Startup Act
This bill provides conditional visas to certain immigrants with advanced educational credentials. It also establishes a grant program to promote innovation and imposes requirements on certain rulemaking activities.
The Department of Homeland Security (DHS) may provide conditional permanent resident status to up to 50,000 aliens with advanced science, technology, engineering, or math (STEM) degrees. Such aliens may remain in the country for up to one year after the expiration of a student visa to find employment, or indefinitely if already engaged in a STEM field.
DHS may issue conditional immigrant visas for up to 75,000 qualified alien entrepreneurs. The bill imposes various requirements on such entrepreneurs, such as creating a number of full-time jobs for a period of time, after which the alien shall receive permanent resident status.
The bill increases the per-country cap on family-based immigrant visas from 7% of the total number of such visas available that year to 15%, and eliminates the 7% cap for employment-based immigrant visas. It also removes an offset that reduced the number of visas for individuals from China.
The bill establishes a grant program to support the commercialization of federally-funded research. It also requires the Small Business Administration to award grants regionally to interconnected businesses within an industry sector.
This bill requires federal agencies, before proposing a rule that may have a significant economic effect, to publish an analysis of the rule, including the problem the rule intends to address and a cost-benefit analysis.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5287 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 5287
To jump-start economic recovery through the formation and growth of new
businesses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 15, 2022
Mr. Moran (for himself, Mr. Warner, Mr. Blunt, and Ms. Klobuchar)
introduced the following bill; which was read twice and referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To jump-start economic recovery through the formation and growth of new
businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Startup Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Conditional permanent resident status for immigrants with an
advanced degree in a STEM field.
Sec. 4. Immigrant entrepreneurs.
Sec. 5. Elimination of the per country numerical limitation for
employment-based visas.
Sec. 6. Accelerated commercialization of taxpayer-funded research.
Sec. 7. Regional innovation clusters.
Sec. 8. Economic impact of significant Federal agency rules.
Sec. 9. Federal and State Technology Partnership Program.
Sec. 10. Biennial State startup business report.
Sec. 11. New business formation report.
Sec. 12. Rescission of unspent Federal funds.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Achieving economic recovery will require the formation
and growth of new companies.
(2) Between 1980 and 2005, companies that were less than 5
years old accounted for nearly all net job creation in the
United States.
(3) New firms in the United States create an average of
3,000,000 jobs per year.
(4) To get Americans back to work, entrepreneurs must be
free to innovate, create new companies, and hire employees.
SEC. 3. CONDITIONAL PERMANENT RESIDENT STATUS FOR IMMIGRANTS WITH AN
ADVANCED DEGREE IN A STEM FIELD.
(a) In General.--Chapter 2 of title II of the Immigration and
Nationality Act (8 U.S.C. 1181 et seq.) is amended by inserting after
section 216A the following:
``SEC. 216B. CONDITIONAL PERMANENT RESIDENT STATUS FOR ALIENS WITH AN
ADVANCED DEGREE IN A STEM FIELD.
``(a) In General.--Notwithstanding any other provision of this Act,
the Secretary of Homeland Security may--
``(1) adjust the status of not more than 50,000 aliens who
have earned a master's degree or a doctorate degree at an
institution of higher education in a STEM field to that of an
alien conditionally admitted for permanent residence; and
``(2) authorize each alien granted an adjustment of status
under paragraph (1) to remain in the United States--
``(A) for up to 1 year after the expiration of the
alien's student visa under section 101(a)(15)(F)(i) if
the alien is diligently searching for an opportunity to
become actively engaged in a STEM field; and
``(B) indefinitely if the alien remains actively
engaged in a STEM field.
``(b) 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 regulation.
``(c) Ineligibility for Federal Government Assistance.--An alien
granted conditional permanent resident status under this section shall
not be eligible, while in such status, for--
``(1) any unemployment compensation (as defined in section
85(b) of the Internal Revenue Code of 1986); or
``(2) any Federal means-tested public benefit (as that term
is used in section 403 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1613)).
``(d) Effect on Naturalization Residency Requirement.--An alien
granted conditional permanent resident status under this section shall
be deemed to have been lawfully admitted for permanent residence for
purposes of meeting the 5-year residency requirement under section
316(a)(1).
``(e) Removal of Condition.--The Secretary of Homeland Security
shall remove the conditional basis of an alien's conditional permanent
resident status under this section on the date that is 5 years after
the date such status was granted if the alien maintained his or her
eligibility for such status during the entire 5-year period.
