[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1965 Introduced in Senate (IS)]
112th CONGRESS
1st Session
S. 1965
To jump-start economic recovery through the formation and growth of new
businesses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 8, 2011
Mr. Moran (for himself and Mr. Warner) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To jump-start economic recovery through the formation and growth of new
businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Startup Act of
2011''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Economic impact of major rules.
Sec. 4. Permanent full exclusion applicable to qualified small business
stock.
Sec. 5. Income tax credit for certain startup small businesses.
Sec. 6. Study of regulatory impact of possible Sarbanes-Oxley reform.
Sec. 7. Accelerated commercialization of university-based research.
Sec. 8. Conditional permanent resident status for aliens with an
advanced degree in a STEM field.
Sec. 9. Alien entrepreneurs.
Sec. 10. Biennial State startup business report.
Sec. 11. New business formation report.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Achieving economic recovery will require the formation
and growth of new companies.
(2) Between 1980 and 2005, companies less than 5 years old
accounted for nearly all net job creation in the United States.
(3) New firms in the United States create an average of
3,000,000 jobs per year.
(4) To get Americans back to work, entrepreneurs must be
free to pursue their ideas, form companies, and hire employees.
(5) State and local policies affect entrepreneurs' ability
to start new businesses and grow existing businesses.
SEC. 3. ECONOMIC IMPACT OF MAJOR RULES.
Section 553 of title 5, United States Code, is amended by adding at
the end the following:
``(f) Required Review Before Issuance of Major Rules.--
``(1) In general.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
proposed major rule, the head of the Federal agency or
independent regulatory agency seeking to issue the rule shall
complete a review that--
``(A) analyzes the problem that the proposed rule
intends to address, including--
``(i) the specific market failure, such as
externalities, market power, or lack of
information, that justifies such rule; or
``(ii) any other specific problem, such as
the failures of public institutions, that
justifies such rule;
``(B) analyzes the expected impact of the proposed
rule on the ability of new businesses to form and
expand;
``(C) identifies the expected impact of the
proposed rule on State, local, and tribal governments,
including the availability of resources--
``(i) to carry out the mandates imposed by
the rule on such government entities; and
``(ii) to minimize the burdens that
uniquely or significantly affect such
governmental entities, consistent with
achieving regulatory objectives;
``(D) identifies any conflicting or duplicative
regulations;
``(E) determines--
``(i) if existing laws or regulations
created, or contributed to, the problem that
the new rule is intended to correct; and
``(ii) if the laws or regulations referred
to in clause (i) should be modified to more
effectively achieve the intended goal of the
rule; and
``(F) includes the cost-benefit analysis described
in paragraph (2).
``(2) Cost-benefit analysis.--A cost-benefit analysis
described in this paragraph shall include--
``(A)(i) an assessment, including the underlying
analysis, of benefits anticipated from the proposed
rule, such as--
``(I) promoting the efficient functioning
of the economy and private markets;
``(II) enhancing health and safety;
``(III) protecting the natural environment;
and
``(IV) eliminating or reducing
discrimination or bias; and
``(ii) the quantification of the benefits described
in clause (i), to the extent feasible;
``(B)(i) an assessment, including the underlying
analysis, of costs anticipated from the proposed rule,
such as--
``(I) the direct costs to the Federal
Government to administer the rule;
``(II) the direct costs to businesses and
others to comply with the rule; and
``(III) any adverse effects on the
efficient functioning of the economy, private
markets (including productivity, employment,
and competitiveness), health, safety, and the
natural environment; and
``(ii) the quantification of the costs described in
clause (i), to the extent feasible;
``(C)(i) an assessment, including the underlying
analysis, of costs and benefits of potentially
effective and reasonably feasible alternatives to the
proposed rule, which have been identified by the agency
or by the public, including taking reasonably viable
nonregulatory actions; and
``(ii) an explanation of why the proposed rule is
preferable to the alternatives identified under clause
(i).
