All sampled small-entity schools 
with sufficient data had second year annual impacts of less than 1 
percent, with the average annual impact being 0.005 percent.
---------------------------------------------------------------------------

    \66\ U.S. Department of Education, Institute of Education 
Sciences, National Center for Education Statistics, ``Academic year 
prices for full-time, first-time undergraduate students'', (Total 
enrollment, including Undergraduate and Graduate) 2014-2015, 
available at http://nces.ed.gov/globallocator/.

                                    Table 8--Schools--Annual Impact in Year 1
----------------------------------------------------------------------------------------------------------------
                                                            Number of  small
                                                             entities  for-    Number of  non-  Percent of small
                   Revenue impact range                       profit  with    profit  entities    entity schools
                                                                  data            with data
----------------------------------------------------------------------------------------------------------------
0% < Impact <= 1%.........................................                 4               137               100
1 < Impact <= 3...........................................                 0                 0                 0
3 < Impact <= 5...........................................                 0                 0                 0
5 < Impact <= 10..........................................                 0                 0                 0
Above 10..................................................                 0                 0                 0
                                                           -----------------------------------------------------
    Total.................................................                  141                              100
----------------------------------------------------------------------------------------------------------------


                                    Table 9--Schools--Annual Impact in Year 2
----------------------------------------------------------------------------------------------------------------
                                                            Number of  small
                                                             entities  for-    Number of  non-  Percent of small
                   Revenue impact range                       profit  with    profit  entities    entity schools
                                                                  data            with data
----------------------------------------------------------------------------------------------------------------
0% < Impact <= 1%.........................................                 4               137               100
1 < Impact <= 3...........................................                 0                 0                 0
3 < Impact <= 5...........................................                 0                 0                 0
5 < Impact <= 10..........................................                 0                 0                 0
Above 10..................................................                 0                 0                 0
                                                           -----------------------------------------------------
    Total.................................................                  141                              100
----------------------------------------------------------------------------------------------------------------

Employer Costs
    Employers would be required to provide information for certain 
fields, review the completed form, and attest to the certifications on 
the form. The proposed rule also ensures that students would be unable 
to complete their STEM OPT extensions as volunteers by requiring 
commensurate compensation, and additionally requires that students work 
at least 20 hours per week while on their STEM OPT extension. DHS

[[Page 63397]]

does not have data on the number of STEM OPT students who may not 
currently receive compensation. In addition, DHS does not have data on 
the number of STEM OPT students who do not currently receive wages or 
other qualifying compensation that would be considered commensurate 
under the proposed rule. To the extent that employers are not currently 
compensating STEM OPT participants in accordance with the proposed 
rule, this proposal would create additional costs to these employers. 
However, DHS notes that employer participation in the STEM OPT program 
is entirely voluntary, and each employer would determine if the 
benefits of hiring the STEM OPT student exceed the costs of doing so 
when considering all of the costs and burdens of the proposed rule, 
including the requirement to pay commensurate compensation. DHS 
requests comments from employers on the effect of these proposed 
requirements. In the quantified costs, DHS does account for the 
possible additional burden of reviewing the employment terms of 
similarly situated U.S. workers in order to compare the terms and 
conditions of their employment to those of the STEM OPT student's 
practical training opportunity.
    The proposed rule indicates that ICE, at its discretion, may 
conduct a site visit of an employer. The employer on-site review is 
intended to ensure that each employer meets program requirements, 
including that they are complying with assurances and that they possess 
the ability and resources to provide structured and guided work-based 
learning experiences outlined in students' Mentoring and Training 
Plans. Site visits would not be a requirement for each STEM OPT student 
employer or a regularly scheduled occurrence, but would rather be 
performed at the discretion of DHS either randomly or when DHS 
determines that such an action is needed. The length and depth of such 
a visit would be determined on a case-by-case basis. For law 
enforcement reasons, DHS does not include an estimate of the basis for 
initiating a site visit and is unable to estimate of the number of site 
visits that may be conducted, and thus is unable to provide a total 
annual estimated cost for such potential occurrences. However, based on 
on-site-reviews of schools, DHS estimates that an employer site visit 
may include review of records and questions for the supervisor, and 
would take two hours per employer. Therefore, DHS estimates that if an 
employer were to receive such an on-site review, it may cost the 
employer approximately $394.80 (5 hours x $78.96).
    DHS summarizes the estimated annual first and second year costs for 
potential employers of STEM OPT students in the following table. DHS 
requests comments on burdens described below if additional data or 
information is available. DHS acknowledges there may be additional 
regulatory compliance implementation costs \67\ to the following 
quantified costs, and requests comments specifically addressing 
concerns on implementation costs for entities of all sizes, including 
small entities.
---------------------------------------------------------------------------

    \67\ Such costs could be related to train supervisors on how to 
comply with the requirements, program changes within the school, and 
time to generally review and comprehend the requirements of the 
regulation and make determinations on how to best implement the 
requirements with the least negative impact to their ongoing 
operations.

                                Table 10--Individual Employer--Cost of Compliance
----------------------------------------------------------------------------------------------------------------
                                                                                         Cost in       Cost in
               Proposed provision                        Calculation of costs            Year 1        Year 2
----------------------------------------------------------------------------------------------------------------
Initial Completion of Mentor & Train Plan.......  (0.5 hrs x $80.12) + (0.5 hrs x          $123.47         $0.00
                                                   $78.96)+ (1 hrs x $43.93).
6 Month Evaluations & Validation Check-Ins \1\..  (0.25 hrs x 2 Evals x 78.96)......         39.48         39.48
Additional Implementation Cost \2\..............  0.1 x Mentor & Train Plan Initial          11.90          3.95
                                                   + Evals & Check-Ins Costs.
                                                                                     ---------------------------
Employer STEM OPT Costs per Student =...........     Total..........................        179.25         43.43
----------------------------------------------------------------------------------------------------------------
Cost per E-Verify per New Hire Case =...........  (0.16 hrs x 43.93)................          7.03          7.03
E-Verify Enrollment.............................  (80.12 x 2.26) + 100..............        281.07          0.00
E-Verify Annual Training & Maintenance Costs....  (1 hrs x 43.93) + 398)............        441.93        441.93
Compliance Site Visits..........................  (5 hrs x 78.96)...................          0.00        394.80
                                                                                     ---------------------------
E-Verify and Site Visit Employer Costs =........     Total..........................        723.00        836.73
----------------------------------------------------------------------------------------------------------------

    DHS estimates the annual impact to employers based on the employer 
cost of compliance as a percentage of annual revenue. Second year costs 
include initial submission of Mentoring and Training Plans and 
evaluations for new STEM OPT students who would be hired in the second 
year. For not-for-profit school employers without revenue data, DHS 
multiplied the tuition per full-time first-year student with total 
enrollment numbers to estimate their revenue. Based on the results of 
the sampled small entities with sufficient data, almost all had first 
and second year annual impacts less than 1 percent, with the first-year 
average annual revenue impact being 0.13 percent and second-year annual 
revenue impact being 0.15 percent. Additionally, the cost impact per 
employer included a compliance site visit in year two; therefore, costs 
could be less for employers that do not receive a site visit. Employers 
of STEM OPT students would determine if the benefits of hiring such 
students exceed program requirements costs. To the extent that the 
benefits do not exceed costs, employers may choose not to hire STEM OPT 
students.

[[Page 63398]]



                                  Table 11--Employers--Annual Impact in Year 1
----------------------------------------------------------------------------------------------------------------
                                                            Number of  small
                                                             entities  for-    Number of  non-     Percent of
                   Revenue impact range                       profit  with    profit  entities   small entities
                                                                  data            with data         employers
----------------------------------------------------------------------------------------------------------------
0% < Impact <= 1%.........................................               211                 7               99%
1 < Impact <= 3...........................................                 2                 0                 1
3 < Impact <= 5...........................................                 0                 0                 0
5 < Impact <= 10..........................................                 0                 0                 0
Above 10..................................................                 0                 0                 0
                                                           -----------------------------------------------------
    Total.................................................                  220                            100.0
----------------------------------------------------------------------------------------------------------------


                                  Table 12--Employers--Annual Impact in Year 2
----------------------------------------------------------------------------------------------------------------
                                                            Number of  small
                                                             entities  for-    Number of  non-     Percent of
                   Revenue impact range                       profit  with    profit  entities   small entities
                                                                  data            with data         employers
----------------------------------------------------------------------------------------------------------------
0% < Impact <= 1%.........................................               210                 7               99%
1 < Impact <= 3...........................................                 3                 0                 1
3 < Impact <= 5...........................................                 0                 0                 0
5 < Impact <= 10..........................................                 0                 0                 0
Above 10..................................................                 0                 0                 0
                                                           -----------------------------------------------------
    Total.................................................                  220                            100.0
----------------------------------------------------------------------------------------------------------------

Current Employers That Do Not Continue To Participate
    Due to additional employer requirements that must be met in order 
to receive the benefit of training STEM OPT extension opportunity, it 
may be possible that some employers (such as temporary employment 
agencies) would no longer participate in STEM OPT extensions. DHS does 
not present the quantitative burden or cost associated with this 
possible impact on employers due to lack of available information on 
employers that would fall under this category and the associated 
economic impacts. DHS will consider data or information provided by 
commenters to assess such an impact upon employers.
    In particular, DHS requests information and data that would assist 
with better understanding the impact of this rule on small entities. 
DHS also seeks any alternatives that will accomplish the objectives of 
this rulemaking and minimize the proposed rule's economic impact on 
small entities. After receiving comments on small entity concerns, data 
and information on impacts, and suggestions that could reduce negative 
or cost impacts to small entities, DHS would consider possible 
alternatives in a final rule. After publication of a final rule, DHS 
would engage in outreach and provide small entity stakeholders 
assistance or clarification regarding how to implement the new proposed 
requirements. At this time, DHS is unable to certify that the proposed 
rule will not have a significant economic impact on a substantial 
number of small entities.

 C. Small Business Regulatory Enforcement Fairness Act of 1996

    Pursuant to section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996, Public Law 104-121, we want to assist 
small entities in understanding this proposed rule so that they can 
better evaluate its effects and participate in the rulemaking. If the 
proposed rule would affect your small business, organization, or 
governmental jurisdiction and you have questions concerning its 
provisions or options for compliance, please consult ICE using the 
contact information provided in the FOR FURTHER INFORMATION section 
above.

 D. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government in 
the aggregate, or by the private sector, of $100,000,000 (adjusted for 
inflation) or more in any year. Although this proposed rule would not 
result in such an expenditure, we do discuss the effects of this 
proposed rule elsewhere in this preamble.

 E. The Congressional Review Act

    The Congressional Review Act (5 U.S.C. 801 et seq.) requires rules 
to be submitted to Congress before taking effect. If implemented as 
proposed, we may submit to Congress and the Comptroller General of the 
United States a report regarding the issuance of the Final Rule prior 
to its effective date, as required by 5 U.S.C. 801(a)(1).

F. Collection of Information

    Federal agencies are required to submit to OMB, for review and 
approval, any reporting or recordkeeping requirements inherent in a 
rule under the Paperwork Reduction Act of 1995, as amended (PRA), 
Public Law 104-13, 109 Stat. 163 (1995), 44 U.S.C. 3501-3520. Under the 
PRA, an agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.
    DHS has submitted the following information collection request to 
the Office of Management and Budget (OMB) for review and clearance in 
accordance with the review procedures of the PRA. The proposed 
information collection requirements are outlined in this proposed rule 
to obtain comments from the public and affected entities. The proposed 
rule would maintain the 2008 IFR revisions to previously approved 
information collections. The 2008 IFR impacted information collections 
for Form I-765, Application for Employment Authorization (OMB Control 
No. 1615-0040); Student and Exchange Visitor Information System (SEVIS) 
and Form I-20, Certificate of

[[Page 63399]]

Eligibility for Nonimmigrant Student Status (OMB Control No. 1653-
0038); and the E-Verify Program (OMB Control No. 1615-0092). These four 
approved information collections corresponding to the 2008 IFR have 
included the number of respondents, responses and burden hours 
resulting from the 2008 IFR requirements, which are also burdens DHS is 
proposing to maintain. Therefore DHS is not revising the burden 
estimates for these four information collections. Additional responses 
tied to new changes to STEM OPT eligibility will minimally increase the 
number of responses and burden for Form I-765 and E-Verify information 
collections, as the two collections cover a significantly broader 
population of respondents and responses than those impacted by the 
proposed rule and already account for growth in the number of responses 
in their respective published information collection notices burden 
estimates.
    As part of this NPRM, DHS is creating a new information collection 
instrument for the Mentoring and Training Plan. This information 
collection is necessary to enable reporting of and attesting to 
specified information relating to STEM OPT extensions, to be executed 
by STEM OPT students and their employers. Such reporting would include 
goals and objectives, progress, hours, and compensation. Assurances 
would ensure proper training opportunities for students and safeguard 
interests of U.S. workers in related fields.
    Additionally, DHS will require some minor changes to the 
Application for Employment Authorization, Form I-765, instructions to 
reflect proposed changes to the F-1 regulations allowing for: (a) a 
longer period of F-1 OPT STEM extension, and (b) an applicant to file 
an Application for Employment Authorization, Form I-765, with USCIS 
within 60 days (rather than 30 days) from the date the DSO endorses 
his/her F-1 OPT STEM extension. Accordingly, USCIS will be submitting 
an OMB 83-C, Correction Worksheet, to OMB for review and approval of 
the minor edits to the Application for Employment Authorization, Form 
I-765, instructions during the final rule stage. USCIS seeks comments 
on whether Form I-765 should be modified as a direct result of the 
changes in the proposed rule. See the ADDRESSES section above for 
instructions on how to submit comments to DHS and OMB on the 
information collection provisions of this rulemaking. Written comments 
and suggestions from the public and affected agencies concerning the 
collection of information are encouraged. Your comments on the 
information collection-related aspects of this rule should address one 
or more of the following four points:
    (1) Evaluate whether the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the collection of information, including the validity of the 
methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected;
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology (e.g., permitting electronic 
submission of responses). In particular, DHS requests comments on the 
recordkeeping cost burden imposed by this rule and will use the 
information gained through such comments to assist in calculating the 
cost burden.
Overview of This Information Collection--Mentoring and Training Plan
    (1) Type of Information Collection: New Collection.
    (2) Title of the Form/Collection: STEM OPT Extension Mentoring and 
Training Plan.
    (3) Agency form number, if any, and the applicable component of DHS 
sponsoring the collection: Immigration and Customs Enforcement Form I-
910;
    (4) Affected public who will be asked or required to respond, as 
well as a brief abstract:
     Primary: State governments, local governments, and 
businesses, or other for-profit and not-for-profit organizations.
     Other: None.
     Abstract: DHS is publishing a notice of proposed 
rulemaking (NPRM) that would make certain changes to the STEM OPT 
extension first introduced by the 2008 IFR. The NPRM would lengthen the 
duration of the STEM OPT extension to 24 months; require a Mentoring 
and Training Plan executed by STEM OPT students and their employers; 
and require that the plan include assurances to safeguard students and 
the interests of U.S. workers in related fields; require that the plan 
include objective-tracking and reporting requirements. The proposed 
rule would require students and employers (through an appropriate 
signatory official) to report on the Mentoring and Training Plan 
certain specified information relating to STEM OPT extensions. For 
instance, the Mentoring and Training Plan would explain how the 
employment will provide a work-based learning opportunity for the 
student by stating the specific goals of the practical training and 
describe how those goals will be achieved; detail the knowledge, 
skills, or techniques to be imparted to the student; explain how the 
mentorship and training is directly related to the student's qualifying 
STEM degree; and describe the methods of performance evaluation and the 
frequency of supervision. The Mentoring and Training Plan would also 
include a number of employer attestations intended to ensure the 
academic benefit of the practical training experience, protect STEM OPT 
students, and protect against appreciable adverse consequences on U.S. 
workers. The proposed rule would also require schools to collect and 
retain this information for a period of three years following the 
completion of each STEM practical training opportunity.
    (5) An estimate of the total annual average number of respondents, 
annual average number of responses, and the total amount of time 
estimated for respondents in an average year to collect, provide 
information, and keep the required records is:
     43,970 STEM OPT student respondents; 1,109 accredited 
schools endorsing STEM OPT students; and 16,891 employers of STEM OPT 
students.
     43,970 average responses annually at 4.00 hours per 
initial Mentoring and Training Plan response.
     87,941 average responses annually at 1.75 hours per 6-
month evaluation response by STEM OPT students.
    (6) An estimate of the total public burden (in hours) associated 
with the collection: 330,174 hours.
    The recordkeeping requirements set forth by this rule are new 
requirements that will require a new OMB Control Number. DHS is seeking 
comment on these new requirements as part of this NPRM.

 G. Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has 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. We have analyzed this proposed rule under that

[[Page 63400]]

Order and have determined that it does not have implications for 
federalism.

 H. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden.

I. Energy Effects

    We have analyzed this proposed rule under Executive Order 13211, 
Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a ``significant 
energy action'' under that order because it is a ``significant 
regulatory action'' under Executive Order 12866 but is not likely to 
have a significant adverse effect of the supply, distribution, or use 
of energy.

J. Environment

    The U.S. Department of Homeland Security Management Directive (MD) 
023-01 Rev. 01 establishes procedures that DHS and its Components use 
to comply with the National Environmental Policy Act of 1969 (NEPA), 42 
U.S.C. 4321-4375, and the Council on Environmental Quality (CEQ) 
regulations for implementing NEPA, 40 CFR parts 1500 through 1508. CEQ 
regulations allow federal agencies to establish categories of actions, 
which do not individually or cumulatively have a significant effect on 
the human environment and, therefore, do not require an Environmental 
Assessment or Environmental Impact Statement. 40 CFR 1508.4. The MD 
023-01 Rev. 01 lists the Categorical Exclusions that DHS has found to 
have no such effect. MD 023-01 Rev. 01 Appendix A Table 1.
    For an action to be categorically excluded, MD 023-01 Rev. 01 
requires the action to satisfy each of the following three conditions:
    (1) The entire action clearly fits within one or more of the 
Categorical Exclusions.
    (2) The action is not a piece of a larger action.
    (3) No extraordinary circumstances exist that create the potential 
for a significant environmental effect. MD 023-01 Rev. 01 section 
V.B(1)-(3).
    Where it may be unclear whether the action meets these conditions, 
MD 023-01 Rev. 01 requires the administrative record to reflect 
consideration of these conditions. MD 023-01 Rev. 01 section V.B.
    DHS has analyzed this proposed rule under MD 023-01 Rev. 01. DHS 
has made a preliminary determination that this action is one of a 
category of actions that do not individually or cumulatively have a 
significant effect on the human environment. This proposed rule clearly 
fits within the Categorical Exclusion found in MD 023-01 Rev. 01, 
Appendix A, Table 1, number A3(a): ``Promulgation of rules . . . of a 
strictly administrative or procedural nature;'' and A3(d): 
``Promulgation of rules . . . that interpret or amend an existing 
regulation without changing its environmental effect.'' This proposed 
rule is not part of a larger action. This proposed rule presents no 
extraordinary circumstances creating the potential for significant 
environmental effects. Therefore, this proposed rule is categorically 
excluded from further NEPA review.

K. Indian Tribal Governments

    This proposed rule does not have tribal implications under 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments, because it would not have a substantial direct effect on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes.

L. Taking of Private Property

    This proposed rule would not cause a taking of private property or 
otherwise have takings implications under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

M. Protection of Children

    DHS has analyzed this proposed rule under Executive Order 13045, 
Protection of Children from Environmental Health Risks and Safety 
Risks. This proposed rule would not create an environmental risk to 
health or risk to safety that might disproportionately affect children.

N. Technical Standards

    The National Technology Transfer and Advancement Act of 1995 (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through the Office of Management and Budget, with an explanation of why 
using these standards would be inconsistent with applicable law or 
otherwise impracticable. Voluntary consensus standards are technical 
standards (e.g., specifications of materials, performance, design, or 
operation; test methods; sampling procedures; and related management 
systems practices) that are developed or adopted by voluntary consensus 
standards bodies. This proposed rule does not use technical standards. 
Therefore, we did not consider the use of voluntary consensus 
standards.

List of Subjects

8 CFR Part 214

    Administrative practice and procedure, Aliens, Employment, Foreign 
officials, Health professions, Reporting and recordkeeping 
requirements, Students.

8 CFR Part 274a

    Administrative practice and procedure, Aliens, Employment, 
Penalties, Reporting and recordkeeping requirements.

The Proposed Amendments

    For the reasons set forth in the preamble, the Department of 
Homeland Security proposes to amend parts 214 and 274a of Chapter 1 of 
Title 8 of the Code of Federal Regulations as follows:

Subchapter B--Immigration Regulations

PART 214--NONIMMIGRANT CLASSES

0
1. The authority citation for part 214 continues to read as follows:

    Authority:  8 U.S.C. 1101, 1102, 1103, 1182, 1184, 1186a, 1187, 
1221, 1281, 1282, 1301-1305 and 1372; sec. 643, Pub. L. 104-208, 110 
Stat. 3009-708; Pub. L. 106-386, 114 Stat. 1477-1480; 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; 48 U.S.C. 1806; 8 CFR part 2.

0
2. Amend Sec.  214.2 by:
0
a. Republishing paragraph (f)(5)(vi); and
0
b. Revising paragraphs (f)(10)(ii)(A)(3), (f)(10)(ii)(C), (D), and (E), 
and (f)(11) and (12).
    The revisions read as follows:


Sec.  214.2  Special requirements for admission, extension, and 
maintenance of status.

* * * * *
    (f) * * *
    (5) * * *
    (vi) Extension of duration of status and grant of employment 
authorization. (A) The duration of status, and any employment 
authorization granted under 8 CFR 274a.12(c)(3)(i)(B) or (C), of an F-1 
student who is the beneficiary of an H-1B petition and request for 
change of status shall be automatically

[[Page 63401]]

extended until October 1 of the fiscal year for which such H-1B visa is 
being requested where such petition:
    (1) Has been timely filed; and
    (2) States that the employment start date for the F-1 student is 
October 1 of the following fiscal year.
    (B) The automatic extension of an F-1 student's duration of status 
and employment authorization under paragraph (f)(5)(vi)(A) of this 
section shall immediately terminate upon the rejection, denial, or 
revocation of the H-1B petition filed on such F-1 student's behalf.
    (C) In order to obtain the automatic extension of stay and 
employment authorization under paragraph (f)(5)(vi)(A) of this section, 
the F-1 student, according to 8 CFR part 248, must not have violated 
the terms or conditions of his or her nonimmigrant status.
    (D) An automatic extension of an F-1 student's duration of status 
under paragraph (f)(5)(vi)(A) of this section also applies to the 
duration of status of any F-2 dependent aliens.
* * * * *
    (10) * * *
    (ii) * * *
    (A) * * *
    (3) After completion of the course of study, or, for a student in a 
bachelor's, master's, or doctoral degree program, after completion of 
all course requirements for the degree (excluding thesis or 
equivalent). Continued enrollment, for the school's administrative 
purposes, after all requirements for the degree have been met does not 
preclude eligibility for optional practical training. A student must 
complete all practical training within a 14-month period following the 
completion of study, except that a 24-month extension pursuant to 
paragraph (f)(10)(ii)(C) of this section does not need to be completed 
within such 14-month period.
* * * * *
    (C) 24-month extension of post-completion OPT for a science, 
technology, engineering, or mathematics (STEM) degree. Consistent with 
paragraph (f)(11)(i)(C) of this section, a qualified student may apply 
for an extension of OPT while in a valid period of post-completion OPT 
authorized under 8 CFR 274a.12(c)(3)(i)(B). An extension will be for 24 
months for the first qualifying degree completed by the student, 
including any previously obtained degree that qualifies. If a student 
completes another qualifying degree at a higher degree level than the 
first, a second extension will be for an additional 24 months. In no 
event may a student be authorized for more than two lifetime STEM OPT 
extensions. Any subsequent application for an additional 24-month OPT 
extension under this paragraph (f)(10)(ii)(C) must be based on a degree 
at a higher degree level than the degree that was the basis for the 
student's first 24-month OPT extension. In order to qualify for an 
extension of post-completion OPT based upon a STEM degree, all of the 
following requirements must be met.
    (1) Accreditation. The degree that is the basis for the 24-month 
OPT extension is from an educational institution accredited by an 
accrediting agency recognized by the Department of Education.
    (2) DHS-approved degree. The degree that is the basis for the 24-
month OPT extension is a bachelor's, master's, or doctoral degree in 
one of the degree programs determined by the Secretary, or his or her 
designee, to qualify within a science, technology, engineering, or 
mathematics field.
    (i) The term ``science, technology, engineering or mathematics 
field'' means a field included in the Department of Education's 
Classification of Instructional Programs taxonomy within the summary 
groups containing mathematics, natural sciences (including physical 
sciences and biological/agricultural sciences), engineering/engineering 
technologies, and computer/information sciences, and related fields.
    (ii) The Secretary, or his or her designee, will maintain the STEM 
Designated Degree Program List, which will be a complete list of 
qualifying degree program categories, published on the Student and 
Exchange Visitor Program Web site at http://www.ice.gov/sevis. Changes 
that are made to the Designated Degree Program list may also be 
published in a notice in the Federal Register. All program categories 
included on the list must be consistent with the definition set forth 
in paragraph (f)(10)(ii)(C)(2)(i) of this section.
    (iii) At the time the DSO recommends an OPT extension under 
paragraph (f)(10)(ii)(C) of this section in SEVIS, the degree that is 
the basis for the application for a 24-month OPT extension must be 
contained within a category on the STEM Designated Degree Program List.
    (3) Previously obtained STEM degree(s). The degree that is the 
basis for the 24-month OPT extension under paragraph (f)(10)(ii)(C) of 
this section may be, but is not required to be, the degree that is the 
basis for the post-completion OPT period authorized under 8 CFR 
274a.12(c)(3)(i)(B). In either case, the degree that is the basis of 
the 24-month OPT extension must have been conferred by an accredited 
U.S. educational institution and must be contained within a category on 
the current STEM Designated Degree Program List at the time of the DSO 
recommendation. If an application for a 24-month OPT extension under 
paragraph (f)(10)(ii)(C) of this section is based upon a degree 
obtained previous to the degree that provided the basis for the period 
of post-completion OPT authorized under 8 CFR 274a.12(c)(3)(i)(B), that 
previously obtained degree must have been conferred within the 10 years 
preceding the student's application date, and the student's most recent 
degree must also be from an institution accredited by an accrediting 
agency recognized by the Department of Education.
    (4) Eligible practical training opportunity. The STEM practical 
training opportunity that is the basis for the 24-month OPT extension 
under paragraph (f)(10)(ii)(C) of this section must be directly related 
to the degree that qualifies the student for such extension, which may 
be the previously obtained degree described in paragraph 
(f)(10)(ii)(C)(3) of this section.
    (5) Employer qualification. The student's employer is enrolled in 
the E-Verify program, as evidenced by either a valid E-Verify company 
identification number or, if the employer is using an employer agent to 
create its E-Verify cases, a valid E-Verify client company 
identification number, and the employer is a participant in good 
standing in the E-Verify program, as determined by USCIS. An employer 
must also have an employer identification number (EIN) used for tax 
purposes.
    (6) Employer reporting. A student may not be authorized for 
employment with an employer pursuant to paragraph (f)(10)(ii)(C)(2) of 
this section unless the employer agrees, by signing the Mentoring and 
Training Plan, to report the termination or departure of an OPT student 
to the DSO at the student's school, if the termination or departure is 
prior to the end of the authorized period of OPT. Such reporting must 
be made within 48 hours of the termination or departure. An employer 
shall consider a student to have departed when the employer knows the 
student has left the practical training opportunity, or if the student 
has not reported for his or her practical training for a period of five 
consecutive business days without the consent of the employer, 
whichever occurs earlier.
    (7) Mentoring and Training Plan (Form I-910). (i) A student must 
fully

[[Page 63402]]

complete an individualized Mentoring and Training Plan and obtain 
requisite signatures from his or her employer or an appropriate 
individual in the employer's organization on the Mentoring and Training 
Plan, or any successor form, consistent with form instructions, before 
the DSO may recommend a 24-month OPT extension under paragraph 
(f)(10)(ii)(C)(2) of this section in SEVIS. A student must submit the 
Mentoring and Training Plan, which includes a certification of 
adherence to the plan completed by an appropriate individual in the 
employer's organization who has signatory authority for the employer, 
to the student's DSO, prior to the new DSO recommendation. A student 
must present his or her signed and completed Mentoring and Training 
Plan to a DSO at the educational institution of his or her most recent 
enrollment. A student, while in F-1 nonimmigrant status, may also be 
required to submit the Mentoring and Training Plan to ICE and/or USCIS 
upon request or in accordance with form instructions.
    (ii) The Mentoring and Training Plan must explain how the 
employment will provide a work-based learning opportunity for the 
student by stating the specific goals of the STEM practical training 
opportunity and describing how those goals will be achieved; detailing 
the knowledge, skills, or techniques to be imparted to the student; 
explaining how the mentorship and training is directly related to the 
student's qualifying STEM degree; and describing the methods of 
performance evaluation and the frequency of supervision.
    (iii) If a student initiates a new practical training opportunity 
with a new employer during his or her 24-month OPT extension, the 
student must submit, within 10 days of beginning the new practical 
training opportunity, a new Mentoring and Training Plan to the 
student's DSO, and subsequently obtain a new DSO recommendation.
    (8) Duties, hours, and compensation for training. The terms and 
conditions of a STEM practical training opportunity during the period 
of the 24-month OPT extension, including duties, hours, and 
compensation, must be commensurate with terms and conditions applicable 
to the employer's similarly situated U.S. workers in the area of 
employment, except in no event may the student engage in compensated 
practical training for less than 20 hours per week. If the employer 
does not employ and has not recently employed more than two similarly 
situated U.S. workers in the area of employment, the employer 
nevertheless remains obligated to attest that the terms and conditions 
of a STEM practical training opportunity are commensurate with the 
terms and conditions of employment for other similarly situated U.S. 
workers in the area of employment. ``Similarly situated U.S. workers'' 
includes U.S. workers performing similar duties subject to similar 
supervision and with similar educational backgrounds, industry 
expertise, employment experience, levels of responsibility, and skill 
sets as the STEM OPT student. The duties, hours, and compensation of 
STEM OPT students are ``commensurate'' with those offered to U.S. 
workers employed by the employer in the same area of employment when 
the employer can show that the duties, hours, and compensation are 
consistent with the range of such terms and conditions the employer has 
offered or would offer to similarly situated U.S. employees. The 
student must disclose his or her compensation, including any 
adjustments, as agreed to with the employer, on the Mentoring and 
Training Plan.
    (9) Evaluation requirements. A student may not be authorized for 
employment with an employer pursuant to paragraph (f)(10)(ii)(C)(2) of 
this section unless the employer develops procedures for evaluating the 
student, which shall include documentation of the student's progress 
toward the training goals described in the Mentoring and Training Plan. 
All required evaluations must be completed prior to the conclusion of a 
STEM practical training opportunity, and the student and his or her 
immediate supervisor must sign the evaluations. At a minimum, all STEM 
practical training opportunities require a concluding evaluation and a 
recurrent evaluation at every six-month interval of each OPT extension 
period under paragraph (f)(10)(ii)(C)(2) of this section. The 
educational institution whose DSO is responsible for duties associated 
with the student's latest OPT extension under paragraph 
(f)(10)(ii)(C)(2) of this section is responsible for ensuring the 
Student and Exchange Visitor Program has access to each individualized 
Mentoring and Training Plan and associated student evaluations 
(electronic or hard copy), including through SEVIS if technologically 
available, beginning within 30 days after the document is submitted to 
the DSO and continuing for a period of three years following the 
completion of each STEM practical training opportunity.
    (10) Additional STEM opportunity obligations. A student may only 
participate in a STEM practical training opportunity in which the 
employer attests, including by signing the Mentoring and Training Plan, 
that:
    (i) The employer has sufficient resources and personnel available 
and is prepared to provide appropriate mentoring and training in 
connection with the specified opportunity;
    (ii) The employer will not terminate, lay off, or furlough any 
full- or part-time, temporary or permanent U.S. worker as a result of 
the practical training opportunity; and
    (iii) The student's opportunity assists the student in reaching his 
or her training goals.
    (11) Site visits. DHS, at its discretion, may conduct a site visit 
of any employer. The purpose of the site visit is for DHS to ensure 
that each employer possesses and maintains the ability and resources to 
provide structured and guided work-based learning experiences 
consistent with any Mentoring and Training Plan completed and signed by 
the employer.
    (D) Duration of status while on post-completion OPT. For a student 
with approved post-completion OPT, the duration of status is defined as 
the period beginning when the student's application for OPT was 
properly filed and pending approval, including the authorized period of 
post-completion OPT, and ending 60 days after the OPT employment 
authorization expires.
    (E) Periods of unemployment during post-completion OPT. During 
post-completion OPT, F-1 status is dependent upon employment. Students 
may not accrue an aggregate of more than 90 days of unemployment during 
any post-completion OPT described in 8 CFR 274a.12(c)(3)(i)(B). 
Students granted one or more 24-month OPT extensions under paragraph 
(f)(10)(ii)(C)(2) of this section may not accrue an aggregate of more 
than 150 days of unemployment during a total OPT period, including any 
post-completion OPT period described in 8 CFR 274a.12(c)(3)(i)(B) and 
any subsequent 24-month extension period.
    (11) OPT application and approval process--(i) Student 
responsibilities. A student must initiate the OPT application process 
by requesting a recommendation for OPT from his or her DSO. Upon making 
the recommendation, the DSO will provide the student a signed Form I-20 
indicating that recommendation.
    (A) Application for employment authorization. The student must 
properly file an Application for Employment Authorization (Form I-765, 
or successor form), with USCIS, accompanied by the required fee, and 
the supporting documents, as described in the form's instructions.

