II 

117TH CONGRESS 

2D SESSION S. 5287 

To jump-start economic recovery through the formation and growth of new 

businesses, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 15, 2022 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Startup Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 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. 


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Sec. 5. Elimination of the per country numerical limitation for employmentbased visas. 

Sec. 6. Accelerated commercialization of taxpayer-funded research. 

Sec. 7. Regional innovation clusters. 

Sec. 8. Economic impact of significant Federal agency rules. 

Sec. 9. Federal and State Technology Partnership Program. 

Sec. 10. Biennial State startup business report. 

Sec. 11. New business formation report. 

Sec. 12. Rescission of unspent Federal funds. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) Achieving economic recovery will require the 

4 formation and growth of new companies. 

5 (2) Between 1980 and 2005, companies that 

6 were less than 5 years old accounted for nearly all 

7 net job creation in the United States. 

8 (3) New firms in the United States create an 

9 average of 3,000,000 jobs per year. 

10 (4) To get Americans back to work, entre11 preneurs must be free to innovate, create new com12 panies, and hire employees. 

13 SEC. 3. CONDITIONAL PERMANENT RESIDENT STATUS FOR 

14 IMMIGRANTS WITH AN ADVANCED DEGREE 

15 IN A STEM FIELD. 

16 (a) IN GENERAL.—Chapter 2 of title II of the Immi17 gration and Nationality Act (8 U.S.C. 1181 et seq.) is 

18 amended by inserting after section 216A the following: 


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1 ‘‘SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS 

2 FOR ALIENS WITH AN ADVANCED DEGREE IN 

3 A STEM FIELD. 

4 ‘‘(a) IN GENERAL.—Notwithstanding any other pro5 vision of this Act, the Secretary of Homeland Security 

6 may— 

7 ‘‘(1) adjust the status of not more than 50,000 

8 aliens who have earned a master’s degree or a doc9 torate degree at an institution of higher education in 

10 a STEM field to that of an alien conditionally ad11 mitted for permanent residence; and 

12 ‘‘(2) authorize each alien granted an adjust13 ment of status under paragraph (1) to remain in the 

14 United States— 

15 ‘‘(A) for up to 1 year after the expiration 

16 of the alien’s student visa under section 

17 101(a)(15)(F)(i) if the alien is diligently 

18 searching for an opportunity to become actively 

19 engaged in a STEM field; and 

20 ‘‘(B) indefinitely if the alien remains ac21 tively engaged in a STEM field. 

22 ‘‘(b) APPLICATION FOR CONDITIONAL PERMANENT

23 RESIDENT STATUS.—Every alien applying for conditional 

24 permanent resident status under this section shall submit 

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1 fore the expiration of the alien’s student visa in such form 

2 and manner as the Secretary shall prescribe by regulation. 

3 ‘‘(c) INELIGIBILITY FOR FEDERAL GOVERNMENT AS4 SISTANCE.—An alien granted conditional permanent resi5 dent status under this section shall not be eligible, while 

6 in such status, for— 

7 ‘‘(1) any unemployment compensation (as de8 fined in section 85(b) of the Internal Revenue Code 

9 of 1986); or 

10 ‘‘(2) any Federal means-tested public benefit 

11 (as that term is used in section 403 of the Personal 

12 Responsibility and Work Opportunity Reconciliation 

13 Act of 1996 (8 U.S.C. 1613)). 

14 ‘‘(d) EFFECT ON NATURALIZATION RESIDENCY RE15 QUIREMENT.—An alien granted conditional permanent 

16 resident status under this section shall be deemed to have 

17 been lawfully admitted for permanent residence for pur18 poses of meeting the 5-year residency requirement under 

19 section 316(a)(1). 

20 ‘‘(e) REMOVAL OF CONDITION.—The Secretary of 

21 Homeland Security shall remove the conditional basis of 

22 an alien’s conditional permanent resident status under 

23 this section on the date that is 5 years after the date such 

24 status was granted if the alien maintained his or her eligi25 bility for such status during the entire 5-year period. 


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1 ‘‘(f) DEFINITIONS.—In this section: 

2 ‘‘(1) ACTIVELY ENGAGED IN A STEM FIELD.— 

3 The term ‘actively engaged in a STEM field’— 

4 ‘‘(A) means— 

5 ‘‘(i) gainfully employed in a for profit 

6 business or nonprofit organization in the 

7 United States in a STEM field; 

8 ‘‘(ii) teaching 1 or more STEM field 

9 courses at an institution of higher edu10 cation; or 

11 ‘‘(iii) employed by a Federal, State, or 

12 local government entity; and 

13 ‘‘(B) includes any period of up to 6 

14 months during which the alien does not meet 

15 the requirement under subparagraph (A) if 

16 such period was immediately preceded by a 1- 

17 year period during which the alien met the re18 quirement under subparagraph (A). 

19 ‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 

20 The term ‘institution of higher education’ has the 

21 meaning given the term in section 101(a) of the 

22 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

23 ‘‘(3) STEM FIELD.—The term ‘STEM field’ 

24 means any field of study or occupation included on 

25 the most recent STEM-Designated Degree Program 


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1 List published in the Federal Register by the De2 partment of Homeland Security (as described in sec3 tion 214.2(f)(11)(i)(C)(2) of title 8, Code of Federal 

4 Regulations).’’. 

5 (b) CLERICAL AMENDMENT.—The table of contents 

6 of the Immigration and Nationality Act (8 U.S.C. 1101 

7 note) is amended by inserting after the item relating to 

8 section 216A the following: 

‘‘Sec. 216B. Conditional permanent resident status for aliens with an advanced 

degree in a STEM field.’’. 

9 (c) GOVERNMENT ACCOUNTABILITY OFFICE

10 STUDY.— 

11 (1) IN GENERAL.—Not later than 3 years after 

12 the date of the enactment of this Act, the Comp13 troller General of the United States shall submit a 

14 report to Congress regarding the alien college grad15 uates who were granted immigrant status under sec16 tion 216B of the Immigration and Nationality Act, 

17 as added by subsection (a). 

