BILL ANALYSIS Ó
SJR 9
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Date of Hearing: August 27, 2013
ASSEMBLY COMMITTEE ON JUDICIARY
Bob Wieckowski, Chair
SJR 9 (Huff) - As Amended: August 5, 2013
As Proposed to be Amended
SENATE VOTE : 34-0
SUBJECT : IMMIGRATION REFORM: ENTREPRENEUR AND STEM-RELATED
VISAS
KEY ISSUE : SHOULD THE LEGISLATURE URGE CONGRESS AND THE
PRESIDENT TO ESTABLISH NEW ENTREPRENEUR AND "STEM"-RELATED VISA
CATEGORIES FOR LEGAL IMMIGRANTS AS PART OF COMPREHENSIVE FEDERAL
IMMIGRATION REFORM?
FISCAL EFFECT : As currently in print this measure is keyed
non-fiscal.
SYNOPSIS
According to the author, current federal immigration policy
frustrates economic growth and job creation in the U.S. because
it allows for an inadequate number of visas for skilled workers
in key employment categories. The result of this policy is that
many innovative immigrants and highly skilled workers end up
returning to their home countries and starting new businesses
that compete with American companies for market share and create
wealth and jobs overseas instead of here in California. As
proposed to be amended, this noncontroversial measure calls for
the Legislature to urge Congress and the President to establish
new entrepreneur and STEM-related visa categories, as described
below, as part of comprehensive federal immigration reform. The
former is intended to facilitate foreign-born entrepreneurs to
stay in this country and start new businesses, thereby creating
jobs and fueling economic growth. The latter, known as the
"STEM-related visa", is intended to allow a greater number of
resident aliens who have earned a master's degree or a doctorate
degree at a U.S. university in science, technology, engineering,
or mathematics (STEM) to stay in this country and obtain legal
permanent resident status. Creation of entrepreneur and STEM-
related visas were proposed at the federal level earlier this
year with the introduction of bipartisan legislation (S.310 and
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H.R. 714) in the 113th Congress. This measure was unanimously
approved by the Senate and has no known opposition.
SUMMARY : Makes a number of legislative findings about the
entrepreneurial contributions of immigrants to the U.S. economy,
and urges Congress and the President to establish new
entrepreneur and STEM-related visa categories, as described, as
part of comprehensive federal immigration reform. Specifically,
this measure :
1)Finds that the United States is a nation of immigrants, with a
long history of welcoming indigents from other nations and
giving them a chance at achieving the American Dream, and that
immigrants have formed the backbone of the nation's economy.
2)Finds that open economies grow faster than closed ones, and as
a beacon of hope, America has historically had an unbeatable
advantage over societies that shut immigrants out, or stifled
their creative and innovative spirit, and that the U.S.
economy has been enriched by the innovative and
entrepreneurial spirit of immigrants from around the world.
3)Finds that, according to the Kauffman Foundation on
Entrepreneurship, more than 40 percent of current Fortune 500
companies, including Apple, Google, and eBay were founded by
first- or second-generation Americans, and these companies
employ more than 10 million people.
4)Finds that foreign nationals residing in the United States
were named as inventors or co-inventors in one-quarter of all
patent applications filed in 2006.
5)Finds that fifty-two percent of Silicon Valley startups
between 1995 and 2005 were founded or cofounded by immigrants,
generating $52 billion in revenues and employing 450,000
workers.
6)Finds that, according to scholars at Harvard and Duke
Universities, the national rate of startups by immigrants has
dropped to 42 percent in the past seven years; and that the
number of foreign nationals with advanced degrees awaiting
permanent-resident status in the United States has grown to
over one million in the past several years.
7)Finds that under current law, only around 120,000 visas are
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available annually for skilled workers in key employment
categories and only 7 percent of these visas can be allocated
to immigrants from any one country, meaning that immigrants
from countries with large populations, like India and China,
have access to only 8,400 visas per year despite being the
source of the vast majority of startups in the United States.
8)Finds that the result of this policy is that many of these
highly skilled immigrants must wait more than a decade for
visas; and that many of these highly skilled innovators are
deciding instead to return home, or immigrate to other
countries that welcome them with open arms. As a result,
these innovators are founding companies in these other
countries and competing with American companies for market
share.
9)Declares that the issue of illegal immigration has taken on
national prominence in recent years and the resolution of the
broader issue should be the result of bipartisan efforts.
10)Finds that entrepreneurs and highly skilled workers can
contribute to the continued success of the nation and further
the development of an innovation-based economy that will help
future generations compete in the global marketplace.
11)Finds that United States Senators Jerry Moran (R-Kansas),
Mark Warner (D-Virginia), Chris Coons (D-Delaware), and Roy
Blunt (R-Missouri) have introduced S. 310, and United States
House Representatives Michael Grimm (R-New York), Loretta
Sanchez (D-California), and others have introduced H.R. 714 in
the 113th Congress of the United States, and this legislation
is known as the Startup Act 3.0.
12)Finds that there has been bipartisan support in Congress for
proposed changes to immigration law seeking to create new jobs
and drive economic growth, such as:
a) Creation of an Entrepreneur's Visa for up to 75,000
legal immigrants who start up new businesses to create jobs
in the United States with a path to permanent residency if
their businesses continue to hire more workers.
b) Authorization to adjust the status of not more than
50,000 aliens who have earned a master's degree or a
doctorate degree at an American institution of higher
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education in a STEM field (Science, Technology,
Engineering, or Mathematics) to that of aliens
conditionally admitted for permanent residence to remain in
this country.
c) Elimination of per-country caps for employment-based
immigrant visas.