[[Page 63403]]

    (B) Filing deadlines for pre-completion OPT and post-completion 
OPT. (1) Students may file an Application for Employment Authorization, 
or successor form, for pre-completion OPT up to 90 days before being 
enrolled for one full academic year, provided that the period of 
employment will not start prior to the completion of the full academic 
year.
    (2) For post-completion OPT, the student must properly file his or 
her Application for Employment Authorization, or successor form, up to 
90 days prior to his or her program end-date and no later than 60 days 
after his or her program end date. For all post-completion OPT, except 
in the case of an application for employment associated with a 24-month 
OPT extension under paragraph (f)(10)(ii)(C)(2) of this section, the 
student must also file the Application for Employment Authorization 
with USCIS within 30 days of the date the DSO enters the recommendation 
for OPT into his or her SEVIS record.
    (C) Applications for 24-month OPT extension. A student meeting the 
eligibility requirement for a 24-month OPT extension under paragraph 
(f)(10)(ii)(C) of this section may file for an extension of employment 
authorization by filing an Application for Employment Authorization, or 
successor form, with the required fee, and the supporting documents, 
prior to the expiration date of the student's current OPT employment 
authorization. The student seeking such 24-month OPT extension must 
properly file his or her Application for Employment Authorization, or 
successor form, with USCIS within 60 days of the date the DSO enters 
the recommendation for the OPT extension into his or her SEVIS record. 
If a student timely and properly files an application for such 24-month 
OPT extension and timely and properly requests a DSO recommendation, 
including by submitting the fully-executed Mentoring and Training Plan 
to his or her DSO, but the Employment Authorization Document (Form I-
766, or successor form) currently in the student's possession expires 
prior to the decision on the student's application for the OPT 
extension, the student's Form I-766, or successor form, is extended 
automatically pursuant to the terms and conditions specified in 8 CFR 
274a.12(b)(6)(iv).
    (D) Start of OPT employment. A student may not begin OPT employment 
prior to the approved start date on his or her employment authorization 
document except as described in paragraph (f)(11)(i)(C) of this 
section. A student may not request a start date that is more than 60 
days after the student's program end date. Employment authorization 
will begin on the date requested or the date the employment 
authorization is adjudicated, whichever is later.
    (ii) Additional DSO responsibilities. A student needs a 
recommendation from his or her DSO in order to apply for OPT. When a 
DSO recommends a student for OPT, the school assumes the added 
responsibility for maintaining the SEVIS record of that student for the 
entire period of authorized OPT, consistent with paragraph (f)(12) of 
this section.
    (A) Prior to making a recommendation, the DSO at the educational 
institution of the student's most recent enrollment must ensure that 
the student is eligible for the given type and period of OPT and that 
the student is aware of the student's responsibilities for maintaining 
status while on OPT. Prior to recommending a 24-month OPT extension 
under paragraph (f)(10)(ii)(C) of this section, the DSO at the 
educational institution of the student's most recent enrollment must 
certify that the student's degree being used to qualify that student 
for the 24-month OPT extension, as shown in SEVIS or official 
transcripts, is a bachelor's, master's, or doctorate degree with a 
degree code that is contained within a category on the current STEM 
Designated Degree Program List at the time the recommendation is made. 
A DSO may only recommend a student for a 24-month OPT extension under 
paragraph (f)(10)(ii)(C) of this section if the Mentoring and Training 
Plan described in paragraph (f)(10)(ii)(C)(7) of this section has been 
properly completed and executed by the student and prospective 
employer. A DSO may not recommend a student for an OPT extension under 
paragraph (f)(10)(ii)(C) of this section if the practical training 
would be conducted by an employer who has failed to meet the 
requirements under paragraphs (f)(10)(ii)(C)(5) through (9) of this 
section or has failed to provide the required assurances of paragraph 
(f)(10)(ii)(C)(10) of this section.
    (B) The DSO must update the student's SEVIS record with the DSO's 
recommendation for OPT before the student can apply to USCIS for 
employment authorization. The DSO will indicate in SEVIS whether the 
OPT employment is to be full-time or part-time, or for a student 
seeking a recommendation for a 24-month OPT extension under paragraph 
(f)(10)(ii)(C) whether the OPT employment meets the minimum hours 
requirements described in paragraph (f)(10)(ii)(C)(8), and note in 
SEVIS the OPT start and end dates.
    (C) The DSO must provide the student with a signed, dated Form I-
20, or successor form, indicating that OPT has been recommended.
    (iii) Decision on application for OPT employment authorization. 
USCIS will make a decision on the Application for Employment 
Authorization, or successor form, on the basis of the DSO's 
recommendation and other eligibility considerations.
    (A) If granted, the employment authorization period for post-
completion OPT begins on the requested date of commencement or the date 
the employment authorization application is approved, whichever is 
later, and ends at the conclusion of the remaining time period of post-
completion OPT eligibility. The employment authorization period for a 
24-month OPT extension under paragraph (f)(10)(ii)(C) of this section 
begins on the day after the expiration of the initial post-completion 
OPT employment authorization and ends 24 months thereafter, regardless 
of the date the actual extension is approved.
    (B) USCIS will notify the applicant of the decision on the 
application for employment authorization in writing, and, if the 
application is denied, of the reason or reasons for the denial.
    (C) The applicant may not appeal the decision.
    (12) Reporting while on optional practical training--(i) General. 
An F-1 student who is granted employment authorization by USCIS to 
engage in optional practical training is required to report any change 
of name or address, or interruption of such employment to the DSO for 
the duration of the optional practical training. A DSO who recommends a 
student for OPT is responsible for updating the student's record to 
reflect these reported changes for the duration of the time that 
training is authorized.
    (ii) Additional reporting obligations for students with an approved 
24-month OPT extension. Students with an approved 24-month OPT 
extension under paragraph (f)(10)(ii)(C) of this section have 
additional reporting obligations. Compliance with these reporting 
requirements is required to maintain F-1 status. The reporting 
obligations are:
    (A) Within 10 days of the change, the student must report to the 
student's DSO a change of legal name, residential or mailing address, 
employer name, employer address, and/or loss of employment.
    (B) The student must make a validation report and submit his or her

[[Page 63404]]

supervisor-approved recurrent evaluation to the DSO every six months 
starting from the date the extension begins and ending when the 
student's F-1 status ends, the student changes educational levels at 
the same school, or the student transfers to another school or program, 
or the 24-month OPT extension ends, whichever is first. The validation 
is a confirmation that the student's information in SEVIS for the items 
listed in paragraph (f)(12)(ii)(A) of this section is current and 
accurate. This report is due to the student's DSO within 10 business 
days of each reporting date.
    Note to paragraph (f)(12)(ii)(B): The supervisor-approved recurrent 
evaluation, described in paragraph (f)(10)(ii)(C)(9) of this section, 
is noted here for ease of reference; this evaluation is an update to 
the fully executed Mentoring and Training Plan that the student submits 
to his or her DSO.
0
3. Revise Sec.  214.3(g)(2)(ii)(F) to read as follows:


Sec.  214.3  Approval of schools for enrollment of F and M 
nonimmigrants.

* * * * *
    (g) * * *
    (2) * * *
    (ii) * * *
    (F) For F-1 students authorized by USCIS to engage in a 24-month 
extension of OPT under Sec.  214.2(f)(10)(ii)(C):
    (1) Any change that the student reports to the school concerning 
legal name, residential or mailing address, employer name, or employer 
address; and
    (2) The end date of the student's employment reported by a former 
employer in accordance with Sec.  214.2(f)(10)(ii)(C)(6).
* * * * *

PART 274a--CONTROL OF EMPLOYMENT OF ALIENS

0
4. The authority citation for part 274a continues to read as follows:

    Authority: 8 U.S.C. 1101, 1103, 1324a; 48 U.S.C. 1806; 8 CFR 
part 2.

Subpart B--Employment Authorization

0
5. Revise Sec.  274a.12(b)(6)(iv) and (v) and (c)(3)(i) to read as 
follows:


Sec.  274a.12  Classes of aliens authorized to accept employment.

* * * * *
    (b) * * *
    (6) * * *
    (iv) An employment authorization document under paragraph 
(c)(3)(i)(C) of this section based on a 24-month STEM Optional 
Practical Training extension, and whose timely filed employment 
authorization request is pending and employment authorization issued 
under paragraph (c)(3)(i)(B) of this section has expired. Employment is 
authorized beginning on the expiration date of the authorization issued 
under paragraph (c)(3)(i)(B) of this section and ending on the date of 
USCIS' written decision on the current employment authorization 
request, but not to exceed 180 days; or
    (v) Pursuant to 8 CFR 214.2(h) is seeking H-1B nonimmigrant status 
and whose duration of status and employment authorization have been 
extended pursuant to 8 CFR 214.2(f)(5)(vi).
* * * * *
    (c) * * *
    (3) * * *
    (i)(A) Is seeking pre-completion practical training pursuant to 8 
CFR 214.2(f)(10)(ii)(A)(1) and (2);
    (B) Is seeking authorization to engage in post-completion Optional 
Practical Training (OPT) pursuant to 8 CFR 214.2(f)(10)(ii)(A)(3); or
    (C) Is seeking a 24-month STEM OPT extension pursuant to 8 CFR 
214.2(f)(10)(ii)(C);
* * * * *

Jeh Charles Johnson,
Secretary of Homeland Security.
[FR Doc. 2015-26395 Filed 10-16-15; 8:45 am]
 BILLING CODE 9111-28-P



                                                                                                            Vol. 80                           Monday,
                                                                                                            No. 201                           October 19, 2015




                                                                                                            Part IV


                                                                                                            Department of Homeland Security
                                                                                                            8 CFR Parts 214 and 274a
                                                                                                            Improving and Expanding Training Opportunities for F–1 Nonimmigrant
                                                                                                            Students With STEM Degrees and Cap-Gap Relief for All Eligible F–1
                                                                                                            Students; Proposed Rule
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                                                      63376                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      DEPARTMENT OF HOMELAND                                  provided by STEM OPT extensions and                   Management and Budget, 725 17th
                                                      SECURITY                                                increase oversight, which will better                 Street NW., Washington, DC 20503,
                                                                                                              ensure that students gain valuable                    ATTN: Desk Officer, U.S. Immigration
                                                      8 CFR Parts 214 and 274a                                practical STEM experience that                        and Customs Enforcement, DHS.
                                                                                                              supplements knowledge gained through                    See the Public Participation portion of
                                                      [DHS Docket No. ICEB–2015–0002]
                                                                                                              their academic studies, while                         the SUPPLEMENTARY INFORMATION section
                                                      RIN 1653–AA72                                           preventing adverse effects to U.S.                    below for additional instructions on
                                                                                                              workers. By earning a functional                      submitting comments.
                                                      Improving and Expanding Training                        understanding of how to apply their                   FOR FURTHER INFORMATION CONTACT:
                                                      Opportunities for F–1 Nonimmigrant                      academic knowledge in a work setting,                 Katherine Westerlund, Policy Chief
                                                      Students With STEM Degrees and Cap-                     students will be better positioned to                 (Acting), Student and Exchange Visitor
                                                      Gap Relief for All Eligible F–1 Students                begin careers in their fields of study.               Program, U.S. Immigration and Customs
                                                      AGENCY:  Department of Homeland                         These on-the-job educational                          Enforcement, 500 12th Street SW.,
                                                      Security.                                               experiences would be obtained only                    Washington, DC 20536; telephone (703)
                                                                                                              with those employers that commit to                   603–3400; email sevp@ice.dhs.gov.
                                                      ACTION: Notice of proposed rulemaking.
                                                                                                              developing students’ knowledge and                    SUPPLEMENTARY INFORMATION:
                                                      SUMMARY:   The Department of Homeland                   skills through practical application. The
                                                                                                              proposed changes would also help                      Table of Contents
                                                      Security (DHS) proposes to amend its F–
                                                      1 nonimmigrant student visa regulations                 ensure that the nation’s colleges and                 I. Public Participation
                                                      on optional practical training (OPT) for                universities remain globally competitive                 A. Submitting Comments
                                                                                                              in attracting international STEM                         B. Viewing Comments and Documents
                                                      certain students with degrees in science,
                                                                                                              students to study and lawfully remain                    C. Privacy Act
                                                      technology, engineering, or mathematics                                                                          D. Public Meeting
                                                      (STEM) from U.S. institutions of higher                 in the United States.
                                                                                                                                                                    II. Abbreviations
                                                      education. Specifically, the proposal                   DATES: Comments must be received by                   III. Executive Summary
                                                      would allow such F–1 STEM students                      DHS on or before November 18, 2015.                      A. Purpose of the Regulatory Action
                                                      who have elected to pursue 12 months                    Comments on the information collection                   B. Summary of the Major Provisions of the
                                                      of OPT in the United States to extend                   provisions proposed in this rule must be                    Regulatory Action
                                                      the OPT period by 24 months (STEM                       received by DHS and the Office of                        C. Costs and Benefits
                                                                                                              Management and Budget (OMB) on or                     IV. Background and Purpose
                                                      OPT extension). This 24-month
                                                                                                                                                                       A. Authority, Regulatory History, and
                                                      extension would effectively replace the                 before November 18, 2015.                                   Recent Litigation
                                                      17-month STEM OPT extension                             ADDRESSES: You may submit comments,                      B. ICE and SEVIS
                                                      currently available to certain STEM                     identified by the DHS docket number to                   C. Basis and Purpose of Regulatory Action
                                                      students. The rule also improves and                    this rulemaking, Docket No. ICEB–                     V. Discussion of Elements of the STEM OPT
                                                      increases oversight over STEM OPT                       2015–0002, to the Federal Docket                            Extension
                                                      extensions by, among other things,                      Management System (FDMS), a                              A. Including a STEM OPT Extension
                                                      requiring the implementation of formal                                                                              Within the OPT Program
                                                                                                              government-wide, electronic docket
                                                                                                                                                                       B. STEM Extension Period for OPT
                                                      mentoring and training plans by                         management system, by one of the                         C. STEM Definition and CIP Categories for
                                                      employers, adding wage and other                        following methods:                                          STEM OPT Extension
                                                      protections for STEM OPT students and                     • Electronically: Submit comments to                   D. Mentoring and Training Plan
                                                      U.S. workers, and allowing extensions                   the Federal eRulemaking Portal at                        E. USCIS E-Verify Employment
                                                      only to students with degrees from                      http://www.regulations.gov. Follow the                      Verification Program
                                                      accredited schools.                                     instructions for submitting comments.                    F. Previously Obtained STEM Degrees
                                                         As with the current 17-month STEM                      • Mail: Address your written                           G. Safeguarding U.S. Workers through
                                                      OPT extension, the proposed rule would                  comments to the individual in the FOR                       Measures Consistent with Labor Market
                                                      authorize STEM OPT extensions only                                                                                  Protections
                                                                                                              FURTHER INFORMATION CONTACT section
                                                                                                                                                                       H. Oversight through School Accreditation
                                                      for students employed by employers                      below. DHS docket staff, which                              Requirements and Employer Site Visits
                                                      enrolled in U.S. Citizenship and                        maintains and processes U.S.                             I. Additional Compliance Requirements
                                                      Immigration Services’ (USCIS’) E-Verify                 Immigration and Customs                                  J. Cap-Gap Extension for F–1 Students with
                                                      employment eligibility verification                     Enforcement’s (ICE’s) official regulatory                   Timely Filed H–1B Petitions and Change
                                                      program. The proposal also includes the                 dockets, will scan the submission and                       of Status Requests
                                                      ‘‘Cap-Gap’’ relief first introduced in                  post it to FDMS.                                      VI. Statutory and Regulatory Requirements
                                                      2008 for any F–1 student with a timely                    Collection of information. You must                    A. Executive Orders 12866 and 13563:
                                                      filed H–1B petition and request for                                                                                 Regulatory Planning and Review
                                                                                                              submit comments on the collection of                     B. Regulatory Flexibility Act
                                                      change of status. This Cap-Gap relief                   information discussed in this notice of                  C. Small Business Regulatory Enforcement
                                                      allows such students to automatically                   proposed rulemaking both to DHS’s                           Fairness Act of 1996
                                                      extend the duration of F–1 status and                   docket and to OMB’s Office of                            D. Unfunded Mandates Reform Act
                                                      any current employment authorization                    Information and Regulatory Affairs                       F. Collection of Information
                                                      until October 1 of the fiscal year for                  (OIRA). OIRA submissions can be made                     G. Federalism
                                                      which such H–1B visa is being                           using one of the listed methods.                         H. Civil Justice Reform
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                                                      requested.                                                • Electronically (preferred): OIRA_                    I. Energy Effects
                                                         In addition to improving the integrity                                                                        J. Environment
                                                                                                              submission@omb.eop.gov (include the
                                                                                                                                                                       K. Indian Tribal Governments
                                                      and value of the STEM OPT program,                      docket number and ‘‘Attention: Desk                      L. Taking of Private Property
                                                      this proposed rule also responds to a                   Officer for U.S. Immigration and                         M. Protection of Children
                                                      court decision that vacated a 2008 DHS                  Customs Enforcement, DHS’’ in the                        N. Technical Standards
                                                      regulation on procedural grounds. The                   subject line of the email).
                                                      proposed rule includes changes to the                     • Fax: 202–395–6566.                                I. Public Participation
                                                      policies announced in the 2008 rule to                    • Mail: Office of Information and                      We encourage you to participate in
                                                      further enhance the academic benefit                    Regulatory Affairs, Office of                         this rulemaking by submitting


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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                         63377

                                                      comments and related materials. All                     B. Viewing Comments and Documents                     SEVIS Student and Exchange Visitor
                                                      comments received will be posted                                                                                Information System
                                                                                                                To view comments, as well as                        STEM Science, Technology, Engineering, or
                                                      without change to http://                               documents mentioned in this preamble                    Mathematics
                                                      www.regulations.gov and will include                    as being available in the docket, go to               U.S.C. United States Code
                                                      any personal information you provide                    http://www.regulations.gov and insert                 USCIS U.S. Citizenship and Immigration
                                                      unless you request that your personally                 the complete Docket number starting                     Services
                                                      identifiable information be redacted. We                with ‘‘ICEB’’ in the ‘‘Search’’ box. Click
                                                      also invite comments relating to the                                                                          III. Executive Summary
                                                                                                              on the ‘‘Open Docket Folder,’’ and you
                                                      economic, environmental, energy, or                     can click on ‘‘View Comment’’ or ‘‘View               A. Purpose of the Regulatory Action
                                                      federalism impacts that might result                    All’’ under the ‘‘Comments’’ section of
                                                      from this rulemaking action. See the                                                                             This proposed rule would affect F–1
                                                                                                              the page. Individuals without internet                nonimmigrant students who seek to
                                                      ADDRESSES section above for methods to
                                                                                                              access can make alternate arrangements                obtain a STEM OPT extension, as well
                                                      submit comments.
                                                                                                              for viewing comments and documents                    as F–1 nonimmigrant students who seek
                                                      A. Submitting Comments                                  related to this rulemaking by contacting              so-called Cap-Gap relief. The F–1
                                                         If you submit comments, please                       ICE through the FOR FURTHER                           nonimmigrant classification is available
                                                      include the docket number for this                      INFORMATION CONTACT section above.                    to certain academic students seeking
                                                      rulemaking, indicate the specific section                                                                     temporary admission to the United
                                                                                                              C. Privacy Act
                                                      of this document to which each                                                                                States as full-time students at an
                                                      comment applies, and provide a reason                      Anyone can search the electronic                   established college, university,
                                                      for each suggestion or recommendation.                  form of comments received into any of                 seminary, conservatory, academic high
                                                      You may submit your comments and                        our dockets by the name of the                        school, elementary school, or other
                                                      materials online or by mail, but please                 individual submitting the comment (or                 academic institution or in an accredited
                                                      use only one of these means. We                         signing the comment, if submitted on                  language training program. To obtain F–
                                                      recommend that you include your name                    behalf of an association, business, labor             1 nonimmigrant classification, the
                                                      and a mailing address, an email address,                union, etc.). You may wish to consider                student must be enrolled in a full course
                                                      or a phone number in the body of your                   limiting the amount of personal                       of study at a qualifying institution and
                                                      document so that we can contact you if                  information that you provide in any                   have sufficient funds to self-support
                                                      we have questions regarding your                        voluntary public comment submission                   during the entire proposed course of
                                                      submission. ICE will file all comments                  you make to DHS. DHS may withhold                     study. Such course of study must occur
                                                      sent to our docket address, as well as                  information provided in comments from                 at a school authorized by the U.S.
                                                      items sent to the address or email under                public viewing that it determines may                 government to accept international
                                                      the FOR FURTHER INFORMATION CONTACT                     impact the privacy of an individual or                students.
                                                      section above, in the public docket,                    is offensive. For additional information,                OPT is a form of temporary
                                                      except for comments containing marked                   please read the Privacy Act notice that               employment available to F–1 students
                                                      confidential information. If you submit                 is available via the link in the footer of            (except those in English language
                                                      a comment, it will be considered                        http://www.regulations.gov.                           training programs) that directly relates
                                                      received by ICE when it is received at                                                                        to and complements a student’s study in
                                                                                                              D. Public Meeting
                                                      the Docket Management Facility.                                                                               the United States. A student can apply
                                                         To submit your comments online, go                      We do not currently plan to hold a                 to engage in OPT during their academic
                                                      to http://www.regulations.gov, and                      public meeting, but you may submit a                  program, known as ‘‘pre-completion
                                                      insert the complete Docket number                       request for one on or before November                 OPT,’’ or after completing the academic
                                                      starting with ‘‘ICEB’’ in the ‘‘Search’’                18, 2015 using one of the methods                     program, known as ‘‘post-completion
                                                      box. Click on the ‘‘Comment Now!’’ box                  specified under the ADDRESSES section                 OPT.’’ A student can apply for 12
                                                      and input your comment in the text box                  above. In your request, explain why you               months of OPT at each education level
                                                      provided. Click the ‘‘Continue’’ box, and               believe a public meeting would be                     (e.g., one 12-month OPT period at the
                                                      if you are satisfied with your comment,                 beneficial. If we determine that one                  bachelor’s level and another 12-month
                                                      follow the prompts to submit it. If you                 would aid this rulemaking, we will hold               period at the master’s level). While
                                                      submit your comments by mail, submit                    one at a time and place announced by                  school is in session, the student may
                                                      them in an unbound format, no larger                    a later notice in the Federal Register.               work up to 20 hours per week pursuant
                                                      than 81⁄2 by 11 inches, suitable for                    II. Abbreviations                                     to OPT.
                                                      copying and electronic scanning and                                                                              This notice of proposed rulemaking
                                                      filing. Mailed submissions may be on                    CIP Classification of Instructional Program           (NPRM) would make changes to the
                                                      paper, electronic disk, or CD–ROM. If                   CFR Code of Federal Regulations                       current OPT program by lengthening the
                                                                                                              DHS Department of Homeland Security                   extension of the OPT period for certain
                                                      you would like us to acknowledge                        DOS Department of State
                                                      receipt of comments submitted by mail,                  DSO Designated School Official
                                                                                                                                                                    F–1 students who have earned STEM
                                                      include with your comments a self-                      EBSVERA Enhanced Border Security and                  degrees. DHS first introduced an
                                                      addressed, stamped postcard or                             Visa Entry Reform Act of 2002                      extension of OPT for STEM graduates in
                                                      envelope on which the docket number                     FDMS Federal Document Management                      a 2008 interim final rule (2008 IFR). See
                                                      appears. We will stamp the date of                         System                                             73 FR 18944. Under the 2008 IFR, an F–
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                                                      receipt on the postcard and mail it to                  ICE U.S. Immigration and Customs                      1 student with a STEM degree from a
                                                      you.                                                       Enforcement                                        U.S. institution of higher education may
                                                         We will consider all comments and                    IIRIRA Illegal Immigration Reform and                 be eligible for an additional 17 months
                                                      materials received during the comment                      Immigrant Responsibility Act of 1996               of OPT (17-Month STEM OPT
                                                                                                              IFR Interim Final Rule
                                                      period and may change this proposed                     OPT Optional Practical Training
                                                                                                                                                                    Extension), provided that the employer
                                                      rule based on your comments. The                        RIA Regulatory Impact Analysis                        from which the student sought
                                                      docket is available for public inspection               IRFA Initial Regulatory Flexibility Analysis          employment was enrolled in USCIS’s E-
                                                      before and after the comment closing                    SEVP Student and Exchange Visitor                     Verify employment eligibility
                                                      date.                                                      Program                                            verification program. As discussed in