18 (2) CONTENTS.—The report required under 

19 paragraph (1) shall include— 

20 (A) the number of aliens described in para21 graph (1) who have earned a master’s degree, 

22 broken down by the number of such degrees in 

23 science, technology, engineering, and mathe24 matics; 


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1 (B) the number of aliens described in 

2 paragraph (1) who have earned a doctorate de3 gree, broken down by the number of such de4 grees in science, technology, engineering, and 

5 mathematics; 

6 (C) the number of aliens described in para7 graph (1) who have founded a business in the 

8 United States in a STEM field; 

9 (D) the number of aliens described in 

10 paragraph (1) who are employed in the United 

11 States in a STEM field, broken down by em12 ployment sector (for-profit, nonprofit, or gov13 ernment); and 

14 (E) the number of aliens described in para15 graph (1) who are employed by an institution of 

16 higher education. 

17 (3) DEFINITIONS.—The terms ‘‘institution of 

18 higher education’’ and ‘‘STEM field’’ have the 

19 meanings given such terms in section 216B(f) of the 

20 Immigration and Nationality Act, as added by sub21 section (a). 

22 SEC. 4. IMMIGRANT ENTREPRENEURS. 

23 (a) QUALIFIED ALIEN ENTREPRENEURS.— 

24 (1) ADMISSION AS IMMIGRANTS.—Chapter 1 of 

25 title II of the Immigration and Nationality Act (8 


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1 U.S.C. 1151 et seq.) is amended by adding at the 

2 end the following: 

3 ‘‘SEC. 210A. QUALIFIED ALIEN ENTREPRENEURS. 

4 ‘‘(a) ADMISSION AS IMMIGRANTS.—The Secretary of 

5 Homeland Security may issue a conditional immigrant 

6 visa, in accordance with this section and section 216A, to 

7 not more than 75,000 qualified alien entrepreneurs. 

8 ‘‘(b) APPLICATION FOR CONDITIONAL PERMANENT

9 RESIDENT STATUS.—Every alien applying for a condi10 tional immigrant visa under this section shall submit an 

11 application to the Secretary of Homeland Security in such 

12 form and manner as the Secretary shall prescribe by regu13 lation. 

14 ‘‘(c) REVOCATION.—If, during the 4-year period be15 ginning on the date on which an alien is granted a visa 

16 under this section, the Secretary of Homeland Security de17 termines that the alien is no longer a qualified alien entre18 preneur, the Secretary shall— 

19 ‘‘(1) revoke such visa; and 

20 ‘‘(2) notify the alien that he or she— 

21 ‘‘(A) may voluntarily depart from the 

22 United States in accordance with section 240B; 

23 or 

24 ‘‘(B) will be subject to removal proceedings 

25 under section 240 if the alien does not depart 


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1 from the United States not later than 6 months 

2 after receiving notification under this para3 graph. 

4 ‘‘(d) REMOVAL OF CONDITIONAL BASIS.—The Sec5 retary of Homeland Security shall remove the conditional 

6 basis of the status of an alien issued an immigrant visa 

7 under this section on that date that is 4 years after the 

8 date on which such visa was issued if such visa was not 

9 revoked pursuant to subsection (c). 

10 ‘‘(e) DEFINITIONS.—In this section: 

11 ‘‘(1) FULL-TIME EMPLOYEE.—The term ‘full12 time employee’ means a United States citizen or 

13 legal permanent resident who is paid by the new 

14 business entity registered by a qualified alien entre15 preneur at a rate that is comparable to the median 

16 income of employees in the region. 

17 ‘‘(2) QUALIFIED ALIEN ENTREPRENEUR.—The 

18 term ‘qualified alien entrepreneur’ means an alien 

19 who— 

20 ‘‘(A) at the time the alien applies for an 

21 immigrant visa under this section— 

22 ‘‘(i) is lawfully present in the United 

23 States; and 


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1 ‘‘(ii)(I) holds a nonimmigrant visa 

2 issued pursuant to section 

3 101(a)(15)(H)(i)(b); or 

4 ‘‘(II) holds a nonimmigrant visa 

5 issued pursuant to section 

6 101(a)(15)(F)(i); 

7 ‘‘(B) during the 1-year period beginning on 

8 the date the alien is granted a visa under this 

9 section— 

10 ‘‘(i) registers at least 1 new business 

11 entity in a State; 

12 ‘‘(ii) employs, at such business entity 

13 in the United States, at least 2 full-time 

14 employees who are not relatives of the 

15 alien; and 

16 ‘‘(iii) invests, or raises capital invest17 ment of, not less than $100,000 in such 

18 business entity; and 

19 ‘‘(C) during the 3-year period beginning on 

20 the last day of the 1-year period described in 

21 paragraph (2), employs, at such business entity 

22 in the United States, an average of at least 5 

23 full-time employees who are not relatives of the 

24 alien.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of con2 tents of the Immigration and Nationality Act (8 

3 U.S.C. 1101 note) is amended by adding after the 

4 item relating to section 210 the following: 

‘‘Sec. 210A. Qualified alien entrepreneurs.’’. 

5 (b) CONDITIONAL PERMANENT RESIDENT STA6 TUS.—Section 216A of the Immigration and Nationality 

7 Act (8 U.S.C. 1186b) is amended— 

8 (1) by striking ‘‘Attorney General’’ each place 

9 such term appears and inserting ‘‘Secretary of 

10 Homeland Security’’; 

11 (2) in subsection (b)(1)(C), by striking 

12 ‘‘203(b)(5),’’ and inserting ‘‘203(b)(5) or 210A, as 

13 appropriate,’’; 

14 (3) in subsection (c)(1), by striking ‘‘alien en15 trepreneur must’’ each place such term appears and 

16 inserting ‘‘alien entrepreneur shall’’; 

17 (4) in subsection (d)(1)(B), by striking the pe18 riod at the end and inserting ‘‘or 210A, as appro19 priate.’’; and 

20 (5) in subsection (f)(1), by striking the period 

21 at the end and inserting ‘‘or 210A.’’. 