``(f) Definitions.--In this section:
``(1) Actively engaged in a stem field.--The term `actively
engaged in a STEM field'--
``(A) means--
``(i) gainfully employed in a for profit
business or nonprofit organization in the
United States in a STEM field;
``(ii) teaching 1 or more STEM field
courses at an institution of higher education;
or
``(iii) employed by a Federal, State, or
local government entity; and
``(B) includes any period of up to 6 months during
which the alien does not meet the requirement under
subparagraph (A) if such period was immediately
preceded by a 1-year period during which the alien met
the requirement under subparagraph (A).
``(2) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
``(3) STEM field.--The term `STEM field' means any field of
study or occupation included on the most recent STEM-Designated
Degree Program List published in the Federal Register by the
Department of Homeland Security (as described in section
214.2(f)(11)(i)(C)(2) of title 8, Code of Federal
Regulations).''.
(b) Clerical Amendment.--The table of contents of the Immigration
and Nationality Act (8 U.S.C. 1101 note) is amended by inserting after
the item relating to section 216A the following:
``Sec. 216B. Conditional permanent resident status for aliens with an
advanced degree in a STEM field.''.
(c) Government Accountability Office Study.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit a report to Congress regarding the
alien college graduates who were granted immigrant status under
section 216B of the Immigration and Nationality Act, as added
by subsection (a).
(2) Contents.--The report required under paragraph (1)
shall include--
(A) the number of aliens described in paragraph (1)
who have earned a master's degree, broken down by the
number of such degrees in science, technology,
engineering, and mathematics;
(B) the number of aliens described in paragraph (1)
who have earned a doctorate degree, broken down by the
number of such degrees in science, technology,
engineering, and mathematics;
(C) the number of aliens described in paragraph (1)
who have founded a business in the United States in a
STEM field;
(D) the number of aliens described in paragraph (1)
who are employed in the United States in a STEM field,
broken down by employment sector (for-profit,
nonprofit, or government); and
(E) the number of aliens described in paragraph (1)
who are employed by an institution of higher education.
(3) Definitions.--The terms ``institution of higher
education'' and ``STEM field'' have the meanings given such
terms in section 216B(f) of the Immigration and Nationality
Act, as added by subsection (a).
SEC. 4. IMMIGRANT ENTREPRENEURS.
(a) Qualified Alien Entrepreneurs.--
(1) Admission as immigrants.--Chapter 1 of title II of the
Immigration and Nationality Act (8 U.S.C. 1151 et seq.) is
amended by adding at the end the following:
``SEC. 210A. QUALIFIED ALIEN ENTREPRENEURS.
``(a) Admission as Immigrants.--The Secretary of Homeland Security
may issue a conditional immigrant visa, in accordance with this section
and section 216A, to not more than 75,000 qualified alien
entrepreneurs.
``(b) Application for Conditional Permanent Resident Status.--Every
alien applying for a conditional immigrant visa under this section
shall submit an application to the Secretary of Homeland Security in
such form and manner as the Secretary shall prescribe by regulation.
``(c) Revocation.--If, during the 4-year period beginning on the
date on which an alien is granted a visa under this section, the
Secretary of Homeland Security determines that the alien is no longer a
qualified alien entrepreneur, the Secretary shall--
``(1) revoke such visa; and
``(2) notify the alien that he or she--
``(A) may voluntarily depart from the United States
in accordance with section 240B; or
``(B) will be subject to removal proceedings under
section 240 if the alien does not depart from the
United States not later than 6 months after receiving
notification under this paragraph.
``(d) Removal of Conditional Basis.--The Secretary of Homeland
Security shall remove the conditional basis of the status of an alien
issued an immigrant visa under this section on that date that is 4
years after the date on which such visa was issued if such visa was not
revoked pursuant to subsection (c).
``(e) Definitions.--In this section:
``(1) Full-time employee.--The term `full-time employee'
means a United States citizen or legal permanent resident who
is paid by the new business entity registered by a qualified
alien entrepreneur at a rate that is comparable to the median
income of employees in the region.
``(2) Qualified alien entrepreneur.--The term `qualified
alien entrepreneur' means an alien who--
``(A) at the time the alien applies for an
immigrant visa under this section--
``(i) is lawfully present in the United
States; and
``(ii)(I) holds a nonimmigrant visa issued
pursuant to section 101(a)(15)(H)(i)(b); or
``(II) holds a nonimmigrant visa issued
pursuant to section 101(a)(15)(F)(i);
``(B) during the 1-year period beginning on the
date the alien is granted a visa under this section--
``(i) registers at least 1 new business
entity in a State;
``(ii) employs, at such business entity in
the United States, at least 2 full-time
employees who are not relatives of the alien;
and
``(iii) invests, or raises capital
investment of, not less than $100,000 in such
business entity; and
``(C) during the 3-year period beginning on the
last day of the 1-year period described in paragraph
(2), employs, at such business entity in the United
States, an average of at least 5 full-time employees
who are not relatives of the alien.''.