``(3) Report.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
proposed major rule, the head of the Federal agency seeking to
issue the rule shall--
``(A) submit the results of the review conducted
under paragraph (1) to--
``(i) Congress; and
``(ii) the Office of Information and
Regulatory Affairs in the Office of Management
and Budget; and
``(B) post the results of the review conducted
under paragraph (1) on a publicly available website.
``(4) Judicial review.--Any determinations made, or other
actions taken, by an agency or independent regulatory agency
under this subsection shall not be subject to judicial review.
``(5) Defined term.--In this subsection the term `major
rule' has the meaning given the term in section 804.''.
SEC. 4. PERMANENT FULL EXCLUSION APPLICABLE TO QUALIFIED SMALL BUSINESS
STOCK.
(a) Permanent Full Exclusion.--
(1) In general.--Subsection (a) of section 1202 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Exclusion.--In the case of a taxpayer other than a
corporation, gross income shall not include 100 percent of any gain
from the sale or exchange of qualified small business stock held for
more than 5 years.''.
(2) Conforming amendments.--
(A) The heading for section 1202 of such Code is
amended by striking ``partial''.
(B) The item relating to section 1202 in the table
of sections for part I of subchapter P of chapter 1 of
such Code is amended by striking ``Partial exclusion''
and inserting ``Exclusion''.
(C) Section 1223(13) of such Code is amended by
striking ``1202(a)(2),''.
(b) Repeal of Minimum Tax Preference.--
(1) In general.--Subsection (a) of section 57 of the
Internal Revenue Code of 1986 is amended by striking paragraph
(7).
(2) Technical amendment.--Subclause (II) of section
53(d)(1)(B)(ii) of such Code is amended by striking ``, (5),
and (7)'' and inserting ``and (5)''.
(c) Repeal of 28 Percent Capital Gains Rate on Qualified Small
Business Stock.--
(1) In general.--Subparagraph (A) of section 1(h)(4) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(A) collectibles gain, over''.
(2) Conforming amendments.--
(A) Section 1(h) of such Code is amended by
striking paragraph (7).
(B)(i) Section 1(h) of such Code is amended by
redesignating paragraphs (8), (9), (10), (11), (12),
and (13) as paragraphs (7), (8), (9), (10), (11), and
(12), respectively.
(ii) Sections 163(d)(4)(B), 854(b)(5), 857(c)(2)(D)
of such Code are each amended by striking ``section
1(h)(11)(B)'' and inserting ``section 1(h)(10)(B)''.
(iii) The following sections of such Code are each
amended by striking ``section 1(h)(11)'' and inserting
``section 1(h)(10)'':
(I) Section 301(f)(4).
(II) Section 306(a)(1)(D).
(III) Section 584(c).
(IV) Section 702(a)(5).
(V) Section 854(a).
(VI) Section 854(b)(2).
(iv) The heading of section 857(c)(2) is amended by
striking ``1(h)(11)'' and inserting ``1(h)(10)''.
(d) Effective Date.--The amendments made by this section apply to
stock acquired after December 31, 2011.
SEC. 5. INCOME TAX CREDIT FOR CERTAIN STARTUP SMALL BUSINESSES.
(a) In General.--Section 6401 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(c) Income Tax Credit for Startup Small Businesses.--
``(1) In general.--In the case of a qualified small
business (within the meaning of section 1202(d)), if the tax
imposed by subtitle A for any taxable year exceeds the credits
allowable under chapter 1 for such taxable year, an amount
equal to the lesser of--
``(A) the applicable percentage of the amount of
such excess, or
``(B) $5,000,000,
shall be considered an overpayment with respect to such taxable
year.
``(2) Applicable percentage.--For purposes of this section,
the applicable percentage is 100 percent for the first taxable
year described in paragraph (1) of the qualified small
business, 50 percent for each of the 2 succeeding taxable
years, and zero percent thereafter.
``(3) Election not to claim credit.--This subsection shall
not apply to a taxpayer for any taxable year if such taxpayer
elects to have this subsection not apply for the first taxable
year described in paragraph (1).
