,,ii #aacth ,,congress #ast ,session ,s4 #caj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ac1 #bjac ,mr4 ,moran 7for himself1 ,mr4 ,warner1 ,mr4 ,coons1 and ,mr4 ,blunt7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to jump-start economic recovery through the formation and growth of new businesses1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,startup ,act #c4j4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings4 ,sec4 #c4 ,conditional permanent resident status for immigrants with an advanced degree in a ,,stem field4 ,sec4 #d4 ,immigrant entrepreneurs4 ,sec4 #e4 ,elimination of the per-country numerical limitation for employment-based visas4 ,sec4 #f4 ,capital gains tax exemption for startup companies4 ,sec4 #g4 ,research credit for startup companies4 ,sec4 #h4 ,accelerated commercialization of taxpayer-funded research4 ,sec4 #i4 ,economic impact of significant ,federal agency rules4 ,sec4 #aj4 ,biennial ,state startup business report4 ,sec4 #aa4 ,new business formation report4 ,sec4 #ab4 ,rescission of unspent ,federal funds4 #b4 ,findings ,congress makes the following findings3 7#a7 ,achieving economic recovery will require the formation and growth of new companies4 7#b7 ,between #aihj and #bjje1 companies less than #e years old accounted for nearly all net job creation in the ,united ,states4 7#c7 ,new firms in the ,united ,states create an average of #c1jjj1jjj jobs per year4 7#d7 ,to get ,americans back to work1 entrepreneurs must be free to innovate1 create new companies1 and hire employees4 #c4 ,conditional permanent resident status for immigrants with an advanced degree in a ,,stem field 7a7 ,in general ,chapter #b of title ,,ii of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaha et seq47 is amended by inserting after section #baf;,a the following3 #baf;,b4 ,conditional permanent resident status for aliens with an advanced degree in a ,,stem field 7a7 ,in general ,notwithstanding any other provision of this ,act1 the ,secretary of ,homeland ,security may adjust the status of not more than #ej1jjj 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-- 7#a7 for up to #a year after the expiration of the alien's student visa under section #aja7;a77#ae77;,f77i7 if the alien is diligently searching for an opportunity to become actively engaged in a ,,stem field2 and 7#b7 indefinitely if the alien remains actively engaged in a ,,stem field4 7b7 ,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 regulation4 7c7 ,ineligibility for ,federal ,government assistance ,an alien granted conditional permanent resident status under this section shall not be eligible1 while in such status1 for-- 7#a7 any unemployment compensation 7as defined in section #he7;b7 of the ,internal ,revenue ,code of #aihf72 or 7#b7 any ,federal means-tested public benefit 7as that term is used in section #djc of the ,personal ,responsibility and ,work ,opportunity ,reconciliation ,act of #aiif 7#h ,u4,s4,c4 #afac774 7d7 ,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 #e-year residency requirement set forth in section #caf7;a77#a74 7e7 ,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 #e years after the date such status was granted if the alien maintained his or her eligibility for such status during the entire #e-year period4 7f7 ,definitions ,in this section3 7#a7 ,actively engaged in a ,,stem field ,the term actively engaged in a ,,stem field-- 7,a7 means-- 7i7 gainfully employed in a for-profit business or nonprofit organization in the ,united ,states in a ,,stem field2 7ii7 teaching #a or more ,,stem field courses at an institution of higher education2 or 7iii7 employed by a ,federal1 ,state1 or local government entity2 and 7,b7 includes any period of up to #f months during which the alien does not meet the requirement under subparagraph 7,a7 if such period was immediately preceded by a #a-year period during which the alien met the requirement under subparagraph 7,a74 7#b7 ,institution of higher education ,the term institution of higher education has the meaning given the term in section #aja7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja7;a774 7#c7 ,,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 7as described in section #bad4b7;f77#aa77;i77,c77#b7 of title #h1 ,code of ,federal ,regulations74 4 7b7 ,clerical amendment ,the table of contents for the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq47 is amended by inserting after the item relating to section #baf;,a the following3 ,sec4 #baf;,b4 ,conditional permanent resident status for aliens with an advanced degree in a ,,stem field4 4 7c7 ,government ,accountability ,office study 7#a7 ,in general ,not later than #c years after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on the alien college graduates granted immigrant status under section #baf;,b of the ,immigration and ,nationality ,act1 as added by subsection 7a74 7#b7 ,contents ,the report described in