22 (c) GOVERNMENT ACCOUNTABILITY OFFICE

23 STUDY.— 

24 (1) IN GENERAL.—Not later than 3 years after 

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1 troller General of the United States shall submit a 

2 report to Congress regarding the qualified alien en3 trepreneurs who were granted immigrant status 

4 under section 210A of the Immigration and Nation5 ality Act, as added by subsection (a). 

6 (2) CONTENTS.—The report described in para7 graph (1) shall include information regarding— 

8 (A) the number of qualified alien entre9 preneurs who have received immigrant status 

10 under section 210A of the Immigration and Na11 tionality Act, as added by subsection (a), listed 

12 by country of origin; 

13 (B) the localities in which such qualified 

14 alien entrepreneurs have initially settled; 

15 (C) whether such qualified alien entre16 preneurs generally remain in the localities in 

17 which they initially settle; 

18 (D) the types of commercial enterprises 

19 that such qualified alien entrepreneurs have es20 tablished; and 

21 (E) the types and number of jobs created 

22 by such qualified alien entrepreneurs. 


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1 SEC. 5. ELIMINATION OF THE PER COUNTRY NUMERICAL 

2 LIMITATION FOR EMPLOYMENT-BASED 

3 VISAS. 

4 (a) IN GENERAL.—Section 202(a)(2) of the Immi5 gration and Nationality Act (8 U.S.C. 1152(a)(2)) is 

6 amended— 

7 (1) in the paragraph heading, by striking ‘‘AND

8 EMPLOYMENT-BASED’’; 

9 (2) by striking ‘‘(3), (4), and (5),’’ and insert10 ing ‘‘(3) and (4),’’; 

11 (3) by striking ‘‘subsections (a) and (b) of sec12 tion 203’’ and inserting ‘‘section 203(a)’’; 

13 (4) by striking ‘‘7’’ and inserting ‘‘15’’; and 

14 (5) by striking ‘‘such subsections’’ and inserting 

15 ‘‘such section’’. 

16 (b) CONFORMING AMENDMENTS.—Section 202 of the 

17 Immigration and Nationality Act (8 U.S.C. 1152) is 

18 amended— 

19 (1) in subsection (a)— 

20 (A) in paragraph (3), by striking ‘‘both 

21 subsections (a) and (b) of section 203’’ and in22 serting ‘‘section 203(a)’’; and 

23 (B) by striking paragraph (5); and 

24 (2) by amending subsection (e) to read as fol25 lows: 


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1 ‘‘(e) SPECIAL RULES FOR COUNTRIES AT CEILING.— 

2 If the total number of immigrant visas made available 

3 under section 203(a) to natives of any single foreign state 

4 or dependent area will exceed the numerical limitation 

5 specified in subsection (a)(2) in any fiscal year, in deter6 mining the allotment of immigrant visa numbers to natives 

7 under section 203(a), visa numbers with respect to natives 

8 of that state or area shall be allocated (to the extent prac9 ticable and otherwise consistent with this section and sec10 tion 203) in a manner so that, except as provided in sub11 section (a)(4), the proportion of the visa numbers made 

12 available under each of paragraphs (1) through (4) of sec13 tion 203(a) is equal to the ratio of the total number of 

14 visas made available under the respective paragraph to the 

15 total number of visas made available under section 

16 203(a).’’. 

17 (c) COUNTRY-SPECIFIC OFFSET.—Section 2 of the 

18 Chinese Student Protection Act of 1992 (8 U.S.C. 1255 

19 note) is amended— 

20 (1) in subsection (a), by striking ‘‘subsection 

21 (e))’’ and inserting ‘‘subsection (d))’’; and 

22 (2) by striking subsection (d) and redesignating 

23 subsection (e) as subsection (d). 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on September 30, 2022, and 

3 shall apply to fiscal years beginning with fiscal year 2023. 

4 (e) TRANSITION RULES FOR EMPLOYMENT-BASED

5 IMMIGRANTS.— 

6 (1) IN GENERAL.—Subject to this subsection 

7 and notwithstanding title II of the Immigration and 

8 Nationality Act (8 U.S.C. 1151 et seq.), the fol9 lowing rules shall apply: 

10 (A) For fiscal year 2023, 15 percent of the 

11 immigrant visas made available under each of 

12 paragraphs (2) and (3) of section 203(b) of 

13 such Act (8 U.S.C. 1153(b)) shall be allotted to 

14 immigrants who are natives of a foreign state 

15 or dependent area that was not 1 of the 2 for16 eign states with the largest aggregate numbers 

17 of natives obtaining immigrant visas during fis18 cal year 2021 under such paragraphs. 

19 (B) For fiscal year 2024, 10 percent of the 

20 immigrant visas made available under each of 

21 such paragraphs shall be allotted to immigrants 

22 who are natives of a foreign state or dependent 

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1 taining immigrant visas during fiscal year 2022 

2 under such paragraphs. 

3 (C) For fiscal year 2025, 10 percent of the 

4 immigrant visas made available under each of 

5 such paragraphs shall be allotted to immigrants 

6 who are natives of a foreign state or dependent 

7 area that was not 1 of the 2 foreign states with 

8 the largest aggregate numbers of natives ob9 taining immigrant visas during fiscal year 2023 

10 under such paragraphs. 

11 (2) PER-COUNTRY LEVELS.— 

12 (A) RESERVED VISAS.—With respect to 

13 the visas reserved under each of subparagraphs 

14 (A) through (C) of paragraph (1), the number 

15 of such visas made available to natives of any 

16 single foreign state or dependent area in the ap17 propriate fiscal year may not exceed 25 percent 

18 (in the case of a single foreign state) or 2 per19 cent (in the case of a dependent area) of the 

20 total number of such visas. 

21 (B) UNRESERVED VISAS.—With respect to 

22 the immigrant visas made available under each 

23 of paragraphs (2) and (3) of section 203(b) of 

24 the Immigration and Nationality Act (8 U.S.C. 

