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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1877 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                S. 1877

To jump-start economic recovery through the formation and growth of new 
                  businesses, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 27, 2017

   Mr. Moran (for himself, Mr. Warner, Mr. Blunt, and Ms. Klobuchar) 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
To jump-start economic recovery through the formation and growth of new 
                  businesses, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Startup Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Conditional permanent resident status for immigrants with an 
                            advanced degree in a STEM field.
Sec. 4. Immigrant entrepreneurs.
Sec. 5. Elimination of the per country numerical limitation for 
                            employment-based visas.
Sec. 6. Accelerated commercialization of taxpayer-funded research.
Sec. 7. Regional innovation program.
Sec. 8. Economic impact of significant Federal agency rules.
Sec. 9. Biennial State startup business report.
Sec. 10. New business formation report.
Sec. 11. Rescission of unspent Federal funds.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Achieving economic recovery will require the formation 
        and growth of new companies.
            (2) Between 1980 and 2005, companies less than 5 years old 
        accounted for nearly all net job creation in the United States.
            (3) New firms in the United States create an average of 
        3,000,000 jobs per year.
            (4) To get Americans back to work, entrepreneurs must be 
        free to innovate, create new companies, and hire employees.

SEC. 3. CONDITIONAL PERMANENT RESIDENT STATUS FOR IMMIGRANTS WITH AN 
              ADVANCED DEGREE IN A STEM FIELD.

    (a) In General.--Chapter 2 of title II of the Immigration and 
Nationality Act (8 U.S.C. 1181 et seq.) is amended by inserting after 
section 216A the following:

``SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS WITH AN 
              ADVANCED DEGREE IN A STEM FIELD.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
the Secretary of Homeland Security may adjust the status of not more 
than 50,000 aliens who have earned a master's degree or a doctorate 
degree at an institution of higher education in a STEM field to that of 
an alien conditionally admitted for permanent residence and authorize 
each alien granted such adjustment of status to remain in the United 
States--
            ``(1) for up to 1 year after the expiration of the alien's 
        student visa under section 101(a)(15)(F)(i) if the alien is 
        diligently searching for an opportunity to become actively 
        engaged in a STEM field; and
            ``(2) indefinitely if the alien remains actively engaged in 
        a STEM field.
    ``(b) Application for Conditional Permanent Resident Status.--Every 
alien applying for a conditional permanent resident status under this 
section shall submit an application to the Secretary of Homeland 
Security before the expiration of the alien's student visa in such form 
and manner as the Secretary shall prescribe by regulation.
    ``(c) Ineligibility for Federal Government Assistance.--An alien 
granted conditional permanent resident status under this section shall 
not be eligible, while in such status, for--
            ``(1) any unemployment compensation (as defined in section 
        85(b) of the Internal Revenue Code of 1986); or
            ``(2) any Federal means-tested public benefit (as that term 
        is used in section 403 of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613)).
    ``(d) Effect on Naturalization Residency Requirement.--An alien 
granted conditional permanent resident status under this section shall 
be deemed to have been lawfully admitted for permanent residence for 
purposes of meeting the 5-year residency requirement under section 
316(a)(1).
    ``(e) Removal of Condition.--The Secretary of Homeland Security 
shall remove the conditional basis of an alien's conditional permanent 
resident status under this section on the date that is 5 years after 
the date such status was granted if the alien maintained his or her 
eligibility for such status during the entire 5-year period.
    ``(f) Definitions.--In this section:
            ``(1) Actively engaged in a stem field.--The term `actively 
        engaged in a STEM field'--
                    ``(A) means--
                            ``(i) gainfully employed in a for-profit 
                        business or nonprofit organization in the 
                        United States in a STEM field;
                            ``(ii) teaching 1 or more STEM field 
                        courses at an institution of higher education; 
                        or
                            ``(iii) employed by a Federal, State, or 
                        local government entity; and
                    ``(B) includes any period of up to 6 months during 
                which the alien does not meet the requirement under 
                subparagraph (A) if such period was immediately 
                preceded by a 1-year period during which the alien met 
                the requirement under subparagraph (A).
            ``(2) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            ``(3) STEM field.--The term `STEM field' means any field of 
        study or occupation included on the most recent STEM-Designated 
        Degree Program List published in the Federal Register by the 
        Department of Homeland Security (as described in section 
        214.2(f)(11)(i)(C)(2) of title 8, Code of Federal 
        Regulations).''.
    (b) Clerical Amendment.--The table of contents of the Immigration 
and Nationality Act (8 U.S.C. 1101 et seq.) is amended by inserting 
after the item relating to section 216A the following:

``Sec. 216B. Conditional permanent resident status for aliens with an 
                            advanced degree in a STEM field.''.
    (c) Government Accountability Office Study.--
            (1) In general.--Not later than 3 years after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit to Congress a report on the alien 
        college graduates granted immigrant status under section 216B 
        of the Immigration and Nationality Act, as added by subsection 
        (a).
            (2) Contents.--The report required under paragraph (1) 
        shall include--
                    (A) the number of aliens described in paragraph (1) 
                who have earned a master's degree, broken down by the 
                number of such degrees in science, technology, 
                engineering, and mathematics;
                    (B) the number of aliens described in paragraph (1) 
                who have earned a doctorate degree, broken down by the 
                number of such degrees in science, technology, 
                engineering, and mathematics;
                    (C) the number of aliens described in paragraph (1) 
                who have founded a business in the United States in a 
                STEM field;
                    (D) the number of aliens described in paragraph (1) 
                who are employed in the United States in a STEM field, 
                broken down by employment sector (for-profit, 
                nonprofit, or government); and
                    (E) the number of aliens described in paragraph (1) 
                who are employed by an institution of higher education.
            (3) Definitions.--The terms ``institution of higher 
        education'' and ``STEM field'' have the meaning given such 
        terms in section 216B(f) of the Immigration and Nationality 
        Act, as added by subsection (a).

