Title: New Business Preservation Act
Policy area: Commerce

Summary:
New Business Preservation Act
This bill establishes and provides funding for the Innovation and Startups Equity Investment Program, through which the Department of the Treasury shall work with states to invest in new businesses.
Specifically, the bill requires Treasury to provide certain funds to participating states, which such states shall use to administer specified approved programs that provide equity investment in new businesses. Certain areas with high levels of venture capital activity are excluded from the calculation of funds allocated to a participating state. Treasury shall also award funds to approved state programs to provide follow-on investments.
If a state receives funds from an exit, the state shall use such funds to further invest in startups under the approved program. An exit is defined as the (1) acquisition of a startup in which a state has invested under the program; (2) sale of a share of such startup following an initial public offering; or (3) voluntary purchase of a state's ownership interest by the startup, investors, or existing shareholders.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3515 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3515

 To establish the Innovation and Startups Equity Investment Program in 
  the Department of the Treasury, through which the Secretary of the 
    Treasury shall allocate money to certain States to assist high-
  potential scalable startups access venture capital to commercialize 
innovations, create jobs, and accelerate economic growth, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2020

    Ms. Klobuchar (for herself, Mr. Coons, Mr. King, and Mr. Kaine) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To establish the Innovation and Startups Equity Investment Program in 
  the Department of the Treasury, through which the Secretary of the 
    Treasury shall allocate money to certain States to assist high-
  potential scalable startups access venture capital to commercialize 
innovations, create jobs, and accelerate economic growth, 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.

    This Act may be cited as the ``New Business Preservation Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Approved state program.--The term ``approved State 
        program'' means a State program that is approved by the 
        Secretary in accordance with the standards established under 
        section 3(b)(1).
            (2) Covered investment.--The term ``covered investment'' 
        means an equity investment in a startup using amounts made 
        available to carry out the covered programs.
            (3) Covered programs.--The term ``covered programs'' means 
        the Program and the program carried out under section 4.
            (4) Equity investment.--The term ``equity investment''--
                    (A) means an investment for an ownership interest 
                in an entity, the financial return with respect to 
                which is principally aligned with the financial return 
                of the plurality of ownership interests in the entity; 
                and
                    (B) includes a debt instrument that can be 
                converted to an equity ownership interest in an entity 
                based on future events.
            (5) Exit.--The term ``exit'', with respect to a startup in 
        which there is a covered investment, means--
                    (A) the acquisition of the startup;
                    (B) after an initial public offering with respect 
                to the startup, the sale of a share of the startup that 
                was obtained through the covered investment; or
                    (C) the voluntary purchase of ownership interests 
                by the startup, investors, or existing shareholders.
            (6) Federal contribution.--The term ``Federal 
        contribution'' means a contribution made--
                    (A) by a participating State to, or for the account 
                of, an approved State program; and
                    (B) with Federal funds allocated to the 
                participating State by the Secretary.
            (7) Follow-on investment.--The term ``follow-on 
        investment'' means a subsequent equity investment in a startup 
        in which there was originally a separate and distinct equity 
        investment under--
                    (A) a program carried out under the State Small 
                Business Credit Initiative Act of 2010 (12 U.S.C. 5701 
                et seq.); or
                    (B) the Program.
            (8) Market rate management fee and profit interest.--The 
        term ``market rate management fee and profit interest'' means 
        the usual and customary compensation structure paid to fund 
        managers for fund investment management services under 
        agreements with private sector limited partners.
            (9) Participating state.--The term ``participating State'' 
        means a State that participates in the Program after having 
        satisfied the approval criteria under section 3(c).
            (10) Program.--The term ``Program'' means the Innovation 
        and Startups Equity Investment Program established under 
        section 3(a).
            (11) Qualifying area.--The term ``qualifying area'' means 
        an area of the United States outside of the major venture 
        capital centers, as determined in the rule making conducted by 
        the Secretary under section 3(e).
            (12) Rule; rule making.--The terms ``rule'' and ``rule 
        making'' have the meanings given those terms in section 551 of 
        title 5, United States Code.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (14) Startup.--The term ``startup'' means a business entity 
        that--
                    (A) has been in existence for less than 10 years;
                    (B) has the intention or potential to--
                            (i) significantly scale with respect to 
                        revenue and job creation;
                            (ii) develop innovative products or 
                        services; and
                            (iii) deliver high returns on investment; 
                        and
                    (C) is headquartered in a qualifying area.
            (15) State.--
                    (A) In general.--The term ``State'' means--
                            (i) a State of the United States; and
                            (ii) the District of Columbia.
                    (B) Rule of construction.--The Commonwealth of 
                Puerto Rico, the United States Virgin Islands, Guam, 
                American Samoa, and the Commonwealth of the Northern 
                Mariana Islands shall collectively be considered to be 
                1 State for the purposes of this Act.
            (16) State program.--The term ``State program'' means a 
        program established by a State to provide equity investment in 
        startups or venture capital funds that are headquartered in 
        qualifying areas, without regard to whether those qualifying 
        areas are located in the State.
            (17) Venture capital fund.--The term ``venture capital 
        fund'' has the meaning given the term in section 275.203(l)-1 
        of title 17, Code of Federal Regulations, or any successor 
        regulation.

