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The American Competitiveness in the 21st Century Act (AC21), Public Law 106-313, was enacted in October 2000, along with two other laws, the Visa Waiver Permanent Program Act (VWPPA), Public Law 106-396, and a law to increase the fee for certain H-1B petitions, Public Law 106-311. An earlier piece of legislation, the American Competitiveness and Workforce Improvement Act (ACWIA), Public Law 105-277, was enacted to place certain conditions on the employment of H-1B workers. Together, these laws make significant changes to the H-1B classification. Public Law 106-313 increased the numerical H-1B cap to 195,000 for fiscal year 2000-2002 and the percentage of the fees that the Department of Homeland Security (DHS) receives to 4 percent. It exempts certain aliens from the numerical cap, provides for the "portability" of employment authorization, and in certain circumstances extensions of stay for certain aliens who have permanent residence applications pending. Public Law 105-277 imposes penalties for employers violating certain representations and prohibits retaliation against H-1B workers who disclose these violations. Finally, on November 2, 2002, the President signed into law Public Law 107-273, the 21st Century Department of Justice Appropriations Act which codified a provision that amends section 106(a) of AC21. This regulation clarifies several interpretive questions raised by these laws and ensures that DHS practice is consistent with them. USCIS is considering incorporating the provisions of the regulation into the regulation titled Employment-based Immigration Modernization (RIN: 1615-AC05).