SEC. 4. IMMIGRANT ENTREPRENEURS.

    (a) Qualified Alien Entrepreneurs.--
            (1) Admission as immigrants.--Chapter 1 of title II of the 
        Immigration and Nationality Act (8 U.S.C. 1151 et seq.) is 
        amended by adding at the end the following:

``SEC. 210A. QUALIFIED ALIEN ENTREPRENEURS.

    ``(a) Admission as Immigrants.--The Secretary of Homeland Security, 
in accordance with the provisions of this section and of 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 on which 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 
                notification under this paragraph.
    ``(d) Removal of Conditional Basis.--The Secretary of Homeland 
Security shall remove the conditional basis of the status of an alien 
issued an immigrant visa under this section on that date that is 4 
years after the date on which such visa was issued if such visa was not 
revoked pursuant to subsection (c).
    ``(e) Definitions.--In this section:
            ``(1) Full-time employee.--The term `full-time employee' 
        means a United States citizen or legal permanent resident who 
        is paid by the new business entity registered by a qualified 
        alien entrepreneur at a rate that is comparable to the median 
        income of employees in the region.
            ``(2) Qualified alien entrepreneur.--The term `qualified 
        alien entrepreneur' means an alien who--
                    ``(A) at the time the alien applies for an 
                immigrant visa under this section--
                            ``(i) is lawfully present in the United 
                        States; and
                            ``(ii)(I) holds a nonimmigrant visa 
                        pursuant to section 101(a)(15)(H)(i)(b); or
                            ``(II) holds a nonimmigrant visa pursuant 
                        to section 101(a)(15)(F)(i);
                    ``(B) during the 1-year period beginning on the 
                date the alien is granted a visa under this section--
                            ``(i) registers at least 1 new business 
                        entity in a State;
                            ``(ii) employs, at such business entity in 
                        the United States, at least 2 full-time 
                        employees who are not relatives of the alien; 
                        and
                            ``(iii) invests, or raises capital 
                        investment of, not less than $100,000 in such 
                        business entity; and
                    ``(C) during the 3-year period beginning on the 
                last day of the 1-year period described in paragraph 
                (2), employs, at such business entity in the United 
                States, an average of at least 5 full-time employees 
                who are not relatives of the alien.''.
            (2) Clerical amendment.--The table of contents in the first 
        section of the Immigration and Nationality Act (8 U.S.C. 1101 
        et seq.) is amended by adding after the item relating to 
        section 210 the following:

``Sec. 210A. Qualified alien entrepreneurs.''.
    (b) Conditional Permanent Resident Status.--Section 216A of the 
Immigration and Nationality Act (8 U.S.C. 1186b) is amended--
            (1) by striking ``Attorney General'' each place such term 
        appears and inserting ``Secretary of Homeland Security'';
            (2) in subsection (b)(1)(C), by striking ``203(b)(5),'' and 
        inserting ``203(b)(5) or 210A, as appropriate,'';
            (3) in subsection (c)(1), by striking ``alien entrepreneur 
        must'' each place such term appears and inserting ``alien 
        entrepreneur shall'';
            (4) in subsection (d)(1)(B), by striking the period at the 
        end and inserting ``or 210A, as appropriate.''; and
            (5) in subsection (f)(1), by striking the period at the end 
        and inserting ``or 210A.''.
    (c) Government Accountability Office Study.--
            (1) In general.--Not later than 3 years after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit to Congress a report on the 
        qualified alien entrepreneurs granted immigrant status under 
        section 210A of the Immigration and Nationality Act, as added 
        by subsection (a).
            (2) Contents.--The report described in paragraph (1) shall 
        include information regarding--
                    (A) the number of qualified alien entrepreneurs who 
                have received immigrant status under section 210A of 
                the Immigration and Nationality Act, as added by 
                subsection (a), listed by country of origin;
                    (B) the localities in which such qualified alien 
                entrepreneurs have initially settled;
                    (C) whether such qualified alien entrepreneurs 
                generally remain in the localities in which they 
                initially settle;
                    (D) the types of commercial enterprises that such 
                qualified alien entrepreneurs have established; and
                    (E) the types and number of jobs created by such 
                qualified alien entrepreneurs.

SEC. 5. ELIMINATION OF THE PER COUNTRY NUMERICAL LIMITATION FOR 
              EMPLOYMENT-BASED VISAS.