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                                                      63378                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      further detail below, on August 12,                      student participating in post-completion             additional 60 days (for an aggregate of
                                                      2015, the U.S. District Court for the                    OPT to use a prior eligible STEM degree              150 days) for students who obtain a 24-
                                                      District of Columbia ordered the vacatur                 from a U.S. institution of higher                    month STEM OPT extension.
                                                      of the 2008 IFR for procedural                           education as a basis to apply for a STEM                In addition to these changes (as
                                                      deficiencies in its promulgation, and                    OPT extension, as long as the student’s              compared to the 2008 IFR), the proposal
                                                      remanded the issue to DHS. DHS is                        most recent degree was also received                 would retain other provisions of the
                                                      proposing this rule to reinstate the                     from an accredited educational                       2008 IFR, as follows:
                                                      STEM OPT extension, with changes                         institution. Additionally, in order for                 • E-Verify and Reporting
                                                      intended to enhance the academic                         such a student to be eligible for the                Requirements for STEM OPT Employers.
                                                      benefit afforded by the extension and                    STEM OPT extension, the employment                   The proposal would require STEM OPT
                                                      increase program oversight, including                    opportunity must be directly related to              employers to be enrolled in USCIS’ E-
                                                      safeguards to protect U.S. workers.1                     the previously obtained STEM degree.                 Verify program and to report certain
                                                                                                                  • Safeguards for U.S. Workers in                  changes in the STEM OPT student’s
                                                      B. Summary of the Major Provisions of                    Related Fields. To guard against adverse             employment.
                                                      the Regulatory Action                                    effects on U.S. workers, this proposal                  • Reporting Requirements for STEM
                                                         The proposal would again provide for                  would require terms and conditions of                OPT Students. The proposal would
                                                      an extension of OPT for certain F–1                      a STEM practical training opportunity                require STEM OPT students to report to
                                                      students with STEM degrees. As                           (including duties, hours, and                        DHS any changes to their names or
                                                      compared to the 2008 IFR, the proposed                   compensation) to be commensurate with                addresses, as well as any changes to
                                                      rule includes the following changes:                     those applicable to similarly situated               their employers’ names or addresses.
                                                         • Lengthened STEM Extension Period                    U.S. workers. In addition to requiring a             Students would also be required to
                                                      for OPT. The proposal would increase                     related attestation in the Mentoring and             periodically verify the accuracy of this
                                                      the OPT extension period for STEM                        Training Plan, an employer would also                reporting information.
                                                      OPT students from the 2008 IFR’s 17                      be required to attest that: (1) The                     • Cap-Gap Extension for F–1
                                                      months to 24 months. The proposal                        employer has sufficient resources and                Nonimmigrants with Timely Filed H–1B
                                                      would also make F–1 students who                         trained personnel available to provide               Petitions and Requests for Change of
                                                      subsequently enroll in a new academic                    appropriate mentoring and training in                Status. The proposal would include the
                                                      program and earn another qualifying                      connection with the specified                        2008 IFR’s ‘‘Cap-Gap’’ provision, under
                                                      STEM degree at a higher educational                      opportunity; (2) the employer will not               which DHS would temporarily extend
                                                      level eligible for one additional 24-                    terminate, lay off, or furlough any full-            an F–1 student’s duration of status and
                                                      month STEM OPT extension.                                or part-time, temporary or permanent                 any current employment authorization
                                                         • STEM Definition and CIP Categories                  U.S. workers as a result of providing the            if the student is the beneficiary of a
                                                      for STEM OPT Extension. The proposed                     STEM OPT to the student; and (3) the                 timely filed H–1B petition and requests
                                                      rule would more clearly define which                     student’s opportunity assists the student            a change of status. The Cap-Gap
                                                      fields of study (more specifically, which                in attaining his or her training                     extension would extend the OPT period
                                                      Department of Education Classification                   objectives.                                          until October 1 of the fiscal year for
                                                      of Instructional Program (CIP)                              • School Accreditation and Employer               which the H–1B visa is being requested.
                                                      categories) may serve as the basis for a                 Site Visits. The proposal would enhance
                                                      STEM OPT extension. The proposal also                    the academic benefit and oversight of                C. Costs and Benefits
                                                      sets forth a process for public                          STEM OPT extensions by (1) generally                    The anticipated costs of compliance
                                                      notification in the Federal Register                     limiting eligibility to students with                with the proposed rule, as well as the
                                                      when DHS updates the list of eligible                    degrees from schools that are accredited             benefits, are discussed at length in
                                                      STEM fields on the Student and                           by an accrediting agency recognized by               section VI, entitled ‘‘Statutory and
                                                      Exchange Visitor Program’s (SEVP’s)                      the Department of Education; and (2)                 Regulatory Requirements—Executive
                                                      Web site.                                                clarifying DHS discretion to conduct                 Orders 12866 and 13563.’’ A combined
                                                         • Mentoring and Training Plan. The                    employer on-site reviews at worksites to             Regulatory Impact Analysis (RIA) and
                                                      proposal would require employers to                      verify whether employers are meeting                 an Initial Regulatory Flexibility
                                                      implement formal mentoring and                           program requirements, including that                 Analysis (IRFA) are available in the
                                                      training programs to augment students’                   they possess and maintain the ability                docket as indicated under the Public
                                                      academic learning through practical                      and resources to provide structured and              Participation section of this preamble. A
                                                      experience, intended to equip students                   guided work-based learning                           summary of the analysis follows.
                                                      with a more comprehensive                                experiences.                                            As shown in the Summary Table
                                                      understanding of their selected area of                     • Compliance Requirements. In                     below, DHS estimates that the costs of
                                                      study and broader functionality within                   addition to reinstating the 2008 IFR’s               the standards proposed in this rule
                                                      that field.                                              reporting and compliance requirements,               would be approximately $503.3 million
                                                         • Previously Obtained STEM Degrees.                   the proposal would revise the number of              over the period 2016–2025, discounted
                                                      The proposal would permit an F–1                         days that an F–1 student may remain                  at 7 percent, or $71.7 million per year
                                                                                                               unemployed during the practical                      when annualized at a 7 percent discount
                                                         1 These changes are consistent with the direction
                                                                                                               training period. The current program                 rate.
                                                      provided in the Secretary of Homeland Security’s
                                                                                                               allows a student to be unemployed up                    With respect to benefits, making the
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                                                      November 20, 2014 memorandum entitled,
                                                      ‘‘Policies Supporting U.S. High Skilled Businesses       to 90 days during his or her initial                 STEM OPT extension available to
                                                      and Workers.’’ DHS recognizes the nation’s need to       period of post-completion OPT, and up                additional students and extending the
                                                      evaluate, strengthen, and improve practical training     to an additional 30 days (for an                     current 17-month extension will
                                                      as part of an overall strategy to enhance our nation’s
                                                      economic, scientific, and technological                  aggregate of 120 days) if the student                enhance students’ ability to achieve the
                                                      competitiveness. Highly skilled persons educated in      receives a 17-month STEM OPT                         objectives of their courses of study by
                                                      the United States contribute significantly to the U.S.   extension. The proposed rule would                   gaining valuable knowledge and skills
                                                      economy, including advances in entrepreneurial
                                                      and research and development endeavors, which
                                                                                                               retain the 90-day maximum period of                  through on-the-job training that is often
                                                      correlate highly with overall economic growth and        unemployment during the initial period               unavailable in their home countries.
                                                      job creation.                                            of post-completion OPT, but allow an                 The proposed changes will also benefit


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                                                                                    Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                                                       63379

                                                      the U.S. educational system, U.S.                                       requirements for training and                                           updates to employers and DSOs. DSOs
                                                      employers, and the United States. The                                   mentoring, tracking objectives, reporting                               will incur costs for reviewing
                                                      rule will benefit the U.S. educational                                  on program compliance, and                                              information and forms submitted by
                                                      system by helping ensure that the                                       accreditation of participating schools                                  students, inputting required information
                                                      nation’s colleges and universities                                      would further prevent abuse of the                                      into the Student and Exchange Visitor
                                                      remain globally competitive in                                          limited on-the-job training opportunities                               Information System (SEVIS), and
                                                      attracting international students in                                    provided by this program. These and                                     complying with other oversight
                                                      STEM fields. U.S. employers will                                        other proposals would also improve                                      requirements related to prospective and
                                                      benefit from the increased ability to rely                              program oversight, strengthen the                                       participating STEM OPT students.
                                                      on the skills acquired by STEM OPT                                      requirements for program participation,                                 Employers of STEM OPT students will
                                                      students while studying in the United                                   and better ensure that U.S. workers are                                 incur burdens for preparing the
                                                      States, as well as their knowledge of                                   protected.                                                              Mentoring and Training Plan with
                                                      markets in their home countries. And                                       The Summary Table below presents a                                   students, evaluating whether the
                                                      the nation will benefit from the                                        summary of the benefits and costs of the                                students are receiving on-the-job
                                                      increased retention of such students in                                 proposed rule. The costs are discounted                                 learning experiences as outlined in the
                                                      the United States, including through                                    at seven percent. Students will incur                                   Mentoring and Training Plan, enrolling
                                                      increased research, innovation, and                                     costs for completing application forms                                  in (if not previously enrolled) and using
                                                      other forms of productivity that enhance                                and paying application fees; reporting to                               the E-Verify system to verify
                                                      the nation’s economic, scientific, and                                  designated school officials (DSOs);                                     employment eligibility for all new hires,
                                                      technological competitiveness.                                          preparing, with their employers, the                                    and complying with additional
                                                         Furthermore, strengthening the STEM                                  Mentoring and Training Plan required                                    requirements related to the E-Verify
                                                      OPT extension by implementing                                           by this rule; and periodically submitting                               system.

                                                                                        SUMMARY TABLE—ESTIMATED COSTS AND BENEFITS OF NPRM, ($2014 MILLIONS)
                                                                                                                                                                  STEM OPT                                            E-Verify                           Total

                                                      10-Year Cost Annualized at 7 Percent Discount Rate .............                              $64.9 .......................................    $6.8 .........................................          $71.7
                                                      10-Year Cost Annualized at 3 Percent Discount Rate .............                              $66.9 .......................................    $7.2 .........................................           $74

                                                      Qualitative Costs .......................................................................     • Cost to students and schools resulting from proposed accreditation require-
                                                                                                                                                    ment;
                                                                                                                                                    • Cost to employers from the proposed requirement to provide STEM OPT stu-
                                                                                                                                                    dents commensurate compensation to similarly situated U.S. workers; and
                                                                                                                                                    • Decreased practical training opportunities for students no longer eligible for the
                                                                                                                                                    program due to proposed improvements to the STEM OPT extension.

                                                      Monetized Benefits ...................................................................        N/A ..........................................   .................................................           N/A

                                                      Non-monetized Benefits ............................................................           • Increased ability of students to gain valuable knowledge and skills through on-
                                                                                                                                                    the-job training in their field that is often unavailable in their home countries;
                                                                                                                                                    • Increased global attractiveness of U.S. colleges and universities; and
                                                                                                                                                    • Increased program oversight and strengthened requirements for program par-
                                                                                                                                                    ticipation, and new protections for U.S. workers.

                                                      Net Benefits ..............................................................................   N/A ..........................................   N/A ..........................................              N/A



                                                      IV. Background and Purpose                                              may be admitted to the United States. 8                                 employment for practical training under
                                                                                                                              U.S.C. 1184(a)(1), INA section 214(a)(1).                               certain conditions).2
                                                      A. Authority, Regulatory History, and                                                                                                              ICE manages and oversees significant
                                                                                                                              The Secretary also has broad authority
                                                      Recent Litigation                                                                                                                               elements of the F–1 nonimmigrant
                                                                                                                              to determine which individuals are
                                                        The Secretary of Homeland Security                                    ‘‘authorized’’ for employment in the                                    student process, including the
                                                      (Secretary) has broad authority to                                      United States. 8 U.S.C. 1324a(h)(3).                                    certification of schools and institutions
                                                      administer and enforce the nation’s                                                                                                             in the United States that enroll
                                                                                                                                 Federal agencies dealing with
                                                      immigration laws. See generally 6                                                                                                               nonimmigrant students. In overseeing
                                                                                                                              immigration have long interpreted
                                                      U.S.C. 202; Immigration and Nationality                                                                                                         these institutions, ICE uses SEVIS to
                                                                                                                              section 101(a)(15)(F)(i) of the INA and                                 track and monitor foreign students, and
                                                      Act of 1952, as amended, (INA) section                                  related authorities to encompass on-the-
                                                      103, 8 U.S.C. 1103. Section                                                                                                                     communicate with the schools that
                                                                                                                              job-training that supplements classroom                                 enroll them, while they are in the
                                                      101(a)(15)(F)(i) of the INA establishes                                 training. See, e.g., 12 FR 5355, 5357
                                                      the F–1 nonimmigrant classification for                                                                                                         United States and participating in
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                                                                                                                              (Aug. 7, 1947) (authorizing employment                                  educational opportunities. This tracking
                                                      individuals who wish to come to the                                     for practical training under certain
                                                      United States temporarily to enroll in a                                conditions, pursuant to statutory                                         2 During a brief period following the Immigration
                                                      full course of study at an academic or                                  authority substantially similar to current                              Act of 1990, Congress expanded employment
                                                      language training school certified by                                                                                                           authorization for foreign students by allowing for a
                                                                                                                              INA section 101(a)(15)(F)(i)); 38 FR
                                                      ICE’s SEVP. 8 U.S.C. 1101(a)(15)(F)(i).                                                                                                         three-year pilot program in which students could be
                                                                                                                              35425, 35426 (Dec. 28, 1973) (also                                      employed off-campus in positions unrelated to the
                                                      The INA provides the Secretary with
                                                                                                                              authorizing, pursuant to the INA,                                       student’s field of study. Pub. L. 101–649, sec.
                                                      broad authority to determine the time                                                                                                           221(a), 104 Stat. 4978, 5027 (Nov. 29, 1990). In
                                                      and conditions under which                                                                                                                      general, however, practical training has historically
                                                      nonimmigrants, including F–1 students,                                                                                                          been limited to the student’s field of study.



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                                                      63380                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      and monitoring program is required and                   student is allowed a 60-day ‘‘grace                     was engaged in practical training with
                                                      supported by additional statutory and                    period’’ after the completion of the                    an employer enrolled in the E-Verify
                                                      other authority.3                                        academic program or OPT to prepare for                  employment eligibility verification
                                                                                                               departure from the United States. 8 CFR                 program. As a result of that rule, F–1
                                                      OPT Background
                                                                                                               214.2(f)(5)(iv).                                        students granted STEM OPT extensions
                                                        A student in F–1 status may remain                        Unless an F–1 student meets certain                  were required to report to their DSOs
                                                      in the United States for the duration of                 limited exceptions, he or she may not be                any changes in their names or
                                                      his or her education if otherwise                        employed in the United States during                    addresses, as well as any changes in
                                                      meeting the requirements for the                         the term of his or her F–1 status. DHS                  their employer’s information (including
                                                      maintenance of status. 8 CFR                             permits an F–1 student who has been                     name or address), and periodically
                                                      214.2(f)(5)(i). Once an F–1 student has                  enrolled on a full-time basis for at least              validate the accuracy of this
                                                      completed his or her academic program                    one full academic year in a college,                    information. The rule further required
                                                      and any subsequent period of OPT, the                    university, conservatory, or seminary                   employers of such students to report to
                                                      student must generally leave the United                  certified by SEVP, and who has                          the relevant DSO within two business
                                                      States unless he or she: enrolls in                      otherwise maintained his or her status,                 days if a student was terminated from or
                                                      another academic program, either at the                  to apply for practical training to work                 otherwise left employment prior to the
                                                      same school or at another SEVP-                          for a U.S. employer in a job directly                   end of the authorized period of OPT.
                                                      certified school; changes to a different                 related to his or her major area of study.              The rule allowed an F–1 student to
                                                      nonimmigrant status; or otherwise                        8 CFR 214.2(f)(10). DHS had previously                  apply for post-completion OPT within
                                                      legally extends his or her period of                     limited the duration of OPT to a period                 the 60-day grace period at the
                                                      authorized stay in the United States. As                 of up to 12 months at a given                           conclusion of his or her academic
                                                      noted, DHS regulations have long                         educational level. An F–1 student may                   program. The rule also limited the total
                                                      defined an F–1 student’s duration of                     seek employment through OPT either                      period in which students on initial post-
                                                      status to include a foreign student’s                    during his or her academic program                      completion OPT could be unemployed
                                                      practical training. See, e.g., 48 FR                     (pre-completion OPT) or immediately                     to 90 days. Students granted 17-month
                                                      14575, 14583 (Apr. 5, 1983).4 An F–1                     after graduation (post-completion OPT).                 STEM OPT extensions were provided an
                                                                                                               The student remains in F–1                              additional 30 days in which they could
                                                         3 DHS derives its authority to manage these
                                                                                                               nonimmigrant status throughout the                      be unemployed, for an aggregate period
                                                      programs from several sources, including, in
                                                      addition to the authorities cited above, section 641
                                                                                                               OPT period. Thus, an F–1 student in                     of 120 days.
                                                      of Illegal Immigration Reform and Immigrant              post-completion OPT does not have to                       The 2008 IFR also addressed the so-
                                                      Responsibility Act of 1996 (IIRIRA), Pub. L. 104–        leave the United States within 60 days                  called ‘‘Cap-Gap’’ problem, which
                                                      208, 110 Stat. 3009–546, 3009–704 (Sep. 30, 1996)        after graduation, but instead has                       resulted when the expiration of an F–1
                                                      (codified as amended at 8 U.S.C. 1372), which
                                                      authorizes the creation of a program to collect
                                                                                                               authorization to remain for the entire                  student’s OPT authorization occurred
                                                      current and ongoing information provided by              post-completion OPT period. 8 CFR                       prior to the commencement of the
                                                      schools and exchange visitor programs regarding F        214.2(f)(5)(i). This initial post-                      validity of an H–1B petition filed on his
                                                      and other nonimmigrants during the course of their       completion OPT period (i.e., a period of                or her behalf. Specifically, F–1 students
                                                      stays in the United States, using electronic
                                                      reporting technology where practicable. Consistent       practical training immediately following                on initial post-completion OPT
                                                      with this statutory authority, DHS manages these         completion of an academic program)                      frequently complete their period of
                                                      programs pursuant to Homeland Security                   can be up to 12 months, except in                       authorized practical training in June or
                                                      Presidential Directive—2 (HSPD—2) (Combating             certain circumstances involving                         July of the year following graduation. If
                                                      Terrorism Through Immigration Policies, Oct. 29,
                                                      2001, as amended by HSPD—5 (Management of                students who engaged in either pre-                     such students are beneficiaries of H–1B
                                                      Domestic Incidents, Feb. 28, 2003, Compilation of        completion OPT or what is known as                      petitions and requests for change of
                                                      HSPDs (updated through Dec. 31, 2007) available at       ‘‘curricular practical training’’ (CPT).5               status for H–1B classification
                                                      http://www.gpo.gov/fdsys/pkg/CPRT-                          On April 8, 2008, DHS published an
                                                      110HPRT39618/pdf/CPRT-110HPRT39618.pdf),
                                                                                                                                                                       commencing in the following fiscal year
                                                      which requires the Secretary of Homeland Security        interim final rule in the Federal                       (beginning on October 1), they will be
                                                      to conduct periodic, ongoing reviews of institutions     Register (73 FR 18944) that, in part,                   unable to obtain their H–1B status
                                                      certified to accept F nonimmigrants, and to include      extended the maximum period of OPT                      before their OPT period expires. Prior to
                                                      checks for compliance with recordkeeping and
                                                      reporting requirements, see Weekly Comp. Pres.
                                                                                                               from 12 to 29 months (through a 17-                     the 2008 IFR, such students were often
                                                      Docs., 37 WCPD 1570, http://www.gpo.gov/fdsys/           month ‘‘STEM OPT extension’’) for an                    required to leave the country for a few
                                                      granule/WCPD-2001-11-05/WCPD-2001-11-05-                 F–1 student who obtained a degree in a                  months until they were able to obtain
                                                      Pg1570/content-detail.html; and Section 502 of the       designated STEM field from a U.S.                       their H–1B status on October 1. The
                                                      Enhanced Border Security and Visa Entry Reform
                                                      Act of 2002 (EBSVERA), Pub. L. 107–173, 116 Stat.        institution of higher education and who                 2008 IFR addressed this problem
                                                      543, 563 (May 14, 2002), which directs the                                                                       through a Cap-Gap provision that briefly
                                                      Secretary to review the compliance with                     5 CPT provides a specially-designed program
                                                                                                                                                                       extended the F–1 nonimmigrant’s
                                                      recordkeeping and reporting requirements under 8         through which students can participate in an
                                                      U.S.C. 1101(a)(15)(F) and 1372, and INA
                                                                                                                                                                       authorized period of stay and
                                                                                                               internship, alternative study, cooperative
                                                      101(a)(15)(F), of all schools approved for attendance    education, or similar programs. 52 FR 13223 (April      employment authorization to enable the
                                                      by F students within two years of enactment, and         22, 1987). Currently defined to also include            student to remain in the United States
                                                      every two years thereafter. Moreover, the programs       practicums, CPT allows sponsoring employers to          until they could obtain their H–1B
                                                      discussed in this rule, as is the case with all DHS      train F–1 nonimmigrant students as part of the
                                                      programs, are carried out in keeping with DHS’s          students’ established curriculum within their
                                                                                                                                                                       status.
                                                                                                                                                                          DHS received over 900 comments in
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                                                      primary mission that includes the responsibility to      schools. 8 CFR 214.2(f)(10)(i). CPT must relate to
                                                      ‘‘ensure that the overall economic security of the       and be integral to a student’s program of study.        response to the 2008 IFR. Such
                                                      United States is not diminished by the efforts,          Unlike OPT and other training or employment,            comments were submitted by a range of
                                                      activities, and programs aimed at securing the           however, CPT can be full time even while a student
                                                      homeland.’’ 6 U.S.C. 111(b)(1)(F).                       is attending school that is in session. Schools have
                                                                                                                                                                       entities and individuals, including
                                                         4 See Washington Alliance of Tech. Workers v.         oversight of CPT through their DSOs, who are            schools and universities, students,
                                                      U.S. Dep’t of Homeland Security, No. 1:14–cv–            currently responsible for authorizing CPT that is       professional associations, labor
                                                      00529, WL (D.D.C. Aug. 12, 2015) (slip op.), 25–26       directly related to the student’s major area of study   organizations, advocacy groups, and
                                                      (finding that DHS’s interpretation permitting            and reporting certain information, including the
                                                      ‘‘employment for training purposes without               employer and location, the start and end dates, and
                                                                                                                                                                       businesses. In addition, DHS engaged
                                                      requiring school enrollment’’ is ‘‘ ‘longstanding’ and   whether the training is full time or part time. 8 CFR   the public and affected schools in a
                                                      entitled to [judicial] deference’’).                     214.2(f)(10)(i)(B).                                     series of meetings held across the


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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                   63381

                                                      country during the 2008 IFR’s public                    ‘‘permit[ting F–1 student] employment                 comment via this proposed rule. As
                                                      comment period. DHS added transcripts                   for training purposes without requiring               described in more detail throughout this
                                                      of questions and comments from those                    ongoing school enrollment.’’                          preamble, the revisions proposed by this
                                                      meetings to the docket for the 2008                     Washington Alliance, at *26–27. The                   rule are intended to continue and
                                                      IFR.6 Public comments received on the                   court recognized the Secretary’s broad                further enhance the academic benefit of
                                                      2008 IFR, and other records, may be                     authority under the INA ‘‘to regulate the             the STEM OPT extension, while
                                                      reviewed at the Docket for that rule, No.               terms and conditions of a                             protecting STEM OPT students and U.S.
                                                      ICEB–2008–0002, available at                            nonimmigrant’s stay, including its                    workers. DHS welcomes public input on
                                                      www.regulations.gov.                                    duration.’’ Id. at *29 (citing 8 U.S.C.               all aspects of this proposal and will
                                                         As described immediately below, in                   1103(a), 1184(a)(1)). The court also                  consider and respond to comments on
                                                      light of the period of time that has                    recognized the Secretary’s authority to               the newly proposed rule following the
                                                      elapsed since the 2008 IFR, and due to                  consider the potential economic                       comment period.
                                                      the vacatur of that rule, DHS has                       contributions and labor market impacts
                                                      established a new docket for this                                                                             B. ICE and SEVIS
                                                                                                              that may result from particular
                                                      rulemaking. DHS welcomes comments                       regulatory decisions. Id. (citing 6 U.S.C.               As noted above, ICE’s SEVP serves as
                                                      on all aspects of this new proposal.                    111(b)(1)(F)).                                        the central liaison between the U.S.
                                                      Comments submitted on the 2008 IFR                         As noted above, the court ultimately               educational community and U.S.
                                                      will not be automatically incorporated                  vacated the 2008 IFR on procedural                    government agencies that have an
                                                      into the docket for this rulemaking;                    grounds. Recognizing the disruption                   interest in information regarding F and
                                                      commenters should resubmit those                        and uncertainty that an immediate                     M nonimmigrants.9 ICE directs and
                                                      comments as necessary. DHS intends to                   vacatur might cause, however, the court               oversees the process by which schools
                                                      respond to any significant comments                     stayed the vacatur until February 12,                 interact with F and M students to obtain
                                                      submitted in connection with this                       2016, to provide time for DHS to correct              information relevant to their
                                                      proposed rule in the final rule for this                the deficiency through notice-and-                    immigration status and relay that
                                                      proceeding.                                             comment rulemaking. Id. at *37.8 The                  information to the U.S. Government. ICE
                                                                                                              court specifically explained that the stay            uses the SEVIS system to certify schools
                                                      Washington Alliance Litigation                                                                                and designate exchange visitor
                                                      Regarding the 2008 IFR                                  was necessary to avoid ‘‘substantial
                                                                                                              hardship for foreign students and a                   programs, and to monitor F, J,10 and M
                                                        On August 12, 2015, the U.S. District                 major labor disruption for the                        nonimmigrants during their stay in the
                                                      Court for the District of Columbia issued               technology sector’’ and that immediate                United States.11
                                                      an order in the case of Washington                      vacatur of the STEM OPT extension                        ICE’s SEVP carries out its
                                                      Alliance of Tech. Workers v. U.S. Dep’t                 would be ‘‘seriously disruptive.’’ Id. at             programmatic responsibilities through
                                                      of Homeland Security, No. 1:14–cv–                      *36.                                                  SEVIS, a Web-based data entry,
                                                      00529,lll WL lll (D.D.C. Aug.                              Litigation in this matter is ongoing, as           collection and reporting system. DHS,
                                                      12, 2015) (Washington Alliance) (slip                   the plaintiff has appealed a portion of               DOS, and other government agencies, as
                                                      op.). Although the court held that the                  the court’s August 12, 2015 decision. It              well as SEVP-certified schools and DOS-
                                                      2008 IFR rested upon a reasonable                       is thus unclear what the final                        designated exchange visitor programs,
                                                      interpretation of the INA, the court also               disposition of the case may be.                       use SEVIS data to monitor F, J, and M
                                                      held that DHS violated the notice and                   Nevertheless, it is clear that if DHS does            nonimmigrants for the duration of their
                                                      comment provisions of the                               not act before the court’s vacatur takes              admission in the United States. ICE and
                                                      Administrative Procedure Act (APA), 5                   effect on February 12, 2016, a significant            DOS require certified schools and
                                                      U.S.C. 553, by promulgating the 2008                    number of students may be unable to                   designated exchange visitor programs to
                                                      IFR without advance notice and                          pursue valuable training opportunities                update information on their approved F,
                                                      opportunity for public comment.7 In its                 that would otherwise be available to                  J, and M nonimmigrants regularly after
                                                      order, the court invalidated the 2008                   them.                                                 their admission into the United States
                                                      IFR as procedurally deficient, and                         With this proposed rule, DHS                       and throughout their stay. SEVIS data is
                                                      remanded the issue to DHS.                              proposes to provide an extension of                   also used to verify the eligibility of
                                                        With respect to DHS’s interpretation                  OPT for certain STEM students, but                    individuals applying for F, J, and M
                                                      of the F–1 student visa provisions in the               with significant revisions as compared                nonimmigrant status, to expedite port of
                                                      INA, the court found ample support for                  to the 2008 IFR. DHS thanks the public                entry screening by U.S. Customs and
                                                      DHS’s longstanding practice of
                                                                                                              for its helpful input and engagement                    9 A foreign student is admitted into the United

                                                        6 Many
                                                                                                              during the public comment period                      States in F–1 nonimmigrant status to attend an
                                                                 of the comments submitted to the docket
                                                      for the 2008 IFR were requests for the addition of      related to the 2008 IFR. In light of the              academic or language training school or in M–1
                                                      specific programs of study to the STEM Designated       aforementioned developments,                          status to attend a vocational education school. An
                                                      Degree Programs list. Other comments addressed a        however, DHS has determined that it                   accompanying spouse or minor child may be
                                                      variety of key issues, including concerns about the                                                           admitted as an F–2 or M–2 dependent.
                                                      potential impact of the extension of OPT,
                                                                                                              will replace the 2008 IFR in its entirety               10 Under section 101(a)(15)(J) of the INA, 8 U.S.C.

                                                      unemployment limits during the 17-month                 and seek a fresh round of public                      1101(a)(15)(J), a foreign citizen may be admitted
                                                      extension of STEM OPT, the E-Verify requirement                                                               into the United States in nonimmigrant status as an
                                                      for the 17-month extension of STEM OPT, the               8 In an earlier preliminary ruling in the case      exchange visitor (J visa). The Department of State
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                                                      distinction between pre- and post-completion OPT,       regarding plaintiffs challenge to DHS’s general OPT   (DOS) designates and manages exchange visitor
                                                      and student reporting requirements. As noted            and STEM OPT program, the court held that             programs.
                                                      below, this rule proposes changes in a number of        plaintiff did not have standing to challenge the        11 See IIRIRA sec. 641 (codified as amended at 8
                                                      these areas, based in part on public input received     general OPT program on behalf of its members          U.S.C. 1372) (requiring the creation of a program to
                                                      in 2008.                                                because it had not identified a member of its         collect current and ongoing information provided
                                                         7 The court withheld judgment on the agency’s        association who suffered any harm from the general    by schools and exchange visitor programs regarding
                                                      substantive rationale for the 2008 IFR specifically.    OPT program. See Washington Alliance of Tech.         F, J, or M nonimmigrants during the course of their
                                                      See Washington Alliance, at p. 29, n.9. As noted,       Workers v. U.S. Dep’t of Homeland Security, 74 F.     stay in the United States, using electronic reporting
                                                      however, the court found ample support for the          Supp. 3d 247, 252 & n.3 (D.D.C. 2014). The court      technology where practicable). IIRIRA also
                                                      Government’s longstanding practice of granting F–       held in the alternative that the challenge to the     authorized the Secretary, acting through SEVP, to
                                                      1 students employment authorization for practical       general OPT program was barred by the applicable      certify schools to participate in F or M student
                                                      training.                                               statute of limitations.                               enrollment.



