[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 328 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 328
To jump-start economic recovery through the formation and growth of new
businesses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 4, 2019
Mr. Moran (for himself, Mr. Warner, Mr. Blunt, and Ms. Klobuchar)
introduced the following bill; which was read twice and referred to the
Committee on the Judiciary
_______________________________________________________________________
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''.
(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. 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. Accelerated commercialization of taxpayer-funded research.
Sec. 7. Regional innovation program.
Sec. 8. Economic impact of significant Federal agency rules.
Sec. 9. Biennial State startup business report.
Sec. 10. New business formation report.
Sec. 11. Rescission of unspent Federal funds.
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 that were 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.
SEC. 3. CONDITIONAL PERMANENT RESIDENT STATUS FOR IMMIGRANTS WITH AN
ADVANCED DEGREE IN A STEM FIELD.
(a) In General.--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:
``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--
``(1) 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
``(2) authorize each alien granted an adjustment of status
under paragraph (1) to remain in the United States--
``(A) 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
``(B) indefinitely if the alien remains actively
engaged in a STEM field.
``(b) Application for Conditional Permanent Resident Status.--Every
alien applying for 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 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 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 under 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) Actively engaged in a stem field.--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) 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)).
``(3) STEM field.--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) Clerical Amendment.--The table of contents of the Immigration
and Nationality Act (8 U.S.C. 1101 note) 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) 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 regarding the
alien college graduates who were granted immigrant status under
section 216B of the Immigration and Nationality Act, as added
by subsection (a).
(2) Contents.--The report required under 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 meanings given such
terms in section 216B(f) of the Immigration and Nationality
Act, as added by subsection (a).
SEC. 4. IMMIGRANT 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
may issue a conditional immigrant visa, in accordance with this section
and section 216A, 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 on which an alien is granted a visa under this section, the
Secretary of Homeland Security determines that the alien is no longer a
qualified alien entrepreneur, the Secretary shall--
``(1) revoke such visa; and
``(2) notify the alien that he or she--
``(A) may voluntarily depart from the United States
in accordance with 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
notification under this paragraph.
``(d) Removal of Conditional Basis.--The 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) Definitions.--In this section:
``(1) Full-time employee.--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) Qualified alien entrepreneur.--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; and
``(ii)(I) holds a nonimmigrant visa issued
pursuant to section 101(a)(15)(H)(i)(b); or
``(II) holds a nonimmigrant visa issued
pursuant to section 101(a)(15)(F)(i);
``(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.''.
(2) Clerical amendment.--The table of contents of the
Immigration and Nationality Act (8 U.S.C. 1101 note) 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 regarding the
qualified alien entrepreneurs who were 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. 5. ELIMINATION OF THE PER COUNTRY NUMERICAL LIMITATION FOR
EMPLOYMENT-BASED VISAS.
(a) In General.--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) Conforming Amendments.--Section 202 of the Immigration and
Nationality Act (8 U.S.C. 1152) is amended--
(1) in subsection (a)--
(A) in paragraph (3), by striking ``both
subsections (a) and (b) of section 203'' and inserting
``section 203(a)''; and
(B) by striking paragraph (5); and
(2) by amending subsection (e) to read as follows:
``(e) Special Rules for Countries at Ceiling.--If 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) Country-Specific Offset.--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) Effective Date.--The amendments made by this section shall take
effect on September 30, 2019, and shall apply to fiscal years beginning
with fiscal year 2020.
(e) Transition Rules for Employment-Based Immigrants.--
(1) In general.--Subject to 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 2020, 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 1 of the 2 foreign states with the largest
aggregate numbers of natives obtaining immigrant visas
during fiscal year 2018 under such paragraphs.
(B) For fiscal year 2021, 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 1 of the 2 foreign states with the largest
aggregate numbers of natives obtaining immigrant visas
during fiscal year 2019 under such paragraphs.
(C) For fiscal year 2022, 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 1 of the 2 foreign states with the largest
aggregate numbers of natives obtaining immigrant visas
during fiscal year 2020 under such paragraphs.