    (a) In General.--Section 202(a)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1152(a)(2)) is amended--
            (1) in the paragraph heading, by striking ``and employment-
        based'';
            (2) by striking ``(3), (4), and (5),'' and inserting ``(3) 
        and (4),'';
            (3) by striking ``subsections (a) and (b) of section 203'' 
        and inserting ``section 203(a)'';
            (4) by striking ``7'' and inserting ``15''; and
            (5) by striking ``such subsections'' and inserting ``such 
        section''.
    (b) Conforming Amendments.--Section 202 of the Immigration and 
Nationality Act (8 U.S.C. 1152) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), by striking ``both 
                subsections (a) and (b) of section 203'' and inserting 
                ``section 203(a)''; and
                    (B) by striking paragraph (5); and
            (2) by amending subsection (e) to read as follows:
    ``(e) Special Rules for Countries at Ceiling.--If the total number 
of immigrant visas made available under section 203(a) to natives of 
any single foreign state or dependent area will exceed the numerical 
limitation specified in subsection (a)(2) in any fiscal year, in 
determining the allotment of immigrant visa numbers to natives under 
section 203(a), visa numbers with respect to natives of that state or 
area shall be allocated (to the extent practicable and otherwise 
consistent with this section and section 203) in a manner so that, 
except as provided in subsection (a)(4), the proportion of the visa 
numbers made available under each of paragraphs (1) through (4) of 
section 203(a) is equal to the ratio of the total number of visas made 
available under the respective paragraph to the total number of visas 
made available under section 203(a).''.
    (c) Country-Specific Offset.--Section 2 of the Chinese Student 
Protection Act of 1992 (8 U.S.C. 1255 note) is amended--
            (1) in subsection (a), by striking ``subsection (e))'' and 
        inserting ``subsection (d))''; and
            (2) by striking subsection (d) and redesignating subsection 
        (e) as subsection (d).
    (d) Effective Date.--The amendments made by this section shall take 
effect on September 30, 2017, and shall apply to fiscal years beginning 
with fiscal year 2018.
    (e) Transition Rules for Employment-Based Immigrants.--
            (1) In general.--Subject to of this subsection and 
        notwithstanding title II of the Immigration and Nationality Act 
        (8 U.S.C. 1151 et seq.), the following rules shall apply:
                    (A) For fiscal year 2018, 15 percent of the 
                immigrant visas made available under each of paragraphs 
                (2) and (3) of section 203(b) of such Act (8 U.S.C. 
                1153(b)) shall be allotted to immigrants who are 
                natives of a foreign state or dependent area that was 
                not one of the two states with the largest aggregate 
                numbers of natives obtaining immigrant visas during 
                fiscal year 2016 under such paragraphs.
                    (B) For fiscal year 2019, 10 percent of the 
                immigrant visas made available under each of such 
                paragraphs shall be allotted to immigrants who are 
                natives of a foreign state or dependent area that was 
                not one of the two states with the largest aggregate 
                numbers of natives obtaining immigrant visas during 
                fiscal year 2017 under such paragraphs.
                    (C) For fiscal year 2020, 10 percent of the 
                immigrant visas made available under each of such 
                paragraphs shall be allotted to immigrants who are 
                natives of a foreign state or dependent area that was 
                not one of the two states with the largest aggregate 
                numbers of natives obtaining immigrant visas during 
                fiscal year 2018 under such paragraphs.
            (2) Per-country levels.--
                    (A) Reserved visas.--With respect to the visas 
                reserved under each of subparagraphs (A) through (C) of 
                paragraph (1), the number of such visas made available 
                to natives of any single foreign state or dependent 
                area in the appropriate fiscal year may not exceed 25 
                percent (in the case of a single foreign state) or 2 
                percent (in the case of a dependent area) of the total 
                number of such visas.
                    (B) Unreserved visas.--With respect to the 
                immigrant visas made available under each of paragraphs 
                (2) and (3) of section 203(b) of the Immigration and 
                Nationality Act (8 U.S.C. 1153(b)) and not reserved 
                under paragraph (1), for each of fiscal years 2018, 
                2019, and 2020, not more than 85 percent shall be 
                allotted to immigrants who are natives of any single 
                foreign state.
            (3) Special rule to prevent unused visas.--If, with respect 
        to fiscal year 2018, 2019, or 2020, the operation of paragraphs 
        (1) and (2) would prevent the total number of immigrant visas 
        made available under paragraph (2) or (3) of section 203(b) of 
        the Immigration and Nationality Act (8 U.S.C. 1153(b)) from 
        being issued, such visas may be issued during the remainder of 
        such fiscal year without regard to such paragraphs (1) and (2).
            (4) Rules for chargeability.--Section 202(b) of the 
        Immigration and Nationality Act (8 U.S.C. 1152(b)) shall apply 
        in determining the foreign state to which an alien is 
        chargeable for purposes of this subsection.

SEC. 6. ACCELERATED COMMERCIALIZATION OF TAXPAYER-FUNDED RESEARCH.