SEC. 3. ISEI PROGRAM.

    (a) Establishment.--There is established in the Department of the 
Treasury the Innovation and Startups Equity Investment Program--
            (1) which shall be administered by the Secretary; and
            (2) under which--
                    (A) the Secretary shall, in accordance with the 
                provisions of this section, allocate to participating 
                States--
                            (i) the amount appropriated under section 
                        8(a)(1); and
                            (ii) any future amounts appropriated to 
                        carry out the Program under the authorization 
                        provided under section 8(b);
                    (B) participating States to which funds are 
                allocated under subparagraph (A) shall, through 
                approved State programs, provide equity investment in 
                startups; and
                    (C) money (including securities) returned to States 
                after exits with respect to the investments described 
                in subparagraph (B) shall be reinvested through follow-
                on investments, as further provided in section 5.
    (b) Duties of the Secretary.--In administering the Program, the 
Secretary shall--
            (1) establish minimum standards for a State program to be 
        considered an approved State program;
            (2) provide technical assistance to States for designing 
        State programs and implementing approved State programs;
            (3) disseminate information relating to best practices with 
        respect to the design and implementation described in paragraph 
        (2);
            (4) perform any managerial or administrative function that 
        is necessary to maintain the integrity of the Program; and
            (5) provide oversight of the Program, including by 
        reviewing whether each approved State program is in compliance 
        with the requirements of the Program.
    (c) Approval Criteria.--
            (1) Participating states.--A State may become a 
        participating State if--
                    (A) the State--
                            (i) designates a specific department or 
                        agency of the State, or an entity supported by 
                        the State, to implement and administer a State 
                        program of the State; or
                            (ii) has a contractual arrangement--
                                    (I) with a participating State that 
                                has an approved State program; and
                                    (II) through which the 
                                participating State described in 
                                subclause (I) will implement and 
                                administer the State program of the 
                                State;
                    (B) the State takes all legal actions necessary to 
                enable the entity that, under subparagraph (A), will 
                implement the State program of the State to carry out 
                that implementation;
                    (C) the State submits to the Secretary an 
                application described in paragraph (2)(B) during a time 
                period to be established by the Secretary; and
                    (D) the State and the Secretary enter into an 
                allocation agreement that--
                            (i) satisfies the requirements of this Act, 
                        including the requirement under section 
                        5(a)(2)(A);
                            (ii) provides that the State program 
                        established by the State will comply with any 
                        standards established by the Secretary in 
                        carrying out this Act;
                            (iii) establishes internal control, 
                        compliance, and reporting requirements 
                        established by the Secretary and any other 
                        terms and conditions that are necessary to 
                        carry out the Program, including an agreement 
                        by the State to permit the Secretary to audit 
                        the State program established by the State;
                            (iv) requires that, not later than 180 days 
                        after the date on which the State and the 
                        Secretary enter into the agreement (or a later 
                        date if the Secretary determines that later 
                        date to be appropriate), the State program of 
                        the State is able to make the type of equity 
                        investments contemplated by this Act; and
                            (v) includes an agreement by the State to 
                        submit to the Secretary any reports required 
                        under the Program, including those required 
                        under section 7.
            (2) Approved state programs.--
                    (A) Models.--The Secretary may certify a State 
                program that uses either of the following structures as 
                an approved State program:
                            (i) A program in which a State-supported 
                        entity or a private investment firm (referred 
                        to in this clause as the ``manager'') directly 
                        invests in startups in accordance with the 
                        following requirements:
                                    (I) A State agency may not serve as 
                                the manager of the program.
                                    (II) Any investment made under the 
                                program shall have not less than 50 
                                percent of the investment funded using 
                                nongovernment sources.
                                    (III) A State-sponsored entity or 
                                nonprofit organization serving as the 
                                manager under the program may charge a 
                                market rate annual management fee.
                                    (IV) The State may allow the 
                                manager under the program to receive a 
                                market-rate profit share.
                                    (V) The manager under the program 
                                shall actively--
                                            (aa) educate minority-owned 
                                        and women-owned startups 
                                        regarding the process through 
                                        which the manager makes equity 
                                        investments; and
                                            (bb) pursue equity 
                                        investments in startups 
                                        described in item (aa).
                            (ii) A program in which a State-supported 
                        entity or a private investment firm establishes 
                        a fund to invest in other investment funds in 
                        accordance with the following requirements:
                                    (I) The fund established under the 
                                program may charge a market rate 
                                management fee paid by the 
                                administrator of the program with 
                                program funds and receive a market rate 
                                management fee and profit interest.
                                    (II) If the State has an above 
                                average per capita venture capital 