25 1153(b)) and not reserved under paragraph (1), 


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1 for each of the fiscal years 2023, 2024, and 

2 2025, not more than 85 percent shall be allot3 ted to immigrants who are natives of any single 

4 foreign state. 

5 (3) SPECIAL RULE TO PREVENT UNUSED

6 VISAS.—If, with respect to fiscal year 2023, 2024, or 

7 2025, the operation of paragraphs (1) and (2) would 

8 prevent the total number of immigrant visas made 

9 available under paragraph (2) or (3) of section 

10 203(b) of the Immigration and Nationality Act (8 

11 U.S.C. 1153(b)) from being issued, such visas may 

12 be issued during the remainder of such fiscal year 

13 without regard to such paragraphs (1) and (2). 

14 (4) RULES FOR CHARGEABILITY.—Section 

15 202(b) of the Immigration and Nationality Act (8 

16 U.S.C. 1152(b)) shall apply in determining the for17 eign state to which an alien is chargeable for pur18 poses of this subsection. 

19 SEC. 6. ACCELERATED COMMERCIALIZATION OF TAX20 PAYER-FUNDED RESEARCH. 

21 (a) DEFINITIONS.—In this section: 

22 (1) COUNCIL.—The term ‘‘Council’’ means the 

23 Advisory Council on Innovation and Entrepreneur24 ship of the Department of Commerce established 

25 pursuant to section 25(c) of the Stevenson-Wydler 


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1 Technology Innovation Act of 1980 (15 U.S.C. 

2 3720(c)). 

3 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti4 ty’’ means— 

5 (A) an institution of higher education; or 

6 (B) a venture development organization. 

7 (3) EXTRAMURAL BUDGET.— 

8 (A) IN GENERAL.—Except as provided in 

9 subparagraph (B), the term ‘‘extramural budg10 et’’ means the sum of the total obligations 

11 minus amounts obligated for such activities by 

12 employees of the agency in or through Govern13 ment-owned, Government-operated facilities. 

14 (B) EXCEPTIONS.—The term ‘‘extramural 

15 budget’’ shall not include— 

16 (i) with respect to the Department of 

17 Energy, amounts obligated for— 

18 (I) atomic energy defense pro19 grams solely for weapons activities; or 

20 (II) naval reactor programs; and 

21 (ii) with respect to United States 

22 Agency for International Development, 

23 amounts obligated solely for— 

24 (I) general institutional support 

25 of international research centers; or 


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1 (II) grants to foreign countries. 

2 (4) INSTITUTION OF HIGHER EDUCATION.—The 

3 term ‘‘institution of higher education’’ has the 

4 meaning given the term in section 101(a) of the 

5 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

6 (5) NONPROFIT ORGANIZATION.—The term 

7 ‘‘nonprofit organization’’ means an entity or organi8 zation— 

9 (A)(i) described in section 501(c)(3) of the 

10 Internal Revenue Code of 1986; and 

11 (ii) exempt from taxation under 501(a) of 

12 such Act; or 

13 (B) described in paragraph (1) or (2) of 

14 section 170(c) of such Act. 

15 (6) RESEARCH OR RESEARCH AND DEVELOP16 MENT.—The terms ‘‘research’’ and ‘‘research and 

17 development’’ mean any activity that is— 

18 (A) a systematic, intensive study directed 

19 toward greater knowledge or understanding of 

20 the subject studied; 

21 (B) a systematic study directed specifically 

22 toward applying new knowledge to meet a rec23 ognized need; or 

24 (C) a systematic application of knowledge 

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1 vices, and systems or methods, including design, 

2 development, and improvement of prototypes 

3 and new processes to meet specific require4 ments. 

5 (7) SECRETARY.—The term ‘‘Secretary’’ means 

6 the Secretary of Commerce. 

7 (8) STATE ORGANIZATION.—The term ‘‘State 

8 organization’’ means an entity that has been created 

9 by— 

10 (A) a State; 

11 (B) the Commonwealth of Puerto Rico; or 

12 (C) the District of Columbia. 

13 (9) VENTURE DEVELOPMENT ORGANIZATION.— 

14 The term ‘‘venture development organization’’ 

15 means a State or nonprofit organization that con16 tributes to regional or sector-based economic pros17 perity by providing a portfolio of services intended to 

18 accomplish at least 3 of the following purposes: 

19 (A) Accelerating the commercialization of 

20 research or research and development. 

21 (B) Assisting in the creation of high22 growth private enterprises that are commer23 cializing technology. 

24 (C) Strengthening the competitive position 

25 of existing small- and medium-sized enterprises 


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1 through the development, commercial adoption, 

2 or deployment of technology. 

3 (D) Providing expert assistance to— 

4 (i) private companies; 

5 (ii) faculty, staff, and students of in6 stitutions of higher education who are com7 mercializing new products or services; or 

8 (iii) entrepreneurs who are commer9 cializing new products or services. 

10 (E) Providing financial grants, loans, or 

11 direct financial investment in companies that 

12 are commercializing technology. 

13 (b) GRANT PROGRAM AUTHORIZED.— 

14 (1) IN GENERAL.—Each Federal agency that 

15 has an extramural budget for research or research 

16 and development that is in excess of $100,000,000 

17 for each of the fiscal years 2023 through 2027, shall 

18 transfer 0.15 percent of such extramural budget for 

19 each of such fiscal years to the Secretary to enable 

20 the Secretary to carry out a grant program in ac21 cordance with this subsection. 

22 (2) GRANTS.— 

23 (A) AWARDING OF GRANTS.— 

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1 retary shall use the criteria developed by 

2 the Council to award grants to eligible en3 tities for initiatives to improve commer4 cialization and transfer of technology. 

5 (ii) REQUEST FOR PROPOSALS.—Not 

6 later than 30 days after the Council sub7 mits the recommendations for criteria to 

8 the Secretary under subsection (c)(4)(B), 

9 and annually thereafter for each fiscal year 

10 for which the grant program is authorized, 

11 the Secretary shall release a request for 

12 proposals. 

13 (iii) APPLICATIONS.—Eligible entities 

14 that desire to receive a grant under this 

15 subsection shall submit an application to 

16 the Secretary not later than 90 days after 

17 the Secretary releases the request for pro18 posals under clause (ii). 

