[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5893 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 5893
To jump-start economic recovery through the formation and growth of new
businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 5, 2012
Mr. Grimm (for himself, Ms. Loretta Sanchez of California, Mr. Yoder,
Mr. Dold, Mr. Nunes, Mr. Carnahan, and Mr. Polis) introduced the
following bill; which was referred to the Committee on the Judiciary,
and in addition to the Committees on Ways and Means, Science, Space,
and Technology, Appropriations, and Energy and Commerce, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
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 2.0''.
(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. 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.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Achieving economic recovery will require the formation
and growth of new companies.
(2) Between 1980 and 2005, companies less than 5 years old
accounted for nearly all net job creation in the United States.
(3) New firms in the United States create an average of
3,000,000 jobs per year.
(4) To get Americans back to work, entrepreneurs must be
free to 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 adjust the status of not more
than 50,000 aliens who have earned a master's degree or a doctorate
degree at an institution of higher education in a STEM field to that of
an alien conditionally admitted for permanent residence and authorize
each alien granted such adjustment of status to remain in the United
States--
``(1) for up to 1 year after the expiration of the alien's
student visa under section 101(a)(15)(F)(i) if the alien is
diligently searching for an opportunity to become actively
engaged in a STEM field; and
``(2) indefinitely if the alien remains actively engaged in
a STEM field.
``(b) Application for Conditional Permanent Resident Status.--Every
alien applying for a conditional permanent resident status under this
section shall submit an application to the Secretary of Homeland
Security before the expiration of the alien's student visa in such form
and manner as the Secretary shall prescribe by regulation.
``(c) Ineligibility for Federal Government Assistance.--An alien
granted conditional permanent resident status under this section shall
not be eligible, while in such status, for--
``(1) any unemployment compensation (as defined in section
85(b) of the Internal Revenue Code of 1986); or
``(2) any 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 set forth in
section 316(a)(1).
``(e) Removal of Condition.--The Secretary of Homeland Security
shall remove the conditional basis of an alien's conditional permanent
resident status under this section on the date that is 5 years after
the date such status was granted if the alien maintained his or her
eligibility for such status during the entire 5-year period.
``(f) Definitions.--In this section:
``(1) 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 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) 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 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) Contents.--The report described in paragraph (1) shall
include--
(A) the number of aliens described in paragraph (1)
who have earned a master's degree, broken down by the
number of such degrees in science, technology,
engineering, and mathematics;
(B) the number of aliens described in paragraph (1)
who have earned a doctorate degree, broken down by the
number of such degrees in science, technology,
engineering, and mathematics;
(C) the number of aliens described in paragraph (1)
who have founded a business in the United States in a
STEM field;
(D) the number of aliens described in paragraph (1)
who are employed in the United States in a STEM field,
broken down by employment sector (for profit,
nonprofit, or government); and
(E) the number of aliens described in paragraph (1)
who are employed by an institution of higher education.
(3) Definitions.--The terms ``institution of higher
education'' and ``STEM field'' have the meaning given such
terms in section 216B(f) of the Immigration and Nationality
Act, as added by subsection (a).
SEC. 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,
in accordance with the provisions of this section and section 216A, may
issue a conditional immigrant visa to not more than 75,000 qualified
alien entrepreneurs.
``(b) Application for Conditional Permanent Resident Status.--Every
alien applying for a conditional immigrant visa under this section
shall submit an application to the Secretary of Homeland Security in
such form and manner as the Secretary shall prescribe by regulation.
``(c) Revocation.--If, during the 4-year period beginning on the
date that an alien is granted a visa under this section, the Secretary
of Homeland Security determines that such alien is no longer a
qualified alien entrepreneur, the Secretary shall--
``(1) revoke such visa; and
``(2) notify the alien that the alien--
``(A) may voluntarily depart from the United States
in accordance to section 240B; or
``(B) will be subject to removal proceedings under
section 240 if the alien does not depart from the
United States not later than 6 months after receiving
such notification.
``(d) Removal of Conditional Basis.--The Secretary 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) 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) 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
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) 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).''.
(2) Table of contents amendment.--The table of contents in
the first section of the Immigration and Nationality Act (8
U.S.C. 1101 et seq.) is amended by adding after the item
relating to section 210 the following:
``Sec. 210A. Qualified alien entrepreneurs.''.
