,,ii #aafth ,,congress #ast ,session ,s4 #cbh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #d1 #bjai,mr4 ,moran 7for himself1 ,mr4 ,warner1 ,mr4 ,blunt1 and ,ms4 ,klobuchar7 introduced the following bill2 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 businesses1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,startup ,act4 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 ,accelerated commercialization of taxpayer-funded research4,sec4 #g4 ,regional innovation program4,sec4 #h4 ,economic impact of significant ,federal agency rules4,sec4 #i4 ,biennial ,state startup business report4,sec4 #aj4 ,new business formation report4,sec4 #aa4 ,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 that were 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-- 7#a7 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 residence2 and 7#b7 authorize each alien granted an adjustment of status under paragraph 7#a7 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 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 under 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 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja note7 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 a report to ,congress regarding the alien college graduates who were granted immigrant status under section #baf;,b of the ,immigration and ,nationality ,act1 as added by subsection 7a74 7#b7 ,contents ,the report required under 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 meanings 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 ,security may issue a conditional immigrant visa1 in accordance with this section and section #baf;,a1 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 on which an alien is granted a visa under this section1 the ,secretary of ,homeland ,security determines that the alien is no longer a qualified alien entrepreneur1 the ,secretary shall-- 7#a7 revoke such visa2 and 7#b7 notify the alien that he or she-- 7,a7 may voluntarily depart from the ,united ,states in accordance with 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 notification under this paragraph4 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 issued pursuant to section #aja7;a77#ae77;,h77i77b72 or 7,,ii7 holds a nonimmigrant visa issued 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 ,clerical amendment ,the table of contents of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja note7 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 a report to ,congress regarding the qualified alien entrepreneurs who were 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 7a7-- 7,a7 in paragraph 7#c71 by striking both subsections 7a7 and 7b7 of section #bjc and inserting section #bjc7;a72 and 7,b7 by striking paragraph 7#e72 and 7#b7 by amending subsection 7e7 to read as follows3 7e7 ,special rules for countries at ceiling ,if 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 on ,september #cj1 #bjai1 and shall apply to fiscal years beginning with fiscal year #bjbj4 7e7 ,transition rules for employment-,based immigrants 7#a7 ,in general ,subject to 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 #bjbj1 #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 #a of the #b foreign states with the largest aggregate numbers of natives obtaining immigrant visas during fiscal year #bjah under such paragraphs4 7,b7 ,for fiscal year #bjba1 #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 #a of the #b foreign states with the largest aggregate numbers of natives obtaining immigrant visas during fiscal year #bjai under such paragraphs4 7,c7 ,for fiscal year #bjbb1 #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 #a of the #b foreign states with the largest aggregate numbers of natives obtaining immigrant visas during fiscal year #bjbj 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 the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaec7;b77 and not reserved under paragraph 7#a71 for each of fiscal years #bjbj1 #bjba1 and #bjbb1 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 #bjbj1 #bjba1 or #bjbb1 the operation of paragraphs 7#a7 and 7#b7 would prevent the total number of immigrant visas made available under paragraph 7#b7 or 7#c7 of section #bjc7;b7 of the ,immigration and ,nationality ,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 such paragraphs 7#a7 and 7#b74 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 ,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 ,eligible entity ,the term eligible entity means-- 7,a7 an institution of higher education2 or 7,b7 a venture development organization4 7#c7 ,extramural budget 7,a7 ,in general ,except as provided in subparagraph 7,b71 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 facilities4 7,b7 ,exceptions ,the term extramural budget shall not include-- 7i7 with respect to the ,department of ,energy1 amounts obligated for-- 7,i7 atomic energy defense programs solely for weapons activities2 or 7,,ii7 naval reactor programs2 and 7ii7 with respect to ,united ,states ,agency for ,international ,development1 amounts obligated solely for-- 7,i7 general institutional support of international research centers2 or 7,,ii7 grants to foreign countries4 7#d7 ,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#e7 ,nonprofit organization ,the term nonprofit organization means an entity or organization-- 7,a7 7i7 described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf2 and 7ii7 exempt from taxation under #eja7;a7 of such ,act2 or 7,b7 described in paragraph 7#a7 or 7#b7 of section #agj7;c7 of such ,act4 7#f7 ,research or research and development ,the terms research and research