19 (iv) COUNCIL REVIEW.— 

20 (I) IN GENERAL.—The Secretary 

21 shall submit each application received 

22 under clause (iii) to the Council for 

23 Council review. 

24 (II) RECOMMENDATIONS.—The 

25 Council shall review each application 


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1 received under subclause (I) and sub2 mit recommendations for grant 

3 awards to the Secretary, including 

4 funding recommendations for each 

5 proposal. 

6 (III) PUBLIC RELEASE.—The 

7 Council shall publicly release any rec8 ommendations made under subclause 

9 (II). 

10 (IV) CONSIDERATION OF REC11 OMMENDATIONS.—In awarding grants 

12 under this subsection, the Secretary 

13 shall take into consideration the rec14 ommendations of the Council under 

15 subclause (II). 

16 (B) COMMERCIALIZATION CAPACITY

17 BUILDING GRANTS.— 

18 (i) IN GENERAL.—The Secretary shall 

19 award grants to eligible entities to support 

20 specific innovative initiatives to improve 

21 the regional capacity for private compa22 nies, faculty, staff, and students of institu23 tions of higher education, or entrepreneurs 

24 to commercialize technology originating 

25 from federally funded research. 


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1 (ii) CONTENT OF PROPOSALS.— 

2 Grants shall be awarded under this sub3 paragraph for— 

4 (I) proposals demonstrating the 

5 capacity for accelerated commer6 cialization, proof-of-concept pro7 ficiency, and translating scientific dis8 coveries and cutting-edge inventions 

9 into technological innovations and new 

10 companies; and 

11 (II) innovative approaches to 

12 achieving the goals referred to in sub13 clause (I) that can be replicated by 

14 other institutions of higher education 

15 or venture development organizations 

16 if the innovative approaches are suc17 cessful. 

18 (3) ASSESSMENT OF SUCCESS.—Grants award19 ed under this subsection shall use criteria for assess20 ing the success of programs through the establish21 ment of benchmarks. 

22 (4) TERMINATION.—The Secretary is author23 ized to terminate grant funding to an eligible entity 

24 in accordance with the process and performance 

25 metrics recommended by the Council. 


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1 (5) LIMITATIONS.— 

2 (A) PROJECT MANAGEMENT COSTS.—A 

3 grant recipient may use not more than 10 per4 cent of grant funds awarded under this sub5 section for the purpose of funding project man6 agement costs of the grant program. 

7 (B) SUPPLEMENT, NOT SUPPLANT.—An 

8 eligible entity that receives a grant under this 

9 subsection shall use the grant funds to supple10 ment, and not to supplant, non-Federal funds 

11 that would, in the absence of such grant funds, 

12 be made available for activities described in this 

13 section. 

14 (6) UNSPENT FUNDS.—Any funds transferred 

15 to the Secretary under paragraph (1) for a fiscal 

16 year that are not expended by the end of such fiscal 

17 year may be expended in any subsequent fiscal year 

18 through fiscal year 2027. Any funds transferred 

19 under paragraph (1) that are remaining at the end 

20 of the grant program’s authorization under this sub21 section shall be transferred to the Treasury for def22 icit reduction. 

23 (c) COUNCIL.— 

24 (1) IN GENERAL.—Not later than 120 days 

25 after the date of the enactment of this Act, the 


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1 Council shall convene and develop recommendations 

2 for criteria in awarding grants to eligible entities 

3 under subsection (b). 

4 (2) SUBMISSION TO DEPARTMENT OF COM5 MERCE AND PUBLIC RELEASE.—The Council shall— 

6 (A) submit the recommendations described 

7 in paragraph (1) to the Secretary; and 

8 (B) release the recommendations to the 

9 public. 

10 (3) MAJORITY VOTE.—The recommendations 

11 submitted by the Council under paragraph (2) shall 

12 be determined by a majority vote of Council mem13 bers. 

14 (4) PERFORMANCE METRICS.—The Council 

15 shall develop and provide to the Secretary rec16 ommendations on performance metrics to be used to 

17 evaluate grants awarded under subsection (b). 

18 (5) EVALUATION.— 

19 (A) IN GENERAL.—Not later than 180 

20 days before the expiration of the grant program 

21 authorized under subsection (b), the Council 

22 shall evaluate the effect of the grant program 

23 on accelerating the commercialization of tech24 nology originating from federally funded re25 search or research and development. 


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1 (B) INCLUSIONS.—The evaluation under 

2 subparagraph (A) shall include— 

3 (i) the recommendation of the Council 

4 as to whether the grant program should be 

5 continued or terminated; 

6 (ii) quantitative data related to the ef7 fect, if any, that the grant program has 

8 had on accelerating the commercialization 

9 of technology originating from federally 

10 funded research and research and develop11 ment; and 

12 (iii) a description of the lessons 

13 learned in administering the grant pro14 gram, and how such lessons could be ap15 plied to future efforts to accelerate the 

16 commercialization of technology originating 

17 from federally funded research or research 

18 and development. 

19 (C) AVAILABILITY.—The results of the 

20 evaluation under subparagraph (A) shall be 

21 made available on a public website and sub22 mitted to Congress. The Secretary shall notify 

23 all institutions of higher education when the 

24 evaluation is published and how it can be 

25 accessed. 


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1 (d) RULE OF CONSTRUCTION.—Nothing in this sec2 tion may be construed to alter, modify, or amend any pro3 vision of chapter 18 of title 35, United States Code (com4 monly known as the ‘‘Bayh-Dole Act’’). 

5 SEC. 7. REGIONAL INNOVATION CLUSTERS. 

6 (a) DEFINITIONS.—In this section: 

7 (1) ADMINISTRATOR.—The term ‘‘Adminis8 trator’’ means the Administrator of the Small Busi9 ness Administration. 

10 (2) ALASKA NATIVE CORPORATION.—The term 

11 ‘‘Alaska Native Corporation’’ has the meaning given 

12 the term ‘‘Native Corporation’’ in section 3 of the 

13 Alaska Native Claims Settlement Act (43 U.S.C. 

14 1602). 