    (a) Definitions.--In this section:
            (1) Council.--The term ``Council'' means the Advisory 
        Council on Innovation and Entrepreneurship of the Department of 
        Commerce established pursuant to section 25(c) of the 
        Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3720(c)).
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) an institution of higher education; or
                    (B) a venture development organization.
            (3) Extramural budget.--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.
            (4) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (5) Nonprofit organization.--The term ``nonprofit 
        organization'' means an entity or organization--
                    (A)(i) described in section 501(c)(3) of the 
                Internal Revenue Code of 1986; and
                    (ii) exempt from taxation under 501(a) of such Act; 
                or
                    (B) described in paragraph (1) or (2) of section 
                170(c) of such Act.
            (6) Research or research and development.--The terms 
        ``research'' and ``research and development'' mean any activity 
        that is--
                    (A) a systematic, intensive study directed toward 
                greater knowledge or understanding of the subject 
                studied;
                    (B) a systematic study directed specifically toward 
                applying new knowledge to meet a recognized need; or
                    (C) a systematic application of knowledge toward 
                the production of useful materials, devices, and 
                systems or methods, including design, development, and 
                improvement of prototypes and new processes to meet 
                specific requirements.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (8) State organization.--The term ``State organization'' 
        means an entity that has been created by a State, Puerto Rico, 
        or the District of Columbia.
            (9) Venture development organization.--The term ``venture 
        development organization'' means a nonprofit organization or a 
        State organization that contributes to regional or sector-based 
        economic prosperity by providing a portfolio of services 
        intended to accomplish at least 3 of the following purposes:
                    (A) Accelerating the commercialization of research 
                or research and development.
                    (B) Assisting in the creation of high-growth 
                private enterprises that are commercializing 
                technology.
                    (C) Strengthening the competitive position of 
                existing small and medium-sized enterprises through the 
                development, commercial adoption, or deployment of 
                technology.
                    (D) Providing expert assistance to--
                            (i) private companies;
                            (ii) faculty, staff, and students of 
                        institutions of higher education who are 
                        commercializing new products or services; or
                            (iii) entrepreneurs who are commercializing 
                        new products or services.
                    (E) Providing financial grants, loans, or direct 
                financial investment in companies that are 
                commercializing technology.
    (b) Grant Program Authorized.--
            (1) In general.--Each Federal agency that has an extramural 
        budget for research or research and development that is in 
        excess of $100,000,000 for each of fiscal years 2018 through 
        2022, shall transfer 0.15 percent of such extramural budget for 
        each of such fiscal years to the Secretary to enable the 
        Secretary to carry out a grant program in accordance with this 
        subsection.
            (2) Grants.--
                    (A) Awarding of grants.--
                            (i) In general.--From funds transferred 
                        under paragraph (1), the Secretary shall use 
                        the criteria developed by the Council to award 
                        grants to eligible entities for initiatives to 
                        improve commercialization and transfer of 
                        technology.
                            (ii) Request for proposals.--Not later than 
                        30 days after the Council submits the 
                        recommendations for criteria to the Secretary 
                        under subsection (c)(4)(B), and annually 
                        thereafter for each fiscal year for which the 
                        grant program is authorized, the Secretary 
                        shall release a request for proposals.
                            (iii) Applications.--Eligible entities that 
                        desire to receive a grant under this subsection 
                        shall submit an application to the Secretary 
                        not later than 90 days after the Secretary 
                        releases the request for proposals under clause 
                        (ii).
                            (iv) Council review.--
                                    (I) In general.--The Secretary 
                                shall submit each application received 
                                under clause (iii) to the Council for 
                                Council review.
                                    (II) Recommendations.--The Council 
                                shall review each application received 
                                under subclause (I) and submit 
                                recommendations for grant awards to the 
                                Secretary, including funding 
                                recommendations for each proposal.
                                    (III) Public release.--The Council 
                                shall publicly release any 
                                recommendations made under subclause 
                                (II).
                                    (IV) Consideration of 
                                recommendations.--In awarding grants 
                                under this subsection, the Secretary 
                                shall take into consideration the 
                                recommendations of the Council under 
                                subclause (II).
                    (B) Commercialization capacity building grants.--
                            (i) In general.--The Secretary shall award 
                        grants to eligible entities to support specific 
                        innovative initiatives to improve the regional 
                        capacity for private companies, faculty, staff, 
                        and students of institutions of higher 
                        education, or entrepreneurs to commercialize 
                        technology originating from federally funded 
                        research.
                            (ii) Content of proposals.--Grants shall be 
                        awarded under this subparagraph for 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 or venture development 
                        organizations if the innovative approaches are 
                        successful.
            (3) Assessment of success.--Grants awarded under this 
        subsection shall use criteria for assessing the success of 
        programs through the establishment of benchmarks.
            (4) Termination.--The Secretary is authorized to terminate 
        grant funding to an eligible entity in accordance with the 
        process and performance metrics recommended by the Council.
            (5) Limitations.--
                    (A) Project management costs.--A grant recipient 
                may use not more than 10 percent of grant funds awarded 
                under this subsection for the purpose of funding 
                project management costs of the grant program.
                    (B) Supplement, not supplant.--An eligible entity 
                that receives a grant under this subsection shall use 
                the grant funds to supplement, and not to supplant, 
                non-Federal funds that would, in the absence of such 
                grant funds, be made available for activities described 
                in this section.
            (6) Unspent funds.--Any funds transferred to the Secretary 
        under paragraph (1) for a fiscal year that are not expended by 
        the end of such fiscal year may be expended in any subsequent 
        fiscal year through fiscal year 2022. Any funds transferred 
        under paragraph (1) that are remaining at the end of the grant 
        program's authorization under this subsection shall be 
        transferred to the Treasury for deficit reduction.
    (c) Council.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Council shall convene and 
        develop recommendations for criteria in awarding grants to 
        eligible entities under subsection (b).
            (2) Submission to department of commerce and public 
        release.--The Council shall--
                    (A) submit the recommendations described in 
                paragraph (1) to the Secretary; and
                    (B) release the recommendations to the public.
            (3) Majority vote.--The recommendations submitted by the 
        Council under paragraph (2) shall be determined by a majority 
        vote of Council members.
            (4) Performance metrics.--The Council shall develop and 
        provide to the Secretary recommendations on performance metrics 
        to be used to evaluate grants awarded under subsection (b).
            (5)  Evaluation.--
                    (A) In general.--Not later than 180 days before the 
                expiration of the grant program authorized under 
                subsection (b), the Council shall evaluate the effect 
                of the grant program on accelerating the 
                commercialization of technology originating from 
                federally funded research or research and development.
                    (B) Inclusions.--The evaluation under subparagraph 
                (A) shall include--
                            (i) the recommendation of the Council as to 
                        whether the grant program should be continued 
                        or terminated;
                            (ii) quantitative data related to the 
                        effect, if any, that the grant program has had 
                        on accelerating the commercialization of 
                        technology originating from federally funded 
                        research and research and development; and
                            (iii) a description of the lessons learned 
                        in administering the grant program, and how 
                        such lessons could be applied to future efforts 
                        to accelerate the commercialization of 
                        technology originating from federally funded 
                        research or research and development.
                    (C) Availability.--The results of the evaluation 
                under subparagraph (A) shall be made available on a 
                public website and submitted to Congress. The Secretary 
                shall notify all institutions of higher education when 
                the evaluation is published and how it can be accessed.
    (d) Rule of Construction.--Nothing in this section may be construed 
to alter, modify, or amend any provision of chapter 18 of title 35, 
United States Code (commonly known as the ``Bayh-Dole Act'').