``(4) Regulations.--The Secretary shall prescribe such
regulations as may be appropriate to carry out the purposes of
this subsection, including--
``(A) regulations to prevent the avoidance of the
purposes of this subsection through split-ups, shell
corporations, partnerships, or otherwise, and
``(B) regulations to provide for the proper
determination of the first taxable year of a qualified
small business.''.
(b) Conforming Amendment.--Section 6501(m) of the Internal Revenue
Code of 1986 is amended by striking ``or 51(j)'' and inserting ``51(j),
or 6401(c)''.
(c) Effective Date.--The amendments made by this section shall
apply to the first taxable year described in section 6401(c)(1) of the
Internal Revenue Code of 1986 (as added by this section) of any
qualified small business, but only if such first taxable year begins
after the date of the enactment of this Act.
SEC. 6. STUDY OF REGULATORY IMPACT OF POSSIBLE SARBANES-OXLEY REFORM.
In carrying out the study and report required by section 989I of
the Investor Protection and Securities Reform Act of 2010 (Public Law
111-203, 124 Stat. 1948), the Comptroller General of the United States
shall--
(1) assess the costs and benefits to prospective investors,
shareholders, and securities markets of allowing smaller
issuers to opt out of the requirements of section 404(b) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262(b)); and
(2) in assessing such costs and benefits, consider the
feasibility, costs, and benefits to prospective investors,
shareholders, and securities markets of placing an asterisk or
some other designation on the ticker symbol and other relevant
company disclosures of such issuers, indicating that the issuer
has elected not to comply with section 404(b) of the Sarbanes-
Oxley Act of 2002 (15 U.S.C. 7262(b)).
SEC. 7. ACCELERATED COMMERCIALIZATION OF UNIVERSITY-BASED RESEARCH.
(a) Definitions.--In this section:
(1) Committee.--The term ``Committee'' means the Committee
on Research Commercialization Improvement established under
subsection (c).
(2) Extramural budget.--The term ``extramural budget''
means the sum of the total obligations minus amounts obligated
for such activities by employees of the agency in or through
Government-owned, Government-operated facilities, except that
for the Department of Energy it shall not include amounts
obligated for atomic energy defense programs solely for weapons
activities or for naval reactor programs, and except that for
the Agency for International Development it shall not include
amounts obligated solely for general institutional support of
international research centers or for grants to foreign
countries.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(4) Research or research and development.--The term
``research'' or ``research and development'' means any activity
that is--
(A) a systematic, intensive study directed toward
greater knowledge or understanding of the subject
studied;
(B) a systematic study directed specifically toward
applying new knowledge to meet a recognized need; or
(C) a systematic application of knowledge toward
the production of useful materials, devices, and
systems or methods, including design, development, and
improvement of prototypes and new processes to meet
specific requirements.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(b) Grant Program Authorized.--
(1) In general.--Each Federal agency that has an extramural
budget for research or research and development that is in
excess of $100,000,000 for each of fiscal years 2012 through
2017, shall transfer 0.15 percent of such extramural budget for
each of such fiscal years to the Secretary to enable the
Secretary to carry out a grant program in accordance with this
subsection.
(2) Grants.--
(A) Awarding of grants.--
(i) In general.--From funds transferred
under paragraph (1), the Secretary shall use
the criteria developed by the Committee to
award grants to institutions of higher
education, including consortia of institutions
of higher education, for initiatives to improve
commercialization and transfer of technology.
(ii) Request for proposals.--Not later than
30 days after the Committee submits the
recommendations for criteria to the Secretary
under subsection (c)(4)(B), and annually
thereafter for each fiscal year for which the
grant program is authorized, the Secretary
shall release a request for proposals.
(iii) Applications.--Each institution of
higher education that desires to receive a
grant under this subsection shall submit an
application to the Secretary not later than 90
days after the Secretary releases the request
for proposals under clause (ii).
(iv) Committee review.--
(I) In general.--The Secretary
shall submit each application received
under clause (iii) to the Committee for
Committee review.
(II) Recommendations.--The
Committee shall review each application
received under subclause (I) and submit
recommendations for grant awards to the
Secretary, including funding
recommendations for each proposal.