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                                                      63382                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      Border Protection, to assist USCIS in                   1. Benefits of International Students in              students, for example ‘‘enrich U.S.
                                                      processing immigration benefit                          the United States                                     universities and communities with
                                                      applications, to monitor nonimmigrant                                                                         unique perspectives and experiences
                                                                                                                In proposing this rule, DHS
                                                      status maintenance and, as needed, to                                                                         that expand the horizons of American
                                                                                                              recognizes the substantial economic,
                                                      facilitate timely removal.                                                                                    students and [make] U.S. institutions
                                                                                                              scientific, technological, and cultural               more competitive in the global
                                                      C. Basis and Purpose of Regulatory                      benefits provided by the F–1                          economy.’’ 17 At the same time, ‘‘the
                                                      Action                                                  nonimmigrant program generally, and                   international community in American
                                                         As noted above, this proposed rule                   the STEM OPT extension in particular.                 colleges and universities has
                                                      would effectively reinstitute portions of               As described below, international                     implications regarding global
                                                      the 2008 IFR, with significant                          students have historically made                       relationships, whether that is between
                                                      modifications and enhancements.                         significant contributions to the United               nation-states, or global business and
                                                      Public comments received on the 2008                    States, both through the payment of                   economic communities.’’ 18
                                                      IFR were overwhelmingly positive.                       tuition and other expenditures in the                 International education and exchange at
                                                      Although, as described in more detail                   U.S. economy, as well as by                           the post-secondary level in the United
                                                      below, many commenters recommended                      significantly enhancing academic                      States builds relationships that
                                                      specific changes to the STEM OPT                        discourse and cultural exchange on                    ‘‘promote cultural understanding and
                                                      extension and some commenters                           campuses throughout the United States.                dialogue,’’ integrating a global
                                                      objected to the 2008 IFR altogether, the                In addition to these general benefits,                dimension into the purpose and
                                                      vast majority of commenters—including                   STEM students further contribute                      functions of higher education through
                                                      students, educational institutions,                     through research, innovation, and the                 the ‘‘diversity in culture, politics,
                                                      advocacy groups, and STEM                               provision of knowledge and skills that                religions, ethnicity, and worldview’’
                                                      employers—expressed strong support                      help maintain and grow increasingly                   brought by international students in the
                                                      for the rule’s main provisions. DHS                     important sectors of the U.S. economy.                United States.19
                                                      continues to believe that practical                       Foreign students, for example,                         Accordingly, foreign students provide
                                                      training is frequently a key element of                 regularly contribute a significant                    substantial benefits to their U.S. colleges
                                                      F–1 students’ educational experience,                   amount of money into the U.S.                         and universities, including beneficial
                                                      and that STEM students in particular                    economy. According to statistics                      economic and cultural impacts. A study
                                                      may benefit from an extended period of                  compiled by the Association of                        by Duke University in 2013 analyzing
                                                      time in practical training. For the                     International Educators (NAFSA),                      5,676 alumni surveys showed that
                                                      reasons discussed below, DHS also                       foreign students made a net contribution              ‘‘substantial international interaction
                                                      believes that attracting and retaining                  of $26.8 billion to the U.S. economy in               was positively correlated with U.S.
                                                      such students is in the short-term and                  the 2013–2014 academic year.13 This                   students’ perceived skill development
                                                      long-term economic, cultural, and                       contribution included tuition ($19.8                  in a wide range of areas across three
                                                      security interests of the nation.                       billion) and living expenses for self and             cohorts.’’ 20 Current research also
                                                         DHS also recognizes that it must                     family ($16.7 billion), after adjusting for           suggests that international students
                                                      quickly address the imminent vacatur of                 U.S. financial support ($9.7 billion).14              contribute to the overall economy by
                                                      the 2008 IFR, and the significant                       And public colleges and universities                  building global connections between
                                                      uncertainty surrounding the status of                   particularly benefit from the payment of              their hometowns and U.S. host cities.21
                                                      thousands of students in the United                     tuition by foreign students, especially in            Evidence links skilled migration to
                                                      States. As of September 16, 2015, over                  comparison to the tuition paid by in-                 transnational business creation, trade,
                                                      34,000 students were in the United                      state students.15
                                                                                                                Foreign students also increase the                  www.whitehouse.gov/sites/default/files/rss_viewer/
                                                      States on a STEM OPT extension. In                                                                            national_security_strategy.pdf.
                                                      addition, hundreds of thousands of                      benefits of academic exchange, while                     17 U.S. Department of State, ‘‘Why

                                                      international students, most of whom                    reinforcing ties with foreign countries               Internationalize,’’ available at https://
                                                      are in F–1 status, have already chosen                  and fostering increased understanding                 educationusa.state.gov/us-higher-education-
                                                                                                              of American society.16 International                  professionals/why-internationalize (last visited
                                                      to enroll in U.S. educational institutions                                                                    Sept. 29, 2015).
                                                      and are currently pursuing courses of                                                                            18 Pamela Leong, ‘‘Coming to America: Assessing

                                                      study in fields that may provide                        See Science and Engineering Indicators 2014 (NSF)     the Patterns of Acculturation, Friendship
                                                                                                              at Chapter 4 (International Comparisons), at 4–17,    Formation, and the Academic Experiences of
                                                      eligibility for this program. Some of                   available at http://www.nsf.gov/statistics/seind14/   International Students at a U.S. College,’’ Journal of
                                                      those students may have considered the                  index.cfm/chapter-4. According to NSF, the United     International Students Vol. 5 (4): 459–474 (2015) at
                                                      opportunities offered by the STEM OPT                   States expends $429 billion of the estimated $1.435   p. 459.
                                                      extension when deciding whether to                      trillion in global science and engineering R&D (p.       19 Hugo Garcia and Maria de Lourdes Villareal,
                                                                                                              4–17), and business, government, higher education,
                                                      pursue their degree in the United States.               and non-profits in the United States expend more
                                                                                                                                                                    ‘‘The ‘‘Redirecting’’ of International Students:
                                                      DHS must therefore act swiftly to                                                                             American Higher Education Policy Hindrances and
                                                                                                              than double that of any other country (Table 4–5).
                                                                                                                                                                    Implications,’’ Journal of International Students
                                                      mitigate the uncertainty surrounding the                   13 NAFSA: Association of International
                                                                                                                                                                    Vol. 4 (2): 126–136 (2014) at p. 132.
                                                      2008 IFR. Prompt action is particularly                 Educators, ‘‘The Economic Benefits of International      20 Jiali Luo and David Jamieson-Drake,
                                                                                                              Students: $26.8 billion Contributed; 340,000 U.S.
                                                      appropriate with respect to those                       Jobs Supported; Economic Analysis for Academic
                                                                                                                                                                    ‘‘Examining the Educational Benefits of Interacting
                                                      students who have already committed to                                                                        with International Students’’ at 96 (June 2013),
                                                                                                              Year 2013–2014’’, available at http://
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                                                                                                                                                                    available at https://jistudents.files.wordpress.com/
                                                      study in the United States, in part based               www.nafsa.org/_/File/_/eis2014/USA.pdf.               2013/05/2013-volume-3-number-3-journal-of-
                                                      on the possibility of furthering their                     14 Id.
                                                                                                                                                                    international-students-published-in-june-1–
                                                                                                                 15 Washington Post, ‘‘College Group Targets
                                                      education through an extended period                                                                          2013.pdf. The authors noted that U.S. educational
                                                                                                              Incentive Payments for International Student          institutions play an important role in ensuring U.S.
                                                      of practical training in the world’s                    Recruiters’’ (June 2, 2011), available at http://     students benefit as much as possible from this
                                                      leading STEM economy.12                                 www.washingtonpost.com/local/education/college-       interaction.
                                                                                                              group-targets-incentive-payments-for-international-      21 Brookings Institution, ‘‘The Geography of
                                                        12 The National Science Foundation reports that       student-recruiters/2011/05/31/AGvl5aHH_               Foreign Students in U.S. Higher Education: Origins
                                                      the United States is the largest single science and     story.html.                                           and Destinations’’ (August 29, 2014), available at
                                                      engineering R&D-performing nation in the world,            16 See The White House, National Security          http://www.brookings.edu/research/interactives/
                                                      accounting for just under 30% of the global total.      Strategy 29 (May 2010), available at https://         2014/geography-of-foreign-students#/M10420.



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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                      63383

                                                      and direct investment between the                       to 18 percent.26 Research has also                       the overall number of foreign students
                                                      United States and a migrant’s country of                shown that foreign-born workers are                      increased over that period, the nation’s
                                                      origin.22                                               particularly innovative, especially in                   share of such students decreased. In
                                                        Foreign STEM students, of course,                     research and development, and that                       2001, the United States received 28
                                                      contribute to the United States in all the              they have positive spillover effects on                  percent of international students; by
                                                      ways mentioned above. But they also                     native-born workers.27 One paper, for                    2011 that share had decreased to 19
                                                      contribute more specifically to a number                example, shows that foreign-born                         percent.33 Countries such as Canada, the
                                                      of advanced and innovative fields that                  workers patent at twice the rate of U.S.-                United Kingdom, New Zealand,
                                                      are critical to national prosperity and                 born workers, and that U.S.-born                         Australia, Malaysia, Taiwan, and China
                                                      security. By conducting scientific                      workers patent at greater rates in areas                 are actively instituting new strategies to
                                                      research, developing new technologies,                  with more immigration.28 The quality of                  attract international students.34
                                                      advancing existing technologies, and                    the nation’s STEM workforce in                              For example, Canada also recognizes
                                                      creating new products and industries,                   particular has played a central role in                  that educational institutions need
                                                      for example, STEM workers diversify                     ensuring national prosperity over the                    international students to compete in the
                                                      the economy and drive economic                          last century and helps bolster the                       ‘‘global race for research talent.’’ 35 In
                                                      growth, while also producing increased                  nation’s economic future.29 This, in                     April, 2008, Canada modified its Post-
                                                      employment opportunities and higher                     turn, has helped to enhance national                     Graduation Work Permit Program to
                                                      wages.23 A premise supported by                         security, which is dependent on the                      allow international students who have
                                                      economic research is that Scientists,                   nation’s ability to maintain a growing                   graduated from a recognized Canadian
                                                      Technology professionals, Engineers,                    and innovative economy.30 Innovation                     post-secondary institution to stay and
                                                      and Mathematicians (STEM workers)                       is crucial for economic growth, which in                 gain valuable post-graduate work
                                                      are fundamental inputs in scientific                    turn is vital to continued funding for                   experience for a period equal to the
                                                      innovation and technological adoption,                  defense and security.31                                  length of the student’s study program,
                                                      critical drivers of productivity growth in                                                                       up to a maximum of three years, with
                                                                                                              2. Increased Competition for                             no restrictions on type of
                                                      the United States.24 For example,                       International Students                                   employment.36 This change resulted in
                                                      research has shown that foreign
                                                      students who earn a degree and remain                     DHS recognizes that the United States                  a 64% increase in the number of post-
                                                      in the United States are more likely than               has long been a global leader in                         graduation work permits issued to
                                                      native-born workers to engage in                        international education. The number of                   international students in 2008.37 By
                                                      activities, such as patenting and the                   foreign students affiliated with U.S.                    2014, the number of international
                                                      commercialization of patents, that                      colleges and universities grew by 72
                                                                                                              percent between 1999 and 2013 to a                       International Students: Enrollment Trends,
                                                      increase U.S. labor productivity.25                                                                              available at http://www.iie.org/Research-and-
                                                      Similarly, other research has found that                total of 886,052.32 However, although                    Publications/Open-Doors/Data/International-
                                                      a one percentage-point increase in                         26 Jennifer Hunt and Marjolaine Gauthier-Loiselle,
                                                                                                                                                                       Students/Enrollment-Trends/1948-2014).
                                                                                                                                                                          33 Organization for Economic Co-operation and
                                                      immigrant college graduates’ population                 ‘‘How Much Does Immigration Boost Innovation?’’          Development (OECD) 2014, ‘‘Education at a Glance
                                                      share increases patents per capita by 9                 American Economic Journal: Macroeconomics 2:             2014: OECD Indicators,’’ OECD Publishing at
                                                                                                              31–56 (2010).                                            http://dx.doi.org/10.1787/eag-2014-en or http://
                                                                                                                 27 Id.
                                                         22 Sonia Plaza, Diaspora resources and policies,                                                              www.oecd.org/edu/eag.htm.
                                                                                                                 28 Id.
                                                      in International Handbook on the Economics of                                                                       34 University World News Global Edition Issue

                                                      Migration, 505–529 (Amelie F. Constant and Klaus           29 Greenstone and Looney, supra note 23, at 2–3.      376, ‘‘Schools are the New Battleground for Foreign
                                                      F. Zimmermann, eds., 2013).                                30 See Congressional Research Service, Economics      Students’’ (July 15, 2015), available at http://
                                                         23 See Michael Greenstone and Adam Looney, ‘‘A       and National Security: Issues and Implications for       www.universityworldnews.com/
                                                      Dozen Economic Facts About Innovation’’ 2–3,            U.S. Policy 28, available at https://www.fas.org/sgp/    article.php?story=201507150915156.
                                                      available at http://www.brookings.edu/∼/media/          crs/natsec/R41589.pdf [hereinafter Economics and            35 Citizenship and Immigration Canada,

                                                      research/files/papers/2011/8/innovation-                National Security]; see also The White House,            ‘‘Evaluation of the International Student Program’’
                                                      greenstone-looney/08_innovation_greenstone_             National Security Strategy 16 (Feb. 2015), available     14 (July 2010) available at http://www.cic.gc.ca/
                                                      looney.pdf [hereinafter Greenstone and Looney];         at https://www.whitehouse.gov/sites/default/files/       english/pdf/research-stats/2010-eval-isp-e.pdf
                                                      Bureau of Labor Statistics 2014 data show that          docs/2015_national_security_strategy.pdf                 (citing Association of Universities and Colleges of
                                                      employment in occupations related to STEM has           (‘‘Scientific discovery and technological innovation     Canada, Momentum: The 2008 report on university
                                                      been projected to grow more than 9 million, or 13       empower American leadership with a competitive           research and knowledge mobilization: A Primer:
                                                      percent, during the period between 2012 and 2022,       edge that secures our military advantage, propels        Driver 2: Global race for research talent, 3 (2008)
                                                      2 percent faster than the rate of growth projected      our economy, and improves the human condition.’’)        [hereinafter Evaluation of the Int’l Student
                                                      for all occupations. Bureau of Labor Statistics,        [hereinafter 2015 National Security Strategy]; The       Program].
                                                      Occupational Outlook Quarterly, Spring 2014,            White House, National Security Strategy 29 (May             36 Citizenship and Immigration Canada, Study
                                                      ‘‘STEM 101: Intro to Tomorrow’s Jobs’’ 6, available     2010), available at https://www.whitehouse.gov/          permits: Post Graduation Work Permit Program,
                                                      at http://www.stemedcoalition.org/wp-content/           sites/default/files/rss_viewer/national_security_        available at http://www.cic.gc.ca/english/resources/
                                                      uploads/2010/05/BLS-STEM-Jobs-report-spring-            strategy.pdf (‘‘America’s long-term leadership           tools/temp/students/post-grad.asp [hereinafter
                                                      2014.pdf. See also, Australian Government,              depends on educating and producing future                Canadian Study permits]. Similarly, Australia, now
                                                      Strategic Review of the Student Visa Program 2011       scientists and innovators.’’).                           offers international students who graduate with a
                                                      Report, ix, 1 (June 30, 2011), available at http://        31 The 2015 National Security Strategy concludes      higher education degree from an Australian
                                                      www.border.gov.au/ReportsandPublications/               that ‘‘the American economy is an engine for global      education provider, regardless of their field of
                                                      Documents/reviews-and-inquiries/2011-knight-            growth and a source of stability for the international   study, a post-study work visa for up to four years,
                                                      review.pdf#search=knight%20review (concluding           system. In addition to being a key measure of power      depending on the student’s qualification. Students
                                                      that the economic benefit of international masters
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                                                                                                              and influence in its own right, it underwrites our       who complete a bachelor’s degree may receive a
                                                      and doctoral research students includes third-party     military strength and diplomatic influence. A strong     two-year post study work visa, research graduates
                                                      job creation).                                          economy, combined with a prominent U.S.                  with a master’s degree are eligible for a three-year
                                                         24 See e.g., Giovanni Peri, Kevin Shih, Chad         presence in the global financial system, creates         work visa, and doctoral graduates are eligible for a
                                                      Sparber, ‘‘Foreign STEM Workers and Native Wages        opportunities to advance our security.’’ 2015            four-year work visa. See Australian Department of
                                                      and Employment in U.S. Cities,’’ (National Bureau       National Security Strategy, supra note 30, at 15.        Immigration and Border Protection, Application for
                                                      of Economic Research, May 2014), available at              32 Pew Research Center, ‘‘Growth from Asia            a Temporary Graduate visa, available at http://
                                                      http://www.nber.org/papers/w20093.                      Drives Surge in U.S. Foreign Students’’ (June 18,        www.border.gov.au/FormsAndDocuments/
                                                         25 Jennifer Hunt, ‘‘Which Immigrants are Most        2015), available at http://www.pewresearch.org/          Documents/1409.pdf [hereinafter Australian
                                                      Innovative and Entrepreneurial? Distinctions by         fact-tank/2015/06/18/growth-from-asia-drives-            Temporary Grad. visa].
                                                      Entry Visa,’’ Journal of Labor Economics Vol 29 (3):    surge-in-u-s-foreign-students/ (citing Institute for        37 Evaluation of the Int’l Student Program, supra

                                                      417–457 (2011).                                         International Education, Open Doors Data:                note 29, at 9.



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                                                      63384                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      students in the program more than                       F–1 nonimmigrant students and U.S.                    to U.S. workers will help protect both
                                                      doubled its 2008 total.38 In addition,                  workers. Providing an on-the-job                      STEM OPT students and U.S. workers.
                                                      Canada aims to double the number of                     educational experience through a U.S.                 Implementing the changes proposed in
                                                      international students in the country to                employer qualified to develop and                     this rule thus will more effectively assist
                                                      450,000 by 2022.39                                      enhance skills through practical                      STEM OPT students with achieving the
                                                         In light of the United States’ decrease              application has been DHS’s primary                    objectives of their courses of study
                                                      in the percentage of international                      guiding objective.                                    while also benefiting U.S. academic
                                                      students received, and increased global                    Many of the elements of this proposed              institutions and guarding against
                                                      efforts to attract them, DHS believes that              rule have been the result of public                   adverse effects on U.S. workers.
                                                      the United States must take additional                  comment on the 2008 IFR, which                           Finally, DHS notes that the focus of
                                                      steps to improve these students’                        contained input from a range of                       this rule on the extension of OPT for
                                                      educational experience (both academic                   stakeholders, including students and the              STEM students also represents a step by
                                                      and practical) to ensure that we do not                 broader academic community. This                      the agency to improve a discrete portion
                                                      continue to lose ground. This is                        proposal also incorporates                            of the practical training program.42 DHS
                                                      particularly true for foreign STEM                      recommendations from the Homeland                     is not considering adding the
                                                      students, who have comprised a                          Security Academic Advisory Committee                  requirements contained within this
                                                      significant portion of students in STEM                 (HSAAC).41 Following an in-depth                      rulemaking to the general OPT program
                                                      degree programs in the United States,                   review of stakeholder feedback, DHS                   at this time. DHS may, however,
                                                      particularly at the graduate degree level.              believes that the changes proposed by                 consider the impacts of these proposed
                                                         The difference is particularly stark at              this rule to the existing STEM OPT                    changes, once implemented, as a model
                                                      the doctoral level, where foreign                       extension would benefit both F–1                      for possible future changes to practical
                                                      students earned 56.9 percent of all                     students and international study                      training programs more generally.
                                                      doctoral degrees in engineering; 52.5                   programs in the United States, while
                                                      percent of doctoral degrees in computer                 adding important protections.                         V. Discussion of Elements of the STEM
                                                      and information sciences; and                              The changes will help improve the                  OPT Extension
                                                      approximately half the doctoral degrees                 ability of F–1 STEM students to gain                  A. Including a STEM OPT Extension
                                                      in mathematics and statistics in the                    valuable on-the-job training from                     Within the OPT Program
                                                      2012–2013 academic year.40                              employers qualified to develop and
                                                                                                              enhance skills through practical                         As referenced above, DHS is taking
                                                      Recognizing that the international                                                                            this action to include a STEM OPT
                                                      education programs for these students                   application. Maintaining and improving
                                                                                                              practical training for STEM students                  extension as part of the OPT program
                                                      are increasingly competitive, DHS is                                                                          under the F–1 nonimmigrant
                                                      committed to helping U.S. educational                   provides these students with an
                                                                                                              improved ability to absorb a full range               classification in order to better ensure,
                                                      institutions contend with the expanded                                                                        among other important national
                                                      and diverse global opportunities for                    of project-based practical skills and
                                                                                                              knowledge directly related to their                   interests, that the U.S. academic sector
                                                      international study.                                                                                          can remain competitive globally.
                                                                                                              study.
                                                      3. The Need to Improve the Existing                        The proposed changes will also help                Enabling continued extended OPT for
                                                      STEM OPT Extension                                      the nation’s colleges and universities                qualifying students with experience in
                                                         With this proposed rule, DHS also                    remain globally competitive, including                STEM fields is consistent with DHS’s
                                                      recognizes the need to strengthen the                   by improving their ability to attract                 ‘‘Study in the States’’ initiative,
                                                      existing STEM OPT extension to                          foreign STEM students to study in the                 announced after the 2008 IFR in
                                                      enhance the academic benefit of the                     United States. As noted above, these                  September 2011 to encourage
                                                      program and maintain the nation’s                       students enrich the cultural and                      international students to study in the
                                                      economic, scientific, and technological                 academic life of college and university               United States. That initiative
                                                      competitiveness. DHS is working to find                 campuses throughout the United States                 particularly focused on enhancing our
                                                      new and innovative ways to encourage                    and make important contributions to the               nation’s economic, scientific and
                                                      international STEM students to choose                   U.S. economy and academic sector. The                 technological competitiveness by
                                                      the United States as a destination for                  changes proposed in this rule will help               finding new ways to encourage talented
                                                      their studies. This proposal, in addition               strengthen the overall F–1 program in                 international students to become
                                                      to including a modified version of the                  the face of growing international                     involved in expanded post-graduate
                                                      STEM OPT extension from the 2008                        competition for the world’s most                      opportunities in the United States. The
                                                      IFR, would increase the maximum                         promising international students.                     initiative has taken various steps to
                                                      training time period for STEM students,                    Additionally, safeguards such as                   enhance and improve the Nation’s
                                                      require a formal mentoring and training                 employer attestations, requiring                      nonimmigrant student programs.43
                                                                                                              employers to enroll in E-Verify,                         The proposed rule would enhance the
                                                      plan for each STEM OPT extension, and
                                                                                                              providing for DHS site visits, and                    ability of F–1 students to achieve the
                                                      take steps to strengthen protections for
                                                                                                              requiring that STEM training                          objectives of their courses of study
                                                        38 Citizenship and Immigration Canada, Quarterly      opportunities provide commensurate                    while also benefiting the U.S. economy.
                                                      Administrative Data Release, available at http://       terms and conditions to those provided                More students will return home
                                                      www.cic.gc.ca/english/resources/statistics/data-                                                              confident in their training, ready to
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                                                      release/2014-Q4/index.asp.                                41 The HSAAC provides advice and                    begin a career in their field of study;
                                                        39 University World News Global Edition, Schools
                                                                                                              recommendations to the Secretary and senior           others may take advantage of other
                                                      are the New Battleground for Foreign Students, July     leadership on matters related to homeland security
                                                      15, 2015, Issue 376, available at http://www.           and the academic community, including: student
                                                                                                                                                                    provisions proposed herein to request to
                                                      universityworldnews.com/article.php?story=20150         and recent graduate recruitment, international
                                                      7150915156.                                             students, academic research and faculty exchanges,      42 During calendar year 2014, the number of
                                                        40 Pew Research Center, ‘‘Growth from Asia            campus resilience, homeland security academic         students participating in a STEM OPT extension
                                                      Drives Surge in U.S. Foreign Students’’ (June 18,       programs, and cybersecurity. See U.S. Department      represented approximately 8.5 percent of all OPT
                                                      2015), available at http://www.pewresearch.org/         of Homeland Security, Homeland Security               participation.
                                                      fact-tank/2015/06/18/growth-from-asia-drives-           Academic Advisory Council Charter, available at         43 See ‘‘Study in the States,’’ U.S. Department of

                                                      surge-in-u-s-foreign-students/.                         http://www.dhs.gov/publication/hsaac-charter.         Homeland Security, http://studyinthestates.dhs.gov.



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                                                                              Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                     63385

                                                      change status following a STEM OPT                       competitive in light of global efforts                  economy.48 Combined with the initial
                                                      extension and help further drive                         offering international students longer                  12-month OPT period, a maximum 24-
                                                      economic growth and cultural exchange                    post-study training experience without                  month STEM OPT extension would
                                                      in the United States.                                    restrictions on the type of work that may               provide students a sufficient
                                                                                                               be performed.45                                         opportunity to participate through the
                                                      B. STEM Extension Period for OPT
                                                                                                                  DHS considered many factors in                       life of such a grant.49 Accordingly, and
                                                         As noted above, in the 2008 IFR, DHS                                                                          following consultation with the
                                                                                                               determining the proposed length for an
                                                      implemented a 17-month STEM OPT                                                                                  Department of Education and the
                                                                                                               improved STEM OPT extension period.
                                                      extension to provide STEM students                                                                               National Science Foundation (NSF),
                                                                                                               An important consideration was the
                                                      and employers with improved OPT                                                                                  DHS believes that an appropriate
                                                                                                               general duration of projects to be
                                                      opportunities beyond the initial year of                                                                         benchmark for the maximum duration
                                                                                                               pursued by students on STEM OPT
                                                      practical training. The 17-month period                                                                          of OPT for STEM students is the
                                                                                                               extensions. DHS believes that students
                                                      was intended to allow STEM students to                                                                           standard duration of an NSF grant—
                                                                                                               participating in practical training in
                                                      receive additional practical experience                                                                          approximately three years.
                                                                                                               STEM fields should be encouraged to                        DHS anticipates that the 24-month
                                                      aligned with their educational degree,
                                                                                                               pursue meaningful projects that                         extension would significantly enhance
                                                      and it would generally terminate near
                                                                                                               contribute to a deeper understanding of                 the academic benefit of a STEM
                                                      the beginning of the fiscal year.
                                                                                                               their field of study and help develop the               student’s OPT experience. As noted
                                                      Following seven years of experience
                                                                                                               practical skills necessary to advance                   above, many research projects take years
                                                      with the STEM OPT extension, DHS has
                                                                                                               their careers. This type of significant                 to complete, and under the new STEM
                                                      decided in this rule to re-evaluate its
                                                                                                               project—often involving a grant or                      OPT extension, a student would have
                                                      length. Consistent with the discussion
                                                                                                               fellowship application, management of                   increased opportunities to learn how to
                                                      above, DHS believes the STEM OPT
                                                                                                               grant money, focused research, and                      apply for a grant or fellowship, become
                                                      extension should first and foremost be
                                                                                                               publication of a report—typically                       a responsible steward of grant money,
                                                      targeted to complement the student’s
                                                                                                               requires several years to complete.                     initiate a study or project, see the study
                                                      academic experience. The length of any
                                                                                                               Stakeholders have indicated, moreover,                  or project through to conclusion, write
                                                      extension should aim to produce an
                                                                                                               that this process often takes longer in                 a report and obtain peer review, and
                                                      optimal educational experience in the
                                                                                                               the STEM community than in other                        have the report published. DHS requests
                                                      relevant field of study, particularly
                                                                                                               academic or business areas. For                         public comment and the submission of
                                                      given the complex nature of STEM
                                                                                                               example, the National Science                           empirical data in relation to this
                                                      projects and associated skill-
                                                                                                               Foundation (NSF) typically funds                        proposition. In addition, DHS requests
                                                      development that require relatively
                                                                                                               projects through grants that last for up                public comment regarding the length of
                                                      lengthy time frames. The length should
                                                                                                               to three years.46 And in many fields                    research, development, testing and
                                                      be conditioned on full compliance with
                                                                                                               such as mathematics, computer science,                  other projects for which STEM
                                                      the other requirements set forth in this
                                                                                                               and the social sciences, NSF is the                     graduates (regardless of nationality)
                                                      preamble.
                                                                                                               major source of federal funding.47                      from U.S. universities are typically
                                                         DHS proposes in this rule to increase
                                                      the STEM OPT extension period to 24                         Fostering integration of research and                assigned in the workplace.
                                                      months for students meeting the                          education through the types of                             DHS also proposes to allow a student
                                                      qualifying requirements. This 24-month                   programs, projects, and activities                      who has completed a STEM OPT
                                                      extension, when combined with the 12                     described above will help recruit, train,               extension pursuant to previous study in
                                                      months of initial post-completion OPT,                   and prepare a diverse STEM workforce                    the United States and who obtains
                                                      would effectively allow STEM students                    to advance the frontiers of science and                 another qualifying degree at a higher
                                                                                                               participate in the U.S. technology-based                degree level (or has a qualifying prior
                                                      up to 36 months of practical training.
                                                                                                                                                                       degree, as discussed in more detail
                                                      DHS would also provide, for students
                                                                                                                                                                       below), to qualify for eligibility for a
                                                      who subsequently attain another STEM                        45 See, e.g., Canadian Study permits and

                                                                                                               Australian Temporary Grad. visa, supra note 36.         second 24-month STEM OPT extension
                                                      degree at a higher educational level, the                   46 Id. at sec. II.c.2.a.(4)(b) (‘‘The proposed       upon the expiration of the general
                                                      ability to participate in an additional 24-              duration for which support is requested must be         period of OPT based on that additional
                                                      month extension of any post-completion                   consistent with the nature and complexity of the        degree.
                                                      OPT based upon that second STEM                          proposed activity. Grants are normally awarded for
                                                                                                                                                                          DHS requests public comment on the
                                                      degree.44 The duration of an extension                   up to three years but may be awarded for periods
                                                                                                               of up to five years.’’). For instance, NSF funding      proposed 24-month STEM OPT
                                                      would be set at 24 months, rather than                   rate data show that in fiscal years 2012–2014, grant    extension and the ability for qualifying
                                                      limited to a shorter period, due to the                  awards for biology were provided for an average         students to receive an additional such
                                                      complexity and typical durations of                      duration of 2.87, 2.88, and 2.81 years, respectively.
                                                                                                                                                                       STEM OPT extension based on a second
                                                      research, development, testing, and                         47 ‘‘About the National Science Foundation,’’
                                                                                                                                                                       STEM degree. In particular, DHS
                                                      other projects commonly undertaken in                    NSF, http://www.nsf.gov/about/. Such grants are
                                                                                                               commonly solicited by and awarded to                    requests comment from STEM students,
                                                      STEM fields. Affording greater                           organizations similar to those in the STEM OPT          educational institutions, and employers
                                                      participation in STEM training through                   employer community, including universities,             on the appropriate STEM OPT extension
                                                      changes to the period of the STEM OPT                    colleges, and research laboratories having strong
                                                                                                                                                                       length to ensure that practical training
                                                      extension would also help the nation                     capabilities in scientific or engineering research or
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                                                                               education, and cooperative projects that involve
                                                      and its academic institutions remain                     both universities and the private sector. See NSF,        48 Id., available at http://www.nsf.gov/pubs/

                                                                                                               ‘‘Grant Proposal Guide’’ (December 2014), available     policydocs/pappguide/nsf15001/gpg_2.jsp.
                                                        44 DHS notes that, under this proposal, a student      at http://www.nsf.gov/pubs/policydocs/pappguide/          49 Although DHS has considered tailoring the

                                                      seeking to obtain a second STEM OPT extension            nsf15001/gpg_1.jsp#categories (listing categories of    length of the STEM OPT extension in this rule to
                                                      during his or her lifetime will be unable to link this   organizations that are eligible to submit grant         individual student practical training proposals,
                                                      extension with his or her first extension. The           proposals). Based on SEVIS data, three of the top       DHS’s initial assessment is that an across-the-board
                                                      student would need to complete a new initial post-       six employers offering STEM OPT opportunities           maximum period for such extensions would be
                                                      completion practical training period and request a       and employing STEM OPT students that have               significantly more straightforward to administer
                                                      new STEM extension based on a different STEM             begun over the past five years are either higher        and would also be consistent with past
                                                      degree. DHS welcomes comments on this aspect of          education institutions or entities conducting           administration of the general OPT program, as well
                                                      the proposal.                                            research affiliated with universities.                  as the existing STEM OPT extension.



