To establish a program to accelerate entrepreneurship and innovation by partnering world-class entrepreneurs with Federal agencies.

Summary: Entrepreneur-in-Residence Act of 2012 - Directs the Director of the Office of Personnel Management (OPM) to establish an entrepreneur-in-residence program to appoint in-house entrepreneurs who have demonstrated success in working with business concerns and entrepreneurs to: (1) assist federal agencies in improving outreach to business concerns and entrepreneurs, (2) provide recommendations on inefficient or duplicative agency programs and on methods to improve agency efficiency, (3) facilitate meetings and forums to educate business concerns and entrepreneurs on agency programs and initiatives, and (4) provide technical assistance or mentorship. Limits to 10 the number of entrepreneurs-in-residence that the Director may appoint in any year.

Authorizes the Director to establish an informal working group to allow entrepreneurs-in-residence to meet to discuss best practices, experiences, and recommendations in order to create an informal knowledge base for current and future entrepreneurs-in-residence.

Terminates such program after FY2016.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Entrepreneur-in-Residence Act of 
2012''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) The term ``Director'' means the Director of the Office 
        of Personnel Management.
            (2) The term ``program'' means the Federal entrepreneur-in-
        residence program established under section 3(a).
            (3) The term ``entrepreneur-in-residence'' means an 
        individual appointed to a position under the program.
            (4) The term ``agency'' means an Executive agency, as 
        defined in section 105 of title 5, United States Code.

SEC. 3. FEDERAL ENTREPRENEUR-IN-RESIDENCE PROGRAM.

    (a) Program Established.--The Director, in consultation with the 
Administrator of the Small Business Administration and the Secretary of 
Commerce, shall establish a Federal entrepreneur-in-residence program 
under which the Director, with the concurrence of the head of an 
agency, may appoint an entrepreneur-in-residence to a position in the 
excepted service in the agency to carry out the duties described in 
subsection (d).
    (b) Mission of Program.--The mission of the program shall be to--
            (1) provide for better outreach by the Federal Government 
        to the private sector;
            (2) strengthen coordination and interaction between the 
        Federal Government and the private sector on issues relevant to 
        entrepreneurs and business concerns; and
            (3) make Federal programs simpler, quicker, more efficient, 
        and more responsive to the needs of business concerns and 
        entrepreneurs.
    (c) Appointments.--
            (1) In general.--The Director--
                    (A) shall appoint entrepreneurs-in-residence under 
                the program during each year; and
                    (B) may not appoint more than 10 entrepreneurs-in-
                residence during any year.
            (2) Selection.--The Director shall select entrepreneurs-in-
        residence from among individuals who--
                    (A) are successful in their field;
                    (B) have demonstrated success in working with 
                business concerns and entrepreneurs; or
                    (C) have successfully developed, invented, or 
                created a product and brought the product to the 
                marketplace.
            (3) Placement.--In appointing entrepreneurs-in-residence, 
        the Director shall--
                    (A) give priority to placing entrepreneurs-in-
                residence across the Federal Government at separate 
                agencies; and
                    (B) to the extent practicable, not appoint more 
                than 2 entrepreneurs-in-residence to positions in the 
                same agency during the same year.
            (4) Terms of appointment.--An entrepreneur-in-residence--
                    (A) shall be a full-time employee of the agency to 
                which the entrepreneur-in-residence is appointed; and
                    (B) may not serve as an entrepreneur-in-residence 
                for more than a period of 2 years.
    (d) Duties.--An entrepreneur-in-residence shall--
            (1) assist Federal agencies in improving outreach to 
        business concerns and entrepreneurs;
            (2) provide recommendations to the head of the agency 
        employing the entrepreneur-in-residence on inefficient or 
        duplicative programs, if any, at the agency;
            (3) provide recommendations to the head of the agency 
        employing the entrepreneur-in-residence on methods to improve 
        program efficiency at the agency or new initiatives, if any, 
        that may be instituted at the agency;
            (4) facilitate meetings and forums to educate business 
        concerns and entrepreneurs on programs or initiatives of the 
        agency employing the entrepreneur-in-residence;
            (5) facilitate in-service sessions with employees of the 
        agency employing the entrepreneur-in-residence on issues of 
        concern to business concerns and entrepreneurs; and
            (6) provide technical assistance or mentorship to business 
        concerns and entrepreneurs in accessing programs at the agency 
        employing the entrepreneur-in-residence.
    (e) Compensation.--
            (1) In general.--Except as provided in paragraph (2), the 
        rate of basic pay payable to an entrepreneur-in-residence shall 
        be determined in accordance with regulations prescribed by the 
        Director, but shall in no event be less than the minimum rate 
        of basic pay payable for grade GS-10 of the General Schedule 
        nor more than the rate payable for level II of the Executive 
        Schedule.
            (2) Highest rate allowable.--The rate of basic pay payable 
        to an entrepreneur-in-residence may be increased to the rate 
        payable for level II of the Executive Schedule if--
                    (A) the rate last payable to such entrepreneur-in-
                residence, before the effective date of the increase, 
                is equal to the highest rate allowable under paragraph 
                (1);
                    (B) the entrepreneur-in-residence has 
                satisfactorily completed at least 1 year of service, in 
                a position under this section, within the employing 
                agency; and
                    (C) the employing agency has a performance 
                appraisal system which, as of such effective date, is 
                certified under section 5307(d)(2) of title 5, United 
                States Code.''.
    (f) Reporting.--An entrepreneur-in-residence shall report directly 
to the head of the agency employing the entrepreneur-in-residence.
    (g) Authority To Establish Working Group.--The Director may 
establish an informal working group of entrepreneurs-in-residence to 
allow for entrepreneurs-in-residence to meet to discuss best practices, 
experiences, and recommendations in order to create an informal 
knowledge base for current and future entrepreneurs-in-residence.
    (h) Termination.--The Director may not appoint an entrepreneur-in-
residence under this section after September 30, 2016.