(2) Clerical amendment.--The table of contents of the
Immigration and Nationality Act (8 U.S.C. 1101 note) is amended
by adding after the item relating to section 210 the following:
``Sec. 210A. Qualified alien entrepreneurs.''.
(b) Conditional Permanent Resident Status.--Section 216A of the
Immigration and Nationality Act (8 U.S.C. 1186b) is amended--
(1) by striking ``Attorney General'' each place such term
appears and inserting ``Secretary of Homeland Security'';
(2) in subsection (b)(1)(C), by striking ``203(b)(5),'' and
inserting ``203(b)(5) or 210A, as appropriate,'';
(3) in subsection (c)(1), by striking ``alien entrepreneur
must'' each place such term appears and inserting ``alien
entrepreneur shall'';
(4) in subsection (d)(1)(B), by striking the period at the
end and inserting ``or 210A, as appropriate.''; and
(5) in subsection (f)(1), by striking the period at the end
and inserting ``or 210A.''.
(c) Government Accountability Office Study.--
(1) In general.--Not later than 3 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit a report to Congress regarding the
qualified alien entrepreneurs who were granted immigrant status
under section 210A of the Immigration and Nationality Act, as
added by subsection (a).
(2) Contents.--The report described in paragraph (1) shall
include information regarding--
(A) the number of qualified alien entrepreneurs who
have received immigrant status under section 210A of
the Immigration and Nationality Act, as added by
subsection (a), listed by country of origin;
(B) the localities in which such qualified alien
entrepreneurs have initially settled;
(C) whether such qualified alien entrepreneurs
generally remain in the localities in which they
initially settle;
(D) the types of commercial enterprises that such
qualified alien entrepreneurs have established; and
(E) the types and number of jobs created by such
qualified alien entrepreneurs.
SEC. 5. ELIMINATION OF THE PER COUNTRY NUMERICAL LIMITATION FOR
EMPLOYMENT-BASED VISAS.
(a) In General.--Section 202(a)(2) of the Immigration and
Nationality Act (8 U.S.C. 1152(a)(2)) is amended--
(1) in the paragraph heading, by striking ``and employment-
based'';
(2) by striking ``(3), (4), and (5),'' and inserting ``(3)
and (4),'';
(3) by striking ``subsections (a) and (b) of section 203''
and inserting ``section 203(a)'';
(4) by striking ``7'' and inserting ``15''; and
(5) by striking ``such subsections'' and inserting ``such
section''.
(b) Conforming Amendments.--Section 202 of the Immigration and
Nationality Act (8 U.S.C. 1152) is amended--
(1) in subsection (a)--
(A) in paragraph (3), by striking ``both
subsections (a) and (b) of section 203'' and inserting
``section 203(a)''; and
(B) by striking paragraph (5); and
(2) by amending subsection (e) to read as follows:
``(e) Special Rules for Countries at Ceiling.--If the total number
of immigrant visas made available under section 203(a) to natives of
any single foreign state or dependent area will exceed the numerical
limitation specified in subsection (a)(2) in any fiscal year, in
determining the allotment of immigrant visa numbers to natives under
section 203(a), visa numbers with respect to natives of that state or
area shall be allocated (to the extent practicable and otherwise
consistent with this section and section 203) in a manner so that,
except as provided in subsection (a)(4), the proportion of the visa
numbers made available under each of paragraphs (1) through (4) of
section 203(a) is equal to the ratio of the total number of visas made
available under the respective paragraph to the total number of visas
made available under section 203(a).''.
(c) Country-Specific Offset.--Section 2 of the Chinese Student
Protection Act of 1992 (8 U.S.C. 1255 note) is amended--
(1) in subsection (a), by striking ``subsection (e))'' and
inserting ``subsection (d))''; and
(2) by striking subsection (d) and redesignating subsection
(e) as subsection (d).
(d) Effective Date.--The amendments made by this section shall take
effect on September 30, 2022, and shall apply to fiscal years beginning
with fiscal year 2023.
(e) Transition Rules for Employment-Based Immigrants.--
(1) In general.--Subject to this subsection and
notwithstanding title II of the Immigration and Nationality Act
(8 U.S.C. 1151 et seq.), the following rules shall apply:
(A) For fiscal year 2023, 15 percent of the
immigrant visas made available under each of paragraphs
(2) and (3) of section 203(b) of such Act (8 U.S.C.