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                                                      63386                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      for STEM students is most meaningfully                  including comments on the harm that                   containing mathematics, natural
                                                      educational and beneficial to them, and                 such a gap may cause.                                 sciences (including physical sciences
                                                      less disruptive for institutions and                      DHS welcomes comments regarding                     and biological/agricultural sciences),
                                                      employers. DHS is particularly                          each of the proposed transition                       engineering/engineering technologies,
                                                      interested in public input regarding                    procedures described above, including                 and computer/information sciences, and
                                                      whether 24 months is the appropriate                    alternatives to the potential courses of              related fields. DHS believes the NCES
                                                      duration for STEM OPT extensions, or                    action identified here.                               definition provides a sound basis
                                                      whether a shorter or longer duration                    C. STEM Definition and CIP Categories                 because it not only encompasses many
                                                      (e.g., 17 months or 36 months) is                       for STEM OPT Extension                                of the fields already contained on the
                                                      preferable, and why.                                                                                          current STEM Designated Degree
                                                         As a transitional measure, DHS is also                  The 2008 IFR first introduced the                  Program list, but draws on the
                                                      proposing to allow a subset of students                 STEM Designated Degree Program list,
                                                                                                                                                                    Department of Education’s expertise in
                                                      already on a 17-month extension to take                 which includes all Department of
                                                                                                                                                                    the area of higher education and
                                                      advantage of the proposed 24-month                      Education CIP codes that are eligible for
                                                                                                                                                                    academic studies generally. ICE often
                                                                                                              the current 17-month extension. The
                                                      program, consistent with the                                                                                  defers to the Department of Education’s
                                                                                                              2008 IFR noted that any future changes
                                                      requirements set forth in this proposed                                                                       definitions or processes in the area of
                                                                                                              to the list would be posted on SEVP’s
                                                      rule. Qualifying students would be able                                                                       higher education. DHS therefore
                                                                                                              Web site, but did not set forth a formal
                                                      to request the balance of the modified                                                                        proposes that the definition of STEM
                                                                                                              definition for ‘‘STEM fields’’ or a public
                                                      extension up to 120 days before the end                                                                       fields encompass mathematics, natural
                                                                                                              notice process regarding updates to the
                                                      of the student’s 17-month period. Such                                                                        sciences (including physical sciences
                                                                                                              list. Many commenters on the 2008 IFR
                                                      requesting students would have to meet                                                                        and biological/agricultural sciences),
                                                                                                              indicated that the STEM OPT extension
                                                      all requirements of the new STEM OPT                                                                          engineering/engineering technologies,
                                                                                                              should be available to students in all
                                                      extension proposal, including                                                                                 and computer/information sciences, as
                                                                                                              fields of study, or that the list
                                                      submission of the Mentoring and                         promulgated at that time be expanded to               well as related fields.50 DHS believes
                                                      Training Plan described below.                          include various other degree programs.                that a clear definition of the types of
                                                         With respect to applications for STEM                DHS has taken these concerns into                     degree fields eligible under the
                                                      OPT extension currently pending before                  consideration in crafting a proposed                  regulation would improve the process
                                                      DHS or submitted prior to the effective                 approach for this rule that seeks to                  for altering categories contained within
                                                      date of any final rule, DHS intends to                  strike a reasonable balance between the               the STEM Designated Degree Program
                                                      adjudicate the application consistent                   current understanding of STEM needs                   list.
                                                      with the regulations that existed at the                and potential future changes in these                    DHS believes that its definition of
                                                      time the application was submitted (i.e.,               fields. The approach focuses on                       STEM fields should be tailored to
                                                      such applications, if approved, would                   generally understood STEM degree                      capture those STEM fields of study for
                                                      result in a 17-month extension).                        fields that are of particular academic                which an extension of practical training
                                                      Following the effective date of a final                 and practical demand for the U.S. and                 is most beneficial. DHS requests
                                                      rule with a different STEM OPT                          international community, while also                   comment from the public on the
                                                      extension duration, a student would                     ensuring flexibility for potential changes            academic benefit of the STEM OPT
                                                      then be able to request the balance of                  as fields of study in STEM sectors                    extension for STEM students generally
                                                      the modified extension up to 120 days                   evolve with changes in technology, as                 as well as for specific STEM fields. DHS
                                                      before the end of the student’s 17-month                well as in academic programs, interests               also requests comment on whether
                                                      period, provided the student meets all                  and trends.                                           changes to the current content or
                                                      requirements of the new STEM OPT                           DHS proposes in this rulemaking a                  structure of the list may be helpful or
                                                      extension proposal, including                           general definition of ‘‘STEM fields’’ and             appropriate.51 Although DHS is not
                                                      submission of the Mentoring and                         proposes a process for public                         currently considering expanding the
                                                      Training Plan. In the alternative, a                    notification in the Federal Register                  STEM OPT extension to non-STEM
                                                      student with a pending application for                  when DHS updates the Designated                       fields, commenters are encouraged to
                                                      a 17-month extension may also choose                    Degree Program list on SEVP’s Web site.               compare STEM and non-STEM fields of
                                                      to withdraw that application and file a                 DHS would continue to produce a list                  study for purposes of commenting on
                                                      new application for the proposed 24-                    identifying the groups within the                     this definition. As is the current
                                                      month STEM OPT extension.                               Department of Education’s CIP                         process, DHS envisions that, upon
                                                         DHS is making every effort to have a                 taxonomy that qualify as appropriate                  finalizing this proposed rule, the agency
                                                      final rule take effect prior to February                categories for the STEM OPT extension.                would continue to accept, for DHS
                                                      13, 2016, when the stay on the vacatur                  DHS may from time to time revise the                  review, suggested additions to the
                                                      of the 2008 IFR is currently set to                     Designated Degree Program list based                  STEM Designated Degree Program list at
                                                      expire. In the event, however, that a                   upon the dynamic nature of STEM                       SEVP@ice.dhs.gov
                                                      final rule resulting from this rulemaking               fields and potential changes to the CIP
                                                      does not take effect before the vacatur of              taxonomy.                                               50 U.S. Department of Education National Center
                                                      the 2008 IFR, DHS will lack clear                          To provide a clear definition to guide             for Education Statistics Institute of Education
                                                      regulatory authority to grant pending                   changes to the STEM Designated Degree
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                                                                                                                                                                    Sciences, ‘‘Stats in Brief’’ (July 2009), available at
                                                      applications for STEM OPT extensions.                   Program list, DHS proposes to utilize                 http://nces.ed.gov/pubs2009/2009161.pdf.
                                                                                                                                                                      51 The current list is available in the docket for
                                                      In that case, DHS will evaluate options                 the description referenced by the
                                                                                                                                                                    this rulemaking. Future revisions may include
                                                      to address pending applications, such as                Department of Education’s National                    additional degrees, including degrees listed within
                                                      returning such applications and                         Center for Education Statistics (NCES),               the summary groups for Agriculture, Agriculture
                                                      requiring re-filing upon completion of a                Institute of Education Services, to define            Operations, and Related Sciences; Computer and
                                                      final rule. DHS seeks comments on                       ‘‘STEM fields.’’ DHS would define                     Information Sciences and Support Services;
                                                                                                                                                                    Engineering; Engineering Technologies and
                                                      these and other options for addressing                  ‘‘STEM field’’ as a field included in the             Engineering-Related Fields; Biological and
                                                      pending applications if a final rule is                 Department of Education’s CIP                         Biomedical Sciences; Mathematics and Statistics;
                                                      not in place prior to the court’s vacatur,              taxonomy within the summary groups                    and Physical Sciences.



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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                  63387

                                                      D. Mentoring and Training Plan                          employer that intends to provide a                    stated that the E-Verify provision would
                                                         Multiple commenters to the 2008 IFR                  STEM OPT opportunity to a student                     not ensure electronic verification of all
                                                      highlighted the important academic                      would work with the student to design                 STEM OPT students, because the E-
                                                      benefits associated with OPT                            a customized training plan to enhance                 Verify program only applies to new
                                                      participation. Commenters emphasized                    the practical skills and methods the                  hires and therefore would not apply to
                                                      that real-world experience is a vital part              student studied while attaining his or                students who are using the STEM OPT
                                                      of the educational experience, and that                 her degree. Such training plans would                 extension to extend their employment
                                                      the opportunity for OPT participation                   require specific training goals, as well as           with the same employer. A number of
                                                      draws high-quality students to the                      a description of how those goals will be              commenters acknowledged, however,
                                                      United States from around the world.                    achieved.                                             that the program was improving and
                                                      Other commenters noted that the 2008                      DHS also proposes that the student                  that participation in the E-Verify
                                                      IFR did not include an explicit                         provide his or her DSO with an                        program was rapidly growing.
                                                      mechanism to inform employers of the                    evaluation of his or her STEM OPT                        DHS continues to believe that the E-
                                                      purpose of or requirements associated                   every six months, as well as a final                  Verify program is an important measure
                                                      with practical training.                                evaluation at the conclusion of the OPT               to ensure the integrity of the STEM OPT
                                                         The proposed rule seeks to ensure                    period. These evaluations would                       extension. The E-Verify program is an
                                                      that the STEM OPT extension more                        document the student’s progress toward                Internet-based service operated by
                                                      effectively enables STEM OPT students                   the agreed-upon training goals and thus               USCIS, in partnership with the Social
                                                      to obtain valuable practical work                       better ensure that such goals are being               Security Administration (SSA). E-Verify
                                                      experience directly related to their                    met. The factors to be evaluated would                is currently free to employers and is
                                                      fields of study. To achieve this aim, the               be included on the Mentoring and                      available in all 50 states, the District of
                                                      proposed rule requires that employers                   Training Plan, which must be signed by                Columbia, Puerto Rico, Guam, and the
                                                      incorporate a formal mentoring and                      both the student and the immediate                    U.S. Virgin Islands. E-Verify
                                                      training program for STEM OPT                           supervisor at the student’s workplace.                electronically compares information
                                                      students. Mentoring is a time-tested and                The student’s school of most recent                   contained on the Employment
                                                                                                              enrollment would be responsible for                   Eligibility Verification Form I–9 (herein
                                                      widely used strategic approach to
                                                                                                              ensuring ICE has access to records of                 Form I–9) with records contained in
                                                      developing professional skills. The
                                                                                                              student evaluations for a period of three             government databases to help employers
                                                      mentor should be an experienced
                                                                                                              years following completion of the                     verify the identity and employment
                                                      employee or group of employees who
                                                                                                              student’s STEM OPT training.                          eligibility of newly-hired employees.
                                                      would teach and counsel the student.                      DHS plans to incorporate the                        This program currently is the best
                                                      As part of this mentoring and training                  submission of the Mentoring and                       means available for employers to
                                                      program, the employer would agree to                    Training Plan into SEVIS at a later date.             determine employment eligibility of
                                                      take responsibility for the student’s                   Until that time DHS may require the                   new hires and, in some cases, existing
                                                      training and ensure that skill                          submission of the Plan to ICE or USCIS,               employees.
                                                      enhancement is the primary goal. The                    including to USCIS when the student                      Before an employer can participate in
                                                      student would be required to prepare a                  seeks certain benefit requests from                   the E-Verify program, the employer
                                                      formalized Mentoring and Training Plan                  USCIS, such as an application for                     must enter into a Memorandum of
                                                      with the employer and to submit the                     employment authorization. Under 8                     Understanding (MOU) with DHS and
                                                      plan to the student’s DSO before the                    CFR 103.2(b)(8)(iii), USCIS may issue a               SSA. This memorandum requires
                                                      DSO could recommend a STEM OPT                          Request for Evidence or Notice of Intent              employers to agree to abide by current
                                                      extension in the student’s SEVIS record.                to Deny if all required initial evidence              legal hiring procedures and to follow
                                                      This would generally provide review of                  has been submitted, but the evidence                  required procedures in the E-Verify
                                                      the Mentoring and Training Plan by the                  submitted does not establish eligibility.             process to ensure that E-Verify
                                                      educational institution granting the                    Accordingly, USCIS may request a copy                 maximizes the reliability and ease of use
                                                      degree related to the training. In cases                of the Mentoring and Training Plan, in                of the system, while preventing
                                                      where the student intends to use the                    addition to other documentation, when                 unauthorized disclosure of personal
                                                      newly proposed option of requesting an                  such documentation is necessary to                    information and unlawful
                                                      extension based on a previously-                        determine an applicant’s eligibility for              discriminatory practices based on
                                                      obtained degree, the review would come                  the benefit, including instances when                 national origin or citizenship status.
                                                      from the institution that provided the                  there is suspected fraud in the                       Violation of the terms of this agreement
                                                      student’s most recent degree (i.e., the                 application.                                          by the employer is grounds for
                                                      institution whose official is certifying,                                                                     immediate termination of its
                                                      based on SEVIS or official transcripts,                 E. USCIS E-Verify Employment                          participation in the program.53
                                                      that a prior STEM degree enables the                    Verification Program                                     Employers participating in E-Verify
                                                      student to continue his or her eligibility                The 2008 IFR provided that the STEM                 must still complete a Form I–9 for each
                                                      for the practical training).52                          OPT extension would only be available                 newly hired employee, as required
                                                         To better ensure that the STEM OPT                   to those students seeking employment                  under current law. Following
                                                      extension fulfills the specific practical               or seeking to maintain employment with                completion of the Form I–9, the
                                                      training needs of STEM students, the                    employers that are enrolled and in good               employer must enter the newly hired
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                                                                                                              standing in USCIS’ E-Verify program. A                worker’s information into the E-Verify
                                                        52 The proposed rule clarifies the student’s
                                                                                                              number of commenters to the 2008 IFR                  system, which would then check that
                                                      responsibility to present his or her Mentoring and
                                                      Training Plan to the DSO of the school of most
                                                                                                              addressed this provision. Some                        information against information
                                                      recent enrollment, so that the DSO who has been         commenters believed that this provision
                                                      involved with the student most recently would be        would unduly limit the opportunities                    53 See U.S. Citizenship and Immigration Services,

                                                      the DSO responsible regarding all ongoing OPT.          available to STEM OPT students; others                The E-Verify Memorandum of Understanding for
                                                      This change is a necessary result of this rule also                                                           Employers, available at http://www.uscis.gov/sites/
                                                      proposing changes that could enable a student to
                                                                                                              expressed concern about reported                      default/files/USCIS/Verification/E-Verify/E-Verify_
                                                      engage in a STEM OPT opportunity related to a           inaccuracies in E-Verify-related                      Native_Documents/MOU_for_E-Verify_
                                                      previously obtained degree.                             databases. Finally, some commenters                   Employer.pdf.



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                                                      63388                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      contained in government databases. For                  extension are legally authorized to                   degree to obtain a STEM OPT extension
                                                      example, E-Verify compares employee                     work. DHS requests comment on this                    immediately subsequent to another
                                                      information against more than 425                       proposal, including from students and                 STEM OPT extension. In other words,
                                                      million records in the SSA database and                 employers that have had experience                    the proposed changes would not
                                                      more than 60 million records stored in                  with this requirement under the 2008                  provide students the ability to obtain
                                                      the DHS database. At the start of 2015,                 IFR.                                                  two immediately consecutive STEM
                                                      over 98 percent of all employer queries                                                                       OPT extensions. Under the proposed
                                                                                                              F. Previously Obtained STEM Degrees
                                                      were instantly verified as work                                                                               rule, the second extension would be
                                                      authorized. Between 2008 (the year the                     Commenters to the 2008 IFR inquired                available to students only upon
                                                      2008 IFR included the original E-Verify                 about eligibility for a STEM OPT                      completion of a new initial post-
                                                      requirement for STEM OPT employers)                     extension in instances where a student                completion OPT period.
                                                      and the beginning of 2015, E-Verify                     earns a bachelor’s degree in a STEM                      DHS proposes to permit DSOs at the
                                                      participation by employers has                          field but a master’s degree in a non-                 student’s school of most recent
                                                      increased by over 500 percent.54 E-                     STEM field, or two degrees at the same                enrollment to certify prior STEM
                                                      Verify is now a well-established and                    education level, one of which is in a                 degrees, so long as the STEM degree was
                                                      important measure that would                            STEM field. Since the 2008 IFR, DHS                   earned at a school accredited by an
                                                      complement other oversight elements in                  has found that some F–1 students                      accrediting agency recognized by the
                                                      this proposed rule, and it is the most                  approved for OPT in STEM-related                      Department of Education.55 The degree
                                                      efficient means available for employers                 fields remain unable to extend their                  would also need to be on the STEM
                                                      to determine the employment eligibility                 OPT, even if they have a prior STEM                   Designated Degree Program list at the
                                                      of new hires, including students who                    degree. This is because the regulations               time of the student’s application. For a
                                                      are participating in the STEM OPT                       have effectively required that the OPT                student who is relying on a previously
                                                      extension.                                              be directly related to the student’s most             obtained degree for the STEM OPT
                                                         It is important to note that once an                 recent major area of study and that the               extension, his or her most recent degree
                                                      employer enrolls in E-Verify, that                      DSO certify that the student’s degree                 must also be from an accredited
                                                      employer is responsible for verifying all               that is the basis for his or her current              institution and the student’s practical
                                                      new hires, including newly hired                        period of OPT is a degree contained on                training opportunity must be directly
                                                      students with STEM OPT extensions, at                   the current STEM Designated Degree                    related to the previously obtained STEM
                                                      the hiring site(s) identified in the MOU                Program list. See 8 CFR
                                                                                                                                                                    degree. For a previously obtained degree
                                                      executed between the employer and                       214.2(f)(10)(ii)(A) and (f)(11)(ii)(A). This
                                                                                                                                                                    to qualify as the basis for a STEM OPT
                                                      DHS. The earliest an employer may use                   limitation decreases the number of F–1
                                                                                                                                                                    extension, the degree must have been
                                                      E-Verify with respect to an individual is               students with STEM degrees and STEM-
                                                                                                                                                                    conferred within the 10 years preceding
                                                      after the individual accepts an offer of                related expertise available to participate
                                                                                                                                                                    the student’s application date. This
                                                      employment and the employee and                         in a STEM OPT extension.
                                                                                                                 Stakeholders, including the academic               requirement is intended to ensure the
                                                      employer complete the Form I–9. The                                                                           degree was conferred recently enough
                                                      verification must be made no later than                 community and the HSAAC, have
                                                                                                              requested the elimination of this                     that it would be relevant to a present-
                                                      the end of three business days after the                                                                      day STEM OPT opportunity.
                                                      new hire’s first day of employment. If,                 restriction, such that a STEM OPT
                                                                                                              extension would be available to a                        Finally, due to the difficulty in
                                                      however, an employer enrolls in E-                                                                            determining the equivalency of a degree
                                                      Verify to retain a student already                      student with a prior qualifying STEM
                                                                                                              degree, even if the student’s most recent             obtained at a foreign institution, and
                                                      employed pursuant to an initial 12-                                                                           because the purpose of OPT is to further
                                                      month grant of OPT, the employer                        degree would not qualify. Stakeholders
                                                                                                              assert that such a modification would                 one’s course of study in the United
                                                      would reverify the student’s STEM OPT                                                                         States, STEM degrees from foreign
                                                      extension on Form I–9 but may not                       broaden the educational and training
                                                                                                              benefits of the STEM OPT extension to                 schools will not be permitted to qualify
                                                      verify the employment eligibility of the                                                                      under the proposed program.
                                                      employee in E-Verify, as the MOU                        additional students with STEM
                                                                                                              backgrounds and would further benefit                    DHS requests comment on all aspects
                                                      generally prohibits the use of E-Verify                                                                       of this proposal.
                                                      with respect to existing employees.                     the U.S. economy by enhancing our
                                                         Additional information on enrollment                 nation’s ability to compete and innovate              G. Safeguarding U.S. Workers Through
                                                      and responsibilities under E-Verify can                 in these fields.                                      Measures Consistent With Labor Market
                                                      be found at http://www.uscis.gov/E-                        DHS agrees and is accordingly                      Protections
                                                      Verify. Employers can register for E-                   proposing to permit students to use a
                                                                                                              previously obtained and directly related                Many commenters to the 2008 IFR
                                                      Verify on-line at http://www.uscis.gov/                                                                       agreed with the Department’s
                                                      E-Verify. The site provides instructions                STEM degree from an accredited school
                                                                                                              as a basis to apply for a STEM OPT                    assessment that the 17-month STEM
                                                      for completing the MOU needed to                                                                              OPT extension would benefit both
                                                      officially register for the program. DHS                extension. This previously obtained
                                                                                                              degree would make the STEM OPT                        students and the U.S. economy.
                                                      believes that the E-Verify enrollment                                                                         Commenters noted that the STEM labor
                                                      requirement would continue to provide                   extension available to students who
                                                                                                              have a prior background in STEM but                   shortage described in the 2008 IFR was
                                                      an efficient and accurate manner of                                                                           well documented and that the United
                                                                                                              who are currently engaging in OPT that
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                                                      better ensuring that students                                                                                 States faced stiff competition from other
                                                      participating in the STEM OPT                           has been authorized based on their
                                                                                                              study towards a different degree. Such                countries for high-skilled STEM
                                                                                                              an OPT extension, however, would be                   workers. One commenter stated that the
                                                        54 U.S. Citizenship and Immigration Services, E-
                                                                                                              available only to such students who                   IFR provided ‘‘small, but helpful steps’’
                                                      Verify Overview 8, available at http://
                                                      www.uscis.gov/sites/default/files/USCIS/                seek to develop and utilize STEM skills               towards addressing a critical need for
                                                      Verification/E-Verify/E-Verify_Native_Documents/        from their prior STEM degree during the
                                                      e-verify-presentation.pdf (noting that 87,758                                                                   55 A qualifying, previously obtained degree would

                                                      employers were enrolled as of fiscal year 2008          extended OPT period.                                  provide eligibility for an extension so long as the
                                                      compared to 568,759 employers as of fiscal year            Under this proposal, students would                educational institution that conferred the degree
                                                      2015).                                                  not be able to use a previously obtained              was accredited at the time the degree was granted.



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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                          63389

                                                      qualified, highly-trained and well-                     experience resulting from the STEM                     terms and conditions of a STEM
                                                      educated STEM workers. Another                          OPT extension is significant, and that                 practical training opportunity are
                                                      commenter stated that the rule partially                on the whole, positive indirect effects                commensurate with those for similarly
                                                      addressed the severe shortage of U.S.                   on educational institutions and                        situated U.S. workers in other
                                                      workers in science, engineering,                        academic exchange support the                          employers of analogous size and
                                                      mathematics and technology.                             availability of a STEM OPT extension at                industry and in the same geographic
                                                      Commenters highlighted the importance                   this time. Nevertheless, DHS recognizes                area of employment. ‘‘Similarly situated
                                                      of the STEM OPT extension not only for                  the concerns expressed above and                       U.S. workers’’ would include U.S.
                                                      research universities that seek to attract              proposes to modify the terms and                       workers performing similar duties and
                                                      high-quality international students, but                conditions for employer participation in               with similar educational backgrounds,
                                                      also for employers seeking to fill empty                the STEM OPT extension in order to                     employment experience, levels of
                                                      positions. Some commenters                              protect U.S. workers from possible                     responsibility, and skill sets as the
                                                      characterized the availability of                       employer abuses of these programs.                     STEM OPT student. The student’s
                                                      meaningful practical training as a                         For instance, any employer wishing to               compensation would be reported on the
                                                      critical aspect of the educational                      hire a student participating in the STEM               Mentoring and Training Plan and the
                                                      experience. As noted elsewhere in this                  OPT extension would, as part of a newly                student would be responsible for
                                                      preamble, many commenters also stated                   required Mentoring and Training Plan,                  reporting any adjustments. DHS
                                                      that the impact of the rule was too                     be required to sign a sworn attestation                requests public comment, especially
                                                      limited, and requested that eligibility for             affirming that, among other things: (1)                from employers and labor organizations,
                                                      the extension be expanded to students                   The employer has sufficient resources                  on all aspects of this provision,
                                                      in additional degree programs, as well                  and personnel available and is prepared                including the types of business factors
                                                      as to students employed by employers                    to provide appropriate mentoring and                   employers would use to evaluate
                                                      that do not use E-Verify.                               training in connection with the                        whether their workers are similarly
                                                        A number of commenters, however,                      specified opportunity; (2) the employer                situated.
                                                      objected to the 17-month STEM OPT                       will not terminate, lay off, or furlough                  With regard to the requirement to
                                                      extension on the basis of potential                     a U.S. worker as a result of providing                 provide commensurate compensation,
                                                      negative impacts on U.S. workers in                     the STEM OPT to the student; and (3)                   DHS anticipates that employers would
                                                      STEM fields. For instance, a commenter                  the student’s opportunity assists the                  be able to show compliance through a
                                                      stated that demand for technical                        student in attaining his or her training               variety of existing real-world practices.
                                                      workers was very weak in engineering                    objectives. As with all affirmations                   So long as the attestation is made in
                                                      occupations and growing modestly in                     contained in the Mentoring and                         good faith and to the best of the
                                                      computing and mathematics                               Training Plan, the employer would                      employer’s knowledge, information and
                                                      occupations. The same commenter                         attest that these commitments are true                 belief, employers would be able to
                                                      stated that, especially when combined                   and correct to the best of the employer’s              continue relying on many of the same
                                                      with H–1B, L–1, and other skilled                       knowledge, information and belief.                     resources they already use, such as local
                                                      workers, the number of students taking                     Additionally, the proposed rule                     associations or national or local wage
                                                      advantage of the STEM OPT extension                     would require that the terms and                       surveys, to set compensation for their
                                                      would distort the domestic labor                        conditions of an employer’s STEM                       U.S. workers. The rule would also
                                                      market. Some commenters specifically                    practical training opportunity—                        permit employers to rely on other bases
                                                      stated that employers would prefer to                   including duties, hours and                            for establishing compensation levels.
                                                      hire F–1 students on STEM OPT                           compensation 56—be commensurate                        For example, employers hiring high-
                                                      extensions because these students                       with those provided to the employer’s                  skilled STEM OPT students would be
                                                      would work for lower wages. Some                        similarly situated U.S. workers. Work                  able to refer to prevailing wages
                                                      commenters noted that some U.S. firms                   duties must be designed to assist the                  provided by the Department of Labor’s
                                                      had previously advertised STEM                          student with continued learning and                    Office of Foreign Labor Certification for
                                                      positions as being available only to OPT                satisfy the existing ICE guidelines for                employees in the same occupation in
                                                      students. Commenters requested that                     work hours when participating in post-                 the same area of employment.
                                                      DHS consider written reports,                           completion OPT, which are set at a                        To help gauge compliance, employers
                                                      testimony, and other sources describing                 minimum of 20 hours per week, and                      would be required to provide DHS with
                                                      the state of the U.S. STEM workforce.                   would be so defined under this                         student compensation information,
                                                      Commenters also questioned the                          proposed rule.57 If the employer does                  which would better situate the agency to
                                                      veracity of studies and reports cited in                not employ and has not recently                        monitor whether STEM OPT students
                                                      the preamble to the 2008 IFR, and some                  employed more than two similarly                       are being compensated fairly. This
                                                      questioned whether DHS had                              situated U.S. workers, the employer                    would both protect such students and
                                                      interpreted that information correctly in               would be required to ensure that the                   ensure the practical training has no
                                                      assessing the then-prevailing STEM                                                                             appreciable adverse consequences on
                                                      labor market. Some commenters stated                       56 DHS interprets the proposed compensation         the U.S. labor market. Additionally, the
                                                      that the STEM OPT extension was                         element to encompass wages and any other non-          proposed rule would authorize a
                                                                                                              employee-benefit remuneration, including housing
                                                      contrary to the academic purpose of the                 allotments, stipends, or similar provisions that are   recurrent evaluation process that would
                                                      F–1 statute. In general, commenters who                                                                        allow ICE to monitor student progress
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                                                                                                              typically provided to employed students.
                                                      made these and similar points requested                    57 See U.S. Immigration and Customs                 during the OPT period. These
                                                      that DHS eliminate the STEM OPT                         Enforcement, Policy Guidance 1004–03—Update to         evaluations would ensure continuous
                                                                                                              Optional Practical Training: Policy Guidance For
                                                      extension and the Cap Gap provision in                  SEVP and DSOs of SEVP-Certified Schools with F–
                                                                                                                                                                     focus on the student’s development
                                                      their entirety.                                         1 Students Eligible for or Pursuing Post-Completion    throughout the student’s training
                                                        DHS’s initial assessment, consistent                  OPT, 17 (April 23, 2010), available at http://         period, consistent with the Mentoring
                                                      with many of the public comments and                    www.ice.gov/doclib/sevis/pdf/opt_policy_guidance_      and Training Plan.
                                                                                                              042010.pdf (stating that a student, including those
                                                      following consultation with the U.S.                    participating in the 17-month STEM OPT extension,
                                                                                                                                                                        With the added assurances that a
                                                      Departments of Education and Labor, is                  must work at least 20 hours per week in a              student will be enhancing his or her
                                                      that the direct benefit to the academic                 qualifying position to be considered employed).        course of study through training-based