SEC. 7. REGIONAL INNOVATION PROGRAM.

    Section 27 of the Stevenson-Wydler Technology Innovation Act of 
1980 (15 U.S.C. 3722) is amended to read as follows:

``SEC. 27. REGIONAL INNOVATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible recipient defined.--The term `eligible 
        recipient' means--
                    ``(A) a State;
                    ``(B) an Indian tribe;
                    ``(C) a city or other political subdivision of a 
                State;
                    ``(D) an entity that--
                            ``(i) is a nonprofit organization, an 
                        institution of higher education, a public-
                        private partnership, a science or research 
                        park, a Federal laboratory, a venture 
                        development organization (as defined in section 
                        6 of the Startup Act), or an economic 
                        development organization or similar entity that 
                        is focused primarily on improving science, 
                        technology, innovation, and entrepreneurship; 
                        or
                    ``(E) a consortium of any of the entities described 
                in subparagraphs (A) through (D).
            ``(2) Regional innovation initiative.--The term `regional 
        innovation initiative' means a public or nonprofit activity or 
        program implemented in a specific geographic area to address 
        issues of greatest need in the local innovation systems--
                    ``(A) to increase the success of innovation-driven 
                startups;
                    ``(B) to strengthen the competitiveness of existing 
                businesses through new product innovation;
                    ``(C) to improve the pace of market readiness and 
                overall commercialization of innovation; and
                    ``(D) to enhance the overall innovation capacity 
                and long-term resilience of the region.
            ``(3) State.--The term `State' means one of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, or any other territory or possession of the United 
        States.
    ``(b) Establishment.--The Secretary shall establish a regional 
innovation program to encourage and support the development of State 
and local initiatives designed to increase innovation-driven economic 
opportunity within their respective regions.
    ``(c) Regional Innovation Grants.--
            ``(1) Authorization of grants.--As part of the program 
        established under subsection (b), the Secretary may award 
        grants, on a competitive basis, to eligible recipients for 
        activities designed to strengthen the competitiveness of new 
        and existing innovation-driven businesses within the geographic 
        regions identified by eligible recipients before receiving a 
        grant under this subsection.
            ``(2) Permissible activities.--Grants awarded under this 
        subsection may be used for activities determined appropriate by 
        the Secretary that strive to achieve 3 or more of the following 
        outcomes:
                    ``(A) Increasing the availability and investment of 
                private and philanthropic financing that supports 
                innovation-based business ventures within geographic 
                regions and populations that have historically received 
                less venture capital than the average per capita amount 
                of venture capital received by businesses throughout 
                the United States during the previous 3 years, as 
                determined by the Secretary.
                    ``(B) Completing the research, development and 
                introduction of new products, processes, and services 
                into the commercial market by United States companies, 
                as measured by increased revenues, increased sales, 
                greater market share, reduce costs, increased market 
                value, or overall profitability increase, as reported 
                by the participating companies to the Secretary.
                    ``(C) Increasing the number of full-time equivalent 
                employment opportunities within innovation-based 
                business ventures in the geographic region that pay 
                wages that are higher than the median for the 
                geographic region.
                    ``(D) Using innovation, technology, and innovation-
                based business ventures to help the public and 
                nonprofit sectors--
                            ``(i) to reduce costs associated with 
                        carrying out their missions and services; or
                            ``(ii) to achieve other quantifiable 
                        efficiencies, savings, or reductions in 
                        carrying out their operations and service 
                        delivery.
                    ``(E) Achieving quantifiable, positive benefits to, 
                or measurable enhancements for, the economic 
                performance of the geographic region or the population 
                within the region identified by the regional innovation 
                program grant recipient through increased 
                collaboration, productive partnerships, and 
                strengthened network relationships (internal and 
                external to the region) that support the regional 
                innovation system.
            ``(3) Restricted activities.--Grants awarded under this 
        subsection may not be used to pay for--
                    ``(A) costs related to the construction, expansion, 
                demolition, renovation, or installation of physical 
                assets;
                    ``(B) costs related to the recruitment, inducement, 
                or associated financial or tangible incentives that 
                might be offered to relocate an existing business from 
                a geographic area to another geographic area; or
                    ``(C) costs associated with offsetting revenues 
                forgone by one or more taxing authorities through tax 
                incentives, tax increment financing, special 
                improvement districts, tax abatements for private 
                development within designated zones or geographic 
                areas, or other reduction in revenues resulting from 
                tax credits affecting the geographic region of the 
                eligible recipients.
            ``(4) Applications.--
                    ``(A) In general.--An eligible recipient shall 
                submit an application to the Secretary at such time, in 
                such manner, and containing such information and 
                assurances as the Secretary may require.
                    ``(B) Components.--Each application submitted under 
                subparagraph (A) shall include a description of the 
                regional innovation initiative supported by the 
                proposed activity, including--
                            ``(i) whether the regional innovation 
                        initiative is supported by the private sector, 
                        State and local governments, and other relevant 
                        stakeholders;
                            ``(ii) which 3 or more of the outcomes 
                        described in paragraph (2) will the regional 
                        innovation initiative address by implementing 
                        the activities described in the application;
                            ``(iii) what activities the regional 
                        innovation initiative will undertake and how 
                        those activities will achieve the outcomes 