paragraph 7#a7 shall include-- 7,a7 the number of aliens described in paragraph 7#a7 who have earned a master's degree1 broken down by the number of such degrees in science1 technology1 engineering1 and mathematics2 7,b7 the number of aliens described in paragraph 7#a7 who have earned a doctorate degree1 broken down by the number of such degrees in science1 technology1 engineering1 and mathematics2 7,c7 the number of aliens described in paragraph 7#a7 who have founded a business in the ,united ,states in a ,,stem field2 7,d7 the number of aliens described in paragraph 7#a7 who are employed in the ,united ,states in a ,,stem field1 broken down by employment sector 7for profit1 nonprofit1 or government72 and 7,e7 the number of aliens described in paragraph 7#a7 who are employed by an institution of higher education4 7#c7 ,definitions ,the terms institution of higher education and ,,stem field have the meaning given such terms in section #baf;,b7f7 of the ,immigration and ,nationality ,act1 as added by subsection 7a74 #d4 ,immigrant entrepreneurs 7a7 ,qualified alien entrepreneurs 7#a7 ,admission as immigrants ,chapter #a of title ,,ii of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaea et seq47 is amended by adding at the end the following3 #baj;,a4 ,qualified alien entrepreneurs 7a7 ,admission as immigrants ,the ,secretary of ,homeland ,security1 in accordance with the provisions of this section and section #baf;,a1 may issue a conditional immigrant visa to not more than #ge1jjj qualified alien entrepreneurs4 7b7 ,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 regulation4 7c7 ,revocation ,if1 during the #d-year period beginning on the date that an alien is granted a visa under this section1 the ,secretary of ,homeland ,security determines that such alien is no longer a qualified alien entrepreneur1 the ,secretary shall-- 7#a7 revoke such visa2 and 7#b7 notify the alien that the alien-- 7,a7 may voluntarily depart from the ,united ,states in accordance to section #bdj;,b2 or 7,b7 will be subject to removal proceedings under section #bdj if the alien does not depart from the ,united ,states not later than #f months after receiving such notification4 7d7 ,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 #d years after the date on which such visa was issued if such visa was not revoked pursuant to subsection 7c74 7e7 ,definitions ,in this section3 7#a7 ,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 region4 7#b7 ,qualified alien entrepreneur ,the term qualified alien entrepreneur means an alien who-- 7,a7 at the time the alien applies for an immigrant visa under this section-- 7i7 is lawfully present in the ,united ,states2 and 7ii7 7,i7 holds a nonimmigrant visa pursuant to section #aja7;a77#ae77;,h77i77b72 or 7,,ii7 holds a nonimmigrant visa pursuant to section #aja7;a77#ae77;,f77i72 7,b7 during the #a-year period beginning on the date the alien is granted a visa under this section-- 7i7 registers at least #a new business entity in a ,state2 7ii7 employs1 at such business entity in the ,united ,states1 at least #b full-time employees who are not relatives of the alien2 and 7iii7 invests1 or raises capital investment of1 not less than #ajj1jjj in such business entity2 and 7,c7 during the #c-year period beginning on the last day of the #a-year period described in paragraph 7#b71 employs1 at such business entity in the ,united ,states1 an average of at least #e full-time employees who are not relatives of the alien4 4 7#b7 ,table of contents amendment ,the table of contents in the first section of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq47 is amended by adding after the item relating to section #baj the following3 ,sec4 #baj;,a4 ,qualified alien entrepreneurs4 4 7b7 ,conditional permanent resident status ,section #baf;,a of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahf;b7 is amended-- 7#a7 by striking ,attorney ,general each place such term appears and inserting ,secretary of ,homeland ,security2 7#b7 in subsection 7b77#a77;,c71 by striking #bjc7;b77#e71 and inserting #bjc7;b77#e7 or #baj;,a1 as appropriate12 7#c7 in subsection 7c77#a71 by striking alien entrepreneur must each place such term appears and inserting alien entrepreneur shall2 7#d7 in subsection 7d77#a77;,b71 by striking the period at the end and inserting or #baj;,a1 as appropriate42 and 7#e7 in subsection 7f77#a71 by striking the period at the end and inserting or #baj;,a44 7c7 ,government ,accountability ,office study 7#a7 ,in general ,not later than #c years after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on the qualified alien entrepreneurs granted immigrant status under section #baj;,a of the ,immigration and ,nationality ,act1 as added by subsection 7a74 7#b7 ,contents ,the report described in paragraph 7#a7 shall include information regarding-- 7,a7 the number of qualified alien entrepreneurs who have received immigrant status under section #baj;,a of the ,immigration and ,nationality ,act1 as added by subsection 7a71 listed by country of origin2 7,b7 the localities in which such qualified alien entrepreneurs have initially settled2 7,c7 whether such qualified alien entrepreneurs generally remain in the localities in which they initially settle2 7,d7 the types of commercial enterprises that such qualified alien entrepreneurs have established2 and 7,e7 the types and number of jobs created by such qualified alien entrepreneurs4 #e4 ,elimination of the per-country numerical limitation for employment-based visas 7a7 ,in general ,section #bjb7;a77#b7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaeb7;a77#b77 is amended-- 7#a7 in the paragraph heading1 by striking and employment-based2 7#b7 by striking 7#c71 7#d71 and 7#e71 and inserting 7#c7 and 7#d712 7#c7 by striking subsections 7a7 and 7b7 of section #bjc and inserting section #bjc7;a72 7#d7 by striking #g and inserting #ae2 and 7#e7 by striking such subsections and inserting such section4 7b7 ,conforming amendments ,section #bjb of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaeb7 is amended-- 7#a7 in subsection 7a77#c71 by striking both subsections 7a7 and 7b7 of section #bjc and inserting section #bjc7;a72 7#b7 by striking subsection 7a77#e72 and 7#c7 by amending subsection 7e7 to read as follows3 7e7 ,special rules for countries at ceiling ,if it is determined that the total number of immigrant visas made available under section #bjc7;a7 to natives of any single foreign state or dependent area will exceed the numerical limitation specified in subsection 7a77#b7 in any fiscal year1 in determining the allotment of immigrant visa numbers to natives under section #bjc7;a71 visa numbers with respect to natives of that state or area shall be allocated 7to the extent practicable and otherwise consistent with this section and section #bjc7 in a manner so that1 except as provided in subsection 7a77#d71 the proportion of the visa numbers made available under each of paragraphs 7#a7 through 7#d7 of section #bjc7;a7 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 #bjc7;a74 4 7c7 ,country-,specific offset ,section #b of the ,chinese ,student ,protection ,act of #aiib 7#h ,u4,s4,c4 #abee note7 is amended-- 7#a7 in subsection 7a71 by striking subsection 7e77 and inserting subsection 7d772 and 7#b7 by striking subsection 7d7 and redesignating subsection 7e7 as subsection 7d74 7d7 ,effective date ,the amendments made by this section shall take effect as if enacted on ,september #cj1 #bjab1 and shall apply to fiscal years beginning with fiscal year #bjac4 7e7 ,transition rules for employment-,based immigrants 7#a7 ,in general ,subject to the succeeding paragraphs of this subsection and notwithstanding title ,,ii of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaea et seq471 the following rules shall apply3 7,a7 ,for fiscal year #bjac1 #ae percent of the immigrant visas made available under each of paragraphs 7#b7 and 7#c7 of section #bjc7;b7 of such ,act 7#h ,u4,s4,c4 #aaec7;b77 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 #bjaa under such paragraphs4 7,b7 ,for fiscal year #bjad1 #aj 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 #bjab under such paragraphs4 7,c7 ,for fiscal year #bjae1 #aj 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 #bjac under such paragraphs4 7#b7 ,per-country levels 7,a7 ,reserved visas ,with respect to the visas reserved under each of subparagraphs 7,a7 through 7,c7 of paragraph 7#a71 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 #be percent 7in the case of a single foreign state7 or #b percent 7in the case of a dependent area7 of the total number of such visas4 7,b7 ,unreserved visas ,with respect to the immigrant visas made available under each of paragraphs 7#b7 and 7#c7 of section #bjc7;b7 of such ,act 7#h ,u4,s4,c4 #aaec7;b77 and not reserved under paragraph 7#a71 for each of fiscal years #bjac1 #bjad1 and #bjae1 not more than #he percent shall be allotted to immigrants who are natives of any single foreign state4 7#c7 ,special rule to prevent unused visas ,if1 with respect to fiscal year #bjac1 #bjad1 or #bjae1 the operation of paragraphs 7#a7 and 7#b7 of this subsection would prevent the total number of immigrant visas made available under paragraph 7#b7 or 7#c7 of section #bjc7;b7 of such ,act 7#h ,u4,s4,c4 #aaec7;b77 from being issued1 such visas may be issued during the remainder of such fiscal year without regard to paragraphs 7#a7 and 7#b7 of this subsection4 7#d7 ,rules for chargeability ,section #bjb7;b7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaeb7;b77 shall apply in determining the foreign state to which an alien is chargeable for purposes of this subsection4 #f4 ,capital gains tax exemption for startup companies 7a7 ,permanent full exclusion 7#a7 ,in general ,subsection 7a7 of section #abjb of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7a7 ,exclusion ,in the case of a taxpayer other than a corporation1 gross income shall not include #ajj percent of any gain from the sale or exchange of qualified small business stock held for more than #e years4 4 7#b7 ,conforming amendments 7,a7 ,the heading for section #abjb of such ,code is amended by striking partial4 7,b7 ,the item relating to section #abjb in the table of sections for part ,i of subchapter ,p of chapter #a of such ,code is amended by striking ,partial exclusion and inserting ,exclusion4 7,c7 ,section #abbc7ac7 of such ,code is amended by striking #abjb7;a77#b714 7b7 ,repeal of minimum tax preference 7#a7 ,in general ,subsection 7a7 of section #eg of the ,internal ,revenue ,code of #aihf is amended by striking paragraph 7#g74 7#b7 ,technical amendment ,subclause 7,,ii7 of section #ec7;d77#a77;,b77ii7 of such ,code is amended by striking 1 7#e71 and 7#g7 and inserting and 7#e74 7c7 ,repeal of #bh percent capital gains rate on qualified small business stock 7#a7 ,in general ,subparagraph 7,a7 of section #a7;h77#d7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,a7 collectibles gain1 over 4 7#b7 ,conforming amendments 7,a7 ,section #a7;h7 of such ,code is amended by striking paragraph 7#g74 7,b7 7i7 ,section #a7;h7 of such ,code is amended by redesignating paragraphs 7#h71 7#i71 7#aj71 7#aa71 7#ab71 and 7#ac7 as paragraphs 7#g71 7#h71 7#i71 7#aj71 7#aa71 and 7#ab71 respectively4 7ii7 ,sections #afc7;d77#d77;,b71 #hed7;b77#e71 #heg7;c77#b77;,d7 of such ,code are each amended by striking section #a7;h77#aa77;,b7 and inserting section #a7;h77#aj77;,b74 7iii7 ,the following sections of such ,code are each amended by striking section #a7;h77#aa7 and inserting section #a7;h77#aj73 7,i7 ,section #cja7;f77#d74 7,,ii7 ,section #cjf7;a77#a77;,d74 7,,iii7 ,section #ehd7;c74 7,,iv7 ,section #gjb7;a77#e74 7,v7 ,section #hed7;a74 7,,vi7 ,section #hed7;b77#b74 7iv7 ,the heading of section #heg7;c77#b7 is amended by striking #a7;h77#aa7 and inserting #a7;h77#aj74 7d7 ,effective date ,the amendments made by this section apply to stock acquired after ,december #ca1 #bjac4 #g4 ,research credit for startup companies 7a7 ,in general 7#a7 ,in general ,section #da of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7i7 ,treatment of credit to qualified small businesses 7#a7 ,in general ,at the election of a qualified small business1 the payroll tax credit portion of the credit determined under subsection 7a7 shall be treated as a credit allowed under section #caaa7;f7 7and not under this section74 7#b7 ,payroll tax credit portion ,for purposes of this subsection1 the payroll tax credit portion of the credit determined under subsection 7a7 for any taxable year is so much of such credit as does not exceed #bej1jjj4 7#c7 ,qualified small business ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified small business means1 with respect to any taxable year-- 7i7 a corporation1 partnership1 or ,s corporation if-- 7,i7 the gross receipts 7as determined under subsection 7c77#g77 of such entity for the taxable year is less than #e1jjj1jjj1 and 7,,ii7 such entity did not have gross receipts 7as so determined7 for any period preceding the #e-taxable-year period ending with such taxable year1 and 7ii7 any person not described in subparagraph 7,a7 if clauses 7i7 and 7ii7 of subparagraph 7,a7 applied to such person1 determined-- 7,i7 by substituting person for entity each place it appears1 and 7,,ii7 in the case of an individual1 by only taking into account the aggregate gross receipts received by such individual in carrying on trades or businesses of such individual4 7,b7 ,limitation ,such term shall not include an organization which is exempt from taxation under section #eja4 7#d7 ,election 7,a7 ,in general ,in the case of a partnership or ,s corporation1 an election under this subsection shall be made at the entity level4 7,b7 ,revocation ,an election under this subsection may not be revoked without the consent of the ,secretary4 7,c7 ,limitation ,a taxpayer may not make an election under this subsection if such taxpayer has made an election under this subsection for #e or more preceding taxable years4 7#e7 ,aggregation rules ,for purposes of determining the #bej1jjj limitation under paragraph 7#b7 and determining gross receipts under paragraph 7#c71 all members of the same controlled group of corporations 7within the meaning of section #bfg7;f77 and all persons under common control 7within the meaning of section #eb7;b7 but determined by treating an interest of more than #ej percent as a controlling interest7 shall be treated as #a person4 7#f7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection1 including-- 7,a7 regulations to prevent the avoidance of the purposes of paragraph 7#c7 through the use of successor companies or other means1 7,b7 regulations to minimize compliance and recordkeeping burdens under this subsection for start-up companies1 and 7,c7 regulations