1153(b)) shall be allotted to immigrants who are
natives of a foreign state or dependent area that was
not 1 of the 2 foreign states with the largest
aggregate numbers of natives obtaining immigrant visas
during fiscal year 2021 under such paragraphs.
(B) For fiscal year 2024, 10 percent of the
immigrant visas made available under each of such
paragraphs shall be allotted to immigrants who are
natives of a foreign state or dependent area that was
not 1 of the 2 foreign states with the largest
aggregate numbers of natives obtaining immigrant visas
during fiscal year 2022 under such paragraphs.
(C) For fiscal year 2025, 10 percent of the
immigrant visas made available under each of such
paragraphs shall be allotted to immigrants who are
natives of a foreign state or dependent area that was
not 1 of the 2 foreign states with the largest
aggregate numbers of natives obtaining immigrant visas
during fiscal year 2023 under such paragraphs.
(2) Per-country levels.--
(A) Reserved visas.--With respect to the visas
reserved under each of subparagraphs (A) through (C) of
paragraph (1), the number of such visas made available
to natives of any single foreign state or dependent
area in the appropriate fiscal year may not exceed 25
percent (in the case of a single foreign state) or 2
percent (in the case of a dependent area) of the total
number of such visas.
(B) Unreserved visas.--With respect to the
immigrant visas made available under each of paragraphs
(2) and (3) of section 203(b) of the Immigration and
Nationality Act (8 U.S.C. 1153(b)) and not reserved
under paragraph (1), for each of the fiscal years 2023,
2024, and 2025, not more than 85 percent shall be
allotted to immigrants who are natives of any single
foreign state.
(3) Special rule to prevent unused visas.--If, with respect
to fiscal year 2023, 2024, or 2025, the operation of paragraphs
(1) and (2) would prevent the total number of immigrant visas
made available under paragraph (2) or (3) of section 203(b) of
the Immigration and Nationality Act (8 U.S.C. 1153(b)) from
being issued, such visas may be issued during the remainder of
such fiscal year without regard to such paragraphs (1) and (2).
(4) Rules for chargeability.--Section 202(b) of the
Immigration and Nationality Act (8 U.S.C. 1152(b)) shall apply
in determining the foreign state to which an alien is
chargeable for purposes of this subsection.
SEC. 6. ACCELERATED COMMERCIALIZATION OF TAXPAYER-FUNDED RESEARCH.
(a) Definitions.--In this section:
(1) Council.--The term ``Council'' means the Advisory
Council on Innovation and Entrepreneurship of the Department of
Commerce established pursuant to section 25(c) of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3720(c)).
(2) Eligible entity.--The term ``eligible entity'' means--
(A) an institution of higher education; or
(B) a venture development organization.
(3) Extramural budget.--
(A) In general.--Except as provided in subparagraph
(B), the term ``extramural budget'' means the sum of
the total obligations minus amounts obligated for such
activities by employees of the agency in or through
Government-owned, Government-operated facilities.
(B) Exceptions.--The term ``extramural budget''
shall not include--
(i) with respect to the Department of
Energy, amounts obligated for--
(I) atomic energy defense programs
solely for weapons activities; or
(II) naval reactor programs; and
(ii) with respect to United States Agency
for International Development, amounts
obligated solely for--
(I) general institutional support
of international research centers; or
(II) grants to foreign countries.
(4) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(5) Nonprofit organization.--The term ``nonprofit
organization'' means an entity or organization--
(A)(i) described in section 501(c)(3) of the
Internal Revenue Code of 1986; and
(ii) exempt from taxation under 501(a) of such Act;
or
(B) described in paragraph (1) or (2) of section
170(c) of such Act.
(6) Research or research and development.--The terms
``research'' and ``research and development'' mean any activity
that is--
(A) a systematic, intensive study directed toward
greater knowledge or understanding of the subject
studied;
(B) a systematic study directed specifically toward
applying new knowledge to meet a recognized need; or
(C) a systematic application of knowledge toward
the production of useful materials, devices, and
systems or methods, including design, development, and
improvement of prototypes and new processes to meet
specific requirements.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(8) State organization.--The term ``State organization''
means an entity that has been created by--
(A) a State;
(B) the Commonwealth of Puerto Rico; or
(C) the District of Columbia.
(9) 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 3 of the following purposes:
(A) Accelerating the commercialization of research
or research and development.
(B) Assisting in the creation of high-growth
private enterprises that are commercializing
technology.
(C) Strengthening the competitive position of
existing small- and medium-sized enterprises through
the development, commercial adoption, or deployment of
technology.