(2) Per-country levels.--
(A) Reserved visas.--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) Unreserved visas.--With respect to the
immigrant visas made available under each of paragraphs
(2) and (3) of section 203(b) of the Immigration and
Nationality Act (8 U.S.C. 1153(b)) and not reserved
under paragraph (1), for each of fiscal years 2020,
2021, and 2022, not more than 85 percent shall be
allotted to immigrants who are natives of any single
foreign state.
(3) Special rule to prevent unused visas.--If, with respect
to fiscal year 2020, 2021, or 2022, the operation of paragraphs
(1) and (2) would prevent the total number of immigrant visas
made available under paragraph (2) or (3) of section 203(b) of
the Immigration and Nationality 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 such paragraphs (1) and (2).
(4) Rules for chargeability.--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.
SEC. 6. ACCELERATED COMMERCIALIZATION OF TAXPAYER-FUNDED RESEARCH.
(a) Definitions.--In this section:
(1) Council.--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) Eligible entity.--The term ``eligible entity'' means--
(A) an institution of higher education; or
(B) a venture development organization.
(3) Extramural budget.--
(A) In general.--Except as provided in subparagraph
(B), 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.
(B) Exceptions.--The term ``extramural budget''
shall not include--
(i) with respect to the Department of
Energy, amounts obligated for--
(I) atomic energy defense programs
solely for weapons activities; or
(II) naval reactor programs; and
(ii) with respect to United States Agency
for International Development, amounts
obligated solely for--
(I) general institutional support
of international research centers; or
(II) grants to foreign countries.
(4) 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)).
(5) Nonprofit organization.--The term ``nonprofit
organization'' means an entity or organization--
(A)(i) described in section 501(c)(3) of the
Internal Revenue Code of 1986; and
(ii) exempt from taxation under 501(a) of such Act;
or
(B) described in paragraph (1) or (2) of section
170(c) of such Act.
(6) Research or research and development.--The terms
``research'' and ``research and development'' mean 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.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(8) State organization.--The term ``State organization''
means an entity that has been created by--
(A) a State;
(B) the Commonwealth of Puerto Rico; or
(C) the District of Columbia.
(9) Venture development organization.--The term ``venture
development organization'' means a State or nonprofit
organization that contributes to regional or sector-based
economic prosperity by providing a portfolio of services
intended to accomplish at least 3 of the following purposes:
(A) Accelerating the commercialization of research
or research and development.
(B) Assisting in the creation of high-growth
private enterprises that are commercializing
technology.
(C) Strengthening the competitive position of
existing small- and medium-sized enterprises through
the development, commercial adoption, or deployment of
technology.
(D) Providing expert assistance to--
(i) private companies;
(ii) faculty, staff, and students of
institutions of higher education who are
commercializing new products or services; or
(iii) entrepreneurs who are commercializing
new products or services.
(E) Providing financial grants, loans, or direct
financial investment in companies that are
commercializing technology.
(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 the fiscal years 2020
through 2024, 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
pursuant to paragraph (1), the Secretary shall
use the criteria developed by the Council to
award grants to eligible entities for
initiatives to improve commercialization and
transfer of technology.
(ii) Request for proposals.--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) Applications.--Eligible entities that
desire 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) Council review.--
(I) In general.--The Secretary
shall submit each application received
under clause (iii) to the Council for
Council review.
(II) Recommendations.--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) Public release.--The Council
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 Council under
subclause (II).
(B) Commercialization capacity building grants.--
(i) In general.--The Secretary shall award
grants to eligible entities to support specific
innovative initiatives to improve the regional
capacity for private companies, faculty, staff,
and students of institutions of higher
education, or entrepreneurs to commercialize
technology originating from federally funded
research.
(ii) Content of proposals.--Grants shall be
awarded under this subparagraph for--
(I) 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; and
(II) innovative approaches to
achieving the goals referred to in
subclause (I) that can be replicated by
other institutions of higher education
or venture development organizations if
the innovative approaches are
successful.
(3) Assessment of success.--Grants awarded under this
subsection shall use criteria for assessing the success of
programs through the establishment of benchmarks.
(4) Termination.--The Secretary is authorized to terminate
grant funding to an eligible entity in accordance with the
process and performance metrics recommended by the Council.