                        described in paragraph (2);
                            ``(iv) how the eligible recipient will 
                        measure progress toward, and attainment of, the 
                        outcomes addressed by the regional innovation 
                        initiative;
                            ``(v) whether the participants in the 
                        regional innovation initiative have access to, 
                        or contribute to, a well-trained workforce and 
                        other innovation assets that are critical to 
                        the successful outcomes specified in the 
                        application;
                            ``(vi) whether the participants in the 
                        regional innovation initiative are capable of 
                        attracting additional funds from non-Federal 
                        sources; and
                            ``(vii) if appropriate for the activities 
                        proposed in the application, the likelihood 
                        that the participants in the regional 
                        innovation initiative will be able to sustain 
                        activities after grant funds received under 
                        this subsection have been expended.
                    ``(C) Feedback.--The Secretary shall provide 
                feedback to program applicants that are not awarded 
                grants to help them improve future applications.
                    ``(D) Special considerations.--The Secretary shall 
                give special consideration to--
                            ``(i) applications proposing to include 
                        workforce or training related activities in 
                        their regional innovation initiative from 
                        eligible recipients who agree to collaborate 
                        with local workforce investment area boards; 
                        and
                            ``(ii) applications from regions that 
                        contain communities negatively impacted by 
                        trade.
            ``(5) Cost share.--The Secretary may not provide more than 
        50 percent of the total cost of any activity funded under this 
        subsection.
            ``(6) Outreach to rural communities.--The Secretary shall 
        conduct outreach to public and private sector entities in rural 
        communities to encourage those entities to participate in 
        regional innovation initiatives under this subsection.
            ``(7) Funding.--The Secretary may accept funds from other 
        Federal agencies to support grants and activities under this 
        subsection.
    ``(d) Regional Innovation Research and Information Program.--
            ``(1) In general.--As part of the program established under 
        subsection (b), the Secretary shall establish a regional 
        innovation research and information program--
                    ``(A) to gather, analyze, and disseminate 
                information on best practices for regional innovation 
                initiatives, including information relating to how 
                innovation, productivity, and economic development can 
                be maximized through such strategies;
                    ``(B) to provide technical assistance, including 
                through the development of technical assistance guides, 
                for the development and implementation of regional 
                innovation initiatives;
                    ``(C) to support the development of relevant 
                metrics and measurement standards to evaluate regional 
                innovation initiatives, including the extent to which 
                such strategies stimulate innovation, productivity, and 
                economic development; and
                    ``(D) to collect and make available data on 
                regional innovation initiatives in the United States, 
                including data on--
                            ``(i) the size, specialization, and 
                        competitiveness of regional innovation 
                        initiatives;
                            ``(ii) the regional domestic product 
                        contribution, total jobs and earnings by key 
                        occupations, establishment size, nature of 
                        specialization, patents, Federal research and 
                        development spending, and other relevant 
                        information for regional innovation 
                        initiatives; and
                            ``(iii) supply chain product and service 
                        flows within and between regional innovation 
                        initiatives.
            ``(2) Research grants.--The Secretary may award research 
        grants on a competitive basis to support and further the goals 
        of the program established under this section.
            ``(3) Dissemination of information.--Data and analysis 
        compiled by the Secretary under the program established in this 
        subsection shall be made available to other Federal agencies, 
        State and local governments, and nonprofit and for-profit 
        entities.
            ``(4) Regional innovation grant program.--The Secretary 
        shall incorporate data and analysis relating to any grant 
        awarded under subsection (c) into the program established under 
        this subsection.
    ``(e) Interagency Coordination.--
            ``(1) In general.--To the maximum extent practicable, the 
        Secretary shall ensure that the activities carried out under 
        this section are coordinated with, and do not duplicate the 
        efforts of, other programs at the Department of Commerce or at 
        other Federal agencies.
            ``(2) Collaboration.--
                    ``(A) In general.--The Secretary shall explore and 
                pursue collaboration with other Federal agencies, 
                including through multiagency funding opportunities, on 
                regional innovation strategies.
                    ``(B) Small businesses.--The Secretary shall ensure 
                that such collaboration with Federal agencies 
                prioritizes the needs and challenges of small 
                businesses.
    ``(f) Evaluation.--
            ``(1) In general.--Not later than 5 years after Congress 
        appropriates funds to carry out this section, the Secretary 
        shall competitively award a contract with an independent entity 
        to conduct an evaluation of programs established under this 
        section.
            ``(2) Requirements.--The evaluation conducted under 
        paragraph (1) shall include--
                    ``(A) an assessment of whether the program is 
                achieving its goals;
                    ``(B) the program's efficacy in providing awards to 
                geographically diverse entities;
                    ``(C) any recommendations for how the program may 
                be improved; and
                    ``(D) a recommendation as to whether the program 
                should be continued or terminated.
    ``(g) Reporting Requirement.--Not later than 1 year after the first 
grant is awarded under subsection (c) and annually thereafter until 5 
years after the last grant recipient completes the regional innovation 
initiative for which such grant was awarded, the Secretary shall submit 
a report to Congress that describes the outcome of each regional 
innovation initiative that was completed during the previous 5 years.
    ``(h) Funding.--From amounts appropriated by Congress for economic 
development assistance programs, the Secretary may use up to 
$100,000,000 in each of the fiscal years 2018 through 2024 to carry out 
this section.''.

