1.Short
title; table of contents
(a)This Act may be cited as the Startup Act 2.0
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Findings.
Sec. 3. Conditional permanent resident status for immigrants
with an advanced degree in a STEM field.
Sec. 4. Immigrant entrepreneurs.
Sec. 5. Elimination of the per-country numerical limitation for
employment-based visas.
Sec. 6. Capital gains tax exemption for startup
companies.
Sec. 7. Research credit for startup companies.
Sec. 8. Accelerated commercialization of taxpayer-funded
research.
Sec. 9. Economic impact of major Federal agency
rules.
Sec. 10. Biennial State startup business report.
Sec. 11. New business formation report.
Sec. 12. Rescission of unspent Federal funds.
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 innovate, create new companies, and
hire employees.
3.Conditional permanent
resident status for immigrants with an advanced degree in a STEM field
(a)Chapter 2 of title II of the Immigration and Nationality
Act (8 U.S.C. 1181 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 Federal
means-tested public benefit (as that term is used in section 403 of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1613)).
(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)Actively
engaged in a STEM fieldThe 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)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)).
(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)(i)(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 a STEM
field.
.
(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 to Congress
a report 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).
4.
(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 of Homeland Security 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)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)).
(3)Qualified alien
entrepreneurThe 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;
and
(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)(i)(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 to Congress
a report 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.
5.Elimination of
the per-country numerical limitation for employment-based visas
(a)Section 202(a)(2) of
the Immigration and Nationality Act (8 U.S.C. 1152(a)(2)) is amended—
(1)in the paragraph
heading, by striking and
employment-based
;
(2)by striking
(3), (4), and (5),
and inserting (3) and
(4),
;
(3)by striking
subsections (a) and (b) of section 203
and inserting
section 203(a)
;
(4)by striking
7
and inserting 15
; and
(5)by striking
such subsections
and inserting such
section
.
(b)Section 202 of the Immigration and Nationality Act (8
U.S.C. 1152) is amended—
(1)in subsection
(a)(3), by striking both subsections (a) and (b) of section 203
and inserting section 203(a)
;
(2)by striking subsection (a)(5); and
(3)by amending
subsection (e) to read as follows:
(e)Special rules
for countries at ceilingIf
it is determined that the total number of immigrant visas made available under
section 203(a) to natives of any single foreign state or dependent area will
exceed the numerical limitation specified in subsection (a)(2) in any fiscal
year, in determining the allotment of immigrant visa numbers to natives under
section 203(a), visa numbers with respect to natives of that state or area
shall be allocated (to the extent practicable and otherwise consistent with
this section and section 203) in a manner so that, except as provided in
subsection (a)(4), the proportion of the visa numbers made available under each
of paragraphs (1) through (4) of section 203(a) is equal to the ratio of the
total number of visas made available under the respective paragraph to the
total number of visas made available under section
203(a).
.
(c)Section 2 of the
Chinese Student Protection Act of 1992 (8 U.S.C. 1255 note) is amended—
(1)in subsection (a),
by striking subsection (e))
and inserting subsection
(d))
; and
(2)by striking
subsection (d) and redesignating subsection (e) as subsection (d).
(d)The amendments made by this section shall take effect as if
enacted on September 30, 2011, and shall apply to fiscal years beginning with
fiscal year 2012.
(e)Transition rules
for employment-Based immigrants
(1)Subject to the
succeeding paragraphs of this subsection and notwithstanding title II of the
Immigration and Nationality Act (8 U.S.C. 1151 et seq.), the following rules
shall apply:
(A)For fiscal year
2012, 15 percent of the immigrant visas made available under each of paragraphs
(2) and (3) of section 203(b) of such Act (8 U.S.C. 1153(b)) shall be allotted
to immigrants who are natives of a foreign state or dependent area that was not
one of the two states with the largest aggregate numbers of natives obtaining
immigrant visas during fiscal year 2010 under such paragraphs.
(B)For fiscal year
2013, 10 percent of the immigrant visas made available under each of such
paragraphs shall be allotted to immigrants who are natives of a foreign state
or dependent area that was not one of the two states with the largest aggregate
numbers of natives obtaining immigrant visas during fiscal year 2011 under such
paragraphs.
(C)For fiscal year
2014, 10 percent of the immigrant visas made available under each of such
paragraphs shall be allotted to immigrants who are natives of a foreign state
or dependent area that was not one of the two states with the largest aggregate
numbers of natives obtaining immigrant visas during fiscal year 2012 under such
paragraphs.
(2)
(A)With respect to the
visas reserved under each of subparagraphs (A) through (C) of paragraph (1),
the number of such visas made available to natives of any single foreign state
or dependent area in the appropriate fiscal year may not exceed 25 percent (in
the case of a single foreign state) or 2 percent (in the case of a dependent
area) of the total number of such visas.
(B)With respect to the
immigrant visas made available under each of paragraphs (2) and (3) of section
203(b) of such Act (8 U.S.C. 1153(b)) and not reserved under paragraph (1), for
each of fiscal years 2012, 2013, and 2014, not more than 85 percent shall be
allotted to immigrants who are natives of any single foreign state.
(3)Special rule to
prevent unused visasIf, with
respect to fiscal year 2012, 2013, or 2014, the operation of paragraphs (1) and
(2) of this subsection would prevent the total number of immigrant visas made
available under paragraph (2) or (3) of section 203(b) of such Act (8 U.S.C.