(III) Public release.--The
Committee shall publicly release any
recommendations made under subclause
(II).
(IV) Consideration of
recommendations.--In awarding grants
under this subsection, the Secretary
shall take into consideration the
recommendations of the Committee under
subclause (II).
(B) Commercialization accelerator grants.--
(i) In general.--The Secretary shall award
grants to support institutions of higher
education pursuing specific innovative
initiatives to improve an institution's
capacity to commercialize faculty research that
can be widely adopted if the research yields
measurable results.
(ii) Content of proposals.--Grants shall be
awarded under this subparagraph to proposals
demonstrating the capacity for accelerated
commercialization, proof-of-concept
proficiency, and translating scientific
discoveries and cutting-edge inventions into
technological innovations and new companies. In
particular, grant funds shall seek to support
innovative approaches to achieving these goals
that can be replicated by other institutions of
higher education if the innovative approaches
are successful.
(iii) Assessment of success.--Grants
awarded under this subparagraph shall use
criteria for assessing the success of programs
through the establishment of technical
milestones.
(C) Collaborative commercialization grants.--
(i) In general.--The Secretary shall award
grants to support institutions of higher
education pursuing initiatives that allow
faculty to directly approach technology
transfer programs outside of their institution
of employment in an effort to commercialize
research breakthroughs.
(ii) Content of initiatives.--Initiatives
eligible to be supported with grant funds
awarded under this subparagraph shall only
include those--
(I) that have a licensing revenue
sharing agreement between the
institution of higher education where
the research originates and the
institution that commercializes the
research; and
(II) for which the first right of
refusal in commercializing research
belongs to the institution of higher
education where the research
originates.
(3) Termination.--The Secretary shall have the authority to
terminate grant funding to an institution of higher education
in accordance with the process and performance metrics
recommended by the Committee.
(4) Limitations.--
(A) Project management costs.--A grant recipient
may use not more than 10 percent of grant funds awarded
under this subsection for the purpose of funding
project management costs of the grant program.
(B) Supplement, not supplant.--An institution of
higher education that receives a grant under this
subsection shall use the grant funds to supplement, and
not supplant, non-Federal funds that would, in the
absence of such grant funds, be made available for
activities described in this section.
(5) Unspent funds.--Any funds transferred to the Secretary
under paragraph (1) for a fiscal year that are not expended by
the end of such fiscal year may be expended in any subsequent
fiscal year through fiscal year 2017. Any funds transferred
under paragraph (1) that are remaining at the end of the grant
program's authorization under this subsection shall be
transferred to the Treasury for deficit reduction.
(c) Committee on Research Commercialization Improvement.--
(1) In general.--Not later than 90 days after the date of
enactment of this section, the Director of the National Science
Foundation shall--
(A) establish the Committee on Research
Commercialization Improvement; and
(B) appoint the members of the Committee described
in subparagraphs (A) through (J) of paragraph (2).
(2) Composition.--The Committee shall be composed of 15
members, of whom--
(A) 1 member shall be an administrator at a private
institution of higher education;
(B) 1 member shall be an administrator at a land-
grant college or university (as defined in section 1404
of the Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103));
(C) 1 member shall be an administrator at a public
institution of higher education;
(D) 1 member shall be a tenured faculty member at
an institution of higher education, whose research has
been commercialized;
(E) 1 member shall be a qualified venture
capitalist, defined as an individual who is employed by
a company that--
(i) is classified as a ``venture capital
operating company'' under section 2510.3-101(d)
of title 29, Code of Federal Regulations;
(ii) is based in the United States;
(iii) is comprised of partners, the
majority of whom are United States citizens;
(iv) has capital commitments of not less
than $10,000,000;
(v) has been operating for not less than 2
years; and
(vi) has made not less than 2 investments
of not less than $500,000 during each of the
most recent 2 years;
(F) 1 member shall be a qualified Angel Investor,
defined as an individual who--
(i) is an accredited investor (as defined
in section 230.501(a) of title 17, Code of
Federal Regulations);
(ii) is a United States citizen; and
(iii) has made not less than 2 equity
investments of not less than $50,000 in each of
the previous 3 years;
(G) 1 member shall be a small business owner or
executive at a company that--
(i) is based in the United States; and
(ii) has worked with an institution of
higher education in commercializing research;
(H) 1 member shall be a chief executive officer at
an innovative and growing company that is based in the
United States;
(I) 2 members shall be individuals who work in a
technology transfer office at an institution of higher
education;
(J) 1 member shall be an individual who works in a
technology transfer office at a company in the
technology sector that generates at least $50,000,000
in revenue annually;
(K) 1 member shall be a technology transfer expert
to be nominated by the National Governors Association;
(L) 1 member shall be a nationally recognized
technology transfer expert who is not employed at the
time of their service on the Committee by a public or
private institution of higher education;
(M) 1 member shall be nominated by the National
Advisory Council on Innovation and Entrepreneurship;
and
(N) 1 member shall be the Director of the National
Science Foundation.