(D) Providing expert assistance to--
(i) private companies;
(ii) faculty, staff, and students of
institutions of higher education who are
commercializing new products or services; or
(iii) entrepreneurs who are commercializing
new products or services.
(E) Providing financial grants, loans, or direct
financial investment in companies that are
commercializing technology.
(b) Grant Program Authorized.--
(1) In general.--Each Federal agency that has an extramural
budget for research or research and development that is in
excess of $100,000,000 for each of the fiscal years 2023
through 2027, shall transfer 0.15 percent of such extramural
budget for each of such fiscal years to the Secretary to enable
the Secretary to carry out a grant program in accordance with
this subsection.
(2) Grants.--
(A) Awarding of grants.--
(i) In general.--From funds transferred
pursuant to paragraph (1), the Secretary shall
use the criteria developed by the Council to
award grants to eligible entities for
initiatives to improve commercialization and
transfer of technology.
(ii) Request for proposals.--Not later than
30 days after the Council submits the
recommendations for criteria to the Secretary
under subsection (c)(4)(B), and annually
thereafter for each fiscal year for which the
grant program is authorized, the Secretary
shall release a request for proposals.
(iii) Applications.--Eligible entities that
desire to receive a grant under this subsection
shall submit an application to the Secretary
not later than 90 days after the Secretary
releases the request for proposals under clause
(ii).
(iv) Council review.--
(I) In general.--The Secretary
shall submit each application received
under clause (iii) to the Council for
Council review.
(II) Recommendations.--The Council
shall review each application received
under subclause (I) and submit
recommendations for grant awards to the
Secretary, including funding
recommendations for each proposal.
(III) Public release.--The Council
shall publicly release any
recommendations made under subclause
(II).
(IV) Consideration of
recommendations.--In awarding grants
under this subsection, the Secretary
shall take into consideration the
recommendations of the Council under
subclause (II).
(B) Commercialization capacity building grants.--
(i) In general.--The Secretary shall award
grants to eligible entities to support specific
innovative initiatives to improve the regional
capacity for private companies, faculty, staff,
and students of institutions of higher
education, or entrepreneurs to commercialize
technology originating from federally funded
research.
(ii) Content of proposals.--Grants shall be
awarded under this subparagraph for--
(I) proposals demonstrating the
capacity for accelerated
commercialization, proof-of-concept
proficiency, and translating scientific
discoveries and cutting-edge inventions
into technological innovations and new
companies; and
(II) innovative approaches to
achieving the goals referred to in
subclause (I) that can be replicated by
other institutions of higher education
or venture development organizations if
the innovative approaches are
successful.
(3) Assessment of success.--Grants awarded under this
subsection shall use criteria for assessing the success of
programs through the establishment of benchmarks.
(4) Termination.--The Secretary is authorized to terminate
grant funding to an eligible entity in accordance with the
process and performance metrics recommended by the Council.
(5) Limitations.--
(A) Project management costs.--A grant recipient
may use not more than 10 percent of grant funds awarded
under this subsection for the purpose of funding
project management costs of the grant program.
(B) Supplement, not supplant.--An eligible entity
that receives a grant under this subsection shall use
the grant funds to supplement, and not to supplant,
non-Federal funds that would, in the absence of such
grant funds, be made available for activities described
in this section.
(6) Unspent funds.--Any funds transferred to the Secretary
under paragraph (1) for a fiscal year that are not expended by
the end of such fiscal year may be expended in any subsequent
fiscal year through fiscal year 2027. Any funds transferred
under paragraph (1) that are remaining at the end of the grant
program's authorization under this subsection shall be
transferred to the Treasury for deficit reduction.
(c) Council.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the Council shall convene and
develop recommendations for criteria in awarding grants to
eligible entities under subsection (b).
(2) Submission to department of commerce and public
release.--The Council shall--
(A) submit the recommendations described in
paragraph (1) to the Secretary; and
(B) release the recommendations to the public.
(3) Majority vote.--The recommendations submitted by the
Council under paragraph (2) shall be determined by a majority
vote of Council members.
(4) Performance metrics.--The Council shall develop and
provide to the Secretary recommendations on performance metrics
to be used to evaluate grants awarded under subsection (b).
(5) Evaluation.--
(A) In general.--Not later than 180 days before the
expiration of the grant program authorized under
subsection (b), the Council shall evaluate the effect
of the grant program on accelerating the
commercialization of technology originating from
federally funded research or research and development.