15 (3) AWARD.—The term ‘‘award’’ means a con16 tract, grant, or cooperative agreement. 

17 (4) CLUSTER INITIATIVE.—The term ‘‘Cluster 

18 Initiative’’ means a formally organized effort to pro19 mote the growth and competitiveness of an industry 

20 sector through collaborative activities among Indus21 try Cluster participants that is led by— 

22 (A) a State; 

23 (B) an Indian Tribe, an Alaska Native 

24 Corporation, or a Native Hawaiian Organiza25 tion; 


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1 (C) a city or other political subdivision of 

2 a State; 

3 (D) a nonprofit organization, including an 

4 institution of higher education or a venture de5 velopment organization; or 

6 (E) a small business concern. 

7 (5) INDUSTRY CLUSTER.—The term ‘‘Industry 

8 Cluster’’ means a geographic concentration, relative 

9 to the size of the region under consideration, of 

10 interconnected businesses, suppliers, service pro11 viders, and associated institutions in an industry 

12 sector, including advanced manufacturing, precision 

13 agriculture, cybersecurity, biosciences, water tech14 nologies, energy production and efficiency, and out15 door recreation. 

16 (6) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

17 has the meaning given the term ‘‘Indian tribe’’ in 

18 section 4 of the Indian Self-Determination and Edu19 cation Assistance Act (25 U.S.C. 5304). 

20 (7) INSTITUTION OF HIGHER EDUCATION.—The 

21 term ‘‘institution of higher education’’ has the 

22 meaning given the term in section 101 of the Higher 

23 Education Act of 1965 (20 U.S.C. 1001). 

24 (8) NATIVE HAWAIIAN ORGANIZATION.—The 

25 term ‘‘Native Hawaiian Organization’’ has the 


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1 meaning given the term in section 8(a)(15) of the 

2 Small Business Act (15 U.S.C. 637(a)(15)). 

3 (9) SMALL BUSINESS CONCERN.—The term 

4 ‘‘small business concern’’ has the meaning given the 

5 term in section 3 of the Small Business Act (15 

6 U.S.C. 632). 

7 (10) STATE.—The term ‘‘State’’ means each of 

8 the several States of the United States, the District 

9 of Columbia, the Commonwealth of Puerto Rico, the 

10 United States Virgin Islands, Guam, American 

11 Samoa, the Commonwealth of the Northern Mariana 

12 Islands, and any other territory or possession of the 

13 United States. 

14 (b) SUPPORTING INDUSTRY CLUSTERS.— 

15 (1) AUTHORIZATION.—The Administrator shall 

16 make awards to Cluster Initiatives that strengthen 

17 Industry Clusters in accordance with the require18 ments under this subsection. 

19 (2) INDUSTRY CLUSTER OUTCOMES.—Cluster 

20 Initiatives shall be assessed according to their per21 formance along the following metrics: 

22 (A) Growth in number of small business 

23 concerns participating in the Industry Cluster 

24 and support industries. 


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1 (B) Growth in number of small business 

2 concern startups in the Industry Cluster. 

3 (C) Growth in total capital, including rev4 enue and equity investments, flowing to small 

5 business concern participants in the Industry 

6 Cluster. 

7 (D) Growth in job creation by small busi8 ness concerns or, in regions with declining total 

9 employment, job retention by small business 

10 concerns in the Industry Cluster. 

11 (E) Growth in new products, services, or 

12 business lines. 

13 (F) Growth in new technologies developed 

14 within the Industry Cluster. 

15 (3) REPORTING.—The Administrator shall re16 quire Cluster Initiatives to submit annual reports 

17 documenting the outcomes under paragraph (2) and 

18 the activities contributing to such outcomes. 

19 (4) SELECTION CRITERIA.—In making awards 

20 to Cluster Initiatives under this subsection, the Ad21 ministrator shall consider— 

22 (A) the probable impact of the Cluster Ini23 tiative on the competitiveness of the Industry 

24 Cluster, including— 


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1 (i) whether the Cluster Initiative will 

2 be inclusive of any and all organizations 

3 that might benefit from participation, in4 cluding startups, small business concerns 

5 not locally owned, and small business con6 cerns rival to existing members of the In7 dustry Cluster; and 

8 (ii) whether the Cluster Initiative will 

9 encourage broad participation by and col10 laboration among all types of participants; 

11 (B) if the proposed Cluster Initiative fits 

12 within a broader and achievable economic devel13 opment strategy; 

14 (C) the capacity and commitment of the 

15 sponsoring organization of the Cluster Initiative 

16 organization, including— 

17 (i) the expected ability of the Cluster 

18 Initiative to access additional funds from 

19 other sources; and 

20 (ii) the capacity of the Cluster Initia21 tive to sustain activities once grant funds 

22 have been expended; 

23 (D) the degree of involvement from rel24 evant State and regional economic and work25 force development organizations, other public 


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1 purpose institutions (such as universities, com2 munity colleges, venture development organiza3 tions, and workforce boards), and the private 

4 sector, including industry associations; 

5 (E) the extent to which economic diversity 

6 across regions of the United States would be in7 creased through the award; and 

8 (F) the geographic distribution of Cluster 

9 Initiatives around the United States. 

10 (5) INITIAL AWARD.—The Administrator may 

11 make a 1-year award (not to exceed $1,000,000) 

12 with each Cluster Initiative. 

13 (6) RENEWAL.— 

14 (A) IN GENERAL.—The Administrator may 

15 renew an award made to a Cluster Initiative 

16 under paragraph (5)— 

17 (i) for 1 year in an amount not to ex18 ceed $750,000 per year; and 

19 (ii) for a total period not to exceed 5 

20 years. 

21 (B) REQUIREMENT.—A Cluster Initiative 

22 shall compete in a new funding opportunity to 

23 receive any further awards under this sub24 section. 