and development mean 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#g7 ,secretary ,the term ,secretary means the ,secretary of ,commerce4 7#h7 ,state organization ,the term ,state organization means an entity that has been created by-- 7,a7 a ,state2 7,b7 the ,commonwealth of ,puerto ,rico2 or 7,c7 the ,district of ,columbia4 7#i7 ,venture development organization ,the term venture development organization means a ,state or nonprofit organization that contributes to regional or sector-based economic prosperity by providing a portfolio of services intended to accomplish at least #c of the following purposes3 7,a7 ,accelerating the commercialization of research or research and development4 7,b7 ,assisting in the creation of high-growth private enterprises that are commercializing technology4 7,c7 ,strengthening the competitive position of existing small- and medium-sized enterprises through the development1 commercial adoption1 or deployment of technology4 7,d7 ,providing expert assistance to-- 7i7 private companies2 7ii7 faculty1 staff1 and students of institutions of higher education who are commercializing new products or services2 or 7iii7 entrepreneurs who are commercializing new products or services4 7,e7 ,providing financial grants1 loans1 or direct financial investment in companies that are commercializing technology4 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 the fiscal years #bjbj through #bjbd1 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 pursuant to paragraph 7#a71 the ,secretary shall use the criteria developed by the ,council to award grants to eligible entities 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 ,eligible entities that desire 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 eligible entities to support specific innovative initiatives to improve the regional capacity for private companies1 faculty1 staff1 and students of institutions of higher education1 or entrepreneurs to commercialize technology originating from federally funded research4 7ii7 ,content of proposals ,grants shall be awarded under this subparagraph for-- 7,i7 proposals demonstrating the capacity for accelerated commercialization1 proof-of-concept proficiency1 and translating scientific discoveries and cutting-edge inventions into technological innovations and new companies2 and 7,,ii7 innovative approaches to achieving the goals referred to in subclause 7,i7 that can be replicated by other institutions of higher education or venture development organizations if the innovative approaches are successful4 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 is authorized to terminate grant funding to an eligible entity 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 eligible entity that receives a grant under this subsection shall use the grant funds to supplement1 and not to 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 #bjbd4 ,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 eligible entities under subsection 7b74 7#b7 ,submission to department of commerce and public release ,the ,council shall-- 7,a7 submit the recommendations described in paragraph 7#a7 to the ,secretary2 and 7,b7 release the recommendations to the public4 7#c7 ,majority vote ,the recommendations submitted by the ,council under paragraph 7#b7 shall be determined by a majority vote of ,council members4 7#d7 ,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#e7 ,evaluation 7,a7 ,in general ,not later than #ahj days before the expiration of the grant program authorized under subsection 7b71 the ,council shall evaluate the effect of the grant program on accelerating the commercialization of technology originating from federally funded research or research and development4 7,b7 ,inclusions ,the evaluation under subparagraph 7,a7 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 accelerating the commercialization of technology originating from federally funded research and research and development2 and 7iii7 a description of the lessons learned in administering the grant program1 and how such lessons could be applied to future efforts to accelerate the commercialization of technology originating from federally funded research or research and development4 7,c7 ,availability ,the results of the evaluation under subparagraph 7,a7 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 ,rule of 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 #g4 ,regional innovation program ,section #bg of the ,stevenson-,wydler ,technology ,innovation ,act of #aihj 7#ae ,u4,s4,c4 #cgbb7 is amended to read as follows3 #bg4 ,regional innovation program 7a7 ,definitions ,in this section3 7#a7 ,eligible recipient defined ,the term eligible recipient means-- 7,a7 a ,state2 7,b7 an ,indian tribe2 7,c7 a city or other political subdivision of a ,state2 7,d7 an entity that is a nonprofit organization1 an institution of higher education1 a public-private partnership1 a science or research park1 a ,federal laboratory1 a venture development organization 7as defined in section #f7;a7 of the ,startup ,act71 or an economic development organization or similar entity that is focused primarily on improving science1 technology1 innovation1 and entrepreneurship2 or 7,e7 a consortium of any of the entities described in subparagraphs 7,a7 through 7,d74 7#b7 ,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-- 7,a7 to increase the success of innovation-driven startups2 7,b7 to strengthen the competitiveness of existing businesses through new product innovation2 7,c7 to improve the pace of market readiness and overall commercialization of innovation2 and 7,d7 to enhance the overall innovation