(B) Inclusions.--The evaluation under subparagraph
(A) shall include--
(i) the recommendation of the Council as to
whether the grant program should be continued
or terminated;
(ii) quantitative data related to the
effect, if any, that the grant program has had
on accelerating the commercialization of
technology originating from federally funded
research and research and development; and
(iii) a description of the lessons learned
in administering the grant program, and how
such lessons could be applied to future efforts
to accelerate the commercialization of
technology originating from federally funded
research or research and development.
(C) Availability.--The results of the evaluation
under subparagraph (A) shall be made available on a
public website and submitted to Congress. The Secretary
shall notify all institutions of higher education when
the evaluation is published and how it can be accessed.
(d) Rule of Construction.--Nothing in this section may be construed
to alter, modify, or amend any provision of chapter 18 of title 35,
United States Code (commonly known as the ``Bayh-Dole Act'').
SEC. 7. REGIONAL INNOVATION CLUSTERS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Alaska native corporation.--The term ``Alaska Native
Corporation'' has the meaning given the term ``Native
Corporation'' in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602).
(3) Award.--The term ``award'' means a contract, grant, or
cooperative agreement.
(4) Cluster initiative.--The term ``Cluster Initiative''
means a formally organized effort to promote the growth and
competitiveness of an industry sector through collaborative
activities among Industry Cluster participants that is led by--
(A) a State;
(B) an Indian Tribe, an Alaska Native Corporation,
or a Native Hawaiian Organization;
(C) a city or other political subdivision of a
State;
(D) a nonprofit organization, including an
institution of higher education or a venture
development organization; or
(E) a small business concern.
(5) Industry cluster.--The term ``Industry Cluster'' means
a geographic concentration, relative to the size of the region
under consideration, of interconnected businesses, suppliers,
service providers, and associated institutions in an industry
sector, including advanced manufacturing, precision
agriculture, cybersecurity, biosciences, water technologies,
energy production and efficiency, and outdoor recreation.
(6) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304).
(7) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(8) Native hawaiian organization.--The term ``Native
Hawaiian Organization'' has the meaning given the term in
section 8(a)(15) of the Small Business Act (15 U.S.C.
637(a)(15)).
(9) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
(10) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, and any other territory or possession of the United
States.
(b) Supporting Industry Clusters.--
(1) Authorization.--The Administrator shall make awards to
Cluster Initiatives that strengthen Industry Clusters in
accordance with the requirements under this subsection.
(2) Industry cluster outcomes.--Cluster Initiatives shall
be assessed according to their performance along the following
metrics:
(A) Growth in number of small business concerns
participating in the Industry Cluster and support
industries.
(B) Growth in number of small business concern
startups in the Industry Cluster.
(C) Growth in total capital, including revenue and
equity investments, flowing to small business concern
participants in the Industry Cluster.
(D) Growth in job creation by small business
concerns or, in regions with declining total
employment, job retention by small business concerns in
the Industry Cluster.
(E) Growth in new products, services, or business
lines.
(F) Growth in new technologies developed within the
Industry Cluster.
(3) Reporting.--The Administrator shall require Cluster
Initiatives to submit annual reports documenting the outcomes
under paragraph (2) and the activities contributing to such
outcomes.
(4) Selection criteria.--In making awards to Cluster
Initiatives under this subsection, the Administrator shall
consider--
(A) the probable impact of the Cluster Initiative
on the competitiveness of the Industry Cluster,
including--
(i) whether the Cluster Initiative will be
inclusive of any and all organizations that
might benefit from participation, including
startups, small business concerns not locally
owned, and small business concerns rival to
existing members of the Industry Cluster; and
(ii) whether the Cluster Initiative will
encourage broad participation by and
collaboration among all types of participants;
(B) if the proposed Cluster Initiative fits within
a broader and achievable economic development strategy;
(C) the capacity and commitment of the sponsoring
organization of the Cluster Initiative organization,
including--
(i) the expected ability of the Cluster
Initiative to access additional funds from
other sources; and
(ii) the capacity of the Cluster Initiative
to sustain activities once grant funds have
been expended;
(D) the degree of involvement from relevant State
and regional economic and workforce development
organizations, other public purpose institutions (such
as universities, community colleges, venture
development organizations, and workforce boards), and
the private sector, including industry associations;
(E) the extent to which economic diversity across
regions of the United States would be increased through
the award; and
(F) the geographic distribution of Cluster
Initiatives around the United States.
(5) Initial award.--The Administrator may make a 1-year
award (not to exceed $1,000,000) with each Cluster Initiative.
(6) Renewal.--
(A) In general.--The Administrator may renew an
award made to a Cluster Initiative under paragraph
(5)--
(i) for 1 year in an amount not to exceed
$750,000 per year; and
(ii) for a total period not to exceed 5
years.