                                market share, the State shall 
                                prioritize allocations by the fund 
                                established under the program to funds 
                                managed by first-time managers, women, 
                                and minorities.
                                    (III) The allocations made by the 
                                fund established under the program 
                                shall be in an amount that is not more 
                                than 20 percent of the capital raised 
                                by that fund, except that, with respect 
                                to a recipient fund described in 
                                subclause (II), that amount shall be 50 
                                percent.
                    (B) Application.--A State that wishes to have a 
                State program of the State certified by the Secretary 
                as an approved State program shall submit to the 
                Secretary an application that contains--
                            (i) a venture capital supply and 
                        accessibility study listing, which shall 
                        include--
                                    (I) a list of active, as of the 
                                date on which the application is 
                                submitted, venture capital funds in the 
                                State with capital under management, 
                                segregated by funds that actively 
                                invest in startups and funds that no 
                                longer actively invest in startups;
                                    (II) sources of equity investments 
                                in startups; and
                                    (III) a summary of investment 
                                activity in the State from accredited 
                                investors that are not venture capital 
                                funds;
                            (ii) for the 10-year period preceding the 
                        date on which the State submits the 
                        application, a list of each State-sponsored 
                        program, the intent of which is to stimulate 
                        equity investment in startups, including the 
                        policies implemented under each such program 
                        and the reported results of each such program;
                            (iii) a list of active, as of the date on 
                        which the application is submitted, State 
                        pension fund investments in venture capital 
                        funds and similar types of investments;
                            (iv) a final report on outcomes in the 
                        State under each program established under the 
                        State Small Business Credit Initiative Act of 
                        2010 (12 U.S.C. 5701 et seq.) (referred to in 
                        this subparagraph as the ``Initiative''), 
                        including--
                                    (I) the total amount expended in 
                                direct support of small businesses 
                                under the Initiative in the State;
                                    (II) the total amount of private 
                                capital leverage generated by each 
                                approved program under the Initiative 
                                in the State;
                                    (III) the amount of funds made 
                                available under the Initiative in the 
                                State that were not ultimately 
                                expended, if any;
                                    (IV) the amount of capital returned 
                                to the State in the form of investment 
                                returns or loan repayments under the 
                                Initiative; and
                                    (V) the actual uses of residual 
                                funds generated from the Initiative in 
                                the State;
                            (v) a policy regarding the resolution of 
                        conflicts of interest with respect to the State 
                        program, including a comparison with that 
                        policy for the Department of the Treasury with 
                        respect to the Initiative; and
                            (vi) an identification of which model 
                        described in subparagraph (A) the State intends 
                        to use for the State program of the State.
                    (C) Review of application.--Not later than 90 days 
                after the date on which the Secretary receives an 
                application submitted by a State under subparagraph 
                (B), the Secretary shall approve the application if the 
                application satisfies all applicable requirements.
            (3) Duration of approval.--
                    (A) In general.--Except as provided in subparagraph 
                (C), a State program that the Secretary certifies as an 
                approved State program under this subsection shall--
                            (i) remain so certified for the 5-year 
                        period beginning on the date on which the 
                        Secretary certifies the program; and
                            (ii) during the 5-year period described in 
                        clause (i), remain eligible to receive 
                        allocations under the Program, except as 
                        otherwise expressly provided in this section.
                    (B) Re-certification.--After the end of the 5-year 
                period described in subparagraph (A)(i) with respect to 
                an approved State program, the Secretary may re-certify 
                the approved State program after obtaining from the 
                applicable participating State any materials that the 
                Secretary may require.
                    (C) Exception for material changes.--If, during the 
                5-year period described in subparagraph (A)(i) with 
                respect to an approved State program, there are 
                material changes made to the structure or 
                administration of the approved State program, the 
                applicable participating State, in order to maintain 
                the certification for the approved State program, shall 
                submit to the Secretary an updated application that 
                contains any materials that the Secretary may require.
    (d) Allocations.--
            (1) Formula.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), the amount of an allocation to a participating 
                State under the Program shall be calculated as follows:
                            (i) With respect to an allocation made from 
                        the amount appropriated under section 8(a)(1), 
                        the allocation shall be calculated as follows:
                                    (I) Divide the total population of 
                                the State by the total population of 
                                the United States.
                                    (II) Multiply the total amount 
                                appropriated under section 8(a)(1) by 
                                the quotient obtained under subclause 
                                (I) with respect to the State.
                            (ii) With respect to an allocation made 
                        from any amounts appropriated to carry out the 