for recapturing the benefit of credits determined under section #caaa7;f7 in cases where there is a subsequent adjustment to the payroll tax credit portion of the credit determined under subsection 7a71 including requiring amended returns in the cases where there is such an adjustment4 4 7#b7 ,conforming amendment ,section #bhj;,c7c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,treatment of qualified small business credit ,for purposes of determining the amount of any credit under section #da7;a7 under this subsection1 any election under section #da7;i7 shall be disregarded4 4 7b7 ,credit allowed against ,,fica taxes 7#a7 ,in general ,section #caaa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,credit for research expenditures of qualified small businesses 7#a7 ,in general ,in the case of a qualified small business which has made an election under section #da7;i71 there shall be allowed as a credit against the tax imposed by subsection 7a7 on wages paid with respect to the employment of all employees of the qualified small business for days in an applicable calendar quarter an amount equal to the payroll tax credit portion of the research credit determined under section #da7;a74 7#b7 ,carryover of unused credit ,in any case in which the payroll tax credit portion of the research credit determined under section #da7;a7 exceeds the tax imposed under subsection 7a7 for an applicable calendar quarter-- 7,a7 the succeeding calendar quarter shall be treated as an applicable calendar quarter1 and 7,b7 the amount of credit allowed under paragraph 7#a7 shall be reduced by the amount of credit allowed under such paragraph for all preceding applicable calendar quarters4 7#c7 ,allocation of credit for controlled groups1 etc ,in determining the amount of the credit under this subsection-- 7,a7 all persons treated as a single taxpayer under section #da shall be treated as a single taxpayer under this section1 and 7,b7 the credit 7if any7 allowable by this section to each such member shall be its proportionate share of the qualified research expenses1 basic research payments1 and amounts paid or incurred to energy research consortiums1 giving rise to the credit allowable under section #da4 7#d7 ,definitions ,for purposes of this subsection-- 7,a7 ,applicable calendar quarter ,the term applicable calendar quarter means-- 7i7 the first calendar quarter following the date on which the qualified small business files a return under section #fjab for the taxable year for which the payroll tax credit portion of the research credit under section #da7;a7 is determined1 and 7ii7 any succeeding calendar quarter treated as an applicable calendar quarter under paragraph 7#b77;,a74 ,for purposes of determining the date on which a return is filed1 rules similar to the rules of section #feac shall apply4 7,b7 ,other terms ,any term used in this subsection which is also used in section #da shall have the meaning given such term under section #da4 4 7#b7 ,transfers to federal old-age and survivors insurance trust fund ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 amounts equal to the reduction in revenues to the ,treasury by reason of the amendments made by paragraph 7#a74 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,trust ,fund had such amendments not been enacted4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjab4 #h4 ,accelerated commercialization of taxpayer-funded research 7a7 ,definitions ,in this section3 7#a7 ,council ,the term ,council means the ,advisory ,council on ,innovation and ,entrepreneurship of the ,department of ,commerce established pursuant to section #be7;c7 of the ,stevenson-,wydler ,technology ,innovation ,act of #aihj 7#ae ,u4,s4,c4 #cgbj7;c774 7#b7 ,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-owned1 ,government-operated facilities1 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 programs1 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 countries4 7#c7 ,institution of higher education ,the term institution of higher education has the meaning given the term in section #aja7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja7;a774 7#d7 ,research or research and development ,the term research or research and development means any activity that is-- 7,a7 a systematic1 intensive study directed toward greater knowledge or understanding of the subject studied2 7,b7 a systematic study directed specifically toward applying new knowledge to meet a recognized need2 or 7,c7 a systematic application of knowledge toward the production of useful materials1 devices1 and systems or methods1 including design1 development1 and improvement of prototypes and new processes to meet specific requirements4 7#e7 ,secretary ,the term ,secretary means the ,secretary of ,commerce4 7b7 ,grant program authorized 7#a7 ,in general ,each ,federal agency that has an extramural budget for research or research and development that is in