(b) Conditional Permanent Resident Status.--Section 216A of the
Immigration and Nationality Act (8 U.S.C. 1186b) is amended--
(1) by striking ``Attorney General'' each place such term
appears and inserting ``Secretary of Homeland Security'';
(2) in subsection (b)(1)(C), by striking ``203(b)(5),'' and
inserting ``203(b)(5) or 210A, as appropriate,'';
(3) in subsection (c)(1), by striking ``alien entrepreneur
must'' each place such term appears and inserting ``alien
entrepreneur shall'';
(4) in subsection (d)(1)(B), by striking the period at the
end and inserting ``or 210A, as appropriate.''; and
(5) in subsection (f)(1), by striking the period at the end
and inserting ``or 210A.''.
(c) Government Accountability Office Study.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit 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) 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)(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 Ceiling.--If 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) 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 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) In general.--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) 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 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 visas.--If, 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) 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. CAPITAL GAINS TAX EXEMPTION FOR STARTUP COMPANIES.
(a) Permanent Full Exclusion.--
(1) In general.--Subsection (a) of section 1202 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Exclusion.--In the case of a taxpayer other than a
corporation, gross income shall not include 100 percent of any gain
from the sale or exchange of qualified small business stock held for
more than 5 years.''.
(2) Conforming amendments.--
(A) The heading for section 1202 of such Code is
amended by striking ``partial''.
(B) The item relating to section 1202 in the table
of sections for part I of subchapter P of chapter 1 of
such Code is amended by striking ``Partial exclusion''
and inserting ``Exclusion''.
(C) Section 1223(13) of such Code is amended by
striking ``1202(a)(2),''.
(b) Repeal of Minimum Tax Preference.--
(1) In general.--Subsection (a) of section 57 of the
Internal Revenue Code of 1986 is amended by striking paragraph
(7).
(2) Technical amendment.--Subclause (II) of section
53(d)(1)(B)(ii) of such Code is amended by striking ``, (5),
and (7)'' and inserting ``and (5)''.
(c) Repeal of 28 Percent Capital Gains Rate on Qualified Small
Business Stock.--
(1) In general.--Subparagraph (A) of section 1(h)(4) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(A) collectibles gain, over''.
(2) Conforming amendments.--
(A) Section 1(h) of such Code is amended by
striking paragraph (7).
(B)(i) Section 1(h) of such Code is amended by
redesignating paragraphs (8), (9), (10), (11), (12),
and (13) as paragraphs (7), (8), (9), (10), (11), and
(12), respectively.
(ii) Sections 163(d)(4)(B), 854(b)(5), 857(c)(2)(D)
of such Code are each amended by striking ``section
1(h)(11)(B)'' and inserting ``section 1(h)(10)(B)''.
(iii) The following sections of such Code are each
amended by striking ``section 1(h)(11)'' and inserting
``section 1(h)(10)'':
(I) Section 301(f)(4).
(II) Section 306(a)(1)(D).
(III) Section 584(c).
(IV) Section 702(a)(5).
(V) Section 854(a).
(VI) Section 854(b)(2).
(iv) The heading of section 857(c)(2) is amended by
striking ``1(h)(11)'' and inserting ``1(h)(10)''.
(d) Effective Date.--The amendments made by this section apply to
stock acquired after December 31, 2012.
SEC. 7. RESEARCH CREDIT FOR STARTUP COMPANIES.
(a) In General.--
(1) In general.--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) In general.--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) Per taxpayer limitation.--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) Temporal limitation.--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) Qualified small business.--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) Aggregation rules.--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) Regulations.--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) Conforming amendments.--
(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) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
SEC. 8. ACCELERATED COMMERCIALIZATION OF TAXPAYER-FUNDED RESEARCH.