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                                                      63390                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      learning experiences and mentoring,                       DHS recognizes that many university                  procedures ‘‘in lieu of accreditation’’ to
                                                      combined with the employer non-                         personnel submitted comments on the                    establish the validity and quality of
                                                      displacement assurance, the                             2008 IFR highlighting the significant                  schools in certain cases, accreditation is
                                                      requirement that STEM OPT students                      administrative burdens faced by DSOs                   preferred and given significant weight
                                                      receive terms and conditions of                         in helping to coordinate participation in              in the overall certification assessment.
                                                      employment (including compensation)                     the F–1 program, including OPT. DHS                    Increasingly, schools are choosing to
                                                      commensurate with those of similarly                    acknowledges that the aforementioned                   obtain accreditation. In the past five
                                                      situated U.S. workers, and other related                proposals may impose additional                        years, less than one percent of students
                                                      requirements, DHS is confident that                     resource burdens on DSOs, and may                      participating in a STEM OPT extension
                                                      practical training during the STEM OPT                  require universities to invest further in              had graduated from non-accredited
                                                      extension will be carried out in a                      DSOs in order to take full advantage of                schools.61 Thus, while accreditation
                                                      manner that safeguards U.S. worker                      the F–1 program.58 DHS requests                        may impose certain burdens, DHS does
                                                      interests.                                              comment from universities, DSOs, and                   not expect the accreditation requirement
                                                         Some commenters to the 2008 IFR                      other interested members of the public                 to have broad impact on STEM OPT
                                                      also expressed concern that the STEM                    on how DHS can most effectively ensure                 students.
                                                      OPT extension could be exploited by                     an appropriate level of participation in                  DHS also proposes to clarify that ICE,
                                                      entities that hope to profit from the                   this program by educational                            at its discretion, may conduct ‘‘on-site
                                                      program but that may not have an actual                 institutions. In light of the passage of               reviews’’ to ensure that employers meet
                                                      STEM opportunity available for a                        time since implementation of the 2008                  program requirements, including that
                                                      student at the time of the student’s                    IFR, DHS particularly welcomes the                     they are complying with assurances and
                                                      application for the extension. To the                   submission of specific data related to                 that they possess the ability and
                                                      extent that this comment refers to                      the cost of implementation for that                    resources to provide structured and
                                                      temporary placement agencies, DHS                       rulemaking.                                            guided work-based learning experiences
                                                      does not envision that such ‘‘temp’’                    H. Oversight Through School                            according to the individualized
                                                      agencies will generally be able to                      Accreditation Requirements and                         Mentoring and Training Plans. The
                                                      provide eligible opportunities under the                Employer Site Visits                                   combination of requiring school
                                                      proposed STEM OPT extension,                                                                                   accreditation and conducting
                                                                                                                With this rule, DHS proposes that in                 discretionary ICE inspections of
                                                      including by complying with the
                                                                                                              order for a student to be eligible for a               employers will reduce the potential for
                                                      Mentoring and Training Plan process                     STEM OPT extension, the student’s
                                                      and requirements.                                                                                              any fraudulent use of F–1 nonimmigrant
                                                                                                              STEM degree must be received from an                   status during the period of STEM OPT
                                                         Moreover, under this rule, DSOs                      educational institution accredited by an
                                                      would be prohibited from                                                                                       training.
                                                                                                              accrediting agency recognized by the                      DHS requests comment from the
                                                      recommending a student for a STEM                       Department of Education.59 The goal of
                                                      OPT extension if the employer has not                                                                          public on all aspects of this proposal,
                                                                                                              accreditation is to ensure the quality of              including the feasibility and
                                                      provided the assurances required by this                educational institutions and programs.
                                                      rule or is otherwise not in compliance                                                                         effectiveness of imposing a firm
                                                                                                              Specifically, the accreditation process                accreditation requirement as a
                                                      with the relevant reporting, evaluation                 involves the periodic review of
                                                      and other requirements described in this                                                                       condition of participation in the STEM
                                                                                                              institutions and programs to determine                 OPT extension. DHS requests input
                                                      rule. Additionally, DHS has the ability                 whether they meet established
                                                      to deny STEM OPT extensions with                                                                               specifically from non-accredited
                                                                                                              standards in the profession and are                    institutions that currently have or
                                                      employers that the agency determines                    achieving their stated educational
                                                      have failed to comply with the                                                                                 previously had F–1 students
                                                                                                              objectives.60 Given these safeguards,                  participating in a STEM OPT extension.
                                                      regulatory requirements, including the                  DHS believes that requiring qualified
                                                      requirement to formerly execute the                                                                            DHS requests comment from such
                                                                                                              degrees to be from accredited                          institutions and other members of the
                                                      student’s Mentoring and Training Plan                   institutions would strengthen and better
                                                      and the requirement to comply with the                                                                         public on the availability and cost of
                                                                                                              ensure the proper use of STEM OPT                      accreditation, the practical significance
                                                      assurances contained therein. ICE may                   extensions.
                                                      investigate an employer’s compliance                                                                           of accreditation, and the potential that
                                                                                                                ICE’s SEVP currently performs an                     some student populations may lose
                                                      with these assurances, based on a                       examination and assessment of all
                                                      complaint or otherwise, consistent with                                                                        eligibility for the STEM OPT extension.
                                                                                                              schools applying for certification and re-
                                                      the proposed employer site visit                        certification to accept F–1 students. 8                I. Additional Compliance Requirements
                                                      provision discussed in the following                    CFR 214.3(b). Although SEVP has                           This proposed rule includes
                                                      section. These safeguards will more
                                                                                                                                                                     additional requirements to track STEM
                                                      effectively ensure that STEM OPT                          58 DHS notes, however, that it has implemented
                                                                                                                                                                     OPT students, mitigate the potential for
                                                      students achieve the objectives of their                the Mentoring and Training Plan requirement in
                                                                                                              part to ensure that students and employers are fully   fraud, and ensure that students are truly
                                                      courses of study, while benefiting U.S.
                                                                                                              aware of the requirements associated with this         furthering their course of study. As
                                                      academic institutions and protecting                    program.                                               discussed in the 2008 IFR, DHS’ ability
                                                      U.S. workers. DHS requests comment on                     59 An accrediting agency is a private educational
                                                                                                                                                                     to track nonimmigrant students in the
                                                      the feasibility and effectiveness of each
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                                                                                                              association of regional or national scope that
                                                                                                                                                                     United States relies on reporting by the
                                                      of these provisions, including the                      develops evaluation criteria and conducts peer
                                                                                                              evaluations of educational institutions and            students’ DSOs, who obtain required
                                                      obligations to confirm (1) that the terms
                                                                                                              academic programs. U.S. Department of Education        information from the school’s
                                                      and conditions of a STEM OPT                            Office of Postsecondary Education, ‘‘The Database      recordkeeping systems and through
                                                      student’s employment are                                of Accredited Postsecondary Schools and
                                                                                                                                                                     contact with the students. Students on
                                                      commensurate with those for similarly                   Programs,’’ available at http://ope.ed.gov/
                                                                                                              accreditation.                                         OPT, however, are often away from the
                                                      situated U.S. workers, and (2) that no                    60 U.S. Department of Education Office of
                                                      U.S. worker will be terminated, laid off,               Postsecondary Accreditation, ‘‘FAQs about                61 Based on data from 2010 to 2014, 0.56 percent
                                                      or furloughed as a result of a STEM OPT                 Accreditation’’, available at http://ope.ed.gov/       of STEM OPT extensions were granted to students
                                                      opportunity.                                            accreditation/FAQAccr.aspx.                            who graduated from non-accredited schools.



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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                          63391

                                                      academic environment, making it                         provide, at six-month intervals, an                   Authorization with USCIS within 30
                                                      difficult for DSOs to ensure proper and                 evaluation on their training progress                 days of the DSO recommendation. By
                                                      prompt reporting on student status to                   and an update on the extent that their                expanding the application filing period,
                                                      ICE. While DHS regulations currently                    training goals are being met.                         applicants would be afforded additional
                                                      require DSOs to update SEVIS, the                          The proposed rule would also limit                 flexibility. Among other things, a longer
                                                      current reporting requirements depend                   the maximum period in which a student                 application filing window would
                                                      entirely on the student’s timely                        may be unemployed to 90 days during                   reduce: (1) The number of USCIS
                                                      compliance. And DSOs are not currently                  his or her initial period of post-                    denials on Forms I–765 that result from
                                                      required to review and verify                           completion OPT, and permit an                         expired Forms I–20, (2) the number of
                                                      information reported by students on a                   additional 60 days, for an aggregate of               associated data corrections needed in
                                                      recurring basis. This combination of                    150 days, for students whose OPT                      SEVIS, and (3) the number of students
                                                      factors hinders systematic reporting and                includes a 24-month STEM OPT                          who would otherwise need to ask DSOs
                                                      ICE’s ability to track F–1 students                     extension. The 90-day aggregate period                for updated Forms I–20 to replace those
                                                      during OPT.                                             during initial post-completion OPT                    that have expired.
                                                         Accordingly, this proposed rule                      would remain at the level proposed in                    Additionally, ICE is working toward
                                                      includes a number of compliance                         the 2008 IFR. Such a safeguard prevents               technology that would allow students to
                                                      requirements established in the 2008                    OPT students from taking improper                     update their basic information in SEVIS
                                                      IFR for the current 17-month STEM OPT                   advantage of the program by, for                      without gaining access to restricted
                                                      extension and adds additional measures                  instance, remaining in the United States              areas of the system where student access
                                                      that would supplement the goal of                       without attempting to complement their                would be inappropriate. Once this
                                                      ensuring that the STEM OPT extension                    learning through training. DHS proposes               technology is implemented, students
                                                      is directly related to a student’s field of             to revise the aggregate maximum                       would have increased ability to
                                                      study. Requirements from the 2008 IFR                   allowed period of unemployment to 150                 maintain their own records. This would
                                                      that are proposed to be included in the                 days for an F–1 student having an                     also decrease the workload on DSOs,
                                                      STEM OPT extension under this rule                      approved STEM OPT extension                           who would no longer be required to
                                                      include the following:                                  consistent with the lengthened 24-                    update student information while
                                                         • The employer must report to the                    month period for such an extension.                   students are participating in practical
                                                      relevant DSO when an F–1 student on                        In comments received on the 2008                   training.
                                                      a STEM OPT extension terminates or                      IFR, many commenters opposed, or
                                                      otherwise leaves his or her employment                  requested revising, the limits on                     J. Cap-Gap Extension for F–1 Students
                                                      prior to the end of the authorized period               unemployment during OPT. Some                         With Timely Filed H–1B Petitions and
                                                      of OPT and must do so no later than 48                  commenters suggested that                             Change of Status Requests
                                                      hours after the student leaves                          unemployment limits pose significant                     As noted elsewhere in this preamble,
                                                      employment. Employers must report                       burdens and that students should be                   the 2008 IFR included provisions, such
                                                      this information to the DSO unless DHS                  able to maintain their status by simply               as 8 CFR 214.2(f)(5)(vi) and 8 CFR
                                                      announces, through a Federal Register                   seeking employment. Other commenters                  274a.12(b)(6)(v), that allowed for
                                                      notice, another means to report such                    offered suggestions for revising the                  automatic extension of status and
                                                      information. The contact information for                unemployment limits by allowing 120,                  employment authorization for any F–1
                                                      the DSO is on the student’s Form I–20.                  150, or 180 days of unemployment                      student with a timely filed H–1B
                                                      DHS will only extend OPT for STEM                       during initial post-completion OPT and                petition and request for change of status,
                                                      students employed by employers that                     a longer period during any STEM OPT                   if the student’s petition has an
                                                      agree in the Mentoring and Training                     extension. DHS believes that removing                 employment start date of October 1 of
                                                      Plan to report this information.                        unemployment limits would be                          the following fiscal year. The 2008 IFR
                                                         • Students who are granted the STEM                  inconsistent with the agency’s role of                made these extensions available only
                                                      OPT extension are required to report to                 overseeing and ensuring OPT program                   until the beginning of the succeeding
                                                      their DSO every six months, confirming                  integrity. DHS also believes that the                 fiscal year. The extensions were
                                                      the validity of their SEVIS information,                proposed 150 days for students granted                intended to avoid situations where F–1
                                                      including legal name, residential or                    a STEM OPT extension would provide                    students who are affected by the H–1B
                                                      mailing address, employer name and                      additional flexibility when compared to               cap are required to leave the country or
                                                      address, and/or loss of employment.                     the 120 days permitted under the                      terminate employment at the end of
                                                         These six-month requirements ensure                  current program’s 17-month extension.                 their authorized period of stay, even
                                                      adequate DHS oversight of the STEM                      With this change, DHS acknowledges                    though they have an approved H–1B
                                                      OPT program by enhancing DHS’s                          the concerns of commenters who                        petition that would again provide status
                                                      knowledge of the student’s activities                   described the challenges that                         to the student in a few months’ time.
                                                      and whereabouts.                                        international students face in locating                  Many comments on the 2008 IFR were
                                                         The proposed rule also includes                      and obtaining training experiences in                 supportive of the ‘‘Cap-Gap’’ extension
                                                      several other requirements to provide                   the United States. DHS welcomes                       provided in that rule. Some
                                                      additional oversight over the STEM OPT                  comments on this issue.                               commenters, however, objected to the
                                                      extension, consistent with the proposed                    An additional newly proposed aspect                Cap-Gap provision for reasons related to
                                                      change to the duration of the extension.                of the STEM OPT extension is that a                   its potential impact on U.S. workers.
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                                                      The proposed rule would require any                     student seeking an extension would be                    The ‘‘Cap-Gap’’ provision is intended
                                                      employer providing a STEM practical                     required to properly file his or her                  to avoid the inconvenience of temporary
                                                      training opportunity to have an                         Application for Employment                            gaps in status, which would normally
                                                      employer identification number (EIN)                    Authorization with USCIS within 60                    require individuals to leave the country
                                                      used for tax purposes. Access to this                   days of the date the DSO enters the                   and thereby suffer significant disruption
                                                      EIN will help DHS better ensure                         recommendation for the STEM OPT                       to their careers and family. With respect
                                                      program compliance. The proposed rule                   extension into the SEVIS record. Under                to comments requesting elimination of
                                                      would also require students who are                     the 2008 IFR, students were required to               the provision, DHS continues to believe
                                                      granted the STEM OPT extension to                       file their Application for Employment                 that the Cap-Gap provision is a


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                                                      63392                           Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      commonsense administrative measure                                           1. Summary of Proposed Rule                                costs for the proposed rule include
                                                      fully consistent with the underlying                                            This proposed rule, if made final,                      reduced opportunities for students due
                                                      purpose of the practical training                                            would permit eligible STEM graduates                       to proposed restrictions on unaccredited
                                                      program. The so-called ‘‘Cap-Gap’’ is a                                      to receive a maximum STEM OPT                              school programs and not allowing
                                                      result of the misalignment of the                                            extension of 24 months; permit eligible                    volunteer work to be eligible for the
                                                      academic year with the start of the fiscal                                   STEM graduates who have obtained a                         extension. Additionally, compared to
                                                      year. The Cap-Gap relief measure avoids                                      second qualifying STEM degree to                           the 2008 IFR requirements for
                                                      inconvenience to some F–1 students                                           obtain a second STEM OPT extension of                      employers, there would be employer
                                                      and U.S. employers through a                                                 24 months; permit eligibility for the                      costs for paying STEM OPT students
                                                      straightforward administrative                                               extension based on a STEM degree that                      commensurate compensation, if the
                                                      mechanism to bridge two periods of                                           is not the student’s most recently                         employer previously did not pay such
                                                      authorized legal status. DHS therefore                                       obtained degree; limit eligibility for                     compensation. DHS does not have data
                                                      proposes to include the 2008 IFR’s Cap-                                      STEM OPT extensions to students that                       to support a cost estimate for this
                                                      Gap relief measure in this rule.                                             graduate from accredited institutions;                     proposed requirement.
                                                                                                                                   require that students on STEM OPT
                                                      VI. Statutory and Regulatory                                                                                                            2. Summary of Affected Population
                                                                                                                                   extensions receive conditions of
                                                      Requirements                                                                 employment, including compensation,                           The proposed rule would affect four
                                                         DHS developed this proposed rule                                          commensurate with similarly situated                       categories of STEM OPT students: (1)
                                                      after considering numerous statutes and                                      U.S. workers; require the disclosure of                    Students who would have previously
                                                      executive orders related to rulemaking.                                      additional information, such as the                        been eligible for participation in the 17-
                                                      The below sections summarize our                                             student’s compensation, to ICE;                            month STEM OPT extension under the
                                                      analyses based on a number of these                                          implement a formal process to update
                                                                                                                                                                                              2008 IFR and would be, based on this
                                                      statutes or executive orders.                                                the STEM Designated Degree Program
                                                                                                                                                                                              NPRM, eligible for a 24-month
                                                                                                                                   list; implement a formal mentoring
                                                                                                                                                                                              extension; (2) students who would be
                                                      A. Executive Orders 12866 and 13563:                                         requirement for students on STEM OPT
                                                                                                                                                                                              eligible based upon a STEM degree
                                                      Regulatory Planning and Review                                               extensions; and require employers of
                                                                                                                                                                                              earned prior to their most recent degree;
                                                                                                                                   students applying for STEM OPT
                                                         Executive Orders 12866 and 13563                                          extensions to enroll in and use E-Verify                   (3) students who would be eligible
                                                      direct agencies to assess the costs and                                      on all new hires.                                          based upon a second, and more
                                                      benefits of available regulatory                                                The cost estimates set forth in this                    advanced, qualifying STEM degree; and
                                                      alternatives and, if regulation is                                           analysis represent the costs of                            (4) students who would be eligible with
                                                      necessary, to select regulatory                                              compliance with, and implementation                        a potential change to the current STEM-
                                                      approaches that maximize net benefits                                        of, the proposed standards within the                      Designated Degree Program List.
                                                      (including potential economic,                                               scope of the proposed rulemaking. The                      Additionally, students currently on 17-
                                                      environmental, public health, and safety                                     following quantified costs include time                    month extensions would be able to
                                                      effects, as well as distributive impacts                                     burdens for initial implementation of                      apply for the balance of the 24-month
                                                      and equity). Executive Order 13563                                           the student training and mentoring plan,                   extension, depending on how much
                                                      emphasizes the importance of                                                 six-month evaluations, reporting                           time remained in their current 17-month
                                                      quantifying both costs and benefits, of                                      student information updates in SEVIS,                      extension and the effective date of a
                                                      reducing costs, of harmonizing rules,                                        eligibility verifications for new hires for                final regulation. DHS estimates that the
                                                      and of promoting flexibility. This rule is                                   employers of STEM OPT students using                       population of current 17-month STEM
                                                      a ‘‘significant regulatory action,’’ and                                     the E-Verify program, and filing Form I–                   OPT students who could apply for the
                                                      has been determined to be an                                                 675 applications. Additional quantified                    expanded extension is 18,210. DHS
                                                      economically significant regulatory                                          costs for students include fees for filing                 provided an explanation on the
                                                      action, under section 3(f) of Executive                                      Form I–765, and some employers may                         methodology and data for the
                                                      Order 12866. Accordingly, the Office of                                      incur implementation costs for the E-                      population estimates in the
                                                      Management and Budget has reviewed                                           Verify program. Compared to the 2008                       accompanying RIA published on the
                                                      this regulation.                                                             IFR criteria for STEM OPT, qualitative                     NPRM docket folder.

                                                                                                  TABLE 1—SUMMARY OF NEW STEM OPT STUDENT EXTENSION REQUEST
                                                                                                                               Transitional             New STEM OPT
                                                                                                                               population                  extension           Increased        Prior         Second     Total STEM OPT
                                                                                                                                 from 17
                                                                                   Year                                                                  students from           CIP list       STEM          STEM          population
                                                                                                                                month to                   accredited           eligibility    degrees        degree         impacted
                                                                                                                                24 month                    schools
                                                                                                                                extension

                                                      1 .................................................................                 18,210                   29,100            2,910             459         285           50,964
                                                      2 .................................................................    ........................              33,465            3,347             528         316           37,656
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                                                      3 .................................................................    ........................              38,485            3,848             607         351           43,291
                                                      4 .................................................................    ........................              44,257            4,426             698         390           49,771
                                                      5 .................................................................    ........................              50,896            5,090             803         433           57,221
                                                      6 .................................................................    ........................              56,495            5,649             891         480           63,515
                                                      7 .................................................................    ........................              62,709            6,271             989         533           70,502
                                                      8 .................................................................    ........................              69,607            6,961           1,098         592           78,257
                                                      9 .................................................................    ........................              77,264            7,726           1,219         657           86,866
                                                      10 ...............................................................     ........................              85,763            8,576           1,353         729           96,421
                                                         Estimates may not total due to rounding.



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                                                                                      Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                                                     63393

                                                        The proposed rule would also affect                                         of the proposed rule. The Regulatory                                          Table 2 displays the estimated
                                                      schools and employers of the students                                         Flexibility Analysis also provides a                                        number of affected employers that could
                                                      seeking STEM OPT extensions. A                                                detailed description of the estimated                                       be impacted by the proposed E-verify
                                                      description of the impacts to schools                                         number of schools and employers                                             enrollment and ongoing implementation
                                                      and employers is included in the                                              affected by the proposed rule.                                              requirements.
                                                      following section on the estimated costs

                                                                                             TABLE 2—SUMMARY OF STEM OPT NPRM EMPLOYERS E-VERIFY POPULATION
                                                                                                                                                                                                                                    Previously       Total STEM
                                                                                                                                                                                                                                     enrolled      OPT employers
                                                                                                                                                                                                                                    STEM OPT
                                                                                                                    New STEM OPT employers                                                                                                           with burden
                                                                                                                                                                                                                                    employers       resulting from
                                                                                                                                                                                                                                   impacted by      proposed rule
                                                                                                                                                                                                                                  proposed rule

                                                      2,244 ................................................................................................................................................................               2,834             5,078
                                                      2,670 ................................................................................................................................................................               3,513             6,183
                                                      3,177 ................................................................................................................................................................               4,181             7,358
                                                      3,781 ................................................................................................................................................................               4,975             8,756
                                                      4,499 ................................................................................................................................................................               5,920            10,419
                                                      5,354 ................................................................................................................................................................               7,045            12,399
                                                      6,371 ................................................................................................................................................................               8,383            14,754
                                                      7,582 ................................................................................................................................................................               9,976            17,558
                                                      9,022 ................................................................................................................................................................              11,872            20,894
                                                      10,737 ..............................................................................................................................................................               14,127            24,864



                                                      3. Estimated Costs of Proposed Rule                                           be approximately $503.3 million,                                            compliance with the STEM OPT
                                                         The cost estimates set forth in this                                       discounted at 7 percent, over the period                                    program, and $47.6 million for
                                                      analysis represent the costs of                                               2016–2025, or $71.7 million per year                                        compliance with E-Verify requirements.
                                                      compliance with the proposed rule.                                            when annualized at a 7 percent discount                                     Table 3 below presents a 10-year
                                                      This analysis concludes that compliance                                       rate. The total cost, discounted at 7                                       summary of the estimated benefits and
                                                      with the proposed requirements would                                          percent, consists of $455.7 million for                                     costs of the NPRM.

                                                                                                                                         TABLE 3—TOTAL COST OF NPRM
                                                                                                                                                                 [$millions]

                                                                                                                                                                                                                                      E-Verify
                                                                                                                                                                                                     STEM OPT                       requirement
                                                                                                                      Year                                                                                                                              Total
                                                                                                                                                                                                     extensions                   for STEM OPT
                                                                                                                                                                                                                                      employer

                                                      1 .......................................................................................................................................                    $53.3                    $3.0                $56.3
                                                      2 .......................................................................................................................................                     40.7                     3.6                 44.3
                                                      3 .......................................................................................................................................                     46.8                     4.3                 51.1
                                                      4 .......................................................................................................................................                     53.9                     5.1                 58.9
                                                      5 .......................................................................................................................................                     61.9                     6.0                 68.0
                                                      6 .......................................................................................................................................                     68.7                     7.2                 75.9
                                                      7 .......................................................................................................................................                     76.3                     8.6                 84.9
                                                      8 .......................................................................................................................................                     84.7                    10.2                 94.9
                                                      9 .......................................................................................................................................                     94.0                    12.1                106.1
                                                      10 .....................................................................................................................................                     104.3                    14.4                118.8

                                                          Total ..........................................................................................................................                         684.8                    74.5                759.3
                                                      Total (7%) ........................................................................................................................                          455.7                    47.6                503.3
                                                      Total (3%) ........................................................................................................................                          570.4                    61.0                631.5
                                                      Annual (7%) .....................................................................................................................                             64.9                     6.8                 71.7
                                                      Annual (3%) .....................................................................................................................                             66.9                     7.2                 74.0



                                                      4. Estimated Benefits of the Rule                                             the U.S. educational system, U.S.                                           States, as well as their knowledge of
                                                         Continuing the STEM OPT extension,                                         employers, and the United States. The                                       markets in their home countries.
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                                                      making it available to additional                                             rule will benefit the U.S. educational                                      Moreover, the nation will benefit from
                                                      students, and lengthening the current                                         system by helping ensure that the                                           the increased retention of such students
                                                      17-month extension will enhance                                               nation’s colleges and universities                                          in the United States, including through
                                                      students’ ability to achieve the                                              remain globally competitive in                                              increased research, innovation, and
                                                      objectives of their courses of study by                                       attracting international students in                                        other forms of productivity that enhance
                                                      gaining valuable knowledge and skills                                         STEM fields. U.S. employers will                                            the nation’s economic, scientific, and
                                                      through on-the-job training that is often                                     benefit from the increased ability to rely                                  technological competitiveness.
                                                      unavailable in their home countries.                                          on the skills acquired by STEM OPT                                            New safeguards for the STEM OPT
                                                      The proposed changes will also benefit                                        students while studying in the United                                       program, including accreditation,


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                                                      63394                           Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      reporting, and tracking requirements,                                         the proposed practical training be                                    duration of the STEM OPT extension,
                                                      would decrease the opportunity for                                            directly related to the student’s course                              which would be limited to a one-time
                                                      abuse and reduce any potential negative                                       of study. Employers would be required                                 extension of 17 months, as in the 2008
                                                      impact on U.S. workers. These                                                 to provide certain information,                                       IFR.
                                                      improvements will increase program                                            including: Learning objectives for the                                   DHS provides an analysis of these
                                                      oversight and strengthen the                                                  employment, how those objectives will
                                                      requirements for program participation.                                                                                                             alternatives in the accompanying RIA
                                                                                                                                    be achieved and measured, and place of
                                                                                                                                                                                                          provided in the NPRM docket folder.
                                                      5. Alternatives                                                               employment. DSOs would be required
                                                                                                                                    to review submissions for the STEM                                      The following table summarizes the
                                                        In preparing the preferred regulatory                                       OPT extension in SEVIS. DHS may                                       total monetized costs of each alternative
                                                      approach proposed in the NPRM, DHS                                            require the submission of the Mentoring                               regulatory option. Although the
                                                      examined three options:                                                       and Training Plan to ICE and/or USCIS.                                proposed rule option does have higher
                                                        1. Under the first option, DHS would                                        As noted elsewhere in this preamble, a                                monetized costs than the third option,
                                                      take no regulatory action. The STEM                                           STEM OPT extension would be                                           DHS has not quantified the benefits of
                                                      OPT extension would no longer be                                                                                                                    the increased extension period under
                                                                                                                                    available to a student with a prior
                                                      available to F–1 STEM students after
                                                                                                                                    qualifying STEM degree, even if the                                   the proposed option because DHS does
                                                      February 2016.
                                                                                                                                    student’s most recent degree would not                                not have specific data to quantify the
                                                        2. The second, and proposed, option
                                                                                                                                    qualify. And a second STEM OPT                                        month-to-month economic benefits of
                                                      would strengthen the 2008 IFR by
                                                                                                                                    extension would be available to                                       the STEM OPT extension. DHS believes
                                                      establishing a program requiring
                                                      employers and students to prepare                                             students who earn an additional                                       that the proposed option would have
                                                      Mentoring and Training Plans and to                                           advanced STEM degree.                                                 higher benefits to students and
                                                      present those plans to the relevant                                             3. The third option is similar to                                   employers and increase attractiveness
                                                      DSOs. The program would require that                                          option two in all respects except for the                             for U.S. academic programs.

                                                                                                                 TABLE 4—REGULATORY ALTERNATIVE COSTS COMPARISON
                                                                                                                                                                                                                  Regulatory alternatives
                                                                                                                      Year
                                                                                                                                                                                                      1                      2                  3

                                                                                                                                                                                                  No action         Proposed rule         Maintain 17 Ext.
                                                                                                                                                                                                                     alternative             STEM OPT
                                                                                                                                                                                                                                          length & 12 Ext.
                                                                                                                                                                                                                                         for second degree

                                                      1 .......................................................................................................................................           $0.0                   $56.3                $35.7
                                                      2 .......................................................................................................................................            0.0                    44.3                 41.1
                                                      3 .......................................................................................................................................            0.0                    51.1                 47.5
                                                      4 .......................................................................................................................................            0.0                    58.9                 54.4
                                                      5 .......................................................................................................................................            0.0                    68.0                 62.9
                                                      6 .......................................................................................................................................            0.0                    75.9                 69.9
                                                      7 .......................................................................................................................................            0.0                    84.9                 78.2
                                                      8 .......................................................................................................................................            0.0                    94.9                   87
                                                      9 .......................................................................................................................................            0.0                   106.1                 97.9
                                                      10 .....................................................................................................................................             0.0                   118.8                109.7

                                                          Total ..........................................................................................................................                 0.0                   759.3                684.8
                                                      Total (7%) ........................................................................................................................                  0.0                   503.3                449.6
                                                      Total (3%) ........................................................................................................................                  0.0                   631.5                567.3



                                                      B. Regulatory Flexibility Act                                                 of the proposed requirements. The                                     students for STEM OPT extensions.63 Of
                                                                                                                                    following discussion is a summary of                                  this population, DHS sampled 293
                                                         The Regulatory Flexibility Act of 1980                                     the IRFA and a more detailed                                          schools, to estimate the proportion of
                                                      (RFA), 5 U.S.C. 601–612, as amended by                                        description of these findings is available                            governmental jurisdictions, not-for-
                                                      the Small Business Regulatory                                                 in the RIA. DHS presents the number of                                profit organizations, and for-profit firms
                                                      Enforcement Fairness Act of 1996,                                             estimated entities which would be
                                                      Public Law 104–121 (March 29, 1996),                                                                                                                for the total population. DHS then
                                                                                                                                    impacted by the proposed rule, the                                    determined whether the sampled
                                                      requires Federal agencies to consider                                         number of small entities from a sample
                                                      the potential impact of regulations on                                                                                                              entities were small entities based on
                                                                                                                                    of the estimated impacted population,                                 size standards set by the Small Business
                                                      small entities during rulemaking. The                                         the estimated annual average cost
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                                                      term ‘‘small entities’’ comprises small                                                                                                             Administration. DHS assumed not-for-
                                                                                                                                    impact per entity, and the estimated                                  profit organizations and entities with
                                                      business, not-for-profit organizations                                        ratio of annual costs to revenue for
                                                      that are independently owned and                                                                                                                    insufficient data were small entities in
                                                                                                                                    sampled small entities.
                                                      operated and are not dominant in their                                                                                                              the IRFA. Table 5 below summarizes the
                                                                                                                                      During the period from 2010 through
                                                      fields, and governmental jurisdictions                                                                                                              number of schools by category.
                                                                                                                                    2014, a total of 1,109 approved and
                                                      with populations of less than 50,000.                                         accredited 62 schools recommended
                                                         DHS has published an IRFA, in the
                                                      accompanying RIA, to aid the public in                                          62 Accredited by a Department of Education-

                                                      commenting on the small entity impact                                         approved accrediting agency.                                           63 ICE   SEVIS data.



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                                                                                    Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                                 63395

                                                                                                             TABLE 5—ESTIMATED NUMBER OF SCHOOLS BY CATEGORY
                                                                                                                                                                  Small entities
                                                                                          Parameter                                               Quantity          (sample                                   Comments
                                                                                                                                                                   segment)

                                                      Population—Schools .............................................................                1,109       N/A ...............   Total number of accredited schools endorsing
                                                                                                                                                                                          STEM–OPT Students between 2010–2014.
                                                      Sample: .................................................................................         293       N/A.
                                                         Non-matched Sample Segment ....................................                                  2       Yes ...............   Entities not found in online databases, assumed to
                                                                                                                                                                                          be small entities.
                                                            Matched Sample Segment Non-Profit Schools .............                                     138       Yes ...............   Entities determined to be private not-for-profit, as-
                                                                                                                                                                                          sumed to be small entities.
                                                            Matched Sample Segment For-Profit Schools ..............                                         1    Yes ...............   Private for-profit, matched in online database with
                                                                                                                                                                                          revenue lower than SBA size standard, assumed
                                                                                                                                                                                          to be small entity.
                                                            Matched Sample Segment For-Profit Schools ..............                                         3    No ................   Entities determined to be private for-profit, matched
                                                                                                                                                                                          in online databases with revenue exceeding SBA
                                                                                                                                                                                          size standard, assumed not small entities.
                                                            Matched Sample Segment Government Jurisdictions ..                                          149       No ................   Entities among the 293 sampled confirmed as large
                                                                                                                                                                                          governmental jurisdictions.



