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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1965 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1965

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 8, 2011

 Mr. Moran (for himself and Mr. Warner) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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 of 
2011''.
    (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. Economic impact of major rules.
Sec. 4. Permanent full exclusion applicable to qualified small business 
                            stock.
Sec. 5. Income tax credit for certain startup small businesses.
Sec. 6. Study of regulatory impact of possible Sarbanes-Oxley reform.
Sec. 7. Accelerated commercialization of university-based research.
Sec. 8. Conditional permanent resident status for aliens with an 
                            advanced degree in a STEM field.
Sec. 9. Alien entrepreneurs.
Sec. 10. Biennial State startup business report.
Sec. 11. New business formation report.

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 pursue their ideas, form companies, and hire employees.
            (5) State and local policies affect entrepreneurs' ability 
        to start new businesses and grow existing businesses.

SEC. 3. ECONOMIC IMPACT OF MAJOR 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;
                    ``(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. 4. PERMANENT FULL EXCLUSION APPLICABLE TO QUALIFIED SMALL BUSINESS 
              STOCK.

    (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, 2011.

SEC. 5. INCOME TAX CREDIT FOR CERTAIN STARTUP SMALL BUSINESSES.

    (a) In General.--Section 6401 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(c) Income Tax Credit for Startup Small Businesses.--
            ``(1) In general.--In the case of a qualified small 
        business (within the meaning of section 1202(d)), if the tax 
        imposed by subtitle A for any taxable year exceeds the credits 
        allowable under chapter 1 for such taxable year, an amount 
        equal to the lesser of--
                    ``(A) the applicable percentage of the amount of 
                such excess, or
                    ``(B) $5,000,000,
        shall be considered an overpayment with respect to such taxable 
        year.
            ``(2) Applicable percentage.--For purposes of this section, 
        the applicable percentage is 100 percent for the first taxable 
        year described in paragraph (1) of the qualified small 
        business, 50 percent for each of the 2 succeeding taxable 
        years, and zero percent thereafter.
            ``(3) Election not to claim credit.--This subsection shall 
        not apply to a taxpayer for any taxable year if such taxpayer 
        elects to have this subsection not apply for the first taxable 
        year described in paragraph (1).
            ``(4) Regulations.--The Secretary shall prescribe such 
        regulations as may be appropriate to carry out the purposes of 
        this subsection, including--
                    ``(A) regulations to prevent the avoidance of the 
                purposes of this subsection through split-ups, shell 
                corporations, partnerships, or otherwise, and
                    ``(B) regulations to provide for the proper 
                determination of the first taxable year of a qualified 
                small business.''.
    (b) Conforming Amendment.--Section 6501(m) of the Internal Revenue 
Code of 1986 is amended by striking ``or 51(j)'' and inserting ``51(j), 
or 6401(c)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to the first taxable year described in section 6401(c)(1) of the 
Internal Revenue Code of 1986 (as added by this section) of any 
qualified small business, but only if such first taxable year begins 
after the date of the enactment of this Act.

SEC. 6. STUDY OF REGULATORY IMPACT OF POSSIBLE SARBANES-OXLEY REFORM.

    In carrying out the study and report required by section 989I of 
the Investor Protection and Securities Reform Act of 2010 (Public Law 
111-203, 124 Stat. 1948), the Comptroller General of the United States 
shall--
            (1) assess the costs and benefits to prospective investors, 
        shareholders, and securities markets of allowing smaller 
        issuers to opt out of the requirements of section 404(b) of the 
        Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262(b)); and
            (2) in assessing such costs and benefits, consider the 
        feasibility, costs, and benefits to prospective investors, 
        shareholders, and securities markets of placing an asterisk or 
        some other designation on the ticker symbol and other relevant 
        company disclosures of such issuers, indicating that the issuer 
        has elected not to comply with section 404(b) of the Sarbanes-
        Oxley Act of 2002 (15 U.S.C. 7262(b)).

SEC. 7. ACCELERATED COMMERCIALIZATION OF UNIVERSITY-BASED RESEARCH.