                        Program under the authorization provided under 
                        section 8(b), the allocation shall be 
                        calculated as follows:
                                    (I) Divide the total population of 
                                the State by the total population of 
                                the United States.
                                    (II) Multiply the quotient obtained 
                                under subclause (I) with respect to the 
                                State by the total amount made 
                                available to carry out the Program for 
                                the fiscal year in which the allocation 
                                is made.
                    (B) States with a high level of venture capital 
                activity.--
                            (i) Purpose.--The purpose of this 
                        subparagraph is to, for the purposes of the 
                        calculation under subparagraph (A) with respect 
                        to certain States, exclude areas with high 
                        levels of venture capital activity from the 
                        populations of those States.
                            (ii) Calculation.--Subject to any rules 
                        issued under clause (iii), with respect to the 
                        calculation under subparagraph (A) for the 
                        States of California, Massachusetts, and New 
                        York, the total populations of those States 
                        shall be adjusted as follows:
                                    (I) With respect to California, the 
                                populations of the following counties 
                                shall be subtracted from the total 
                                population of that State:
                                            (aa) Marin County.
                                            (bb) Sonoma County.
                                            (cc) Napa County.
                                            (dd) Contra Costa County.
                                            (ee) Santa Clara County.
                                            (ff) San Mateo County.
                                            (gg) San Francisco County.
                                            (hh) Los Angeles County.
                                            (ii) Orange County.
                                            (jj) Ventura County.
                                    (II) With respect to Massachusetts, 
                                the populations of the following 
                                counties shall be subtracted from the 
                                total population of that State:
                                            (aa) Essex County.
                                            (bb) Middlesex County.
                                            (cc) Suffolk County.
                                            (dd) Norfolk County.
                                    (III) With respect to New York, the 
                                populations of the following counties 
                                shall be subtracted from the total 
                                population of that State:
                                            (aa) Kings County.
                                            (bb) Queens County.
                                            (cc) New York County.
                                            (dd) Bronx County.
                                            (ee) Richmond County.
                            (iii) Rule making.--As the Secretary 
                        determines to be appropriate, the Secretary may 
                        issue rules to amend the list of counties under 
                        subclause (I), (II), or (III) of clause (ii) in 
                        order to fulfill the purpose described in 
                        clause (i).
                    (C) Minimum allocation.--The allocation to a 
                participating State under the Program shall be in an 
                amount that is not less than--
                            (i) with respect to an allocation made from 
                        the amount appropriated under section 8(a)(1), 
                        1 percent of that amount; and
                            (ii) with respect to an allocation made 
                        from amounts appropriated in a fiscal year to 
                        carry out the Program under the authorization 
                        provided under section 8(b), 1 percent of the 
                        total amount made available to carry out the 
                        Program for that fiscal year.
            (2) Delivery.--
                    (A) In general.--Subject to the other provisions of 
                this paragraph, the Secretary shall--
                            (i) apportion the amount allocated to a 
                        participating State under this subsection into 
                        thirds;
                            (ii) transfer the first \1/3\ described in 
                        clause (i) to a participating State not later 
                        than 30 days after the date on which the 
                        Secretary approves the State program of the 
                        State; and
                            (iii) transfer each successive \1/3\ 
                        described in clause (i) to a participating 
                        State when the State has certified to the 
                        Secretary that the State has expended, 
                        transferred, or obligated 80 percent of the 
                        most recently allocated \1/3\ for Federal 
                        contributions.
                    (B) Use of amounts.--Each amount allocated to a 
                participating State under this subsection shall remain 
                available to the State--
                            (i) for making Federal contributions; and
                            (ii) in the case of each \1/3\ transferred 
                        under subparagraph (A), for paying 
                        administrative costs incurred by the State in 
                        implementing an approved State program of the 
                        State in an amount that is not more than 5 
                        percent of that \1/3\ amount.
                    (C) Withholding.--The Secretary may withhold a \1/
                3\ transfer under subparagraph (A) pending the results 
                of a financial audit by the Secretary of the applicable 
                approved State program.
                    (D) Exception.--The Secretary may, in the 
                discretion of the Secretary, transfer the full amount 
                allocated to a participating State under this 
                subsection in a single transfer if the State submits to 
                the Secretary an application that demonstrates the need 
                for such a method of transfer.
            (3) Remaining funds.--If, after allocating funds to 
        participating States under this subsection, there are amounts 
        remaining from the amounts made available to carry out the 
        Program (without regard to whether those amounts were made 
        available under section 8(a)(1) or pursuant to the 
        authorization provided under section 8(b)), the Secretary shall 
        allocate the remaining amounts in accordance with paragraphs 
        (1) and (2).
    (e) Rules.--Not later than 90 days after the date of enactment of 
this Act, the Secretary shall initiate a rule making to issue rules 
regarding the administration of the Program, which shall include the 
establishment of the minimum standards described in subsection (b)(1).