(a) Definitions.--In this section, the following definitions shall
apply:
(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) Extramural budget.--The term ``extramural budget''
means the sum of the total obligations minus amounts obligated
for such activities by employees of the agency in or through
Government-owned, Government-operated facilities, except that
for the Department of Energy it shall not include amounts
obligated for atomic energy defense programs solely for weapons
activities or for naval reactor programs, and except that for
the Agency for International Development it shall not include
amounts obligated solely for general institutional support of
international research centers or for grants to foreign
countries.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(4) Research or research and development.--The term
``research'' or ``research and development'' means any activity
that is--
(A) a systematic, intensive study directed toward
greater knowledge or understanding of the subject
studied;
(B) a systematic study directed specifically toward
applying new knowledge to meet a recognized need; or
(C) a systematic application of knowledge toward
the production of useful materials, devices, and
systems or methods, including design, development, and
improvement of prototypes and new processes to meet
specific requirements.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(b) Grant Program Authorized.--
(1) In general.--Each Federal agency that has an extramural
budget for research or research and development that is in
excess of $100,000,000 for each of fiscal years 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) Grants.--
(A) Awarding of grants.--
(i) In general.--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) 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.--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) 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 support institutions of higher
education pursuing specific innovative
initiatives to improve an institution's
capacity to commercialize faculty research that
can be widely adopted if the research yields
measurable results.
(ii) Content of proposals.--Grants shall be
awarded under this subparagraph to proposals
demonstrating the capacity for accelerated
commercialization, proof-of-concept
proficiency, and translating scientific
discoveries and cutting-edge inventions into
technological innovations and new companies. In
particular, grant funds shall seek to support
innovative approaches to achieving these goals
that can be replicated by other institutions of
higher education if the innovative approaches
are successful.
(C) Commercialization accelerator grants.--The
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) 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 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) Limitations.--
(A) Project management costs.--A grant recipient
may use not more than 10 percent of grant funds awarded
under this subsection for the purpose of funding
project management costs of the grant program.
(B) Supplement, not supplant.--An institution of
higher education that receives a grant under this
subsection shall use the grant funds to supplement, and
not supplant, non-Federal funds that would, in the
absence of such grant funds, be made available for
activities described in this section.
(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 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) 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
institutions of higher education under subsection (b).
(2) Submission to commerce and publicly released.--The
Council shall--
(A) submit the recommendations described in
subparagraph (A) to the Secretary; and
(i) release the recommendations to the
public.
(B) Majority vote.--The recommendations submitted
by the Council, as described in this paragraph, shall
be determined by a majority vote of Council members.
(C) 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).
(3) Evaluation.--
(A) In general.--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) Inclusions.--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) Availability.--Upon completion of the
evaluation, the evaluation shall be made available on a
public website and submitted to Congress. The Secretary
shall notify all institutions of higher education when
the evaluation is published and how it can be accessed.
(d) 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. 9. ECONOMIC IMPACT OF MAJOR 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 Major Rules.--
``(1) In general.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
proposed major rule, the head of the Federal agency or
independent regulatory agency seeking to issue the rule shall
complete a review that--
``(A) analyzes the problem that the proposed rule
intends to address, including--
``(i) the specific market failure, such as
externalities, market power, or lack of
information, that justifies such rule; or
``(ii) any other specific problem, such as
the failures of public institutions, that
justifies such rule;
``(B) analyzes the expected impact of the proposed
rule on the ability of new businesses to form and
expand;
``(C) identifies the expected impact of the
proposed rule on State, local, and tribal governments,
including the availability of resources--
``(i) to carry out the mandates imposed by
the rule on such government entities; and
``(ii) to minimize the burdens that
uniquely or significantly affect such
governmental entities, consistent with
achieving regulatory objectives;
``(D) identifies any conflicting or duplicative
regulations;
``(E) determines--
``(i) if existing laws or regulations
created, or contributed to, the problem that
the new rule is intended to correct; and
``(ii) if the laws or regulations referred
to in clause (i) should be modified to more
effectively achieve the intended goal of the
rule; and
``(F) includes the cost-benefit analysis described
in paragraph (2).