SEC. 8. ECONOMIC IMPACT OF SIGNIFICANT FEDERAL AGENCY RULES.

    Section 553 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(f) Required Review Before Issuance of Significant Rules.--
            ``(1) Defined term.--In this subsection the term 
        `significant rule' means a rule that is likely--
                    ``(A) to have an annual effect on the economy of 
                $100,000,000 or more;
                    ``(B) to adversely affect, in a material way, the 
                economy, a sector of the economy, productivity, 
                competition, jobs, the environment, public health or 
                safety, or State, local, or tribal governments or 
                communities; or
                    ``(C) to create a serious inconsistency or 
                otherwise interfere with an action taken or planned by 
                another agency.
            ``(2) Review.--Before issuing a notice of proposed 
        rulemaking in the Federal Register regarding the issuance of a 
        significant rule, the head of the Federal agency or independent 
        regulatory agency seeking to issue the rule shall complete a 
        review, to the extent permitted by law, that--
                    ``(A) analyzes the problem that the proposed rule 
                intends to address, including--
                            ``(i) the specific market failure, such as 
                        externalities, market power, or lack of 
                        information, that justifies such rule; or
                            ``(ii) any other specific problem, such as 
                        the failures of public institutions, that 
                        justifies such rule;
                    ``(B) analyzes the expected impact of the proposed 
                rule on the ability of new businesses to form and 
                expand;
                    ``(C) identifies the expected impact of the 
                proposed rule on State, local, and tribal governments, 
                including the availability of resources--
                            ``(i) to carry out the mandates imposed by 
                        the rule on such government entities; and
                            ``(ii) to minimize the burdens that 
                        uniquely or significantly affect such 
                        governmental entities, consistent with 
                        achieving regulatory objectives;
                    ``(D) identifies any conflicting or duplicative 
                regulations;
                    ``(E) determines--
                            ``(i) if existing laws or regulations 
                        created, or contributed to, the problem that 
                        the new rule is intended to correct; and
                            ``(ii) if the laws or regulations referred 
                        to in clause (i) should be modified to more 
                        effectively achieve the intended goal of the 
                        rule; and
                    ``(F) includes the cost-benefit analysis described 
                in paragraph (3).
            ``(3) Cost-benefit analysis.--A cost-benefit analysis 
        described in this paragraph shall include--
                    ``(A)(i) an assessment, including the underlying 
                analysis, of benefits anticipated from the proposed 
                rule, such as--
                            ``(I) promoting the efficient functioning 
                        of the economy and private markets;
                            ``(II) enhancing health and safety;
                            ``(III) protecting the natural environment; 
                        and
                            ``(IV) eliminating or reducing 
                        discrimination or bias; and
                    ``(ii) the quantification of the benefits described 
                in clause (i), to the extent feasible;
                    ``(B)(i) an assessment, including the underlying 
                analysis, of costs anticipated from the proposed rule, 
                such as--
                            ``(I) the direct costs to the Federal 
                        Government to administer the rule;
                            ``(II) the direct costs to businesses and 
                        others to comply with the rule; and
                            ``(III) any adverse effects on the 
                        efficient functioning of the economy, private 
                        markets (including productivity, employment, 
                        and competitiveness), health, safety, and the 
                        natural environment; and
                    ``(ii) the quantification of the costs described in 
                clause (i), to the extent feasible;
                    ``(C)(i) an assessment, including the underlying 
                analysis, of costs and benefits of potentially 
                effective and reasonably feasible alternatives to the 
                proposed rule, which have been identified by the agency 
                or by the public, including taking reasonably viable 
                nonregulatory actions; and
                    ``(ii) an explanation of why the proposed rule is 
                preferable to the alternatives identified under clause 
                (i).
            ``(4) Report.--Before issuing a notice of proposed 
        rulemaking in the Federal Register regarding the issuance of a 
        significant rule, the head of the Federal agency or independent 
        regulatory agency seeking to issue the rule shall--
                    ``(A) submit the results of the review conducted 
                under paragraph (2) to the appropriate congressional 
                committees; and
                    ``(B) post the results of the review conducted 
                under paragraph (2) on a publicly available website.
            ``(5) Judicial review.--Any determinations made, or other 
        actions taken, by an agency or independent regulatory agency 
        under this subsection shall not be subject to judicial 
        review.''.