excess of #ajj1jjj1jjj for each of fiscal years #bjad through #bjah1 shall transfer #j4ae 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 subsection4 7#b7 ,grants 7,a7 ,awarding of grants 7i7 ,in general ,from funds transferred under paragraph 7#a71 the ,secretary shall use the criteria developed by the ,council to award grants to institutions of higher education1 including consortia of institutions of higher education1 for initiatives to improve commercialization and transfer of technology4 7ii7 ,request for proposals ,not later than #cj days after the ,council submits the recommendations for criteria to the ,secretary under subsection 7c77#d77;,b71 and annually thereafter for each fiscal year for which the grant program is authorized1 the ,secretary shall release a request for proposals4 7iii7 ,applications ,each institution of higher education that desires to receive a grant under this subsection shall submit an application to the ,secretary not later than #ij days after the ,secretary releases the request for proposals under clause 7ii74 7iv7 ,council review 7,i7 ,in general ,the ,secretary shall submit each application received under clause 7iii7 to the ,council for ,council review4 7,,ii7 ,recommendations ,the ,council shall review each application received under subclause 7,i7 and submit recommendations for grant awards to the ,secretary1 including funding recommendations for each proposal4 7,,iii7 ,public release ,the ,council shall publicly release any recommendations made under subclause 7,,ii74 7,,iv7 ,consideration of recommendations ,in awarding grants under this subsection1 the ,secretary shall take into consideration the recommendations of the ,council under subclause 7,,ii74 7,b7 ,commercialization capacity building grants 7i7 ,in general ,the ,secretary shall award grants to support institutions of higher education pursuing specific innovative initiatives to improve an institution's capacity to commercialize faculty research that can be widely adopted if the research yields measurable results4 7ii7 ,content of proposals ,grants shall be awarded under this subparagraph to proposals demonstrating the capacity for accelerated commercialization1 proof-of-concept proficiency1 and translating scientific discoveries and cutting-edge inventions into technological innovations and new companies4 ,in particular1 grant funds shall seek to support innovative approaches to achieving these goals that can be replicated by other institutions of higher education if the innovative approaches are successful4 7,c7 ,commercialization accelerator grants ,the ,secretary shall award grants to support institutions of higher education pursuing initiatives that allow faculty to directly commercialize research in an effort to accelerate research breakthroughs4 ,the ,secretary shall prioritize those initiatives that have a management structure that encourages collaboration between other institutions of higher education or other entities with demonstrated proficiency in creating and growing new companies based on verifiable metrics4 7#c7 ,assessment of success ,grants awarded under this subsection shall use criteria for assessing the success of programs through the establishment of benchmarks4 7#d7 ,termination ,the ,secretary shall have the authority to terminate grant funding to an institution of higher education in accordance with the process and performance metrics recommended by the ,council4 7#e7 ,limitations 7,a7 ,project management costs ,a grant recipient may use not more than #aj percent of grant funds awarded under this subsection for the purpose of funding project management costs of the grant program4 7,b7 ,supplement1 not supplant ,an institution of higher education that receives a grant under this subsection shall use the grant funds to supplement1 and not supplant1 non-,federal funds that would1 in the absence of such grant funds1 be made available for activities described in this section4 7#f7 ,unspent funds ,any funds transferred to the ,secretary under paragraph 7#a7 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 #bjah4 ,any funds transferred under paragraph 7#a7 that are remaining at the end of the grant program's authorization under this subsection shall be transferred to the ,treasury for deficit reduction4 7c7 ,council 7#a7 ,in general ,not later than #abj days after the date of the enactment of this ,act1 the ,council shall convene and develop recommendations for criteria in awarding grants to institutions of higher education under subsection 7b74 7#b7 ,submission to ,commerce and publicly released ,the ,council shall-- 7,a7 submit the recommendations described in subparagraph 7,a7 to the ,secretary2 and 7i7 release the recommendations to the public4 7,b7 ,majority vote ,the recommendations submitted by the ,council1 as described in this paragraph1 shall be determined by a majority vote of ,council members4 7,c7 ,performance metrics ,the ,council shall develop and provide to the ,secretary recommendations on performance metrics to be used to evaluate grants awarded under subsection 7b74 7#c7 ,evaluation 7,a7 ,in general ,not later than #ahj days before the date that the grant program authorized under subsection 7b7 expires1 the ,council shall conduct an evaluation of the effect that the grant program is having on accelerating the commercialization of faculty research4 7,b7 ,inclusions ,the evaluation shall include-- 7i7 the recommendation of the ,council as to whether the grant program should be continued or terminated2 7ii7 quantitative data related to the effect1 if any1 that the grant program has had on faculty research commercialization2 and 7iii7 a description of lessons learned in administering the grant program1 and how those lessons could be applied to future efforts to accelerate commercialization of faculty research4 7,c7 ,availability ,upon completion of the evaluation1 the evaluation shall be made available on a public website and submitted to ,congress4 ,the ,secretary shall notify all institutions of higher education when the evaluation is published and how it can be accessed4 7d7 ,construction ,nothing in this section may be construed to alter1 modify1 or amend any provision of chapter #ah of title #ce1 ,united ,states ,code 7commonly known as the ,bayh-,dole ,act74 #i4 ,economic impact of significant ,federal agency rules ,section #eec of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7f7 ,required review before issuance of significant rules 7#a7 ,in general ,before issuing a notice of proposed rulemaking in the ,federal ,register regarding the issuance of a proposed significant rule1 the head of the ,federal agency or independent regulatory agency seeking to issue the rule shall complete a review1 to the extent permitted by law1 that-- 7,a7 analyzes the problem that the proposed rule intends to address1 including-- 7i7 the specific market failure1 such as externalities1 market power1 or lack of information1 that justifies such rule2 or 7ii7 any other specific problem1 such as the failures of public institutions1 that justifies such rule2 7,b7 analyzes the expected impact of the proposed rule on the ability of new businesses to form and expand2 7,c7 identifies the expected impact of the proposed rule on ,state1 local1 and tribal governments1 including the availability of resources-- 7i7 to carry out the mandates imposed by the rule on such government entities2 and 7ii7 to minimize the burdens that uniquely or significantly affect such governmental entities1 consistent with achieving regulatory objectives2 7,d7 identifies any conflicting or duplicative regulations2 7,e7 determines-- 7i7 if existing laws or regulations created1 or contributed to1 the problem that the new rule is intended to correct2 and 7ii7 if the laws or regulations referred to in clause 7i7 should be modified to more effectively achieve the intended goal of the rule2 and 7,f7 includes the cost-benefit analysis described in paragraph 7#b74 7#b7 ,cost-benefit analysis ,a cost-benefit analysis described in this paragraph shall include-- 7,a7 7i7 an assessment1 including the underlying analysis1 of benefits anticipated from the proposed rule1 such as-- 7,i7 promoting the efficient functioning of the economy and private markets2 7,,ii7 enhancing health and safety2 7,,iii7 protecting the natural environment2 and 7,,iv7 eliminating or reducing discrimination or bias2 and 7ii7 the quantification of the benefits described in clause 7i71 to the extent feasible2 7,b7 7i7 an assessment1 including the underlying analysis1 of costs anticipated from the proposed rule1 such as-- 7,i7 the direct costs to the ,federal ,government to administer the rule2 7,,ii7 the direct costs to businesses and others to comply with the rule2 and 7,,iii7 any adverse effects on the efficient functioning of the economy1 private markets 7including productivity1 employment1 and competitiveness71 health1 safety1 and the natural environment2 and 7ii7 the quantification of the costs described in clause 7i71 to the extent feasible2 7,c7 7i7 an assessment1 including the underlying analysis1 of costs and benefits of potentially effective and reasonably feasible alternatives to the proposed rule1 which have been identified by the agency or by the public1 including taking reasonably viable nonregulatory actions2 and 7ii7 an explanation of why the proposed rule is preferable to the alternatives identified under clause 7i74 7#c7 ,report ,before issuing a notice of proposed rulemaking in the ,federal ,register regarding the issuance of a proposed significant rule1 the head of the ,federal agency or independent regulatory agency seeking to issue the rule shall-- 7,a7 submit the results of the review conducted under paragraph 7#a7 to the appropriate congressional committees2 and 7,b7 post the results of the review conducted under paragraph 7#a7 on a publicly