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Statement of Need: This regulation is necessary to implement the statutory requirements of IIRIRA, the USA PATRIOT ACT, and the Border Security Act. Failure to implement will result in adverse consequences to national security. The historical record reveals that Congress has a strong interest in monitoring foreign students and exchange visitors for the duration of their stay in the United States. Additionally, the climate of the current administration as evidenced by Presidential Directive No. 2 and the findings of the Office of the Inspector General demonstrate that the student program is a high priority. Therefore, the Service must steadfastly continue to improve upon the SEVP program, implement the process to monitor foreign students and exchange visitors, as well as to complete the process by which all schools and programs use SEVIS prior to the acceptance of any foreign students or exchange visitors.

Summary of the Legal Basis: See Abstract and Statement of Need. These actions are required by statute as explained in the Abstract and the Statement of Need.

Alternatives: None.

Anticipated Costs and Benefits: This regulation implements the new processes and requirements for the electronic exchange and update of information. In 1994, the Service began conducting a comprehensive review and analysis of the foreign student program, both upon admission to the United States and on a continuing basis. Based on these findings, the Service established a plan to reengineer the business process. Currently, updates to nonimmigrant student and exchange visitor information (e.g., change of address, extensions, curricular practical training) are submitted by the Service or the educational institution or exchange program to the Service via a paper copy. A significant amount of time lapses as the paperwork is routed and data entered by a contractor. The utilization of SEVIS gives the schools and program sponsors the ability to make real-time updates without routing paperwork to a contractor. The SEVIS process reduces the risk of paperwork being lost or sent to an incorrect address and eliminates the risk of inaccurate information being entered by the data entry contractor. The elimination of the contractor will result in a monetary savings as the current data entry costs associated with the existing process average $800,000 per year. Finally, the information is stored electronically in SEVIS, thus reducing the need to store paper copies during and after routing and data entry, by both the Service and the educational institutions and sponsors.

Risks: This regulatory action is critical for complete and clear implementation of the provisions of the legislation as well as the overall student program. The regulation will clarify for designated school officials and others in the education community the scope, applicability, and process for the exchange of student and school information and will prevent actions which may unintentionally trigger adverse immigration consequences. Delay in this rulemaking or failure to promulgate will cause the Service to miss the dates mandated by Congress.