(5) 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 eligible entity
that receives a grant under this subsection shall use
the grant funds to supplement, and not to supplant,
non-Federal funds that would, in the absence of such
grant funds, be made available for activities described
in this section.
(6) 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 2024. 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) Council.--
(1) In general.--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
eligible entities under subsection (b).
(2) Submission to department of commerce and public
release.--The Council shall--
(A) submit the recommendations described in
paragraph (1) to the Secretary; and
(B) release the recommendations to the public.
(3) Majority vote.--The recommendations submitted by the
Council under paragraph (2) shall be determined by a majority
vote of Council members.
(4) Performance metrics.--The Council shall develop and
provide to the Secretary recommendations on performance metrics
to be used to evaluate grants awarded under subsection (b).
(5) Evaluation.--
(A) In general.--Not later than 180 days before the
expiration of the grant program authorized under
subsection (b), the Council shall evaluate the effect
of the grant program on accelerating the
commercialization of technology originating from
federally funded research or research and development.
(B) Inclusions.--The evaluation under subparagraph
(A) 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 accelerating the commercialization of
technology originating from federally funded
research and research and development; and
(iii) a description of the lessons learned
in administering the grant program, and how
such lessons could be applied to future efforts
to accelerate the commercialization of
technology originating from federally funded
research or research and development.
(C) Availability.--The results of the evaluation
under subparagraph (A) 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) Rule of Construction.--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'').
SEC. 7. REGIONAL INNOVATION PROGRAM.
Section 27 of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3722) is amended to read as follows:
``SEC. 27. REGIONAL INNOVATION PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible recipient defined.--The term `eligible
recipient' means--
``(A) a State;
``(B) an Indian tribe;
``(C) a city or other political subdivision of a
State;
``(D) an entity that is a nonprofit organization,
an institution of higher education, a public-private
partnership, a science or research park, a Federal
laboratory, a venture development organization (as
defined in section 6(a) of the Startup Act), or an
economic development organization or similar entity
that is focused primarily on improving science,
technology, innovation, and entrepreneurship; or
``(E) a consortium of any of the entities described
in subparagraphs (A) through (D).
``(2) Regional innovation initiative.--The term `regional
innovation initiative' means a public or nonprofit activity or
program implemented in a specific geographic area to address
issues of greatest need in the local innovation systems--
``(A) to increase the success of innovation-driven
startups;
``(B) to strengthen the competitiveness of existing
businesses through new product innovation;
``(C) to improve the pace of market readiness and
overall commercialization of innovation; and
``(D) to enhance the overall innovation capacity
and long-term resilience of the region.
``(3) State.--The term `State' means one of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, or any other territory or possession of the United
States.
``(b) Establishment.--The Secretary shall establish a regional
innovation program to encourage and support the development of State
and local initiatives designed to increase innovation-driven economic
opportunity within their respective regions.
``(c) Regional Innovation Grants.--
``(1) Authorization of grants.--As part of the program
established under subsection (b), the Secretary may award
grants, on a competitive basis, to eligible recipients for
activities designed to strengthen the competitiveness of new
and existing innovation-driven businesses within the geographic
regions identified by eligible recipients before receiving a
grant under this subsection.
``(2) Permissible activities.--Grants awarded under this
subsection may be used for activities determined appropriate by
the Secretary that strive to achieve 3 or more of the following
outcomes:
``(A) Increasing the availability and investment of
private and philanthropic financing that supports
innovation-based business ventures within geographic
regions and populations that have historically received
less venture capital than the average per capita amount
of venture capital received by businesses throughout
the United States during the previous 3 years, as
determined by the Secretary.
``(B) Completing the research, development and
introduction of new products, processes, and services
into the commercial market by United States companies,
as measured by increased revenues, increased sales,
greater market share, reduce costs, increased market
value, or overall profitability increase, as reported
by the participating companies to the Secretary.
``(C) Increasing the number of full-time equivalent
employment opportunities within innovation-based
business ventures in the geographic region that pay
wages that are higher than the median for the
geographic region.