(3) Chair.--
(A) In general.--The Director of the National
Science Foundation shall serve as the Chair of the
Committee.
(B) Replacement of members.--The Director of the
National Science Foundation, in the Director's capacity
as Chair of the Committee, shall appoint a replacement
for any member described in subparagraphs (A) through
(M) of paragraph (2) who leaves membership on the
Committee.
(4) Duties.--
(A) Development of criteria.--Not later than 120
days after the Committee is established and all of the
members of the Committee are appointed, the Committee
shall convene and develop recommendations for criteria
in awarding grants to institutions of higher education
under subsection (b).
(B) Submission to commerce and publicly released.--
The Committee shall--
(i) submit the recommendations described in
subparagraph (A) to the Secretary; and
(ii) release the recommendations to the
public.
(C) Majority vote.--The recommendations submitted
by the Committee, as described in this paragraph, shall
be determined by a majority vote of Committee members.
(D) Performance metrics.--The Committee shall
develop and provide to the Secretary recommendations on
performance metrics to be used to evaluate grants
awarded under subsection (b).
(5) Powers.--
(A) Hearings.--The Committee may hold such
hearings, meet and act at such times and places, take
such testimony, and receive such evidence as the
Committee considers advisable to carry out this
section.
(B) Information from federal agencies.--
(i) In general.--The Committee may secure
directly from a Federal agency such information
as the Committee considers necessary to carry
out this section.
(ii) Provision of information.--On request
of the Chair of the Committee, the head of the
agency shall provide the information to the
Committee.
(C) Postal services.--The Committee may use the
United States mails in the same manner and under the
same conditions as other agencies of the Federal
Government.
(6) Committee personnel matters.--
(A) Compensation of members.--Members of the
Committee shall not receive any compensation for
service on the Committee.
(B) Travel expenses.--A member of the Committee
shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for an
employee of an agency under subchapter I of chapter 57
of title 5, United States Code, while away from the
home or regular place of business of the member in the
performance of the duties of the Committee.
(C) Staff.--
(i) In general.--The Chair of the Committee
may, without regard to the civil service laws
(including regulations), appoint and terminate
an executive director and such other additional
personnel as are necessary to enable the
Committee to perform the duties of the
Committee.
(ii) Confirmation of executive director.--
The employment of an executive director shall
be subject to confirmation by the Committee.
(iii) Compensation.--
(I) In general.--Except as provided
in subparagraph (B), the Chair of the
Committee may fix the compensation of
the executive director and other
personnel without regard to the
provisions of chapter 51 and subchapter
III of chapter 53 of title 5, United
States Code, relating to classification
of positions and General Schedule pay
rates.
(iv) Maximum rate of pay.--The rate of pay
for the executive director and other personnel
shall not exceed the rate payable for level V
of the Executive Schedule under section 5316 of
title 5, United States Code.
(7) Evaluation.--
(A) In general.--Not later than 180 days before the
date that the grant program authorized under subsection
(b) expires, the Committee shall conduct an evaluation
of the effect that the grant program is having on
accelerating the commercialization of faculty research.
