1.Short
title; table of contents
(a)This Act may be cited
as the Startup Act of
2011
.
(b)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.
2.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.
3.Economic impact
of major rulesSection 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)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)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)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)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)In this subsection the term major rule has the
meaning given the term in section
804.
.
4.Permanent full
exclusion applicable to qualified small business stock
(a)
(1)Subsection (a) of section 1202 of the Internal Revenue
Code of 1986 is amended to read as follows:
(a)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)
(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)Subsection (a) of section 57 of the Internal Revenue Code
of 1986 is amended by striking paragraph (7).
(2)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)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)
(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)The amendments made by this section apply to stock acquired
after December 31, 2011.
5.Income tax
credit for certain startup small businesses
(a)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 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)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 creditThis 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)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)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)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.
6.Study of
regulatory impact of possible Sarbanes-Oxley reformIn 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)).
7.Accelerated
commercialization of university-based research
(a)In
this section:
(1)The
term Committee means the Committee on Research Commercialization
Improvement established under subsection (c).
(2)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 educationThe 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 developmentThe 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)The
term Secretary means the Secretary of Commerce.
(b)
(1)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)
(A)
(i)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)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)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)
(I)The Secretary shall submit each application received
under clause (iii) to the Committee for Committee review.
(II)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)The Committee shall publicly release any recommendations
made under subclause (II).
(IV)Consideration
of recommendationsIn awarding grants under this subsection, the
Secretary shall take into consideration the recommendations of the Committee
under subclause (II).
(B)Commercialization
accelerator grants
(i)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)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)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)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)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)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)
(A)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)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)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)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)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)
(A)The Director of the National Science Foundation shall
serve as the Chair of the Committee.
(B)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)
(A)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 releasedThe Committee shall—
(i)submit the
recommendations described in subparagraph (A) to the Secretary; and
(ii)release the
recommendations to the public.
(C)The recommendations submitted by the Committee, as described
in this paragraph, shall be determined by a majority vote of Committee
members.
(D)The Committee shall develop and provide to the Secretary
recommendations on performance metrics to be used to evaluate grants awarded
under subsection (b).
(5)
(A)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)The Committee may secure directly from a Federal agency
such information as the Committee considers necessary to carry out this
section.
(ii)On request of the Chair of the Committee, the head of
the agency shall provide the information to the Committee.
(C)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)Members of the Committee shall not receive any
compensation for service on the Committee.
(B)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)
(i)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 directorThe employment of an executive director
shall be subject to confirmation by the Committee.
(iii)
(I)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)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)
(A)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)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)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.
8.Conditional permanent
resident status for aliens with an advanced degree in a STEM field
(a)Title II of the Immigration and Nationality Act (8 U.S.C.
1151 et seq.) is amended by inserting after section 216A the following:
216B.Conditional
permanent resident status for aliens with an advanced degree in a STEM
field
(a)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 statusEvery 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 assistanceAn 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 requirementAn 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)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)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)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)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)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)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).
9.
(a)Qualified alien
entrepreneurs
(1)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:
210A.Qualified
alien entrepreneurs
(a)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 statusEvery 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)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 basisThe 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)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 amendmentThe 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
statusSection 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)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)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.
10.Biennial State
startup business report
(a)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)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)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 areasNot 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
appropriationsThere are
authorized to be appropriated such sums as may be necessary to carry out this
section.
11.New business
formation report
(a)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)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)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)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)Business owners selected to participate in a survey
conducted under this section may decline to participate without penalty.
(f)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)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 appropriationsThere are
authorized to be appropriated such sums as may be necessary to carry out this
section.