SEC. 4. FOLLOW-ON INVESTMENTS.

    (a) In General.--The Secretary shall allocate the amount 
appropriated under section 8(a)(2), and any future amounts appropriated 
to carry out this section under the authorization provided under 
section 8(b), to approved State programs to facilitate follow-on 
investments.
    (b) Process.--To carry out the allocations under this section, the 
Secretary shall manage a competitive process, facilitated by an expert 
consultant from the private sector, to award funding to approved State 
programs to provide follow-on investments.
    (c) Amount.--A follow-on investment under subsection (b) shall be 
in an amount that is not less than $5,000,000 and not more than 
$50,000,000.
    (d) Fees.--With respect to the expert consultant described in 
subsection (b)--
            (1) the Secretary may pay management fees to the consultant 
        in an amount that is not more than 0.5 percent of the co-
        investment funds managed by the consultant over the term of the 
        program under this section; and
            (2) the consultant may receive not more than 10 percent of 
        the profit interest earned by the States participating in the 
        program under this section from the proceeds of successful 
        follow-on investments.
    (e) Rules.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall issue rules--
            (1) to determine the eligibility of States that wish to 
        participate in the program established under this section, 
        which shall include the exclusion under section 3(d)(1)(B)(ii);
            (2) to provide the manner in which States may make the 
        follow-on investments described in this section;
            (3) that shall permit multiple States to work together to 
        invest in startups; and
            (4) to determine an appropriate time to make the 
        allocations required under this section with respect to follow-
        on investments in startups for which the original equity 
        investments were made under the Program.

SEC. 5. EXITS AND REPAYMENT.

    (a) Exits.--
            (1) In general.--If a State to which an allocation is made 
        under a covered program receives funds from an exit with 
        respect to a covered investment, the State shall use those 
        funds to further invest in startups in the manner contemplated 
        by the applicable covered program.
            (2) Enforcement.--The Secretary shall--
                    (A) require that each allocation agreement 
                described in section 3(c)(1)(D) include the requirement 
                under paragraph (1); and
                    (B) in any audit conducted of the State by the 
                Secretary under a covered program, confirm that there 
                is compliance with respect to the requirement under 
                paragraph (1).
    (b) Failure To Reinvest.--If a State to which an allocation is made 
under a covered program receives funds from an exit with respect to a 
covered investment and fails to comply with any requirement under this 
Act, that State shall repay to the Secretary the amount of that 
allocation, including any realized gains.

SEC. 6. EXPEDITED CONTRACTING.

    For the purposes of carrying out this Act, during the 1-year period 
beginning on the date of enactment of this Act, the Secretary may enter 
into contracts without regard to any other provision of law regarding 
public contracts.