                                                        During the period from 2010 through                                    determined whether the sampled                                 most temporary agencies would not be
                                                      2014, a total of 26,260 employers                                        entities were small entities based on                          able to comply with the requirements of
                                                      employed STEM OPT students.64 Of this                                    size standards set by the Small Business                       the Mentoring and Training Plan. DHS
                                                      population, DHS sampled 659                                              Administration. DHS also found that                            again assumed not-for-profit
                                                      employers, to estimate the proportion of                                 three of the sampled entities were                             organizations and entities with
                                                      governmental jurisdictions, not-for-                                     temporary placement agencies                                   insufficient data were small entities in
                                                      profit organizations, and for-profit firms                               (temporary agencies) and removed these                         the IRFA. Table 6 below summarizes the
                                                      for the total population. DHS then                                       three from the analysis, as DHS assumed                        number of employers by category.

                                                                                                           TABLE 6—ESTIMATED NUMBER OF EMPLOYERS BY CATEGORY
                                                                                                                                                                  Small entities
                                                                                          Parameter                                               Quantity          (sample                                   Comments
                                                                                                                                                                   segment)

                                                      Population—Employers .........................................................                26,260        N/A ...............   Total number of STEM–OPT employers between
                                                                                                                                                                                          2010–2014.
                                                      Sample: .................................................................................         659       N/A ...............   Estimated sample needed to match 379 entities.
                                                         Non-matched Sample Segment ....................................                                279       Yes ...............   Entities not found in online databases, assumed to
                                                                                                                                                                                          be small entities.
                                                      Matched Sample Segment For-Profit ...................................                             214       Yes ...............   For-profit entities matched in online databases that
                                                                                                                                                                                          did not exceed SBA size standard.
                                                            Matched Sample Segment Not-For-Profit .....................                                   7       Yes ...............   Entities confirmed as private not-for-profit.
                                                            Matched Sample Segment For-Profit ............................                              140       No ................   For-profit entities matched in online databases that
                                                                                                                                                                                          did exceed SBA size standard.
                                                            Temporary Agencies ......................................................                     3       No ................   Quantitative impact not analyzed.
                                                            Matched Sample Segment Government Jurisdictions ..                                           16       No ................   Entities that are large governmental jurisdictions.



                                                      Schools Costs                                                            validation requirement. While the DSO                          unquantified costs from the proposed
                                                                                                                               would be in communication with the                             prohibition on participation in STEM
                                                         Schools would incur costs for                                         student during a six-month validation                          OPT extensions by students attending
                                                      providing oversight and reporting STEM                                   check-in, DHS proposes to add an                               unaccredited schools. A few schools
                                                      OPT students’ information as well as                                     additional requirement that DSOs                               may choose to seek accreditation, or
                                                      reviewing required documentation.                                        would also check to ensure the six-                            may potentially lose future foreign
                                                      DSOs would be required to ensure the                                     month evaluation has been properly                             students and associated revenue. DHS
                                                      form has been completed and signed                                       completed and retain a copy. The NPRM                          requests comment from unaccredited
                                                      prior to making a recommendation in                                      proposes to maintain the 2008 IFR                              institutions on this provision, including
                                                      SEVIS. Schools would be required to                                      requirements for periodic information                          the potential effect of the requirement
                                                      ensure that SEVP has access to student                                                                                                  on your school and any data associated
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                                                                                                                               reporting requirements on students,
                                                      evaluations (electronic or hard copy) for                                which would result in a burden for                             with the impact, such as the cost of
                                                      a period of at least three years following                               DSOs.                                                          accreditation or potential revenue loss.
                                                      the completion of each STEM practical                                                                                                     DHS summarizes the estimated
                                                      training opportunity. The 2008 IFR                                       Unaccredited Schools                                           annual first and second year costs for
                                                      previously required six-month student                                      Schools not accredited by a                                  schools in the following table. DHS
                                                      validation check-ins with DSOs, and                                      Department of Education-recognized                             requests comments on burdens
                                                      this proposed rule would maintain the                                    accrediting agency may incur                                   described below if additional data or

                                                        64 ICE   SEVIS data.



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                                                      63396                          Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      information is available. DHS                                               quantified costs, and requests comments                                    costs for entities of all sizes, including
                                                      acknowledges there may be additional                                        specifically addressing concerns on                                        small entities.
                                                      regulatory costs 65 to the following

                                                                                               TABLE 7—SCHOOLS—COST OF COMPLIANCE PER STEM OPT OPPORTUNITY
                                                                                                                                                                                                                                         Cost in           Cost in
                                                                                 Proposed provision                                                          Calculation of school cost per student                                      year 1            year 2
                                                                                                                                                                                                                                       per student       per student

                                                      Initial Completion of Mentor & Train Plan ......................                         ((0.25 hrs + 0.083 hrs) × $39.33) ..................................                         $13.09              $0.00
                                                      6 Month Evaluations & Validation Check-Ins 1 ...............                             (0.333 hrs × 2 Evals × $39.33) ......................................                         26.20              26.20
                                                      Additional Implementation Cost 2 ....................................                    0.1 × Mentor & Train Plan Initial + Evals & Check-Ins                                          3.93               2.62
                                                                                                                                                  Costs.
                                                      Student Info. Reporting Requirements ...........................                         0.167 hrs × 2 rpts × $39.33 ...........................................                       13.14              13.14

                                                            Total .........................................................................           Total ........................................................................         56.35              41.95
                                                         1 Estimatedbased on 12 month period costs per extension, for students on a 12-month second extension such as those with prior degrees and
                                                      second degrees, only Year 1 costs were applied.
                                                        2 Mentoring and Training Plan initial costs are only in Year 1 per STEM OPT.




                                                        DHS estimates the annual impact to                                        While tuition revenue may                                                  schools with sufficient data, all had first
                                                      the schools based on the school cost of                                     underestimate the actual school                                            year annual impacts less than 1 percent,
                                                      compliance as a percentage of annual                                        revenue, this is the best information                                      with the average annual impact being
                                                      revenue. Second year costs account for                                      available to DHS. It is the most                                           0.006 percent. All sampled small-entity
                                                      new additional STEM OPT extension                                           significant source of income for most                                      schools with sufficient data had second
                                                      students. For not-for-profit schools, DHS                                   schools, and DHS believes it is a                                          year annual impacts of less than 1
                                                      multiplied the tuition per full-time first-                                 reasonable approach to measuring the                                       percent, with the average annual impact
                                                      year student with total enrollment                                          impact of this proposed rule. Based on                                     being 0.005 percent.
                                                      numbers to estimate their revenue.66                                        the results of the sampled small-entity

                                                                                                                         TABLE 8—SCHOOLS—ANNUAL IMPACT IN YEAR 1
                                                                                                                                                                                                  Number of                    Number of
                                                                                                                                                                                                 small entities                                      Percent of small
                                                                                                      Revenue impact range                                                                                                      non-profit
                                                                                                                                                                                                   for-profit                                         entity schools
                                                                                                                                                                                                                            entities with data
                                                                                                                                                                                                  with data

                                                      0% < Impact ≤ 1% ...........................................................................................................                                    4                    137                   100
                                                      1 < Impact ≤ 3 .................................................................................................................                                0                      0                     0
                                                      3 < Impact ≤ 5 .................................................................................................................                                0                      0                     0
                                                      5 < Impact ≤ 10 ...............................................................................................................                                 0                      0                     0
                                                      Above 10 ..........................................................................................................................                             0                      0                     0

                                                            Total ..........................................................................................................................                           141                                       100


                                                                                                                         TABLE 9—SCHOOLS—ANNUAL IMPACT IN YEAR 2
                                                                                                                                                                                                  Number of                    Number of
                                                                                                                                                                                                 small entities                                      Percent of small
                                                                                                      Revenue impact range                                                                                                      non-profit
                                                                                                                                                                                                   for-profit                                         entity schools
                                                                                                                                                                                                                            entities with data
                                                                                                                                                                                                  with data

                                                      0% < Impact ≤ 1% ...........................................................................................................                                    4                    137                   100
                                                      1 < Impact ≤ 3 .................................................................................................................                                0                      0                     0
                                                      3 < Impact ≤ 5 .................................................................................................................                                0                      0                     0
                                                      5 < Impact ≤ 10 ...............................................................................................................                                 0                      0                     0
                                                      Above 10 ..........................................................................................................................                             0                      0                     0

                                                            Total ..........................................................................................................................                           141                                       100
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                                                      Employer Costs                                                              the certifications on the form. The                                        requiring commensurate compensation,
                                                                                                                                  proposed rule also ensures that students                                   and additionally requires that students
                                                        Employers would be required to
                                                                                                                                  would be unable to complete their                                          work at least 20 hours per week while
                                                      provide information for certain fields,
                                                                                                                                  STEM OPT extensions as volunteers by                                       on their STEM OPT extension. DHS
                                                      review the completed form, and attest to
                                                        65 Such costs could be related to train DSOs on                           implement the requirements with the least negative                         Statistics, ‘‘Academic year prices for full-time, first-
                                                      how to comply with the requirements, program                                impact to their ongoing operations.                                        time undergraduate students’’, (Total enrollment,
                                                      changes within the school, and time to generally                              66 U.S. Department of Education, Institute of                            including Undergraduate and Graduate) 2014–2015,
                                                      review and comprehend the requirements of the                                                                                                          available at http://nces.ed.gov/globallocator/.
                                                                                                                                  Education Sciences, National Center for Education
                                                      regulation and make determinations on how to best



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                                                                                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                                                           63397

                                                      does not have data on the number of                                 employment terms of similarly situated                                   estimate of the number of site visits that
                                                      STEM OPT students who may not                                       U.S. workers in order to compare the                                     may be conducted, and thus is unable
                                                      currently receive compensation. In                                  terms and conditions of their                                            to provide a total annual estimated cost
                                                      addition, DHS does not have data on the                             employment to those of the STEM OPT                                      for such potential occurrences.
                                                      number of STEM OPT students who do                                  student’s practical training opportunity.                                However, based on on-site-reviews of
                                                      not currently receive wages or other                                   The proposed rule indicates that ICE,                                 schools, DHS estimates that an
                                                      qualifying compensation that would be                               at its discretion, may conduct a site visit                              employer site visit may include review
                                                      considered commensurate under the                                   of an employer. The employer on-site                                     of records and questions for the
                                                      proposed rule. To the extent that                                   review is intended to ensure that each                                   supervisor, and would take two hours
                                                      employers are not currently                                         employer meets program requirements,                                     per employer. Therefore, DHS estimates
                                                      compensating STEM OPT participants                                  including that they are complying with                                   that if an employer were to receive such
                                                      in accordance with the proposed rule,                               assurances and that they possess the                                     an on-site review, it may cost the
                                                      this proposal would create additional                               ability and resources to provide                                         employer approximately $394.80 (5
                                                      costs to these employers. However, DHS                              structured and guided work-based                                         hours × $78.96).
                                                      notes that employer participation in the                            learning experiences outlined in                                           DHS summarizes the estimated
                                                      STEM OPT program is entirely                                        students’ Mentoring and Training Plans.                                  annual first and second year costs for
                                                      voluntary, and each employer would                                  Site visits would not be a requirement                                   potential employers of STEM OPT
                                                      determine if the benefits of hiring the                             for each STEM OPT student employer or                                    students in the following table. DHS
                                                      STEM OPT student exceed the costs of                                a regularly scheduled occurrence, but                                    requests comments on burdens
                                                      doing so when considering all of the                                would rather be performed at the                                         described below if additional data or
                                                      costs and burdens of the proposed rule,                             discretion of DHS either randomly or                                     information is available. DHS
                                                      including the requirement to pay                                    when DHS determines that such an                                         acknowledges there may be additional
                                                      commensurate compensation. DHS                                      action is needed. The length and depth                                   regulatory compliance implementation
                                                      requests comments from employers on                                 of such a visit would be determined on                                   costs 67 to the following quantified costs,
                                                      the effect of these proposed                                        a case-by-case basis. For law                                            and requests comments specifically
                                                      requirements. In the quantified costs,                              enforcement reasons, DHS does not                                        addressing concerns on implementation
                                                      DHS does account for the possible                                   include an estimate of the basis for                                     costs for entities of all sizes, including
                                                      additional burden of reviewing the                                  initiating a site visit and is unable to                                 small entities.

                                                                                                          TABLE 10—INDIVIDUAL EMPLOYER—COST OF COMPLIANCE
                                                                                                                                                                                                                             Cost in      Cost in
                                                                               Proposed provision                                                               Calculation of costs                                         Year 1       Year 2

                                                      Initial Completion of Mentor & Train Plan ......................                (0.5 hrs × $80.12) + (0.5 hrs × $78.96)+ (1 hrs ×                                        $123.47         $0.00
                                                                                                                                        $43.93).
                                                      6 Month Evaluations & Validation Check-Ins 1 ...............                    (0.25 hrs × 2 Evals × 78.96) ..........................................                    39.48         39.48
                                                      Additional Implementation Cost 2 ....................................           0.1 × Mentor & Train Plan Initial + Evals & Check-Ins                                      11.90          3.95
                                                                                                                                        Costs.

                                                      Employer STEM OPT Costs per Student = ...................                             Total ........................................................................      179.25         43.43

                                                      Cost per E-Verify per New Hire Case = .........................                 (0.16 hrs × 43.93) ...........................................................              7.03          7.03
                                                      E-Verify Enrollment .........................................................   (80.12 × 2.26) + 100 ......................................................               281.07          0.00
                                                      E-Verify Annual Training & Maintenance Costs .............                      (1 hrs × 43.93) + 398) ....................................................               441.93        441.93
                                                      Compliance Site Visits ....................................................     (5 hrs × 78.96) ................................................................            0.00        394.80

                                                      E-Verify and Site Visit Employer Costs = .......................                      Total ........................................................................      723.00        836.73



                                                        DHS estimates the annual impact to                                with total enrollment numbers to                                         visit in year two; therefore, costs could
                                                      employers based on the employer cost                                estimate their revenue. Based on the                                     be less for employers that do not receive
                                                      of compliance as a percentage of annual                             results of the sampled small entities                                    a site visit. Employers of STEM OPT
                                                      revenue. Second year costs include                                  with sufficient data, almost all had first                               students would determine if the benefits
                                                      initial submission of Mentoring and                                 and second year annual impacts less                                      of hiring such students exceed program
                                                      Training Plans and evaluations for new                              than 1 percent, with the first-year                                      requirements costs. To the extent that
                                                      STEM OPT students who would be                                      average annual revenue impact being                                      the benefits do not exceed costs,
                                                      hired in the second year. For not-for-                              0.13 percent and second-year annual                                      employers may choose not to hire STEM
                                                      profit school employers without                                     revenue impact being 0.15 percent.                                       OPT students.
                                                      revenue data, DHS multiplied the                                    Additionally, the cost impact per
                                                      tuition per full-time first-year student                            employer included a compliance site
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                                                        67 Such costs could be related to train supervisors               review and comprehend the requirements of the                            implement the requirements with the least negative
                                                      on how to comply with the requirements, program                     regulation and make determinations on how to best                        impact to their ongoing operations.
                                                      changes within the school, and time to generally



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                                                      63398                          Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                                                                                     TABLE 11—EMPLOYERS—ANNUAL IMPACT IN YEAR 1
                                                                                                                                                                                                Number of             Number of          Percent of
                                                                                                                                                                                               small entities
                                                                                                      Revenue impact range                                                                                             non-profit       small entities
                                                                                                                                                                                                 for-profit        entities with data    employers
                                                                                                                                                                                                with data

                                                      0% < Impact ≤ 1% ...........................................................................................................                         211                      7              99%
                                                      1 < Impact ≤ 3 .................................................................................................................                       2                      0                1
                                                      3 < Impact ≤ 5 .................................................................................................................                       0                      0                0
                                                      5 < Impact ≤ 10 ...............................................................................................................                        0                      0                0
                                                      Above 10 ..........................................................................................................................                    0                      0                0

                                                            Total ..........................................................................................................................                    220                               100.0


                                                                                                                     TABLE 12—EMPLOYERS—ANNUAL IMPACT IN YEAR 2
                                                                                                                                                                                                Number of             Number of          Percent of
                                                                                                                                                                                               small entities
                                                                                                      Revenue impact range                                                                                             non-profit       small entities
                                                                                                                                                                                                 for-profit        entities with data    employers
                                                                                                                                                                                                with data

                                                      0% < Impact ≤ 1% ...........................................................................................................                         210                      7              99%
                                                      1 < Impact ≤ 3 .................................................................................................................                       3                      0                1
                                                      3 < Impact ≤ 5 .................................................................................................................                       0                      0                0
                                                      5 < Impact ≤ 10 ...............................................................................................................                        0                      0                0
                                                      Above 10 ..........................................................................................................................                    0                      0                0

                                                            Total ..........................................................................................................................                    220                               100.0



                                                      Current Employers That Do Not                                               will not have a significant economic                                 submitted to Congress before taking
                                                      Continue To Participate                                                     impact on a substantial number of small                              effect. If implemented as proposed, we
                                                                                                                                  entities.                                                            may submit to Congress and the
                                                        Due to additional employer
                                                                                                                                                                                                       Comptroller General of the United
                                                      requirements that must be met in order                                      C. Small Business Regulatory
                                                                                                                                                                                                       States a report regarding the issuance of
                                                      to receive the benefit of training STEM                                     Enforcement Fairness Act of 1996
                                                                                                                                                                                                       the Final Rule prior to its effective date,
                                                      OPT extension opportunity, it may be                                          Pursuant to section 213(a) of the                                  as required by 5 U.S.C. 801(a)(1).
                                                      possible that some employers (such as                                       Small Business Regulatory Enforcement
                                                      temporary employment agencies) would                                        Fairness Act of 1996, Public Law 104–                                F. Collection of Information
                                                      no longer participate in STEM OPT                                           121, we want to assist small entities in                                Federal agencies are required to
                                                      extensions. DHS does not present the                                        understanding this proposed rule so that                             submit to OMB, for review and
                                                      quantitative burden or cost associated                                      they can better evaluate its effects and                             approval, any reporting or
                                                      with this possible impact on employers                                      participate in the rulemaking. If the                                recordkeeping requirements inherent in
                                                      due to lack of available information on                                     proposed rule would affect your small                                a rule under the Paperwork Reduction
                                                      employers that would fall under this                                        business, organization, or governmental                              Act of 1995, as amended (PRA), Public
                                                      category and the associated economic                                        jurisdiction and you have questions                                  Law 104–13, 109 Stat. 163 (1995), 44
                                                      impacts. DHS will consider data or                                          concerning its provisions or options for                             U.S.C. 3501–3520. Under the PRA, an
                                                      information provided by commenters to                                       compliance, please consult ICE using                                 agency may not conduct or sponsor, and
                                                      assess such an impact upon employers.                                       the contact information provided in the                              a person is not required to respond to,
                                                        In particular, DHS requests                                               FOR FURTHER INFORMATION section above.                               a collection of information unless it
                                                      information and data that would assist                                                                                                           displays a currently valid OMB control
                                                      with better understanding the impact of                                     D. Unfunded Mandates Reform Act                                      number.
                                                      this rule on small entities. DHS also                                          The Unfunded Mandates Reform Act                                     DHS has submitted the following
                                                      seeks any alternatives that will                                            of 1995 (2 U.S.C. 1531–1538) requires                                information collection request to the
                                                      accomplish the objectives of this                                           federal agencies to assess the effects of                            Office of Management and Budget
                                                      rulemaking and minimize the proposed                                        their discretionary regulatory actions. In                           (OMB) for review and clearance in
                                                      rule’s economic impact on small                                             particular, the Act addresses actions                                accordance with the review procedures
                                                      entities. After receiving comments on                                       that may result in the expenditure by a                              of the PRA. The proposed information
                                                      small entity concerns, data and                                             State, local, or tribal government in the                            collection requirements are outlined in
                                                      information on impacts, and suggestions                                     aggregate, or by the private sector, of                              this proposed rule to obtain comments
                                                      that could reduce negative or cost                                          $100,000,000 (adjusted for inflation) or                             from the public and affected entities.
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                                                      impacts to small entities, DHS would                                        more in any year. Although this                                      The proposed rule would maintain the
                                                      consider possible alternatives in a final                                   proposed rule would not result in such                               2008 IFR revisions to previously
                                                      rule. After publication of a final rule,                                    an expenditure, we do discuss the                                    approved information collections. The
                                                      DHS would engage in outreach and                                            effects of this proposed rule elsewhere                              2008 IFR impacted information
                                                      provide small entity stakeholders                                           in this preamble.                                                    collections for Form I–765, Application
                                                      assistance or clarification regarding how                                                                                                        for Employment Authorization (OMB
                                                      to implement the new proposed                                               E. The Congressional Review Act                                      Control No. 1615–0040); Student and
                                                      requirements. At this time, DHS is                                            The Congressional Review Act (5                                    Exchange Visitor Information System
                                                      unable to certify that the proposed rule                                    U.S.C. 801 et seq.) requires rules to be                             (SEVIS) and Form I–20, Certificate of


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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                          63399

                                                      Eligibility for Nonimmigrant Student                    comments on the information                           signatory official) to report on the
                                                      Status (OMB Control No. 1653–0038);                     collection-related aspects of this rule               Mentoring and Training Plan certain
                                                      and the E-Verify Program (OMB Control                   should address one or more of the                     specified information relating to STEM
                                                      No. 1615–0092). These four approved                     following four points:                                OPT extensions. For instance, the
                                                      information collections corresponding                      (1) Evaluate whether the collection of             Mentoring and Training Plan would
                                                      to the 2008 IFR have included the                       information is necessary for the proper               explain how the employment will
                                                      number of respondents, responses and                    performance of the functions of the                   provide a work-based learning
                                                      burden hours resulting from the 2008                    agency, including whether the                         opportunity for the student by stating
                                                      IFR requirements, which are also                        information will have practical utility;              the specific goals of the practical
                                                      burdens DHS is proposing to maintain.                      (2) Evaluate the accuracy of the                   training and describe how those goals
                                                      Therefore DHS is not revising the                       agency’s estimate of the burden of the                will be achieved; detail the knowledge,
                                                      burden estimates for these four                         collection of information, including the              skills, or techniques to be imparted to
                                                      information collections. Additional                     validity of the methodology and                       the student; explain how the
                                                      responses tied to new changes to STEM                   assumptions used;                                     mentorship and training is directly
                                                      OPT eligibility will minimally increase                    (3) Enhance the quality, utility, and              related to the student’s qualifying STEM
                                                      the number of responses and burden for                  clarity of the information to be                      degree; and describe the methods of
                                                      Form I–765 and E-Verify information                     collected;                                            performance evaluation and the
                                                      collections, as the two collections cover                  (4) Minimize the burden of the                     frequency of supervision. The
                                                      a significantly broader population of                   collection of information on those who                Mentoring and Training Plan would also
                                                      respondents and responses than those                    are to respond, including through the                 include a number of employer
                                                      impacted by the proposed rule and                       use of appropriate automated,                         attestations intended to ensure the
                                                      already account for growth in the                       electronic, mechanical, or other                      academic benefit of the practical
                                                      number of responses in their respective                 technological collection techniques or                training experience, protect STEM OPT
                                                      published information collection                        other forms of information technology                 students, and protect against
                                                      notices burden estimates.                               (e.g., permitting electronic submission               appreciable adverse consequences on
                                                         As part of this NPRM, DHS is creating                of responses). In particular, DHS                     U.S. workers. The proposed rule would
                                                      a new information collection instrument                 requests comments on the                              also require schools to collect and retain
                                                      for the Mentoring and Training Plan.                    recordkeeping cost burden imposed by                  this information for a period of three
                                                      This information collection is necessary                this rule and will use the information                years following the completion of each
                                                      to enable reporting of and attesting to                 gained through such comments to assist                STEM practical training opportunity.
                                                      specified information relating to STEM                  in calculating the cost burden.                          (5) An estimate of the total annual
                                                      OPT extensions, to be executed by                                                                             average number of respondents, annual
                                                      STEM OPT students and their                             Overview of This Information
                                                                                                              Collection—Mentoring and Training                     average number of responses, and the
                                                      employers. Such reporting would                                                                               total amount of time estimated for
                                                      include goals and objectives, progress,                 Plan
                                                                                                                                                                    respondents in an average year to
                                                      hours, and compensation. Assurances                       (1) Type of Information Collection:
                                                                                                                                                                    collect, provide information, and keep
                                                      would ensure proper training                            New Collection.
                                                                                                                                                                    the required records is:
                                                      opportunities for students and safeguard                  (2) Title of the Form/Collection: STEM
                                                                                                              OPT Extension Mentoring and Training                     • 43,970 STEM OPT student
                                                      interests of U.S. workers in related
                                                                                                              Plan.                                                 respondents; 1,109 accredited schools
                                                      fields.
                                                         Additionally, DHS will require some                    (3) Agency form number, if any, and                 endorsing STEM OPT students; and
                                                      minor changes to the Application for                    the applicable component of DHS                       16,891 employers of STEM OPT
                                                      Employment Authorization, Form I–                       sponsoring the collection: Immigration                students.
                                                      765, instructions to reflect proposed                   and Customs Enforcement Form I–910;                      • 43,970 average responses annually
                                                      changes to the F–1 regulations allowing                   (4) Affected public who will be asked               at 4.00 hours per initial Mentoring and
                                                      for: (a) a longer period of F–1 OPT                     or required to respond, as well as a brief            Training Plan response.
                                                      STEM extension, and (b) an applicant to                 abstract:                                                • 87,941 average responses annually
                                                      file an Application for Employment                        • Primary: State governments, local                 at 1.75 hours per 6-month evaluation
                                                      Authorization, Form I–765, with USCIS                   governments, and businesses, or other                 response by STEM OPT students.
                                                      within 60 days (rather than 30 days)                    for-profit and not-for-profit                            (6) An estimate of the total public
                                                      from the date the DSO endorses his/her                  organizations.                                        burden (in hours) associated with the
                                                      F–1 OPT STEM extension. Accordingly,                      • Other: None.                                      collection: 330,174 hours.
                                                      USCIS will be submitting an OMB 83–                       • Abstract: DHS is publishing a                        The recordkeeping requirements set
                                                      C, Correction Worksheet, to OMB for                     notice of proposed rulemaking (NPRM)                  forth by this rule are new requirements
                                                      review and approval of the minor edits                  that would make certain changes to the                that will require a new OMB Control
                                                      to the Application for Employment                       STEM OPT extension first introduced                   Number. DHS is seeking comment on
                                                      Authorization, Form I–765, instructions                 by the 2008 IFR. The NPRM would                       these new requirements as part of this
                                                      during the final rule stage. USCIS seeks                lengthen the duration of the STEM OPT                 NPRM.
                                                      comments on whether Form I–765                          extension to 24 months; require a
                                                                                                              Mentoring and Training Plan executed                  G. Federalism
                                                      should be modified as a direct result of
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                                                      the changes in the proposed rule. See                   by STEM OPT students and their                           A rule has implications for federalism
                                                      the ADDRESSES section above for                         employers; and require that the plan                  under Executive Order 13132,
                                                      instructions on how to submit                           include assurances to safeguard                       Federalism, if it has substantial direct
                                                      comments to DHS and OMB on the                          students and the interests of U.S.                    effects on the States, on the relationship
                                                      information collection provisions of this               workers in related fields; require that               between the national government and
                                                      rulemaking. Written comments and                        the plan include objective-tracking and               the States, or on the distribution of
                                                      suggestions from the public and affected                reporting requirements. The proposed                  power and responsibilities among the
                                                      agencies concerning the collection of                   rule would require students and                       various levels of government. We have
                                                      information are encouraged. Your                        employers (through an appropriate                     analyzed this proposed rule under that