``(D) Using innovation, technology, and innovation-
based business ventures to help the public and
nonprofit sectors--
``(i) to reduce costs associated with
carrying out their missions and services; or
``(ii) to achieve other quantifiable
efficiencies, savings, or reductions in
carrying out their operations and service
delivery.
``(E) Achieving quantifiable, positive benefits to,
or measurable enhancements for, the economic
performance of the geographic region or the population
within the region identified by the regional innovation
program grant recipient through increased
collaboration, productive partnerships, and
strengthened network relationships (internal and
external to the region) that support the regional
innovation system.
``(3) Restricted activities.--Grants awarded under this
subsection may not be used to pay for--
``(A) costs related to the construction, expansion,
demolition, renovation, or installation of physical
assets;
``(B) costs related to the recruitment, inducement,
or associated financial or tangible incentives that
might be offered to relocate an existing business from
a geographic area to another geographic area; or
``(C) costs associated with offsetting revenues
forgone by one or more taxing authorities through tax
incentives, tax increment financing, special
improvement districts, tax abatements for private
development within designated zones or geographic
areas, or other reduction in revenues resulting from
tax credits affecting the geographic region of the
eligible recipients.
``(4) Applications.--
``(A) In general.--An eligible recipient shall
submit an application to the Secretary at such time, in
such manner, and containing such information and
assurances as the Secretary may require.
``(B) Components.--Each application submitted under
subparagraph (A) shall include a description of the
regional innovation initiative supported by the
proposed activity, including--
``(i) whether the regional innovation
initiative is supported by the private sector,
State and local governments, and other relevant
stakeholders;
``(ii) which 3 or more of the outcomes
described in paragraph (2) will the regional
innovation initiative address by implementing
the activities described in the application;
``(iii) what activities the regional
innovation initiative will undertake and how
those activities will achieve the outcomes
described in paragraph (2);
``(iv) how the eligible recipient will
measure progress toward, and attainment of, the
outcomes addressed by the regional innovation
initiative;
``(v) whether the participants in the
regional innovation initiative have access to,
or contribute to, a well-trained workforce and
other innovation assets that are critical to
the successful outcomes specified in the
application;
``(vi) whether the participants in the
regional innovation initiative are capable of
attracting additional funds from non-Federal
sources; and
``(vii) if appropriate for the activities
proposed in the application, the likelihood
that the participants in the regional
innovation initiative will be able to sustain
activities after grant funds received under
this subsection have been expended.
``(C) Feedback.--The Secretary shall provide
feedback to program applicants that are not awarded
grants to help them improve future applications.
``(D) Special considerations.--The Secretary shall
give special consideration to--
``(i) applications proposing to include
workforce or training related activities in
their regional innovation initiative from
eligible recipients who agree to collaborate
with local workforce investment area boards;
and
``(ii) applications from regions that
contain communities negatively impacted by
trade.
``(5) Cost share.--The Secretary may not provide more than
50 percent of the total cost of any activity funded under this
subsection.
``(6) Outreach to rural communities.--The Secretary shall
conduct outreach to public and private sector entities in rural
communities to encourage those entities to participate in
regional innovation initiatives under this subsection.
``(7) Funding.--The Secretary may accept funds from other
Federal agencies to support grants and activities under this
subsection.
``(d) Regional Innovation Research and Information Program.--
``(1) In general.--As part of the program established under
subsection (b), the Secretary shall establish a regional
innovation research and information program--
``(A) to gather, analyze, and disseminate
information on best practices for regional innovation
initiatives, including information relating to how
innovation, productivity, and economic development can
be maximized through such strategies;
``(B) to provide technical assistance, including
through the development of technical assistance guides,
for the development and implementation of regional
innovation initiatives;
``(C) to support the development of relevant
metrics and measurement standards to evaluate regional
innovation initiatives, including the extent to which
such strategies stimulate innovation, productivity, and
economic development; and
``(D) to collect and make available data on
regional innovation initiatives in the United States,
including data on--
``(i) the size, specialization, and
competitiveness of regional innovation
initiatives;
``(ii) the regional domestic product
contribution, total jobs and earnings by key
occupations, establishment size, nature of
specialization, patents, Federal research and
development spending, and other relevant
information for regional innovation
initiatives; and
``(iii) supply chain product and service
flows within and between regional innovation
initiatives.