(B) Inclusions.--The evaluation shall include--
(i) the recommendation of the Committee as
to whether the grant program should be
continued or terminated;
(ii) quantitative data related to the
effect, if any, that the grant program has had
on faculty research commercialization; and
(iii) a description of lessons learned in
administering the grant program, and how those
lessons could be applied to future efforts to
accelerate commercialization of faculty
research.
(C) Availability.--Upon completion of the
evaluation, the evaluation shall be made available on a
public website and submitted to Congress. The Secretary
shall notify all institutions of higher education when
the evaluation is published and how it can be accessed.
SEC. 8. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS WITH AN
ADVANCED DEGREE IN A STEM FIELD.
(a) In General.--Title II of the Immigration and Nationality Act (8
U.S.C. 1151 et seq.) is amended by inserting after section 216A the
following:
``SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS WITH AN
ADVANCED DEGREE IN A STEM FIELD.
``(a) In General.--Notwithstanding any other provision of this Act,
the Secretary of Homeland Security may adjust the status of not more
than 50,000 aliens who have earned a master's degree or a doctorate
degree at an institution of higher education in a STEM field to that of
an alien conditionally admitted for permanent residence and authorize
each alien granted such adjustment of status to remain in the United
States--
``(1) for up to 1 year after the expiration of the alien's
student visa under section 101(a)(15)(F)(i) if the alien is
diligently searching for an opportunity to become actively
engaged in a STEM field; and
``(2) indefinitely if the alien remains actively engaged in
a STEM field.
``(b) Application for Conditional Permanent Resident Status.--Every
alien applying for a conditional permanent resident status under this
section shall submit an application to the Secretary of Homeland
Security before the expiration of the alien's student visa in such form
and manner as the Secretary shall prescribe by regulation.
``(c) Ineligibility for Federal Government Assistance.--An alien
granted conditional permanent resident status under this section shall
not be eligible, while in such status, for--
``(1) any unemployment compensation (as defined in section
85(b) of the Internal Revenue Code of 1986); or
``(2) any form of assistance or benefit described in
section 403(a) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613(a)).
``(d) Effect on Naturalization Residency Requirement.--An alien
granted conditional permanent resident status under this section shall
be deemed to have been lawfully admitted for permanent residence for
purposes of meeting the 5-year residency requirement set forth in
section 316(a)(1).
``(e) Removal of Condition.--The Secretary of Homeland Security
shall remove the conditional basis of an alien's conditional permanent
resident status under this section on the date that is 5 years after
the date such status was granted if the alien maintained his or her
eligibility for such status during the entire 5-year period.
``(f) Definitions.--In this section:
``(1) The term `actively engaged in a STEM field'--
``(A) means--
``(i) gainfully employed in a for-profit
business or nonprofit organization in the
United States in a STEM field;
``(ii) teaching 1 or more STEM field
courses at an institution of higher education;
or
``(iii) employed by a Federal, State, or
local government entity; and
``(B) includes any period of up to 6 months during
which the alien does not meet the requirement under
subparagraph (A) if such period was immediately
preceded by a 1-year period during which the alien met
the requirement under subparagraph (A).
``(2) The term `institution of higher education' has the
meaning given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
``(3) The term `STEM field' means any field of study or
occupation included on the most recent STEM-Designated Degree
Program List published in the Federal Register by the
Department of Homeland Security (as described in section
214.2(f)(11)(C)(2) of title 8, Code of Federal Regulations).''.
(b) Clerical Amendment.--The table of contents for the Immigration
and Nationality Act (8 U.S.C. 1101 et seq.) is amended by inserting
after the item relating to section 216A the following:
``Sec. 216B. Conditional permanent resident status for aliens with an
advanced degree in science, technology,
engineering, or mathematics.''.
(c) Government Accountability Office Study.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit a report to Congress on the alien
college graduates granted immigrant status under section 216B
of the Immigration and Nationality Act, as added by subsection
(a).