1153(b)) from being issued, such visas may be issued during the remainder of
such fiscal year without regard to paragraphs (1) and (2) of this
subsection.
(4)Section 202(b)
of the Immigration and Nationality Act (8 U.S.C. 1152(b)) shall apply in
determining the foreign state to which an alien is chargeable for purposes of
this subsection.
6.Capital gains tax
exemption for startup companies
(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, 2012.
7.Research credit for
startup companies
(a)
(1)Section 41 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
(i)Treatment of
credit to qualified small businesses
(1)For purposes of subsections (b) and (c) of section 6401,
the amount of the credit determined under this section which is attributable to
a qualified small business shall be treated as a credit allowed under subpart C
of part IV of subchapter A for the taxable year (and not under any other
subpart). For purposes of section 6425, any amount treated as so allowed shall
be treated as a payment of estimated income tax for the taxable year.
(2)The amount of overpayment by reason of paragraph (1)
for any qualified small business for any taxable year shall not exceed the
lesser of—
(A)$250,000,
or
(B)20 percent of the
W–2 wages (as defined in section 199(b)(2), determined without regard to
subparagraphs (B) and (D) thereof) of the qualified small business for the
taxable year.
(3)Paragraph (1) shall not apply with respect to a
qualified small business if there has been an overpayment by such qualified
small business by reason of paragraph (1) with respect to 5 or more preceding
taxable years.
(4)For purposes of this subsection the term qualified
small business means, with respect to any taxable year, any person
if—
(A)the gross
receipts (as determined under subsection (c)(7)) of such person for the taxable
year is less than $5,000,000, and
(B)such person did
not have gross receipts for any period preceding the 5-taxable-year period
ending with such taxable year.
(5)For purposes of determining the limitation under paragraph
(2) and determining gross receipts under paragraph (4)(A), all members of the
same controlled group of corporations (within the meaning of section 267(f))
and all persons under common control (within the meaning of section 52(b) but
determined by treating an interest of more than 50 percent as a controlling
interest) shall be treated as 1 person.
(6)The
Secretary shall prescribe such regulations as may be necessary to carry out the
purposes of this subsection, including—
(A)regulations to
prevent the avoidance of the purposes of paragraph (4)(B) through the use of
successor companies or other means, and
(B)regulations to
minimize compliance and recordkeeping burdens under this subsection for
start-up
companies.
.
(2)
(A)Subsection (g) of
section 41 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new sentence: This subsection shall not apply with respect
to any amount determined under subsection (a) to which subsection (i)
applies.
.
(B)Section
1324(b)(2) of title 31, United States Code, is amended by inserting
41(i),
after 36A,
.
(b)The amendments made by this section shall apply to taxable
years beginning after December 31, 2011.
8.Accelerated
commercialization of taxpayer-funded research
(a)In
this section, the following definitions shall apply:
(1)The
term Council means the Advisory Council on Innovation and
Entrepreneurship of the Department of Commerce established pursuant to section
25(c) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3720(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 2013 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 Council 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 Council 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 Council for Council review.
(II)The
Council 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 Council 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 Council
under subclause (II).
(B)Commercialization
capacity building 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.
(C)Commercialization
accelerator grantsThe Secretary shall award grants to support
institutions of higher education pursuing initiatives that allow faculty to
directly commercialize research in an effort to accelerate research
breakthroughs. The Secretary may prioritize those initiatives that have a
management structure that encourages collaboration between other institutions
of higher education or other entities with demonstrated proficiency in creating
and growing new companies based on verifiable metrics.
(3)Grants awarded under this subsection shall use criteria
for assessing the success of programs through the establishment of
benchmarks.
(4)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 Council.
(5)
(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.
(6)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)
(1)Not later than 120 days after the date of the enactment
of this Act, the Council shall convene and develop recommendations for criteria
in awarding grants to institutions of higher education under subsection
(b).
(2)Submission to
Commerce and publicly releasedThe Council shall—
(A)submit the
recommendations described in subparagraph (A) to the Secretary; and
(i)release the
recommendations to the public.
(B)The recommendations submitted by the Council, as described
in this paragraph, shall be determined by a majority vote of Council
members.
(C)The Council shall develop and provide to the Secretary
recommendations on performance metrics to be used to evaluate grants awarded
under subsection (b).
(3)
(A)Not later than 180 days before the date that the grant
program authorized under subsection (b) expires, the Council 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 Council 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.
(d)Nothing
in this section may be construed to alter, modify, or amend any provision of
chapter 18 of title 35, United States Code (commonly known as the
Bayh-Dole Act
).
9.Economic impact
of major Federal agency 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.
.
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.
12.Rescission of
unspent Federal funds
(a)Notwithstanding any other provision of law, of all
available unobligated funds for fiscal year 2012, the amount necessary to carry
out this Act and the amendments made by this Act in appropriated discretionary
funds are hereby rescinded.
(b)The
Director of the Office of Management and Budget shall determine and identify
from which appropriation accounts the rescission under subsection (a) shall
apply and the amount of such rescission that shall apply to each such account.
Not later than 60 days after the date of the enactment of this Act, the
Director of the Office of Management and Budget shall submit a report to the
Secretary of the Treasury and Congress of the accounts and amounts determined
and identified for rescission under the preceding sentence.