SEC. 9. BIENNIAL STATE STARTUP BUSINESS REPORT.

    (a) Data Collection.--The Secretary of Commerce shall regularly 
compile information from each of the 50 States and the District of 
Columbia on State laws that affect the formation and growth of new 
businesses within the State or District.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, and every 2 years thereafter, the Secretary of 
Commerce, using data compiled under subsection (a), shall prepare a 
report that--
            (1) analyzes the economic effect of State and District laws 
        that either encourage or inhibit business formation and growth; 
        and
            (2) ranks the States and the District based on the 
        effectiveness with which their laws foster new business 
        creation and economic growth.
    (c) Distribution.--The Secretary of Commerce shall--
            (1) submit each report prepared under subsection (b) to 
        Congress; and
            (2) make each report available to the public on the website 
        of the Department of Commerce.
    (d) Inclusion of Large Metropolitan Areas.--Not later than 90 days 
after the submission of the first report under this section, the 
Secretary of Commerce shall submit to Congress a study on the 
feasibility and advisability of including, in future reports, 
information about the effect of local laws and ordinances on the 
formation and growth of new businesses in large metropolitan areas 
within the United States.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 10. NEW BUSINESS FORMATION REPORT.

    (a) In General.--The Secretary of Commerce shall regularly compile 
quantitative and qualitative information on businesses in the United 
States that are not more than 1 year old.
    (b) Data Collection.--The Secretary of Commerce shall--
            (1) regularly compile information from the Bureau of the 
        Census' business register on new business formation in the 
        United States; and
            (2) conduct quarterly surveys of business owners who start 
        a business during the 1-year period ending on the date on which 
        such survey is conducted to gather qualitative information 
        about the factors that influenced their decision to start the 
        business.
    (c) Random Sampling.--In conducting surveys under subsection 
(b)(2), the Secretary may use random sampling to identify a group of 
business owners who are representative of all the business owners 
described in subsection (b)(2).
    (d) Benefits.--The Secretary of Commerce shall inform business 
owners selected to participate in a survey conducted under this section 
of the benefits they would receive from participating in the survey.
    (e) Voluntary Participation.--Business owners selected to 
participate in a survey conducted under this section may decline to 
participate without penalty.
    (f) Report.--Not later than 18 months after the date of the 
enactment of this Act, and every 3 months thereafter, the Secretary of 
Commerce shall use the data compiled under subsection (b) to prepare a 
report that--
            (1) lists the aggregate number of new businesses formed in 
        the United States;
            (2) lists the aggregate number of persons employed by new 
        businesses formed in the United States;
            (3) analyzes the payroll of new businesses formed in the 
        United States;
            (4) summarizes the data collected under subsection (b); and
            (5) identifies the most effective means by which government 
        officials can encourage the formation and growth of new 
        businesses in the United States.
    (g) Distribution.--The Secretary of Commerce shall--
            (1) submit each report prepared under subsection (f) to 
        Congress; and
            (2) make each report available to the public on the website 
        of the Department of Commerce.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 11. RESCISSION OF UNSPENT FEDERAL FUNDS.

    (a) In General.--Notwithstanding any other provision of law, of all 
available unobligated funds for fiscal year 2017, the amount necessary 
to carry out this Act and the amendments made by this Act in 
appropriated discretionary funds are hereby rescinded.
    (b) Implementation.--The Director of the Office of Management and 
Budget shall determine and identify from which appropriation accounts 
the rescission under subsection (a) shall apply and the amount of such 
rescission that shall apply to each such account.
    (c) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Director of the Office of Management and Budget shall 
submit a report to the Secretary of the Treasury and Congress of the 
accounts and amounts determined and identified for rescission under 
subsection (b).
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