(B) Requirement.--A Cluster Initiative shall
compete in a new funding opportunity to receive any
further awards under this subsection.
(7) Matching funds.--
(A) In general.--As a condition of receiving an
award under this subsection, a Cluster Initiative shall
provide $1 in non-Federal matching funds, including in-
kind contributions, for every $2 received under the
award.
(B) Waiver.--The Administrator may waive part of
the matching funds requirement under subparagraph (A)
for a Cluster Initiative that--
(i) has not previously received an award
under this subsection; or
(ii) supports a noncore area, a
micropolitan area, or a small metropolitan
statistical area with a population of not more
than 200,000.
(8) Competitive process.--The Administrator shall enter
into new awards under this subsection for each year that
appropriations are available.
(c) Feasibility Study Awards.--
(1) In general.--The Administrator may make awards for
feasibility studies, planning, and operations to support the
launch of new Cluster Initiatives.
(2) Amount.--The total amount of awards made under
paragraph (1) shall not exceed $250,000.
(3) Eligible recipients.--The Administrator may make awards
under paragraph (1) to--
(A) a State;
(B) an Indian Tribe, an Alaska Native Corporation,
or a Native Hawaiian Organization;
(C) a city or other political subdivision of a
State;
(D) a nonprofit organization, including an
institution of higher education or a venture
development organization; or
(E) a consortium consisting of entities described
in subparagraphs (A) through (D).
(d) Authorization of Appropriations.--There are authorized to be
appropriated $50,000,000 for fiscal year 2023 and for each subsequent
fiscal year to carry out this section.
SEC. 8. ECONOMIC IMPACT OF SIGNIFICANT FEDERAL AGENCY RULES.
Section 553 of title 5, United States Code, is amended by adding at
the end the following:
``(f) Required Review Before Issuance of Significant Rules.--
``(1) Defined term.--In this subsection the term
`significant rule' means a rule that is likely--
``(A) to have an annual effect on the economy of
$100,000,000 or more;
``(B) to adversely affect, in a material way, the
economy, a sector of the economy, productivity,
competition, jobs, the environment, public health or
safety, or State, local, or tribal governments or
communities; or
``(C) to create a serious inconsistency or
otherwise interfere with an action taken or planned by
another agency.
``(2) Review.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
significant rule, the head of the Federal agency or independent
regulatory agency seeking to issue the rule shall complete a
review, to the extent permitted by law, that--
``(A) analyzes the problem that the proposed rule
intends to address, including--
``(i) the specific market failure, such as
externalities, market power, or lack of
information, that justifies such rule; or
``(ii) any other specific problem, such as
the failures of public institutions, that
justifies such rule;
``(B) analyzes the expected impact of the proposed
rule on the ability of new businesses to form and
expand;
``(C) identifies the expected impact of the
proposed rule on State, local, and tribal governments,
including the availability of resources--
``(i) to carry out the mandates imposed by
the rule on such government entities; and
``(ii) to minimize the burdens that
uniquely or significantly affect such
governmental entities, consistent with
achieving regulatory objectives;
``(D) identifies any conflicting or duplicative
regulations;
``(E) determines--
``(i) if existing laws or regulations
created, or contributed to, the problem that
the new rule is intended to correct; and
``(ii) if the laws or regulations referred
to in clause (i) should be modified to more
effectively achieve the intended goal of the
rule; and
``(F) includes the cost-benefit analysis described
in paragraph (3).
``(3) Cost-benefit analysis.--A cost-benefit analysis
described in this paragraph shall include--
``(A)(i) an assessment, including the underlying
analysis, of benefits anticipated from the proposed
rule, such as--
``(I) promoting the efficient functioning
of the economy and private markets;
``(II) enhancing health and safety;
``(III) protecting the natural environment;
and
``(IV) eliminating or reducing
discrimination or bias; and
``(ii) the quantification of the benefits described
in clause (i), to the extent feasible;
``(B)(i) an assessment, including the underlying
analysis, of costs anticipated from the proposed rule,
such as--
``(I) the direct costs to the Federal
Government to administer the rule;
``(II) the direct costs to businesses and
others to comply with the rule; and
``(III) any adverse effects on the
efficient functioning of the economy, private
markets (including productivity, employment,
and competitiveness), health, safety, and the
natural environment; and
``(ii) the quantification of the costs described in
clause (i), to the extent feasible;
``(C)(i) an assessment, including the underlying
analysis, of costs and benefits of potentially
effective and reasonably feasible alternatives to the
proposed rule, which have been identified by the agency
or by the public, including taking reasonably viable
nonregulatory actions; and
``(ii) an explanation of why the proposed rule is
preferable to the alternatives identified under clause
(i).