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                                                      63400                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      Order and have determined that it does                  made a preliminary determination that                 sampling procedures; and related
                                                      not have implications for federalism.                   this action is one of a category of actions           management systems practices) that are
                                                                                                              that do not individually or cumulatively              developed or adopted by voluntary
                                                      H. Civil Justice Reform
                                                                                                              have a significant effect on the human                consensus standards bodies. This
                                                         This proposed rule meets applicable                  environment. This proposed rule clearly               proposed rule does not use technical
                                                      standards in sections 3(a) and 3(b)(2) of               fits within the Categorical Exclusion                 standards. Therefore, we did not
                                                      Executive Order 12988, Civil Justice                    found in MD 023–01 Rev. 01, Appendix                  consider the use of voluntary consensus
                                                      Reform, to minimize litigation,                         A, Table 1, number A3(a):                             standards.
                                                      eliminate ambiguity, and reduce                         ‘‘Promulgation of rules . . . of a strictly
                                                      burden.                                                                                                       List of Subjects
                                                                                                              administrative or procedural nature;’’
                                                      I. Energy Effects                                       and A3(d): ‘‘Promulgation of rules . . .              8 CFR Part 214
                                                                                                              that interpret or amend an existing                     Administrative practice and
                                                         We have analyzed this proposed rule                  regulation without changing its
                                                      under Executive Order 13211, Actions                                                                          procedure, Aliens, Employment,
                                                                                                              environmental effect.’’ This proposed                 Foreign officials, Health professions,
                                                      Concerning Regulations That                             rule is not part of a larger action. This
                                                      Significantly Affect Energy Supply,                                                                           Reporting and recordkeeping
                                                                                                              proposed rule presents no extraordinary               requirements, Students.
                                                      Distribution, or Use. We have                           circumstances creating the potential for
                                                      determined that it is not a ‘‘significant               significant environmental effects.                    8 CFR Part 274a
                                                      energy action’’ under that order because                Therefore, this proposed rule is                        Administrative practice and
                                                      it is a ‘‘significant regulatory action’’               categorically excluded from further                   procedure, Aliens, Employment,
                                                      under Executive Order 12866 but is not                  NEPA review.                                          Penalties, Reporting and recordkeeping
                                                      likely to have a significant adverse effect
                                                                                                              K. Indian Tribal Governments                          requirements.
                                                      of the supply, distribution, or use of
                                                      energy.                                                    This proposed rule does not have                   The Proposed Amendments
                                                      J. Environment                                          tribal implications under Executive                     For the reasons set forth in the
                                                                                                              Order 13175, Consultation and                         preamble, the Department of Homeland
                                                         The U.S. Department of Homeland                      Coordination with Indian Tribal                       Security proposes to amend parts 214
                                                      Security Management Directive (MD)                      Governments, because it would not have                and 274a of Chapter 1 of Title 8 of the
                                                      023–01 Rev. 01 establishes procedures                   a substantial direct effect on one or                 Code of Federal Regulations as follows:
                                                      that DHS and its Components use to                      more Indian tribes, on the relationship
                                                      comply with the National                                between the Federal Government and                    Subchapter B—Immigration
                                                      Environmental Policy Act of 1969                        Indian tribes, or on the distribution of              Regulations
                                                      (NEPA), 42 U.S.C. 4321–4375, and the                    power and responsibilities between the
                                                      Council on Environmental Quality                        Federal Government and Indian tribes.                 PART 214—NONIMMIGRANT CLASSES
                                                      (CEQ) regulations for implementing
                                                      NEPA, 40 CFR parts 1500 through 1508.                   L. Taking of Private Property                         ■ 1. The authority citation for part 214
                                                      CEQ regulations allow federal agencies                     This proposed rule would not cause a               continues to read as follows:
                                                      to establish categories of actions, which               taking of private property or otherwise                 Authority: 8 U.S.C. 1101, 1102, 1103,
                                                      do not individually or cumulatively                     have takings implications under                       1182, 1184, 1186a, 1187, 1221, 1281, 1282,
                                                      have a significant effect on the human                  Executive Order 12630, Governmental                   1301–1305 and 1372; sec. 643, Pub. L. 104–
                                                      environment and, therefore, do not                      Actions and Interference with                         208, 110 Stat. 3009–708; Pub. L. 106–386,
                                                      require an Environmental Assessment or                  Constitutionally Protected Property                   114 Stat. 1477–1480; section 141 of the
                                                      Environmental Impact Statement. 40                                                                            Compacts of Free Association with the
                                                                                                              Rights.                                               Federated States of Micronesia and the
                                                      CFR 1508.4. The MD 023–01 Rev. 01                                                                             Republic of the Marshall Islands, and with
                                                      lists the Categorical Exclusions that                   M. Protection of Children
                                                                                                                                                                    the Government of Palau, 48 U.S.C. 1901
                                                      DHS has found to have no such effect.                      DHS has analyzed this proposed rule                note, and 1931 note, respectively; 48 U.S.C.
                                                      MD 023–01 Rev. 01 Appendix A Table                      under Executive Order 13045,                          1806; 8 CFR part 2.
                                                      1.                                                      Protection of Children from
                                                                                                              Environmental Health Risks and Safety                 ■  2. Amend § 214.2 by:
                                                         For an action to be categorically                                                                          ■  a. Republishing paragraph (f)(5)(vi);
                                                      excluded, MD 023–01 Rev. 01 requires                    Risks. This proposed rule would not
                                                                                                                                                                    and
                                                      the action to satisfy each of the                       create an environmental risk to health or             ■ b. Revising paragraphs (f)(10)(ii)(A)(3),
                                                      following three conditions:                             risk to safety that might                             (f)(10)(ii)(C), (D), and (E), and (f)(11) and
                                                         (1) The entire action clearly fits                   disproportionately affect children.                   (12).
                                                      within one or more of the Categorical                                                                            The revisions read as follows:
                                                                                                              N. Technical Standards
                                                      Exclusions.
                                                         (2) The action is not a piece of a larger              The National Technology Transfer                    § 214.2 Special requirements for
                                                      action.                                                 and Advancement Act of 1995 (15                       admission, extension, and maintenance of
                                                         (3) No extraordinary circumstances                   U.S.C. 272 note) directs agencies to use              status.
                                                      exist that create the potential for a                   voluntary consensus standards in their                *     *     *     *    *
                                                      significant environmental effect. MD                    regulatory activities unless the agency                 (f) * * *
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                                                      023–01 Rev. 01 section V.B(1)–(3).                      provides Congress, through the Office of                (5) * * *
                                                         Where it may be unclear whether the                  Management and Budget, with an                          (vi) Extension of duration of status
                                                      action meets these conditions, MD 023–                  explanation of why using these                        and grant of employment authorization.
                                                      01 Rev. 01 requires the administrative                  standards would be inconsistent with                  (A) The duration of status, and any
                                                      record to reflect consideration of these                applicable law or otherwise                           employment authorization granted
                                                      conditions. MD 023–01 Rev. 01 section                   impracticable. Voluntary consensus                    under 8 CFR 274a.12(c)(3)(i)(B) or (C), of
                                                      V.B.                                                    standards are technical standards (e.g.,              an F–1 student who is the beneficiary of
                                                         DHS has analyzed this proposed rule                  specifications of materials, performance,             an H–1B petition and request for change
                                                      under MD 023–01 Rev. 01. DHS has                        design, or operation; test methods;                   of status shall be automatically


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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                            63401

                                                      extended until October 1 of the fiscal                  additional 24 months. In no event may                 under 8 CFR 274a.12(c)(3)(i)(B). In
                                                      year for which such H–1B visa is being                  a student be authorized for more than                 either case, the degree that is the basis
                                                      requested where such petition:                          two lifetime STEM OPT extensions. Any                 of the 24-month OPT extension must
                                                         (1) Has been timely filed; and                       subsequent application for an additional              have been conferred by an accredited
                                                         (2) States that the employment start                 24-month OPT extension under this                     U.S. educational institution and must be
                                                      date for the F–1 student is October 1 of                paragraph (f)(10)(ii)(C) must be based on             contained within a category on the
                                                      the following fiscal year.                              a degree at a higher degree level than                current STEM Designated Degree
                                                         (B) The automatic extension of an F–                 the degree that was the basis for the                 Program List at the time of the DSO
                                                      1 student’s duration of status and                      student’s first 24-month OPT extension.               recommendation. If an application for a
                                                      employment authorization under                          In order to qualify for an extension of               24-month OPT extension under
                                                      paragraph (f)(5)(vi)(A) of this section                 post-completion OPT based upon a                      paragraph (f)(10)(ii)(C) of this section is
                                                      shall immediately terminate upon the                    STEM degree, all of the following                     based upon a degree obtained previous
                                                      rejection, denial, or revocation of the H–              requirements must be met.                             to the degree that provided the basis for
                                                      1B petition filed on such F–1 student’s                    (1) Accreditation. The degree that is              the period of post-completion OPT
                                                      behalf.                                                 the basis for the 24-month OPT                        authorized under 8 CFR
                                                         (C) In order to obtain the automatic                 extension is from an educational                      274a.12(c)(3)(i)(B), that previously
                                                      extension of stay and employment                        institution accredited by an accrediting              obtained degree must have been
                                                      authorization under paragraph                           agency recognized by the Department of                conferred within the 10 years preceding
                                                      (f)(5)(vi)(A) of this section, the F–1                  Education.                                            the student’s application date, and the
                                                      student, according to 8 CFR part 248,                      (2) DHS-approved degree. The degree                student’s most recent degree must also
                                                      must not have violated the terms or                     that is the basis for the 24-month OPT                be from an institution accredited by an
                                                      conditions of his or her nonimmigrant                   extension is a bachelor’s, master’s, or               accrediting agency recognized by the
                                                      status.                                                 doctoral degree in one of the degree                  Department of Education.
                                                         (D) An automatic extension of an F–                  programs determined by the Secretary,                    (4) Eligible practical training
                                                      1 student’s duration of status under                    or his or her designee, to qualify within             opportunity. The STEM practical
                                                      paragraph (f)(5)(vi)(A) of this section                 a science, technology, engineering, or                training opportunity that is the basis for
                                                      also applies to the duration of status of               mathematics field.                                    the 24-month OPT extension under
                                                      any F–2 dependent aliens.                                  (i) The term ‘‘science, technology,                paragraph (f)(10)(ii)(C) of this section
                                                                                                              engineering or mathematics field’’                    must be directly related to the degree
                                                      *       *    *      *     *                             means a field included in the
                                                         (10) * * *                                                                                                 that qualifies the student for such
                                                                                                              Department of Education’s                             extension, which may be the previously
                                                         (ii) * * *                                           Classification of Instructional Programs
                                                         (A) * * *                                                                                                  obtained degree described in paragraph
                                                                                                              taxonomy within the summary groups                    (f)(10)(ii)(C)(3) of this section.
                                                         (3) After completion of the course of                containing mathematics, natural                          (5) Employer qualification. The
                                                      study, or, for a student in a bachelor’s,               sciences (including physical sciences                 student’s employer is enrolled in the E-
                                                      master’s, or doctoral degree program,                   and biological/agricultural sciences),                Verify program, as evidenced by either
                                                      after completion of all course                          engineering/engineering technologies,                 a valid E-Verify company identification
                                                      requirements for the degree (excluding                  and computer/information sciences, and                number or, if the employer is using an
                                                      thesis or equivalent). Continued                        related fields.                                       employer agent to create its E-Verify
                                                      enrollment, for the school’s                               (ii) The Secretary, or his or her                  cases, a valid E-Verify client company
                                                      administrative purposes, after all                      designee, will maintain the STEM                      identification number, and the employer
                                                      requirements for the degree have been                   Designated Degree Program List, which                 is a participant in good standing in the
                                                      met does not preclude eligibility for                   will be a complete list of qualifying                 E-Verify program, as determined by
                                                      optional practical training. A student                  degree program categories, published on               USCIS. An employer must also have an
                                                      must complete all practical training                    the Student and Exchange Visitor                      employer identification number (EIN)
                                                      within a 14-month period following the                  Program Web site at http://www.ice.gov/               used for tax purposes.
                                                      completion of study, except that a 24-                  sevis. Changes that are made to the                      (6) Employer reporting. A student may
                                                      month extension pursuant to paragraph                   Designated Degree Program list may also               not be authorized for employment with
                                                      (f)(10)(ii)(C) of this section does not                 be published in a notice in the Federal               an employer pursuant to paragraph
                                                      need to be completed within such 14-                    Register. All program categories                      (f)(10)(ii)(C)(2) of this section unless the
                                                      month period.                                           included on the list must be consistent               employer agrees, by signing the
                                                      *       *    *      *     *                             with the definition set forth in                      Mentoring and Training Plan, to report
                                                         (C) 24-month extension of post-                      paragraph (f)(10)(ii)(C)(2)(i) of this                the termination or departure of an OPT
                                                      completion OPT for a science,                           section.                                              student to the DSO at the student’s
                                                      technology, engineering, or mathematics                    (iii) At the time the DSO recommends               school, if the termination or departure is
                                                      (STEM) degree. Consistent with                          an OPT extension under paragraph                      prior to the end of the authorized period
                                                      paragraph (f)(11)(i)(C) of this section, a              (f)(10)(ii)(C) of this section in SEVIS, the          of OPT. Such reporting must be made
                                                      qualified student may apply for an                      degree that is the basis for the                      within 48 hours of the termination or
                                                      extension of OPT while in a valid                       application for a 24-month OPT                        departure. An employer shall consider a
                                                      period of post-completion OPT                           extension must be contained within a                  student to have departed when the
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                                                      authorized under 8 CFR                                  category on the STEM Designated                       employer knows the student has left the
                                                      274a.12(c)(3)(i)(B). An extension will be               Degree Program List.                                  practical training opportunity, or if the
                                                      for 24 months for the first qualifying                     (3) Previously obtained STEM                       student has not reported for his or her
                                                      degree completed by the student,                        degree(s). The degree that is the basis for           practical training for a period of five
                                                      including any previously obtained                       the 24-month OPT extension under                      consecutive business days without the
                                                      degree that qualifies. If a student                     paragraph (f)(10)(ii)(C) of this section              consent of the employer, whichever
                                                      completes another qualifying degree at a                may be, but is not required to be, the                occurs earlier.
                                                      higher degree level than the first, a                   degree that is the basis for the post-                   (7) Mentoring and Training Plan
                                                      second extension will be for an                         completion OPT period authorized                      (Form I–910). (i) A student must fully


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                                                      63402                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      complete an individualized Mentoring                    that the terms and conditions of a STEM               attests, including by signing the
                                                      and Training Plan and obtain requisite                  practical training opportunity are                    Mentoring and Training Plan, that:
                                                      signatures from his or her employer or                  commensurate with the terms and                          (i) The employer has sufficient
                                                      an appropriate individual in the                        conditions of employment for other                    resources and personnel available and is
                                                      employer’s organization on the                          similarly situated U.S. workers in the                prepared to provide appropriate
                                                      Mentoring and Training Plan, or any                     area of employment. ‘‘Similarly situated              mentoring and training in connection
                                                      successor form, consistent with form                    U.S. workers’’ includes U.S. workers                  with the specified opportunity;
                                                      instructions, before the DSO may                        performing similar duties subject to                     (ii) The employer will not terminate,
                                                      recommend a 24-month OPT extension                      similar supervision and with similar                  lay off, or furlough any full- or part-
                                                      under paragraph (f)(10)(ii)(C)(2) of this               educational backgrounds, industry                     time, temporary or permanent U.S.
                                                      section in SEVIS. A student must                        expertise, employment experience,                     worker as a result of the practical
                                                      submit the Mentoring and Training                       levels of responsibility, and skill sets as           training opportunity; and
                                                      Plan, which includes a certification of                 the STEM OPT student. The duties,                        (iii) The student’s opportunity assists
                                                      adherence to the plan completed by an                   hours, and compensation of STEM OPT                   the student in reaching his or her
                                                      appropriate individual in the                           students are ‘‘commensurate’’ with                    training goals.
                                                      employer’s organization who has                         those offered to U.S. workers employed                   (11) Site visits. DHS, at its discretion,
                                                      signatory authority for the employer, to                by the employer in the same area of                   may conduct a site visit of any
                                                      the student’s DSO, prior to the new DSO                 employment when the employer can                      employer. The purpose of the site visit
                                                      recommendation. A student must                          show that the duties, hours, and                      is for DHS to ensure that each employer
                                                      present his or her signed and completed                 compensation are consistent with the                  possesses and maintains the ability and
                                                      Mentoring and Training Plan to a DSO                    range of such terms and conditions the                resources to provide structured and
                                                      at the educational institution of his or                employer has offered or would offer to                guided work-based learning experiences
                                                      her most recent enrollment. A student,                  similarly situated U.S. employees. The                consistent with any Mentoring and
                                                      while in F–1 nonimmigrant status, may                   student must disclose his or her                      Training Plan completed and signed by
                                                      also be required to submit the                          compensation, including any                           the employer.
                                                      Mentoring and Training Plan to ICE                      adjustments, as agreed to with the                       (D) Duration of status while on post-
                                                      and/or USCIS upon request or in                         employer, on the Mentoring and                        completion OPT. For a student with
                                                      accordance with form instructions.                      Training Plan.                                        approved post-completion OPT, the
                                                         (ii) The Mentoring and Training Plan                    (9) Evaluation requirements. A                     duration of status is defined as the
                                                      must explain how the employment will                    student may not be authorized for                     period beginning when the student’s
                                                      provide a work-based learning                           employment with an employer pursuant                  application for OPT was properly filed
                                                      opportunity for the student by stating                  to paragraph (f)(10)(ii)(C)(2) of this                and pending approval, including the
                                                      the specific goals of the STEM practical                section unless the employer develops                  authorized period of post-completion
                                                      training opportunity and describing                     procedures for evaluating the student,                OPT, and ending 60 days after the OPT
                                                      how those goals will be achieved;                       which shall include documentation of                  employment authorization expires.
                                                      detailing the knowledge, skills, or                     the student’s progress toward the                        (E) Periods of unemployment during
                                                      techniques to be imparted to the                        training goals described in the                       post-completion OPT. During post-
                                                      student; explaining how the mentorship                  Mentoring and Training Plan. All                      completion OPT, F–1 status is
                                                      and training is directly related to the                 required evaluations must be completed                dependent upon employment. Students
                                                      student’s qualifying STEM degree; and                   prior to the conclusion of a STEM                     may not accrue an aggregate of more
                                                      describing the methods of performance                   practical training opportunity, and the               than 90 days of unemployment during
                                                      evaluation and the frequency of                         student and his or her immediate                      any post-completion OPT described in 8
                                                      supervision.                                            supervisor must sign the evaluations. At              CFR 274a.12(c)(3)(i)(B). Students
                                                         (iii) If a student initiates a new                   a minimum, all STEM practical training                granted one or more 24-month OPT
                                                      practical training opportunity with a                   opportunities require a concluding                    extensions under paragraph
                                                      new employer during his or her 24-                      evaluation and a recurrent evaluation at              (f)(10)(ii)(C)(2) of this section may not
                                                      month OPT extension, the student must                   every six-month interval of each OPT                  accrue an aggregate of more than 150
                                                      submit, within 10 days of beginning the                 extension period under paragraph                      days of unemployment during a total
                                                      new practical training opportunity, a                   (f)(10)(ii)(C)(2) of this section. The                OPT period, including any post-
                                                      new Mentoring and Training Plan to the                  educational institution whose DSO is                  completion OPT period described in 8
                                                      student’s DSO, and subsequently obtain                  responsible for duties associated with                CFR 274a.12(c)(3)(i)(B) and any
                                                      a new DSO recommendation.                               the student’s latest OPT extension under              subsequent 24-month extension period.
                                                         (8) Duties, hours, and compensation                  paragraph (f)(10)(ii)(C)(2) of this section              (11) OPT application and approval
                                                      for training. The terms and conditions of               is responsible for ensuring the Student               process—(i) Student responsibilities. A
                                                      a STEM practical training opportunity                   and Exchange Visitor Program has                      student must initiate the OPT
                                                      during the period of the 24-month OPT                   access to each individualized Mentoring               application process by requesting a
                                                      extension, including duties, hours, and                 and Training Plan and associated                      recommendation for OPT from his or
                                                      compensation, must be commensurate                      student evaluations (electronic or hard               her DSO. Upon making the
                                                      with terms and conditions applicable to                 copy), including through SEVIS if                     recommendation, the DSO will provide
                                                      the employer’s similarly situated U.S.                  technologically available, beginning                  the student a signed Form I–20
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                                                      workers in the area of employment,                      within 30 days after the document is                  indicating that recommendation.
                                                      except in no event may the student                      submitted to the DSO and continuing                      (A) Application for employment
                                                      engage in compensated practical                         for a period of three years following the             authorization. The student must
                                                      training for less than 20 hours per week.               completion of each STEM practical                     properly file an Application for
                                                      If the employer does not employ and                     training opportunity.                                 Employment Authorization (Form I–
                                                      has not recently employed more than                        (10) Additional STEM opportunity                   765, or successor form), with USCIS,
                                                      two similarly situated U.S. workers in                  obligations. A student may only                       accompanied by the required fee, and
                                                      the area of employment, the employer                    participate in a STEM practical training              the supporting documents, as described
                                                      nevertheless remains obligated to attest                opportunity in which the employer                     in the form’s instructions.


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                                                                             Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules                                            63403

                                                         (B) Filing deadlines for pre-                        is more than 60 days after the student’s              in paragraph (f)(10)(ii)(C)(8), and note in
                                                      completion OPT and post-completion                      program end date. Employment                          SEVIS the OPT start and end dates.
                                                      OPT. (1) Students may file an                           authorization will begin on the date                     (C) The DSO must provide the student
                                                      Application for Employment                              requested or the date the employment                  with a signed, dated Form I–20, or
                                                      Authorization, or successor form, for                   authorization is adjudicated, whichever               successor form, indicating that OPT has
                                                      pre-completion OPT up to 90 days                        is later.                                             been recommended.
                                                      before being enrolled for one full                         (ii) Additional DSO responsibilities. A               (iii) Decision on application for OPT
                                                      academic year, provided that the period                 student needs a recommendation from                   employment authorization. USCIS will
                                                      of employment will not start prior to the               his or her DSO in order to apply for                  make a decision on the Application for
                                                      completion of the full academic year.                   OPT. When a DSO recommends a                          Employment Authorization, or
                                                         (2) For post-completion OPT, the                     student for OPT, the school assumes the               successor form, on the basis of the
                                                      student must properly file his or her                   added responsibility for maintaining the              DSO’s recommendation and other
                                                      Application for Employment                              SEVIS record of that student for the                  eligibility considerations.
                                                      Authorization, or successor form, up to                 entire period of authorized OPT,                         (A) If granted, the employment
                                                      90 days prior to his or her program end-                consistent with paragraph (f)(12) of this             authorization period for post-
                                                      date and no later than 60 days after his                section.                                              completion OPT begins on the requested
                                                      or her program end date. For all post-                                                                        date of commencement or the date the
                                                                                                                 (A) Prior to making a
                                                      completion OPT, except in the case of                                                                         employment authorization application
                                                                                                              recommendation, the DSO at the
                                                      an application for employment                                                                                 is approved, whichever is later, and
                                                                                                              educational institution of the student’s
                                                      associated with a 24-month OPT                                                                                ends at the conclusion of the remaining
                                                                                                              most recent enrollment must ensure that
                                                      extension under paragraph                                                                                     time period of post-completion OPT
                                                                                                              the student is eligible for the given type
                                                      (f)(10)(ii)(C)(2) of this section, the                                                                        eligibility. The employment
                                                                                                              and period of OPT and that the student
                                                      student must also file the Application                                                                        authorization period for a 24-month
                                                                                                              is aware of the student’s responsibilities
                                                      for Employment Authorization with                                                                             OPT extension under paragraph
                                                                                                              for maintaining status while on OPT.
                                                      USCIS within 30 days of the date the                                                                          (f)(10)(ii)(C) of this section begins on the
                                                                                                              Prior to recommending a 24-month OPT
                                                      DSO enters the recommendation for                                                                             day after the expiration of the initial
                                                                                                              extension under paragraph (f)(10)(ii)(C)
                                                      OPT into his or her SEVIS record.                                                                             post-completion OPT employment
                                                                                                              of this section, the DSO at the
                                                         (C) Applications for 24-month OPT                                                                          authorization and ends 24 months
                                                      extension. A student meeting the                        educational institution of the student’s
                                                                                                                                                                    thereafter, regardless of the date the
                                                      eligibility requirement for a 24-month                  most recent enrollment must certify that
                                                                                                                                                                    actual extension is approved.
                                                      OPT extension under paragraph                           the student’s degree being used to
                                                                                                                                                                       (B) USCIS will notify the applicant of
                                                      (f)(10)(ii)(C) of this section may file for             qualify that student for the 24-month
                                                                                                                                                                    the decision on the application for
                                                      an extension of employment                              OPT extension, as shown in SEVIS or
                                                                                                                                                                    employment authorization in writing,
                                                      authorization by filing an Application                  official transcripts, is a bachelor’s,
                                                                                                                                                                    and, if the application is denied, of the
                                                      for Employment Authorization, or                        master’s, or doctorate degree with a
                                                                                                                                                                    reason or reasons for the denial.
                                                      successor form, with the required fee,                  degree code that is contained within a                   (C) The applicant may not appeal the
                                                      and the supporting documents, prior to                  category on the current STEM                          decision.
                                                      the expiration date of the student’s                    Designated Degree Program List at the                    (12) Reporting while on optional
                                                      current OPT employment authorization.                   time the recommendation is made. A                    practical training—(i) General. An F–1
                                                      The student seeking such 24-month                       DSO may only recommend a student for                  student who is granted employment
                                                      OPT extension must properly file his or                 a 24-month OPT extension under                        authorization by USCIS to engage in
                                                      her Application for Employment                          paragraph (f)(10)(ii)(C) of this section if           optional practical training is required to
                                                      Authorization, or successor form, with                  the Mentoring and Training Plan                       report any change of name or address,
                                                      USCIS within 60 days of the date the                    described in paragraph (f)(10)(ii)(C)(7) of           or interruption of such employment to
                                                      DSO enters the recommendation for the                   this section has been properly                        the DSO for the duration of the optional
                                                      OPT extension into his or her SEVIS                     completed and executed by the student                 practical training. A DSO who
                                                      record. If a student timely and properly                and prospective employer. A DSO may                   recommends a student for OPT is
                                                      files an application for such 24-month                  not recommend a student for an OPT                    responsible for updating the student’s
                                                      OPT extension and timely and properly                   extension under paragraph (f)(10)(ii)(C)              record to reflect these reported changes
                                                      requests a DSO recommendation,                          of this section if the practical training             for the duration of the time that training
                                                      including by submitting the fully-                      would be conducted by an employer                     is authorized.
                                                      executed Mentoring and Training Plan                    who has failed to meet the requirements                  (ii) Additional reporting obligations
                                                      to his or her DSO, but the Employment                   under paragraphs (f)(10)(ii)(C)(5)                    for students with an approved 24-month
                                                      Authorization Document (Form I–766,                     through (9) of this section or has failed             OPT extension. Students with an
                                                      or successor form) currently in the                     to provide the required assurances of                 approved 24-month OPT extension
                                                      student’s possession expires prior to the               paragraph (f)(10)(ii)(C)(10) of this                  under paragraph (f)(10)(ii)(C) of this
                                                      decision on the student’s application for               section.                                              section have additional reporting
                                                      the OPT extension, the student’s Form                      (B) The DSO must update the                        obligations. Compliance with these
                                                      I–766, or successor form, is extended                   student’s SEVIS record with the DSO’s                 reporting requirements is required to
                                                      automatically pursuant to the terms and                 recommendation for OPT before the                     maintain F–1 status. The reporting
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                                                      conditions specified in 8 CFR                           student can apply to USCIS for                        obligations are:
                                                      274a.12(b)(6)(iv).                                      employment authorization. The DSO                        (A) Within 10 days of the change, the
                                                         (D) Start of OPT employment. A                       will indicate in SEVIS whether the OPT                student must report to the student’s
                                                      student may not begin OPT employment                    employment is to be full-time or part-                DSO a change of legal name, residential
                                                      prior to the approved start date on his                 time, or for a student seeking a                      or mailing address, employer name,
                                                      or her employment authorization                         recommendation for a 24-month OPT                     employer address, and/or loss of
                                                      document except as described in                         extension under paragraph (f)(10)(ii)(C)              employment.
                                                      paragraph (f)(11)(i)(C) of this section. A              whether the OPT employment meets the                     (B) The student must make a
                                                      student may not request a start date that               minimum hours requirements described                  validation report and submit his or her


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                                                      63404                  Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Proposed Rules

                                                      supervisor-approved recurrent                           extension of OPT under                                employment authorization issued under
                                                      evaluation to the DSO every six months                  § 214.2(f)(10)(ii)(C):                                paragraph (c)(3)(i)(B) of this section has
                                                      starting from the date the extension                      (1) Any change that the student                     expired. Employment is authorized
                                                      begins and ending when the student’s                    reports to the school concerning legal                beginning on the expiration date of the
                                                      F–1 status ends, the student changes                    name, residential or mailing address,                 authorization issued under paragraph
                                                      educational levels at the same school, or               employer name, or employer address;                   (c)(3)(i)(B) of this section and ending on
                                                      the student transfers to another school                 and                                                   the date of USCIS’ written decision on
                                                      or program, or the 24-month OPT                           (2) The end date of the student’s                   the current employment authorization
                                                      extension ends, whichever is first. The                 employment reported by a former                       request, but not to exceed 180 days; or
                                                      validation is a confirmation that the                   employer in accordance with                              (v) Pursuant to 8 CFR 214.2(h) is
                                                      student’s information in SEVIS for the                  § 214.2(f)(10)(ii)(C)(6).                             seeking H–1B nonimmigrant status and
                                                      items listed in paragraph (f)(12)(ii)(A) of             *     *     *      *     *                            whose duration of status and
                                                      this section is current and accurate. This                                                                    employment authorization have been
                                                      report is due to the student’s DSO                      PART 274a—CONTROL OF                                  extended pursuant to 8 CFR
                                                      within 10 business days of each                         EMPLOYMENT OF ALIENS                                  214.2(f)(5)(vi).
                                                      reporting date.                                         ■ 4. The authority citation for part 274a             *      *      *    *      *
                                                         Note to paragraph (f)(12)(ii)(B): The                continues to read as follows:
                                                      supervisor-approved recurrent                                                                                    (c) * * *
                                                      evaluation, described in paragraph                        Authority: 8 U.S.C. 1101, 1103, 1324a; 48              (3) * * *
                                                                                                              U.S.C. 1806; 8 CFR part 2.
                                                      (f)(10)(ii)(C)(9) of this section, is noted                                                                      (i)(A) Is seeking pre-completion
                                                      here for ease of reference; this                        Subpart B—Employment Authorization                    practical training pursuant to 8 CFR
                                                      evaluation is an update to the fully                                                                          214.2(f)(10)(ii)(A)(1) and (2);
                                                      executed Mentoring and Training Plan                    ■ 5. Revise § 274a.12(b)(6)(iv) and (v)                  (B) Is seeking authorization to engage
                                                      that the student submits to his or her                  and (c)(3)(i) to read as follows:                     in post-completion Optional Practical
                                                      DSO.                                                                                                          Training (OPT) pursuant to 8 CFR
                                                                                                              § 274a.12 Classes of aliens authorized to
                                                      ■ 3. Revise § 214.3(g)(2)(ii)(F) to read as                                                                   214.2(f)(10)(ii)(A)(3); or
                                                                                                              accept employment.
                                                      follows:                                                                                                         (C) Is seeking a 24-month STEM OPT
                                                                                                              *     *     *    *     *
                                                      § 214.3 Approval of schools for enrollment                (b) * * *                                           extension pursuant to 8 CFR
                                                      of F and M nonimmigrants.                                 (6) * * *                                           214.2(f)(10)(ii)(C);
                                                      *     *   *     *     *                                   (iv) An employment authorization                    *      *      *    *      *
                                                       (g) * * *                                              document under paragraph (c)(3)(i)(C) of
                                                                                                              this section based on a 24-month STEM                 Jeh Charles Johnson,
                                                       (2) * * *
                                                       (ii) * * *                                             Optional Practical Training extension,                Secretary of Homeland Security.
                                                       (F) For F–1 students authorized by                     and whose timely filed employment                     [FR Doc. 2015–26395 Filed 10–16–15; 8:45 am]
                                                      USCIS to engage in a 24-month                           authorization request is pending and                  BILLING CODE 9111–28–P
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Document Created: 2015-12-15 08:35:32
Document Modified: 2015-12-15 08:35:32
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments must be received by DHS on or before November 18, 2015. Comments on the information collection provisions proposed in this rule must be received by DHS and the Office of Management and Budget (OMB) on or before November 18, 2015.
ContactKatherine Westerlund, Policy Chief (Acting), Student and Exchange Visitor Program, U.S. Immigration and Customs Enforcement, 500 12th Street SW., Washington, DC 20536; telephone (703) 603-3400; email [email protected]
FR Citation80 FR 63375 
RIN Number1653-AA72
CFR Citation8 CFR 214
8 CFR 274
CFR AssociatedAdministrative Practice and Procedure; Aliens; Employment; Foreign Officials; Health Professions; Reporting and Recordkeeping Requirements; Students and Penalties

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