available website4 7#d7 ,judicial review ,any determinations made1 or other actions taken1 by an agency or independent regulatory agency under this subsection shall not be subject to judicial review4 7#e7 ,defined term ,in this subsection the term significant rule means a rule that is likely to-- 7,a7 have an annual effect on the economy of #ajj1jjj1jjj or more2 7,b7 adversely affect1 in a material way1 the economy1 a sector of the economy1 productivity1 competition1 jobs1 the environment1 public health or safety1 or ,state1 local1 or tribal governments or communities2 or 7,c7 create a serious inconsistency or otherwise interfere with an action taken or planned by another agency4 4 #aj4 ,biennial ,state startup business report 7a7 ,data collection ,the ,secretary of ,commerce shall regularly compile information from each of the #ej ,states and the ,district of ,columbia on ,state laws that affect the formation and growth of new businesses within the ,state or ,district4 7b7 ,report ,not later than #ah months after the date of the enactment of this ,act1 and every #b years thereafter1 the ,secretary1 using data compiled under subsection 7a71 shall prepare a report that-- 7#a7 analyzes the economic effect of ,state and ,district laws that either encourage or inhibit business formation and growth2 and 7#b7 ranks the ,states and the ,district based on the effectiveness with which their laws foster new business creation and economic growth4 7c7 ,distribution ,the ,secretary shall-- 7#a7 submit each report prepared under subsection 7b7 to ,congress2 and 7#b7 make each report available to the public on the ,department of ,commerce's website4 7d7 ,inclusion of large metropolitan areas ,not later than #ij days after the submission of the first report under this section1 the ,secretary of ,commerce shall submit to ,congress a study on the feasibility and advisability of including1 in future reports1 information about the effect of local laws and ordinances on the formation and growth of new businesses in large metropolitan areas within the ,united ,states4 7e7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out this section4 #aa4 ,new business formation report 7a7 ,in general ,the ,secretary of ,commerce shall regularly compile quantitative and qualitative information on businesses in the ,united ,states that are not more than #a year old4 7b7 ,data collection ,the ,secretary shall-- 7#a7 regularly compile information from the ,bureau of the ,census' business register on new business formation in the ,united ,states2 and 7#b7 conduct quarterly surveys of business owners who start a business during the #a-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 business4 7c7 ,random sampling ,in conducting surveys under subsection 7b77#b71 the ,secretary may use random sampling to identify a group of business owners who are representative of all the business owners described in subsection 7b77#b74 7d7 ,benefits ,the ,secretary shall inform business owners selected to participate in a survey conducted under this section of the benefits they would receive from participating in the survey4 7e7 ,voluntary participation ,business owners selected to participate in a survey conducted under this section may decline to participate without penalty4 7f7 ,report ,not later than #ah months after the date of the enactment of this ,act1 and every #c months thereafter1 the ,secretary shall use the data compiled under subsection 7b7 to prepare a report that-- 7#a7 lists the aggregate number of new businesses formed in the ,united ,states2 7#b7 lists the aggregate number of persons employed by new businesses formed in the ,united ,states2 7#c7 analyzes the payroll of new businesses formed in the ,united ,states2 7#d7 summarizes the data collected under subsection 7b72 and 7#e7 identifies the most effective means by which government officials can encourage the formation and growth of new businesses in the ,united ,states4 7g7 ,distribution ,the ,secretary shall-- 7#a7 submit each report prepared under subsection 7f7 to ,congress2 and 7#b7 make each report available to the public on the ,department of ,commerce's website4 7h7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out this section4 #ab4 ,rescission of unspent ,federal funds 7a7 ,in general ,notwithstanding any other provision of law1 of all available unobligated funds for fiscal year #bjac1 the amount necessary to carry out this ,act and the amendments made by this ,act in appropriated discretionary funds are hereby rescinded4 7b7 ,implementation ,the ,director of the ,office of ,management and ,budget shall determine and identify from which appropriation accounts the rescission under subsection 7a7 shall apply and the amount of such rescission that shall apply to each such account4 ,not later than #fj days after the date of the enactment of this ,act1 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 the preceding sentence4