Washington Update: Final STEM OPT Rule Released; Request to Delay Box 1 1098-T Reporting; the Higher Education UAS Modernization Act

Last week, the U.S. Department of Homeland Security (DHS) released its final rule on the STEM Optional Practical Training (OPT) program and new online resources to help students, institutions, and employers understand the changes and ease the transition. In addition, APLU and 14 other higher education associations wrote a letter to the Internal Revenue Service (IRS) requesting a delay in mandatory “Box 1 1098-T reporting.” Also, this month Senators Gary Peters (D-MI) and Jerry Moran (R-KS) introduced the Higher Education UAS Modernization Act (S.2626), which would allow higher education institutions to more easily conduct research using unmanned aircraft systems (UAS), also known as drones. And APLU, AAU, the American Council on Education (ACE), and EDUCAUSE recently sent comments to the U.S. Copyright Office on the December 29 Notice of Inquiry regarding section 1201 of the Copyright Act.

Department of Homeland Security Releases Final STEM Optional Practical Training Program
Last week, the U.S. Department of Homeland Security (DHS) released its final rule on the STEM Optional Practical Training (OPT) program and new online resources to help students, institutions, and employers understand the changes and ease the transition. Among other changes, the final rule extends STEM OPT from 17 months to a maximum of 24 months per applicable degree and adds new administrative requirements on all parties (students, employers, and institutions/Designated School Officials (DSOs)).

Currently, the post-completion Optional Practical Training program allows all graduates on F student visas to receive training in their field of study for 12 months after graduation. The new 24 month extension remains limited to graduates with STEM degrees only. Therefore, STEM graduates are now eligible for up to three years of OPT per applicable degree.

While DHS previously expressed interest in reforming the OPT program, their hand was forced last August when a federal court found that the agency did not follow proper rulemaking procedures in 2008, thus vacating the 17-month STEM OPT extension. In order to prevent massive disruption to the program, the judge stayed the decision to give DHS adequate time to issue a new rule.

Throughout the process APLU was in contact with both DHS and the White House to provide feedback on the administration’s ideas for reforming the program. APLU successfully argued for maintaining the training focus of OPT while minimizing new administrative burdens on institutions. For example, while DSOs must review and approve “training plans,” which are now required to be agreed upon between students and employers, DHS has clarified in the final rule that DSOs are not expected to research employer attestations or other information in the training plan, including wage information. Feedback from APLU members was essential throughout this process, including from a small working group who joined us in conversations with the administration.

Higher Education Associations Request Delay of Box 1 1098-T Reporting
APLU and 14 other higher education associations wrote a letter to the Internal Revenue Service (IRS) requesting a delay in mandatory “Box 1 1098-T reporting.” The 1098-T form serves as verification of a student’s enrollment status and delineates the portion of a student’s charges that are “qualified tuition and related expenses.” Institutions could previously choose to report either “amounts paid” or “amounts billed” with most schools choosing the latter. However, a provision in the omnibus FY2016 appropriations and tax package passed last year requires all institutions to now report “amounts paid.”

A 2011 report by the Treasury Inspector General for Tax Administration identified that 2.1 million taxpayers may be receiving $3.2 billion in falsely-claimed education tax benefits. The report led to the call for requiring institutions to report “amounts paid” and ultimately led to the provision in the omnibus appropriations bill. The National Association of College and University Business Officers (NACUBO) has previously noted that the change does not address the problem and represents a significant burden on institutions as it is challenging to provide a consistently accurate “amounts paid” number for qualified expenses given differences in academic year vs. tax years, identification of the precise nature of payments, and that university accounting systems are not designed to accommodate such reporting.

The higher education community letter requests a delay of implementation, asks that the IRS work with the community, and the development of supplemental guidance for institutions and taxpayers.

Senators Peters and Moran Introduce Legislation to Support the Use of Drones for Educational Research
This month Senators Gary Peters (D-MI) and Jerry Moran (R-KS) introduced the Higher Education UAS Modernization Act (S.2626), which would help higher education institutions to more readily conduct research using unmanned aircraft systems (UAS), also known as drones.

Current regulations require that all UAS operators must apply for approval from the FAA and obtain a pilot’s license. Additionally FAA approvals are restricted to specific aircraft; each modification requires additional approvals. The proposed legislation would allow higher education institutions to operate UAS without the long, costly and burdensome FAA process, if they meet certain requirements.

APLU and the Association of American Universities (AAU) released a joint statement in support of the Higher Education UAS Modernization Act, a bill which the organizations say would aid “the work of colleges and universities which seek to safely conduct a wide range of research and educational activities.”

Higher Education Groups Send Comments on the Copyright Act
APLU, AAU, the American Council on Education (ACE), and EDUCAUSE recently sent comments to the U.S. Copyright Office on the December 29 Notice of Inquiry regarding section 1201 of the Digital Millennium Copyright Act. Section 1201 of the Copyright Act prohibits users from circumventing technological measures used by copyright owners to protect access to their works. Section 1201 also establishes a triennial rulemaking process through which the Librarian of Congress may grant limited exceptions to section 1201’s general ban on the circumvention of access controls. This rulemaking process was meant to ensure access controls would not prevent users from lawfully accessing copyrighted works in educational and scholarly contexts. However, the triennial rulemaking procedure has impeded users’ ability to legitimately use copyrighted works and proven to be difficult for the public to understand and implement.

The group comments state that “section 1201 is adversely affecting the ability of the educational community to access copyrighted works for the purpose of engaging in lawful, noninfringing uses.” The letter also recommends several proposed improvements to section 1201, including reducing administrative burdens and better protecting copyright holders.

Global Food Security Act
Last week, the Senate Foreign Relations Committee marked-up and passed by a voice vote a substitute amendment to S.1252, the Global Food Security Act (GFSA). The legislation requires the administration to develop and implement a comprehensive all-of-government approach to combat global food insecurity. Per APLU’s recommendations, the bill includes direct reference to food security research conducted at U.S. universities including through the Feed the Future Innovation Labs and the critical partnerships between U.S. universities and those in developing nations to build human and institutional capacity. APLU sent a letter to the Foreign Relations Committee expressing our support for GFSA in advance of the mark-up. APLU also supports similar legislation in the House.