25 (7) MATCHING FUNDS.— 


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1 (A) IN GENERAL.—As a condition of re2 ceiving an award under this subsection, a Clus3 ter Initiative shall provide $1 in non-Federal 

4 matching funds, including in-kind contributions, 

5 for every $2 received under the award. 

6 (B) WAIVER.—The Administrator may 

7 waive part of the matching funds requirement 

8 under subparagraph (A) for a Cluster Initiative 

9 that— 

10 (i) has not previously received an 

11 award under this subsection; or 

12 (ii) supports a noncore area, a 

13 micropolitan area, or a small metropolitan 

14 statistical area with a population of not 

15 more than 200,000. 

16 (8) COMPETITIVE PROCESS.—The Adminis17 trator shall enter into new awards under this sub18 section for each year that appropriations are avail19 able. 

20 (c) FEASIBILITY STUDY AWARDS.— 

21 (1) IN GENERAL.—The Administrator may 

22 make awards for feasibility studies, planning, and 

23 operations to support the launch of new Cluster Ini24 tiatives. 


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1 (2) AMOUNT.—The total amount of awards 

2 made under paragraph (1) shall not exceed 

3 $250,000. 

4 (3) ELIGIBLE RECIPIENTS.—The Administrator 

5 may make awards under paragraph (1) to— 

6 (A) a State; 

7 (B) an Indian Tribe, an Alaska Native 

8 Corporation, or a Native Hawaiian Organiza9 tion; 

10 (C) a city or other political subdivision of 

11 a State; 

12 (D) a nonprofit organization, including an 

13 institution of higher education or a venture de14 velopment organization; or 

15 (E) a consortium consisting of entities de16 scribed in subparagraphs (A) through (D). 

17 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated $50,000,000 for fiscal 

19 year 2023 and for each subsequent fiscal year to carry 

20 out this section. 

21 SEC. 8. ECONOMIC IMPACT OF SIGNIFICANT FEDERAL 

22 AGENCY RULES. 

23 Section 553 of title 5, United States Code, is amend24 ed by adding at the end the following: 


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1 ‘‘(f) REQUIRED REVIEW BEFORE ISSUANCE OF SIG2 NIFICANT RULES.— 

3 ‘‘(1) DEFINED TERM.—In this subsection the 

4 term ‘significant rule’ means a rule that is likely— 

5 ‘‘(A) to have an annual effect on the econ6 omy of $100,000,000 or more; 

7 ‘‘(B) to adversely affect, in a material way, 

8 the economy, a sector of the economy, produc9 tivity, competition, jobs, the environment, public 

10 health or safety, or State, local, or tribal gov11 ernments or communities; or 

12 ‘‘(C) to create a serious inconsistency or 

13 otherwise interfere with an action taken or 

14 planned by another agency. 

15 ‘‘(2) REVIEW.—Before issuing a notice of pro16 posed rulemaking in the Federal Register regarding 

17 the issuance of a significant rule, the head of the 

18 Federal agency or independent regulatory agency 

19 seeking to issue the rule shall complete a review, to 

20 the extent permitted by law, that— 

21 ‘‘(A) analyzes the problem that the pro22 posed rule intends to address, including— 

23 ‘‘(i) the specific market failure, such 

24 as externalities, market power, or lack of 

25 information, that justifies such rule; or 


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1 ‘‘(ii) any other specific problem, such 

2 as the failures of public institutions, that 

3 justifies such rule; 

4 ‘‘(B) analyzes the expected impact of the 

5 proposed rule on the ability of new businesses 

6 to form and expand; 

7 ‘‘(C) identifies the expected impact of the 

8 proposed rule on State, local, and tribal govern9 ments, including the availability of resources— 

10 ‘‘(i) to carry out the mandates im11 posed by the rule on such government enti12 ties; and 

13 ‘‘(ii) to minimize the burdens that 

14 uniquely or significantly affect such gov15 ernmental entities, consistent with achiev16 ing regulatory objectives; 

17 ‘‘(D) identifies any conflicting or duplica18 tive regulations; 

19 ‘‘(E) determines— 

20 ‘‘(i) if existing laws or regulations cre21 ated, or contributed to, the problem that 

22 the new rule is intended to correct; and 

23 ‘‘(ii) if the laws or regulations re24 ferred to in clause (i) should be modified 


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1 to more effectively achieve the intended 

2 goal of the rule; and 

3 ‘‘(F) includes the cost-benefit analysis de4 scribed in paragraph (3). 

5 ‘‘(3) COST-BENEFIT ANALYSIS.—A cost-benefit 

6 analysis described in this paragraph shall include— 

7 ‘‘(A)(i) an assessment, including the un8 derlying analysis, of benefits anticipated from 

9 the proposed rule, such as— 

10 ‘‘(I) promoting the efficient func11 tioning of the economy and private mar12 kets; 

13 ‘‘(II) enhancing health and safety; 

14 ‘‘(III) protecting the natural environ15 ment; and 

16 ‘‘(IV) eliminating or reducing dis17 crimination or bias; and 

18 ‘‘(ii) the quantification of the benefits de19 scribed in clause (i), to the extent feasible; 

20 ‘‘(B)(i) an assessment, including the un21 derlying analysis, of costs anticipated from the 

22 proposed rule, such as— 

23 ‘‘(I) the direct costs to the Federal 

24 Government to administer the rule; 


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1 ‘‘(II) the direct costs to businesses 

2 and others to comply with the rule; and 

3 ‘‘(III) any adverse effects on the effi4 cient functioning of the economy, private 

5 markets (including productivity, employ6 ment, and competitiveness), health, safety, 

7 and the natural environment; and 

8 ‘‘(ii) the quantification of the costs de9 scribed in clause (i), to the extent feasible; 

10 ‘‘(C)(i) an assessment, including the un11 derlying analysis, of costs and benefits of poten12 tially effective and reasonably feasible alter13 natives to the proposed rule, which have been 

14 identified by the agency or by the public, in15 cluding taking reasonably viable nonregulatory 

16 actions; and 

17 ‘‘(ii) an explanation of why the proposed 

18 rule is preferable to the alternatives identified 

19 under clause (i). 