capacity and long-term resilience of the region4 7#c7 ,state ,the term ,state means one of the several ,states of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,united ,states ,virgin ,islands1 ,guam1 ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 or any other territory or possession of the ,united ,states4 7b7 ,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 regions4 7c7 ,regional innovation grants 7#a7 ,authorization of grants ,as part of the program established under subsection 7b71 the ,secretary may award grants1 on a competitive basis1 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 subsection4 7#b7 ,permissible activities ,grants awarded under this subsection may be used for activities determined appropriate by the ,secretary that strive to achieve #c or more of the following outcomes3 7,a7 ,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 #c years1 as determined by the ,secretary4 7,b7 ,completing the research1 development and introduction of new products1 processes1 and services into the commercial market by ,united ,states companies1 as measured by increased revenues1 increased sales1 greater market share1 reduce costs1 increased market value1 or overall profitability increase1 as reported by the participating companies to the ,secretary4 7,c7 ,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 region4 7,d7 ,using innovation1 technology1 and innovation-based business ventures to help the public and nonprofit sectors-- 7i7 to reduce costs associated with carrying out their missions and services2 or 7ii7 to achieve other quantifiable efficiencies1 savings1 or reductions in carrying out their operations and service delivery4 7,e7 ,achieving quantifiable1 positive benefits to1 or measurable enhancements for1 the economic performance of the geographic region or the population within the region identified by the regional innovation program grant recipient through increased collaboration1 productive partnerships1 and strengthened network relationships 7internal and external to the region7 that support the regional innovation system4 7#c7 ,restricted activities ,grants awarded under this subsection may not be used to pay for-- 7,a7 costs related to the construction1 expansion1 demolition1 renovation1 or installation of physical assets2 7,b7 costs related to the recruitment1 inducement1 or associated financial or tangible incentives that might be offered to relocate an existing business from a geographic area to another geographic area2 or 7,c7 costs associated with offsetting revenues forgone by one or more taxing authorities through tax incentives1 tax increment financing1 special improvement districts1 tax abatements for private development within designated zones or geographic areas1 or other reduction in revenues resulting from tax credits affecting the geographic region of the eligible recipients4 7#d7 ,applications 7,a7 ,in general ,an eligible recipient shall submit an application to the ,secretary at such time1 in such manner1 and containing such information and assurances as the ,secretary may require4 7,b7 ,components ,each application submitted under subparagraph 7,a7 shall include a description of the regional innovation initiative supported by the proposed activity1 including-- 7i7 whether the regional innovation initiative is supported by the private sector1 ,state and local governments1 and other relevant stakeholders2 7ii7 which #c or more of the outcomes described in paragraph 7#b7 will the regional innovation initiative address by implementing the activities described in the application2 7iii7 what activities the regional innovation initiative will undertake and how those activities will achieve the outcomes described in paragraph 7#b72 7iv7 how the eligible recipient will measure progress toward1 and attainment of1 the outcomes addressed by the regional innovation initiative2 7v7 whether the participants in the regional innovation initiative have access to1 or contribute to1 a well-trained workforce and other innovation assets that are critical to the successful outcomes specified in the application2 7vi7 whether the participants in the regional innovation initiative are capable of attracting additional funds from non-,federal sources2 and 7vii7 if appropriate for the activities proposed in the application1 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 expended4 7,c7 ,feedback ,the ,secretary shall provide feedback to program applicants that are not awarded grants to help them improve future applications4 7,d7 ,special considerations ,the ,secretary shall give special consideration to-- 7i7 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 boards2 and 7ii7 applications from regions that contain communities negatively impacted by trade4 7#e7 ,cost share ,the ,secretary may not provide more than #ej percent of the total cost of any activity funded under this subsection4 7#f7 ,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 subsection4 7#g7 ,funding ,the ,secretary may accept funds from other ,federal agencies to support grants and activities under this subsection4 7d7 ,regional innovation research and information program 7#a7 ,in general ,as part of the program established under subsection 7b71 the ,secretary shall establish a regional innovation research and information program-- 7,a7 to gather1 analyze1 and disseminate information on best practices for regional innovation initiatives1 including information relating to how innovation1 productivity1 and economic development can be maximized through such strategies2 7,b7 to provide technical assistance1 including through the development of technical assistance guides1 