(2) Contents.--The report described in paragraph (1) shall
include--
(A) the number of aliens described in paragraph (1)
who have earned a master's degree, broken down by the
number of such degrees in science, technology,
engineering, and mathematics;
(B) the number of aliens described in paragraph (1)
who have earned a doctorate degree, broken down by the
number of such degrees in science, technology,
engineering, and mathematics;
(C) the number of aliens described in paragraph (1)
who have founded a business in the United States in a
STEM field;
(D) the number of aliens described in paragraph (1)
who are employed in the United States in a STEM field,
broken down by employment sector (for profit,
nonprofit, or government); and
(E) the number of aliens described in paragraph (1)
who are employed by an institution of higher education.
(3) Definitions.--The terms ``institution of higher
education'' and ``STEM field'' have the meaning given such
terms in section 216B(f) of the Immigration and Nationality
Act, as added by subsection (a).
SEC. 9. ALIEN ENTREPRENEURS.
(a) Qualified Alien Entrepreneurs.--
(1) Admission as immigrants.--Chapter 1 of title II of the
Immigration and Nationality Act (8 U.S.C. 1151 et seq.) is
amended by adding at the end the following:
``SEC. 210A. QUALIFIED ALIEN ENTREPRENEURS.
``(a) Admission as Immigrants.--The Secretary of Homeland Security,
in accordance with the provisions of this section and section 216A, may
issue a conditional immigrant visa to not more than 75,000 qualified
alien entrepreneurs.
``(b) Application for Conditional Permanent Resident Status.--Every
alien applying for a conditional immigrant visa under this section
shall submit an application to the Secretary of Homeland Security in
such form and manner as the Secretary shall prescribe by regulation.
``(c) Revocation.--If, during the 4-year period beginning on the
date that an alien is granted a visa under this section, the Secretary
of Homeland Security determines that such alien is no longer a
qualified alien entrepreneur, the Secretary shall--
``(1) revoke such visa; and
``(2) notify the alien that the alien--
``(A) may voluntarily depart from the United States
in accordance to section 240B; or
``(B) will be subject to removal proceedings under
section 240 if the alien does not depart from the
United States not later than 6 months after receiving
such notification.
``(d) Removal of Conditional Basis.--The Secretary shall remove the
conditional basis of the status of an alien issued an immigrant visa
under this section on that date that is 4 years after the date on which
such visa was issued if such visa was not revoked pursuant to
subsection (c).
``(e) Definitions.--In this section:
``(1) The term `full-time employee' means a United States
citizen or legal permanent resident who is paid by the new
business entity registered by a qualified alien entrepreneur at
a rate that is comparable to the median income of employees in
the region.
``(2) The term `institution of higher education' has the
meaning given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
``(3) The term `qualified alien entrepreneur' means an
alien who--
``(A) at the time the alien applies for an
immigrant visa under this section--
``(i) is lawfully present in the United
States;
``(ii)(I) holds a nonimmigrant visa
pursuant to section 101(a)(15)(H)(i)(b); or
``(II) has completed or will complete a
graduate level degree in a STEM field from an
institution of higher education;
``(B) during the 1-year period beginning on the
date the alien is granted a visa under this section--
``(i) registers at least 1 new business
entity in a State;
``(ii) employs, at such business entity in
the United States, at least 2 full-time
employees who are not relatives of the alien;
and
``(iii) invests, or raises capital
investment of, not less than $100,000 in such
business entity; and
``(C) during the 3-year period beginning on the
last day of the 1-year period described in paragraph
(2), employs, at such business entity in the United
States, an average of at least 5 full-time employees
who are not relatives of the alien.
``(4) The term `STEM field' means any field of study or
occupation included on the most recent STEM-Designated Degree
Program List published in the Federal Register by the
Department of Homeland Security (as described in section
214.2(f)(11)(C)(2) of title 8, Code of Federal Regulations).''.
(2) Table of contents amendment.--The table of contents in
the first section of the Immigration and Nationality Act (8
U.S.C. 1101 et seq.) is amended by adding after the item
relating to section 210 the following:
``Sec. 210A. Qualified alien entrepreneurs.''.