13)Resolves that the Legislature urge Congress and the President
to establish new entrepreneur and STEM-related visa categories
for legal immigrants as part of comprehensive federal
immigration reform.
EXISTING LAW provides for the regulation of immigration
exclusively by the federal government. (E.g., LULAC v. Wilson,
908 F. Supp. 755, 786-87 (C.D. Cal. 1995).)
COMMENTS : The author describes the reason for the measure as
follows:
Under current law, only around 120,000 visas are available
annually for skilled workers in key employment categories,
and only 7 percent of these visas can be allocated to
immigrants from any one country. Immigrants from countries
with large populations, like India and China, have access to
only 8,400 visas per year despite being the source of the
vast majority of startups in the United States. The result
of this policy is that many of these highly skilled
immigrants must wait more than a decade for visas. Many of
these highly skilled immigrants must wait more than a decade
for visas; and that many of these highly skilled innovators
are deciding instead to return home, or immigrate to other
countries that welcome them with open arms. As a result,
these innovators are founding companies in these other
countries and competing with American companies for market
share.
For these reasons, the author believes that federal immigration
reform should include the creation of two new visa categories,
known as the Entrepreneur Visa and the STEM-related visa,
respectively. The former is intended to encourage foreign-born
entrepreneurs to start new businesses in this country, thereby
creating jobs and fueling economic growth. The latter, known as
the "STEM-related visa" is intended to allow a greater number of
resident aliens who have earned a master's degree or a doctorate
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degree at a U.S. university in science, technology, engineering,
or mathematics (i.e. a "STEM"-related field) to stay in this
country and obtain legal permanent resident status. As a
result, the author contends, fewer of these highly educated and
skilled individuals will be forced to return to their home
country at the conclusion of their degree program, and more will
have the opportunity to invest their skills and education in
jobs and industries that will benefit the U.S. economy instead.
Background on Startup Act 3.0. In February 2013, legislation
known as the Startup Act 3.0 was introduced in both houses of
the 113th Congress by a bipartisan group of legislators
(specifically S.310 in the Senate, and H.R. 714 in the House).
Under this proposal, entrepreneur visas would be extended only
to immigrants who are already here on a student visa or a H1-B
visa for specialized skilled workers. The Act requires the
immigrant, within the first year of the visa, to make an
investment of at least $100,000 in the business and employ at
least two full-time employees who are not family members. Upon
meeting these requirements, the immigrant would be permitted to
stay in the U.S. for an additional three years on the visa,
during which time he or she must hire at least five more
full-time employees. LPR status would then be available for
entrepreneurs reaching this last benchmark. In addition, the
Act would make available to foreign graduates of American
universities with advanced degrees in STEM fields a new type of
visa that would allow a stay of five years, after which time the
visa holder could apply to become a legal permanent resident.
Background on proposed federal immigration reform. On June 27,
2013, the United States Senate passed S. 744, known as the
Border Security, Economic Opportunity, and Immigration
Modernization Act of 2013. This historic legislation-approved
by a bipartisan 68-32 vote in the Senate-proposes to make
sweeping changes to federal immigration law.
Among other things, the bill in its current form would create a
road to citizenship for many immigrants who do not now have
legal immigration status. These immigrants would be able to
apply for registered provisional immigrant (RPI) status provided
that they: (1) have been physically present in the U.S. on or
before December 31, 2011; (2) have been continuously present in
the U.S. from December 21, 2011 until the date of application
for RPI status; (3) have settled any assessed federal tax
liability; (4) have not been convicted of certain crimes; and
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(5) have not been a lawful permanent resident, asylee, refugee,
or in lawful nonimmigrant status (with some exceptions) on April
16, 2013. (National Immigration Law Center (July 2013) at
http://nilc.org/irsenateS744faq.html .) Individuals admitted to
RPI status could obtain a work permit and be allowed to travel
outside the U.S. and then return, and would be eligible to apply
for lawful permanent resident status ("green card") status after
another 10 years. At that point, persons with LPR status would
probably have to wait another 3 years to be eligible to apply
for U.S. citizenship.
In order for this comprehensive immigration reform bill to
become law, it must first be approved by the U.S. House of
Representatives and then signed by the President. At the time
of this analysis, it is not known what action, if any, the House
will take to consider S. 744 or comprehensive immigration reform
generally. It is also not known whether Congress will take any
action to pass the Startup Act 3.0, or alternatively, to
incorporate provisions for entrepreneur and STEM-related visas
into comprehensive federal immigration reform this year.
Author's proposed amendments. As currently in print, this
measure urges the Legislature to urge Congress and the President
to enact S.310, the Senate version of Startup Act 3.0.
Subsequent to introduction of this measure, however, the U.S.
Senate passed S. 744, as discussed above, considered by many to
be an early step towards proposed comprehensive immigration
reform.
In part because of the uncertainty surrounding political
developments at the federal level, the author has proposed to
amend the measure so that it no longer expressly has the
Legislature urge federal lawmakers to enact S.310, but more
generally calls for creation of the visa categories outlined by
the Act. As proposed to be amended , the measure calls on the
Legislature to urge Congress and the President to establish new
entrepreneur and STEM-related visa categories as part of
comprehensive federal immigration reform.
Previous Related Legislation: AJR 37 (De Leon), Res. Chapter
62, Stats. 2010, specified principles for repairing the nation's
broken immigration system and urged Congress and the President
to take a comprehensive and workable approach to improving the
nation's immigration system using those principles.
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AJR 3 (Alejo), Res. Chapter 77, Stats. 2013, specified goals for
the reform of the nation's immigration system, and urged
Congress and the President to take a humane and just approach to
solving the nation's broken immigration system.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334