    (a) Definitions.--In this section:
            (1) Committee.--The term ``Committee'' means the Committee 
        on Research Commercialization Improvement established under 
        subsection (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 2012 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 Committee 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 Committee 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) Committee review.--
                                    (I) In general.--The Secretary 
                                shall submit each application received 
                                under clause (iii) to the Committee for 
                                Committee review.
                                    (II) Recommendations.--The 
                                Committee 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 
                                Committee 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 Committee under 
                                subclause (II).
                    (B) Commercialization accelerator 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.
                            (iii) Assessment of success.--Grants 
                        awarded under this subparagraph shall use 
                        criteria for assessing the success of programs 
                        through the establishment of technical 
                        milestones.
                    (C) Collaborative commercialization grants.--
                            (i) In general.--The Secretary shall award 
                        grants to support institutions of higher 
                        education pursuing initiatives that allow 
                        faculty to directly approach technology 
                        transfer programs outside of their institution 
                        of employment in an effort to commercialize 
                        research breakthroughs.
                            (ii) Content of initiatives.--Initiatives 
                        eligible to be supported with grant funds 
                        awarded under this subparagraph shall only 
                        include those--
                                    (I) that have a licensing revenue 
                                sharing agreement between the 
                                institution of higher education where 
                                the research originates and the 
                                institution that commercializes the 
                                research; and
                                    (II) for which the first right of 
                                refusal in commercializing research 
                                belongs to the institution of higher 
                                education where the research 
                                originates.
            (3) 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 Committee.
            (4) 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.
            (5) 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) Committee on Research Commercialization Improvement.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this section, the Director of the National Science 
        Foundation shall--
                    (A) establish the Committee on Research 
                Commercialization Improvement; and
                    (B) appoint the members of the Committee described 
                in subparagraphs (A) through (J) of paragraph (2).
            (2) Composition.--The Committee shall be composed of 15 
        members, of whom--
                    (A) 1 member shall be an administrator at a private 
                institution of higher education;
                    (B) 1 member shall be an administrator at a land-
                grant college or university (as defined in section 1404 
                of the Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3103));
                    (C) 1 member shall be an administrator at a public 
                institution of higher education;
                    (D) 1 member shall be a tenured faculty member at 
                an institution of higher education, whose research has 
                been commercialized;
                    (E) 1 member shall be a qualified venture 
                capitalist, defined as an individual who is employed by 
                a company that--
                            (i) is classified as a ``venture capital 
                        operating company'' under section 2510.3-101(d) 
                        of title 29, Code of Federal Regulations;
                            (ii) is based in the United States;
                            (iii) is comprised of partners, the 
                        majority of whom are United States citizens;
                            (iv) has capital commitments of not less 
                        than $10,000,000;
                            (v) has been operating for not less than 2 
                        years; and
                            (vi) has made not less than 2 investments 
                        of not less than $500,000 during each of the 
                        most recent 2 years;
                    (F) 1 member shall be a qualified Angel Investor, 
                defined as an individual who--
                            (i) is an accredited investor (as defined 
                        in section 230.501(a) of title 17, Code of 
                        Federal Regulations);
                            (ii) is a United States citizen; and
                            (iii) has made not less than 2 equity 
                        investments of not less than $50,000 in each of 
                        the previous 3 years;
                    (G) 1 member shall be a small business owner or 
                executive at a company that--
                            (i) is based in the United States; and
                            (ii) has worked with an institution of 
                        higher education in commercializing research;
                    (H) 1 member shall be a chief executive officer at 
                an innovative and growing company that is based in the 
                United States;
                    (I) 2 members shall be individuals who work in a 
                technology transfer office at an institution of higher 
                education;
                    (J) 1 member shall be an individual who works in a 
                technology transfer office at a company in the 
                technology sector that generates at least $50,000,000 
                in revenue annually;
                    (K) 1 member shall be a technology transfer expert 
                to be nominated by the National Governors Association;
                    (L) 1 member shall be a nationally recognized 
                technology transfer expert who is not employed at the 
                time of their service on the Committee by a public or 
                private institution of higher education;
                    (M) 1 member shall be nominated by the National 
                Advisory Council on Innovation and Entrepreneurship; 
                and
                    (N) 1 member shall be the Director of the National 
                Science Foundation.
            (3) Chair.--
                    (A) In general.--The Director of the National 
                Science Foundation shall serve as the Chair of the 
                Committee.
                    (B) Replacement of members.--The Director of the 
                National Science Foundation, in the Director's capacity 
                as Chair of the Committee, shall appoint a replacement 
                for any member described in subparagraphs (A) through 
                (M) of paragraph (2) who leaves membership on the 
                Committee.
            (4) Duties.--
                    (A) Development of criteria.--Not later than 120 
                days after the Committee is established and all of the 
                members of the Committee are appointed, the Committee 
                shall convene and develop recommendations for criteria 
                in awarding grants to institutions of higher education 
                under subsection (b).
                    (B) Submission to commerce and publicly released.--
                The Committee shall--
                            (i) submit the recommendations described in 
                        subparagraph (A) to the Secretary; and
                            (ii) release the recommendations to the 
                        public.
                    (C) Majority vote.--The recommendations submitted 
                by the Committee, as described in this paragraph, shall 
                be determined by a majority vote of Committee members.
                    (D) Performance metrics.--The Committee shall 
                develop and provide to the Secretary recommendations on 
                performance metrics to be used to evaluate grants 
                awarded under subsection (b).
            (5) Powers.--
                    (A) Hearings.--The Committee may hold such 
                hearings, meet and act at such times and places, take 
                such testimony, and receive such evidence as the 
                Committee considers advisable to carry out this 
                section.
                    (B) Information from federal agencies.--
                            (i) In general.--The Committee may secure 
                        directly from a Federal agency such information 
                        as the Committee considers necessary to carry 
                        out this section.
                            (ii) Provision of information.--On request 
                        of the Chair of the Committee, the head of the 
                        agency shall provide the information to the 
                        Committee.
                    (C) Postal services.--The Committee may use the 
                United States mails in the same manner and under the 
                same conditions as other agencies of the Federal 
                Government.
            (6) Committee personnel matters.--
                    (A) Compensation of members.--Members of the 
                Committee shall not receive any compensation for 
                service on the Committee.
                    (B) Travel expenses.--A member of the Committee 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized for an 
                employee of an agency under subchapter I of chapter 57 
                of title 5, United States Code, while away from the 
                home or regular place of business of the member in the 
                performance of the duties of the Committee.
                    (C) Staff.--
                            (i) In general.--The Chair of the Committee 
                        may, without regard to the civil service laws 
                        (including regulations), appoint and terminate 
                        an executive director and such other additional 
                        personnel as are necessary to enable the 
                        Committee to perform the duties of the 
                        Committee.
                            (ii) Confirmation of executive director.--
                        The employment of an executive director shall 
                        be subject to confirmation by the Committee.
                            (iii) Compensation.--
                                    (I) In general.--Except as provided 
                                in subparagraph (B), the Chair of the 
                                Committee may fix the compensation of 
                                the executive director and other 
                                personnel without regard to the 
                                provisions of chapter 51 and subchapter 
                                III of chapter 53 of title 5, United 
                                States Code, relating to classification 
                                of positions and General Schedule pay 
                                rates.
                            (iv) Maximum rate of pay.--The rate of pay 
                        for the executive director and other personnel 
                        shall not exceed the rate payable for level V 
                        of the Executive Schedule under section 5316 of 
                        title 5, United States Code.
            (7)  Evaluation.--
                    (A) In general.--Not later than 180 days before the 
                date that the grant program authorized under subsection 
                (b) expires, the Committee 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 Committee 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.