(b) Conditional Permanent Resident Status.--Section 216A of the
Immigration and Nationality Act (8 U.S.C. 1186b) is amended--
(1) by striking ``Attorney General'' each place such term
appears and inserting ``Secretary of Homeland Security'';
(2) in subsection (b)(1)(C), by striking ``203(b)(5),'' and
inserting ``203(b)(5) or 210A, as appropriate,'';
(3) in subsection (c)(1), by striking ``alien entrepreneur
must'' each place such term appears and inserting ``alien
entrepreneur shall'';
(4) in subsection (d)(1)(B), by striking the period at the
end and inserting ``or 210A, as appropriate.''; and
(5) in subsection (f)(1), by striking the period at the end
and inserting ``or 210A.''.
(c) Government Accountability Office Study.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit a report to Congress on the
qualified alien entrepreneurs granted immigrant status under
section 210A of the Immigration and Nationality Act, as added
by subsection (a).
(2) Contents.--The report described in paragraph (1) shall
include information regarding--
(A) the number of qualified alien entrepreneurs who
have received immigrant status under section 210A of
the Immigration and Nationality Act, as added by
subsection (a), listed by country of origin;
(B) the localities in which such qualified alien
entrepreneurs have initially settled;
(C) whether such qualified alien entrepreneurs
generally remain in the localities in which they
initially settle;
(D) the types of commercial enterprises that such
qualified alien entrepreneurs have established; and
(E) the types and number of jobs created by such
qualified alien entrepreneurs.
SEC. 10. BIENNIAL STATE STARTUP BUSINESS REPORT.
(a) Data Collection.--The Secretary of Commerce shall regularly
compile information from each of the 50 States and the District of
Columbia on State laws that affect the formation and growth of new
businesses within the State or District.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 2 years thereafter, the Secretary,
using data compiled under subsection (a), shall prepare a report that--
(1) analyzes the economic effect of State and District laws
that either encourage or inhibit business formation and growth;
and
(2) ranks the States and the District based on the
effectiveness with which their laws foster new business
creation and economic growth.
(c) Distribution.--The Secretary shall--
(1) submit each report prepared under subsection (b) to
Congress; and
(2) make each report available to the public on the
Department of Commerce's website.
(d) Inclusion of Large Metropolitan Areas.--Not later than 90 days
after the submission of the first report under this section, the
Secretary of Commerce shall submit to Congress a study on the
feasibility and advisability of including, in future reports,
information about the effect of local laws and ordinances on the
formation and growth of new businesses in large metropolitan areas
within the United States.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 11. NEW BUSINESS FORMATION REPORT.
(a) In General.--The Secretary of Commerce shall regularly compile
quantitative and qualitative information on businesses in the United
States that are not more than 1 year old.
(b) Data Collection.--The Secretary shall--
(1) regularly compile information from the Bureau of the
Census' business register on new business formation in the
United States; and
(2) conduct quarterly surveys of business owners who start
a business during the 1-year period ending on the date on which
such survey is conducted to gather qualitative information
about the factors that influenced their decision to start the
business.
(c) Random Sampling.--In conducting surveys under subsection
(b)(2), the Secretary may use random sampling to identify a group of
business owners who are representative of all the business owners
described in subsection (b)(2).
(d) Benefits.--The Secretary shall inform business owners selected
to participate in a survey conducted under this section of the benefits
they would receive from participating in the survey.
(e) Voluntary Participation.--Business owners selected to
participate in a survey conducted under this section may decline to
participate without penalty.
(f) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 3 months thereafter, the Secretary
shall use the data compiled under subsection (b) to prepare a report
that--
(1) lists the aggregate number of new businesses formed in
the United States;
(2) lists the aggregate number of persons employed by new
businesses formed in the United States;
(3) analyzes the payroll of new businesses formed in the
United States;
(4) summarizes the data collected under subsection (b); and
(5) identifies the most effective means by which government
officials can encourage the formation and growth of new
businesses in the United States.
(g) Distribution.--The Secretary shall--
(1) submit each report prepared under subsection (f) to
Congress; and
(2) make each report available to the public on the
Department of Commerce's website.
(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
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