SEC. 7. REPORTING.

    (a) Quarterly Reports From States to the Secretary.--
            (1) In general.--Not later than 30 days after the first day 
        of each calendar quarter that begins after the date on which 
        the Secretary issues final rules in the rule making initiated 
        under section 3(e), each participating State that has received 
        an allocation under the Program and each State to which funding 
        is awarded under section 4(b) shall submit to the Secretary a 
        report regarding the use, during the quarter preceding the 
        quarter in which the State submits the report, of funds 
        received under the applicable covered program.
            (2) Contents.--In each report that a State is required to 
        submit under paragraph (1), the State shall, with respect to 
        the quarter covered by the report--
                    (A) indicate the total amount of funds during the 
                quarter that the State received under the covered 
                programs and expended; and
                    (B) contain a certification by the State that--
                            (i) all of the information contained in the 
                        report is accurate;
                            (ii) funds allocated to the State under the 
                        covered programs continue to be available and 
                        legally committed to an approved State program 
                        of the State, except for funds already expended 
                        by the State in carrying out the approved State 
                        program; and
                            (iii) the State is carrying out the 
                        approved State program of the State in 
                        accordance with this Act and rules issued under 
                        this Act.
    (b) Annual Reports From States to the Secretary.--Not later than 
March 31 of each year in which the covered programs are in effect, each 
participating State that has received an allocation under the Program 
and each State to which funding is awarded under section 4(b) shall 
submit to the Secretary an annual report with respect to the year 
preceding the year in which the report is submitted, which shall 
include, for the year covered by the report--
            (1) the number of startups supported by an investment made 
        through an approved State program of the State;
            (2) the total number of investments made through an 
        approved State program of the State;
            (3) the amount of private capital leverage for each covered 
        investment made through an approved State program of the State 
        and collectively by the State under the covered programs and 
        the source of any private capital match;
            (4) a breakdown of investments made through an approved 
        State program of the State by, with respect to the startups in 
        which the investments were made, industry type, investment 
        size, age of entity, annual sales, geographic location (which 
        shall be indicated by zip code), and number of employees; and
            (5) any other information that the Secretary, in the sole 
        discretion of the Secretary, may require to carry out the 
        purposes of the covered programs.
    (c) Annual Reports From the Secretary to Congress.--
            (1) Reporting requirement.--
                    (A) In general.--The Secretary shall submit to the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on Financial Services of the 
                House of Representatives an annual report that 
                summarizes information reported to the Secretary by 
                States that details, for the year covered by the 
                report, outcomes from investments made pursuant to 
                funds allocated under the covered programs.
                    (B) Length of requirement.--The Secretary shall 
                submit the annual report required under subparagraph 
                (A) until the later of--
                            (i) the year that is 12 years after the 
                        date of enactment of this Act; or
                            (ii) the year in which no investment is 
                        made through either of the covered programs.
            (2) Reserve of amounts.--Of amounts appropriated to carry 
        out the covered programs under section 8(a)(1), and amounts 
        that may be appropriated under the authorization provided under 
        section 8(b), the Secretary may reserve a percentage of the 
        amounts in order to carry out paragraph (1).

SEC. 8. APPROPRIATIONS; DEPOSITS.

    (a) Direct Appropriation.--There are appropriated, out of monies in 
the Treasury not otherwise appropriated, $2,000,000,000 as follows:
            (1) $1,500,000,000 to carry out the Program, including any 
        administrative costs incurred in carrying out the Program.
            (2) $500,000,000 to carry out the follow-on investments 
        program established under section 4, including any 
        administrative costs incurred in carrying out that program.
    (b) Authorization of Future Appropriations.--In addition to the 
appropriation under subsection (a), there is authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this Act.
    (c) Deposits.--In addition to the amount appropriated under 
subsection (a), and any amounts that may be appropriated under the 
authorization provided under subsection (b), the Secretary may, in 
accordance with the requirements of this Act, expend any funds repaid 
to the Secretary under section 5(b).
    (d) Availability of Funds.--
            (1) In general.--The amount appropriated under subsection 
        (a), and any amounts that may be appropriated under the 
        authorization provided under subsection (b), shall remain 
        available, without fiscal year limitation, until expended.
            (2) Availability of certain deposits.--Any amounts repaid 
        to the Secretary as described in subsection (c) shall remain 
        available, without fiscal year limitation, until expended.
                                 <all>