SEC. 8. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS WITH AN 
              ADVANCED DEGREE IN A STEM FIELD.

    (a) In General.--Title II of the Immigration and Nationality Act (8 
U.S.C. 1151 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 form of assistance or benefit described in 
        section 403(a) of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613(a)).
    ``(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) 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) 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) 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)(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 science, technology, 
                            engineering, or mathematics.''.
    (c) Government Accountability Office Study.--
            (1) In general.--Not later than 3 years after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit a report to Congress 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. 9. ALIEN 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 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) 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) 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) 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;
                            ``(ii)(I) holds a nonimmigrant visa 
                        pursuant to section 101(a)(15)(H)(i)(b); or
                            ``(II) has completed or will complete a 
                        graduate level degree in a STEM field from an 
                        institution of higher education;
                    ``(B) during the 1-year period beginning on the 
                date the alien is granted a visa under this section--
                            ``(i) registers at least 1 new business 
                        entity in a State;
                            ``(ii) employs, at such business entity in 
                        the United States, at least 2 full-time 
                        employees who are not relatives of the alien; 
                        and
                            ``(iii) invests, or raises capital 
                        investment of, not less than $100,000 in such 
                        business entity; and
                    ``(C) during the 3-year period beginning on the 
                last day of the 1-year period described in paragraph 
                (2), employs, at such business entity in the United 
                States, an average of at least 5 full-time employees 
                who are not relatives of the alien.
            ``(4) The term `STEM field' means any field of study or 
        occupation included on the most recent STEM-Designated Degree 
        Program List published in the Federal Register by the 
        Department of Homeland Security (as described in section 
        214.2(f)(11)(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 a report to Congress 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. 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.
                                 <all>
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