``(2) Research grants.--The Secretary may award research
grants on a competitive basis to support and further the goals
of the program established under this section.
``(3) Dissemination of information.--Data and analysis
compiled by the Secretary under the program established in this
subsection shall be made available to other Federal agencies,
State and local governments, and nonprofit and for-profit
entities.
``(4) Regional innovation grant program.--The Secretary
shall incorporate data and analysis relating to any grant
awarded under subsection (c) into the program established under
this subsection.
``(e) Interagency Coordination.--
``(1) In general.--To the maximum extent practicable, the
Secretary shall ensure that the activities carried out under
this section are coordinated with, and do not duplicate the
efforts of, other programs at the Department of Commerce or at
other Federal agencies.
``(2) Collaboration.--
``(A) In general.--The Secretary shall explore and
pursue collaboration with other Federal agencies,
including through multiagency funding opportunities, on
regional innovation strategies.
``(B) Small businesses.--The Secretary shall ensure
that such collaboration with Federal agencies
prioritizes the needs and challenges of small
businesses.
``(f) Evaluation.--
``(1) In general.--Not later than 5 years after Congress
appropriates funds to carry out this section, the Secretary
shall competitively award a contract with an independent entity
to conduct an evaluation of programs established under this
section.
``(2) Requirements.--The evaluation conducted under
paragraph (1) shall include--
``(A) an assessment of whether the program is
achieving its goals;
``(B) the program's efficacy in providing awards to
geographically diverse entities;
``(C) any recommendations for how the program may
be improved; and
``(D) a recommendation as to whether the program
should be continued or terminated.
``(g) Reporting Requirement.--Not later than 1 year after the first
grant is awarded under subsection (c) and annually thereafter until 5
years after the last grant recipient completes the regional innovation
initiative for which such grant was awarded, the Secretary shall submit
a report to Congress that describes the outcome of each regional
innovation initiative that was completed during the previous 5 years.
``(h) Funding.--From amounts appropriated by Congress for economic
development assistance programs, the Secretary may use up to
$100,000,000 in each of the fiscal years 2020 through 2024 to carry out
this section.''.
SEC. 8. ECONOMIC IMPACT OF SIGNIFICANT FEDERAL AGENCY RULES.
Section 553 of title 5, United States Code, is amended by adding at
the end the following:
``(f) Required Review Before Issuance of Significant Rules.--
``(1) Defined term.--In this subsection the term
`significant rule' means a rule that is likely--
``(A) to have an annual effect on the economy of
$100,000,000 or more;
``(B) to adversely affect, in a material way, the
economy, a sector of the economy, productivity,
competition, jobs, the environment, public health or
safety, or State, local, or tribal governments or
communities; or
``(C) to create a serious inconsistency or
otherwise interfere with an action taken or planned by
another agency.
``(2) Review.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
significant rule, the head of the Federal agency or independent
regulatory agency seeking to issue the rule shall complete a
review, to the extent permitted by law, 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 (3).
``(3) 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).
``(4) Report.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
significant rule, the head of the Federal agency or independent
regulatory agency seeking to issue the rule shall--
``(A) submit the results of the review conducted
under paragraph (2) to the appropriate congressional
committees; and
``(B) post the results of the review conducted
under paragraph (2) on a publicly available website.
``(5) 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.''.
SEC. 9. 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 of
Commerce, 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 of Commerce shall--
(1) submit each report prepared under subsection (b) to
Congress; and
(2) make each report available to the public on the website
of the Department of Commerce.
(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. 10. 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 of Commerce 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 of Commerce 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 of
Commerce 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 of Commerce shall--
(1) submit each report prepared under subsection (f) to
Congress; and
(2) make each report available to the public on the website
of the Department of Commerce.
(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 11. RESCISSION OF UNSPENT FEDERAL FUNDS.
(a) In General.--Notwithstanding any other provision of law, of all
available unobligated funds for fiscal year 2019, the amount necessary
to carry out this Act and the amendments made by this Act in
appropriated discretionary funds are hereby rescinded.
(b) Implementation.--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.
(c) Report.--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
subsection (b).
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