for the development and implementation of regional innovation initiatives2 7,c7 to support the development of relevant metrics and measurement standards to evaluate regional innovation initiatives1 including the extent to which such strategies stimulate innovation1 productivity1 and economic development2 and 7,d7 to collect and make available data on regional innovation initiatives in the ,united ,states1 including data on-- 7i7 the size1 specialization1 and competitiveness of regional innovation initiatives2 7ii7 the regional domestic product contribution1 total jobs and earnings by key occupations1 establishment size1 nature of specialization1 patents1 ,federal research and development spending1 and other relevant information for regional innovation initiatives2 and 7iii7 supply chain product and service flows within and between regional innovation initiatives4 7#b7 ,research grants ,the ,secretary may award research grants on a competitive basis to support and further the goals of the program established under this section4 7#c7 ,dissemination of information ,data and analysis compiled by the ,secretary under the program established in this subsection shall be made available to other ,federal agencies1 ,state and local governments1 and nonprofit and for-profit entities4 7#d7 ,regional innovation grant program ,the ,secretary shall incorporate data and analysis relating to any grant awarded under subsection 7c7 into the program established under this subsection4 7e7 ,interagency coordination 7#a7 ,in general ,to the maximum extent practicable1 the ,secretary shall ensure that the activities carried out under this section are coordinated with1 and do not duplicate the efforts of1 other programs at the ,department of ,commerce or at other ,federal agencies4 7#b7 ,collaboration 7,a7 ,in general ,the ,secretary shall explore and pursue collaboration with other ,federal agencies1 including through multiagency funding opportunities1 on regional innovation strategies4 7,b7 ,small businesses ,the ,secretary shall ensure that such collaboration with ,federal agencies prioritizes the needs and challenges of small businesses4 7f7 ,evaluation 7#a7 ,in general ,not later than #e years after ,congress appropriates funds to carry out this section1 the ,secretary shall competitively award a contract with an independent entity to conduct an evaluation of programs established under this section4 7#b7 ,requirements ,the evaluation conducted under paragraph 7#a7 shall include-- 7,a7 an assessment of whether the program is achieving its goals2 7,b7 the program's efficacy in providing awards to geographically diverse entities2 7,c7 any recommendations for how the program may be improved2 and 7,d7 a recommendation as to whether the program should be continued or terminated4 7g7 ,reporting requirement ,not later than #a year after the first grant is awarded under subsection 7c7 and annually thereafter until #e years after the last grant recipient completes the regional innovation initiative for which such grant was awarded1 the ,secretary shall submit a report to ,congress that describes the outcome of each regional innovation initiative that was completed during the previous #e years4 7h7 ,funding ,from amounts appropriated by ,congress for economic development assistance programs1 the ,secretary may use up to #ajj1jjj1jjj in each of the fiscal years #bjbj through #bjbd to carry out this section4 4 #h4 ,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 ,defined term ,in this subsection the term significant rule means a rule that is likely-- 7,a7 to have an annual effect on the economy of #ajj1jjj1jjj or more2 7,b7 to 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 to create a serious inconsistency or otherwise interfere with an action taken or planned by another agency4 7#b7 ,review ,before issuing a notice of proposed rulemaking in the ,federal ,register regarding the issuance of a 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#c74 7#c7 ,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#d7 ,report ,before issuing a notice of proposed rulemaking in the ,federal ,register regarding the issuance of a 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#b7 to the appropriate congressional committees2 and 7,b7 post the results of the review conducted under paragraph 7#b7 on a publicly available website4 7#e7 ,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 4 #i4 ,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 ,secretary of ,commerce1 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 of ,commerce shall-- 7#a7 submit each report prepared under subsection 7b7 to ,congress2 and 7#b7 make each report available to the public on the website of the ,department of ,commerce4 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 #aj4 ,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 of ,commerce 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 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 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 of ,commerce 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 of ,commerce shall-- 7#a7 submit each report prepared under subsection 7f7 to ,congress2 and 7#b7 make each report available to the public on the website of the ,department of ,commerce4 7h7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out this section4 #aa4 ,rescission of unspent ,federal funds 7a7 ,in general ,notwithstanding any other provision of law1 of all available unobligated funds for fiscal year #bjai1 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 7c7 ,report ,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 subsection 7b74