``(4) Report.--Before issuing a notice of proposed
rulemaking in the Federal Register regarding the issuance of a
significant rule, the head of the Federal agency or independent
regulatory agency seeking to issue the rule shall--
``(A) submit the results of the review conducted
under paragraph (2) to the appropriate congressional
committees; and
``(B) post the results of the review conducted
under paragraph (2) on a publicly available website.
``(5) Judicial review.--Any determinations made, or other
actions taken, by an agency or independent regulatory agency
under this subsection shall not be subject to judicial
review.''.
SEC. 9. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.
Section 34 of the Small Business Act (15 U.S.C. 657d) is amended--
(1) in subsection (c)--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively;
(2) in subsection (h)(1), by striking ``$10,000,000 for
each of fiscal years 2001 through 2005'' and inserting
``$50,000,000 for each of the fiscal years 2023 through 2027'';
and
(3) by striking subsection (i).
SEC. 10. BIENNIAL STATE STARTUP BUSINESS REPORT.
(a) Data Collection.--The Secretary of Commerce shall regularly
compile information from each of the 50 States and the District of
Columbia on State laws that affect the formation and growth of new
businesses within the State or District.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 2 years thereafter, the Secretary of
Commerce, using data compiled under subsection (a), shall prepare a
report that--
(1) analyzes the economic effect of State and District laws
that either encourage or inhibit business formation and growth;
and
(2) ranks the States and the District based on the
effectiveness with which their laws foster new business
creation and economic growth.
(c) Distribution.--The Secretary of Commerce shall--
(1) submit each report prepared under subsection (b) to
Congress; and
(2) make each report available to the public on the website
of the Department of Commerce.
(d) Inclusion of Large Metropolitan Areas.--Not later than 90 days
after the submission of the first report under this section, the
Secretary of Commerce shall submit to Congress a study on the
feasibility and advisability of including, in future reports,
information about the effect of local laws and ordinances on the
formation and growth of new businesses in large metropolitan areas
within the United States.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 11. NEW BUSINESS FORMATION REPORT.
(a) In General.--The Secretary of Commerce shall regularly compile
quantitative and qualitative information on businesses in the United
States that are not more than 1 year old.
(b) Data Collection.--The Secretary of Commerce shall--
(1) regularly compile information from the Bureau of the
Census' business register on new business formation in the
United States; and
(2) conduct quarterly surveys of business owners who start
a business during the 1-year period ending on the date on which
such survey is conducted to gather qualitative information
about the factors that influenced their decision to start the
business.
(c) Random Sampling.--In conducting surveys under subsection
(b)(2), the Secretary may use random sampling to identify a group of
business owners who are representative of all the business owners
described in subsection (b)(2).
(d) Benefits.--The Secretary of Commerce shall inform business
owners selected to participate in a survey conducted under this section
of the benefits they would receive from participating in the survey.
(e) Voluntary Participation.--Business owners selected to
participate in a survey conducted under this section may decline to
participate without penalty.
(f) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 3 months thereafter, the Secretary of
Commerce shall use the data compiled under subsection (b) to prepare a
report that--
(1) lists the aggregate number of new businesses formed in
the United States;
(2) lists the aggregate number of persons employed by new
businesses formed in the United States;
(3) analyzes the payroll of new businesses formed in the
United States;
(4) summarizes the data collected under subsection (b); and
(5) identifies the most effective means by which government
officials can encourage the formation and growth of new
businesses in the United States.
(g) Distribution.--The Secretary of Commerce shall--
(1) submit each report prepared under subsection (f) to
Congress; and
(2) make each report available to the public on the website
of the Department of Commerce.
(h) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 12. RESCISSION OF UNSPENT FEDERAL FUNDS.
(a) In General.--Notwithstanding any other provision of law, of all
available unobligated funds for fiscal year 2022, the amount necessary
to carry out this Act and the amendments made by this Act in
appropriated discretionary funds are hereby rescinded.
(b) Implementation.--The Director of the Office of Management and
Budget shall determine and identify from which appropriation accounts
the rescission under subsection (a) shall apply and the amount of such
rescission that shall apply to each such account.
(c) Report.--Not later than 60 days after the date of the enactment
of this Act, the Director of the Office of Management and Budget shall
submit a report to the Secretary of the Treasury and Congress of the
accounts and amounts determined and identified for rescission under
subsection (b).
<all>
Introduced in Senate
Read twice and referred to the Committee on the Judiciary.
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