``(2) Cost-benefit analysis.--A cost-benefit analysis
described in this paragraph shall include--
``(A)(i) an assessment, including the underlying
analysis, of benefits anticipated from the proposed
rule, such as--
``(I) promoting the efficient functioning
of the economy and private markets;
``(II) enhancing health and safety;
``(III) protecting the natural environment;
and
``(IV) eliminating or reducing
discrimination or bias; and
``(ii) the quantification of the benefits described
in clause (i), to the extent feasible;
``(B)(i) an assessment, including the underlying
analysis, of costs anticipated from the proposed rule,
such as--
``(I) the direct costs to the Federal
Government to administer the rule;
``(II) the direct costs to businesses and
others to comply with the rule; and
``(III) any adverse effects on the
efficient functioning of the economy, private
markets (including productivity, employment,
and competitiveness), health, safety, and the
natural environment; and
``(ii) the quantification of the costs described in
clause (i), to the extent feasible; and
``(C)(i) an assessment, including the underlying
analysis, of costs and benefits of potentially
effective and reasonably feasible alternatives to the
proposed rule, which have been identified by the agency
or by the public, including taking reasonably viable
nonregulatory actions; and
``(ii) an explanation of why the proposed rule is
preferable to the alternatives identified under clause
(i).
``(3) Report.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
proposed major rule, the head of the Federal agency seeking to
issue the rule shall--
``(A) submit the results of the review conducted
under paragraph (1) to--
``(i) Congress; and
``(ii) the Office of Information and
Regulatory Affairs in the Office of Management
and Budget; and
``(B) post the results of the review conducted
under paragraph (1) on a publicly available website.
``(4) Judicial review.--Any determinations made, or other
actions taken, by an agency or independent regulatory agency
under this subsection shall not be subject to judicial review.
``(5) Defined term.--In this subsection the term `major
rule' has the meaning given the term in section 804.''.
SEC. 10. BIENNIAL STATE STARTUP BUSINESS REPORT.
(a) Data Collection.--The Secretary of Commerce shall regularly
compile information from each of the 50 States and the District of
Columbia on State laws that affect the formation and growth of new
businesses within the State or District.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 2 years thereafter, the Secretary,
using data compiled under subsection (a), shall prepare a report that--
(1) analyzes the economic effect of State and District laws
that either encourage or inhibit business formation and growth;
and
(2) ranks the States and the District based on the
effectiveness with which their laws foster new business
creation and economic growth.
(c) Distribution.--The Secretary shall--
(1) submit each report prepared under subsection (b) to
Congress; and
(2) make each report available to the public on the
Department of Commerce's website.
(d) Inclusion of Large Metropolitan Areas.--Not later than 90 days
after the submission of the first report under this section, the
Secretary of Commerce shall submit to Congress a study on the
feasibility and advisability of including, in future reports,
information about the effect of local laws and ordinances on the
formation and growth of new businesses in large metropolitan areas
within the United States.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 11. NEW BUSINESS FORMATION REPORT.
(a) In General.--The Secretary of Commerce shall regularly compile
quantitative and qualitative information on businesses in the United
States that are not more than 1 year old.
(b) Data Collection.--The Secretary shall--
(1) regularly compile information from the Bureau of the
Census' business register on new business formation in the
United States; and
(2) conduct quarterly surveys of business owners who start
a business during the 1-year period ending on the date on which
such survey is conducted to gather qualitative information
about the factors that influenced their decision to start the
business.
(c) Random Sampling.--In conducting surveys under subsection
(b)(2), the Secretary may use random sampling to identify a group of
business owners who are representative of all the business owners
described in subsection (b)(2).
(d) Benefits.--The Secretary shall inform business owners selected
to participate in a survey conducted under this section of the benefits
they would receive from participating in the survey.
(e) Voluntary Participation.--Business owners selected to
participate in a survey conducted under this section may decline to
participate without penalty.
(f) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 3 months thereafter, the Secretary
shall use the data compiled under subsection (b) to prepare a report
that--
(1) lists the aggregate number of new businesses formed in
the United States;
(2) lists the aggregate number of persons employed by new
businesses formed in the United States;
(3) analyzes the payroll of new businesses formed in the
United States;
(4) summarizes the data collected under subsection (b); and
(5) identifies the most effective means by which government
officials can encourage the formation and growth of new
businesses in the United States.
(g) Distribution.--The Secretary shall--
(1) submit each report prepared under subsection (f) to
Congress; and
(2) make each report available to the public on the
Department of Commerce's website.
(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 12. RESCISSION OF UNSPENT FEDERAL FUNDS.
(a) In General.--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) 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. 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.
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