20 ‘‘(4) REPORT.—Before issuing a notice of pro21 posed rulemaking in the Federal Register regarding 

22 the issuance of a significant rule, the head of the 

23 Federal agency or independent regulatory agency 

24 seeking to issue the rule shall— 


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1 ‘‘(A) submit the results of the review con2 ducted under paragraph (2) to the appropriate 

3 congressional committees; and 

4 ‘‘(B) post the results of the review con5 ducted under paragraph (2) on a publicly avail6 able website. 

7 ‘‘(5) JUDICIAL REVIEW.—Any determinations 

8 made, or other actions taken, by an agency or inde9 pendent regulatory agency under this subsection 

10 shall not be subject to judicial review.’’. 

11 SEC. 9. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP 

12 PROGRAM. 

13 Section 34 of the Small Business Act (15 U.S.C. 

14 657d) is amended— 

15 (1) in subsection (c)— 

16 (A) by striking paragraph (3); and 

17 (B) by redesignating paragraphs (4) and 

18 (5) as paragraphs (3) and (4), respectively; 

19 (2) in subsection (h)(1), by striking 

20 ‘‘$10,000,000 for each of fiscal years 2001 through 

21 2005’’ and inserting ‘‘$50,000,000 for each of the 

22 fiscal years 2023 through 2027’’; and 

23 (3) by striking subsection (i). 


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1 SEC. 10. BIENNIAL STATE STARTUP BUSINESS REPORT. 

2 (a) DATA COLLECTION.—The Secretary of Com3 merce shall regularly compile information from each of the 

4 50 States and the District of Columbia on State laws that 

5 affect the formation and growth of new businesses within 

6 the State or District. 

7 (b) REPORT.—Not later than 18 months after the 

8 date of the enactment of this Act, and every 2 years there9 after, the Secretary of Commerce, using data compiled 

10 under subsection (a), shall prepare a report that— 

11 (1) analyzes the economic effect of State and 

12 District laws that either encourage or inhibit busi13 ness formation and growth; and 

14 (2) ranks the States and the District based on 

15 the effectiveness with which their laws foster new 

16 business creation and economic growth. 

17 (c) DISTRIBUTION.—The Secretary of Commerce 

18 shall— 

19 (1) submit each report prepared under sub20 section (b) to Congress; and 

21 (2) make each report available to the public on 

22 the website of the Department of Commerce. 

23 (d) INCLUSION OF LARGE METROPOLITAN AREAS.— 

24 Not later than 90 days after the submission of the first 

25 report under this section, the Secretary of Commerce shall 

26 submit to Congress a study on the feasibility and advisVerDate Sep 11 2014 23:40 Jan 03, 2023 Jkt 039200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S5287.IS S5287

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1 ability of including, in future reports, information about 

2 the effect of local laws and ordinances on the formation 

3 and growth of new businesses in large metropolitan areas 

4 within the United States. 

5 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated such sums as may be 

7 necessary to carry out this section. 

8 SEC. 11. NEW BUSINESS FORMATION REPORT. 

9 (a) IN GENERAL.—The Secretary of Commerce shall 

10 regularly compile quantitative and qualitative information 

11 on businesses in the United States that are not more than 

12 1 year old. 

13 (b) DATA COLLECTION.—The Secretary of Com14 merce shall— 

15 (1) regularly compile information from the Bu16 reau of the Census’ business register on new busi17 ness formation in the United States; and 

18 (2) conduct quarterly surveys of business own19 ers who start a business during the 1-year period 

20 ending on the date on which such survey is con21 ducted to gather qualitative information about the 

22 factors that influenced their decision to start the 

23 business. 

24 (c) RANDOM SAMPLING.—In conducting surveys 

25 under subsection (b)(2), the Secretary may use random 


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1 sampling to identify a group of business owners who are 

2 representative of all the business owners described in sub3 section (b)(2). 

4 (d) BENEFITS.—The Secretary of Commerce shall in5 form business owners selected to participate in a survey 

6 conducted under this section of the benefits they would 

7 receive from participating in the survey. 

8 (e) VOLUNTARY PARTICIPATION.—Business owners 

9 selected to participate in a survey conducted under this 

10 section may decline to participate without penalty. 

11 (f) REPORT.—Not later than 18 months after the 

12 date of the enactment of this Act, and every 3 months 

13 thereafter, the Secretary of Commerce shall use the data 

14 compiled under subsection (b) to prepare a report that— 

15 (1) lists the aggregate number of new busi16 nesses formed in the United States; 

17 (2) lists the aggregate number of persons em18 ployed by new businesses formed in the United 

19 States; 

20 (3) analyzes the payroll of new businesses 

21 formed in the United States; 

22 (4) summarizes the data collected under sub23 section (b); and 


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1 (5) identifies the most effective means by which 

2 government officials can encourage the formation 

3 and growth of new businesses in the United States. 

4 (g) DISTRIBUTION.—The Secretary of Commerce 

5 shall— 

6 (1) submit each report prepared under sub7 section (f) to Congress; and 

8 (2) make each report available to the public on 

9 the website of the Department of Commerce. 

10 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated such sums as may be 

12 necessary to carry out this section. 

13 SEC. 12. RESCISSION OF UNSPENT FEDERAL FUNDS. 

14 (a) IN GENERAL.—Notwithstanding any other provi15 sion of law, of all available unobligated funds for fiscal 

16 year 2022, the amount necessary to carry out this Act and 

17 the amendments made by this Act in appropriated discre18 tionary funds are hereby rescinded. 

19 (b) IMPLEMENTATION.—The Director of the Office of 

20 Management and Budget shall determine and identify 

21 from which appropriation accounts the rescission under 

22 subsection (a) shall apply and the amount of such rescis23 sion that shall apply to each such account. 

24 (c) REPORT.—Not later than 60 days after the date 

25 of the enactment of this Act, the Director of the Office 


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1 of Management and Budget shall submit a report to the 

2 Secretary of the Treasury and Congress of the accounts 

3 and amounts determined and identified for rescission 

4 under subsection (b). 

Æ 


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