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The L-1 Visa Reform Act of 2004, referred to more briefly as the L-1 Reform Act, was a part of Title IV of the Consolidated Appropriations Act, 2005 (sometimes also called the Omnibus Appropriations Act of 2005) in the United States that focused on changes to regulations governing L-1 visas.[1][2] The Consolidated Appropriations Act was signed by George W. Bush, then President of the United States, in early December 2004.[2] Title IV of the Consolidated Appropriations Act also included the H-1B Visa Reform Act of 2004, that focused on H-1B visas.
The L-1 Visa Reform Act of 2004 had two main provisions and a slight change to the fee structure.[2]
According to the new rules of the act, a player is now explicitly ineligible for classification as a specialized knowledge worker nonimmigrant (L-1B) visa if the worker will be "stationed primarily" at the worksite of an employer other than the petitioner or an affiliate, subsidiary, or parent and either of the following occurs:[2]
This new ground of ineligibility would begin applying for petitions starting June 6, 2005, and includes petitions for initial, amended, or extended L-1B classification.
The Act amended section 214(c)(2)(A) of the Act to restore prior law requiring that the L-1 beneficiary of a blanket petition have been employed abroad by the L entity for a period of 12 months. In doing so, the L-1 Reform Act eliminates the 6-month exception that had been the law for blanket beneficiaries since 2001.[2][3]
Like the H-1B Visa Reform Act of 2004 that accompanied it, the L-1 Visa Reform Act of 2004 instituted a $500 anti-fraud fee over and above existing fees.[4]
The Act and its implications for applicants was discussed by Cyrus Mehta in an article for Immigration Daily in August 2005.[4]
A report by Morrison Foerster reviewed the L-1 Visa Reform Act of 2004 and its implications for U.S. companies. It came up with three risk factors:[5]
The review suggested the following action items:
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